What You Need To Know About Freehold Condo Before Buying Them
Property in Singapore can be either leasehold or freehold. But what is the difference between both? A leasehold property is held for 99 years while Singapore condo freehold property is held for perpetuity.
Freehold condominiums in Singapore are desired by homebuyers especially if it’s for living there. Although freehold properties are typically more expensive than leasehold properties, property buyers find them more appealing due to their potential for appreciation over the long-term. It is difficult, however, to find a suitable freehold Singapore condo in a prime location.
What Is A Freehold Condominium?
A freehold condominium is the most common tenure type in Singapore. It is one where the property or land can be held for perpetuity, whereas a leasehold condo ownership reverts to the government at the expiry of its lease period. Freehold implies that the homeowners will bear the cost.
Nonetheless, some provisions allow the state to repossess the land of a given freehold Singapore property. The freehold property type status will come to an end if this property is in the way of a leading superhighway or in the event of an en bloc sale. Ideally, freehold condominiums should attract a higher price than a leasehold condo during redevelopment since the home owners are surrendering more.
With that said, the main advantages of freehold properties are more speculative than practical since it is very difficult to predict which factors in each case, tenancy, or location will influence the value of a freehold condo in Singapore in the long term.
Factors Surrounding Freehold Condominium
99 years is a very long time and can actually last a whole generation, so what is the fuss about whether a condo is a freehold or leasehold property?
Below are some of the factors and finance tips surrounding freehold condominiums here that might answer your question:
Location is a very important factor that determines whether people are willing to buy a unit in a freehold condo. For example, a Singapore freehold condo near Katong MRT station would outdo its counterpart in a location further away from it. Similarly, freehold condo development that is within proximity to major shopping malls and eateries will most likely beat its leasehold counterpart.
Many people tend to link the high price to high market value, but the most important question is the place where it is situated. Freehold condos at convenient locations with top-notch amenities and facilities, e.g. ease of access to transport, would generally fetch higher prices than those in not-so-convenient neighborhoods.
Therefore, make sure to assess the land size and conditions of the region where you want to be staying for a long time.
2. The Possibility Of En Bloc Sales
One thing you need to keep in mind is that even though freehold condominiums are basically yours to own perpetually, it still has en bloc potential in this situation. If there are potential candidates ready and eager to buy and all your neighbors are interested in selling a freehold condo in Singapore, an en bloc can still occur.
3. The Organization Responsible For The Condo
The group responsible for the freehold property in Singapore still has a very strong influence over what happens in the future. So if you and others in your community decide to add a facility like a swimming pool or fitness centers, then you must wait for the organization to give the green light.
They would also need to set up the facility, oversee the construction, maintenance, upkeep, and more, while you and your neighbors would just be required to pay.
In reality, the question lies in the contract you sign when buying the property, so you should certainly stay updated ahead of time. Each condo corporation picks their provisions, so you can expect different corporations to have different terms and be sure to read and understand them.
4. Investment Strategy
Experienced property investors generally already know when they want to put their home on resale even before making their purchase. For many, it’s best to sell the properties before they retire, as their market value increases whenever it changes hands.
Some foreign individuals, in particular, tend to invest short-term, because the idea of leasehold ownership is very common in countries such as China and the United States, where properties are developed as 60-year leaseholds. This means that the tenure period is not a huge matter of concern.
Instead, they consider factors such as the properties around the region that could help increase the property value. Others buy strategically to improve the structure, rent out the home, and ensure constant rental income or rental yield for a long time to come.
5. Additional Buyers Stamp Duty (ABSD)
If you have bought your freehold property but are still holding onto your previous house, you might be required to pay Additional Buyers Stamp Duty (ABSD).  In certain circumstances, this could be waived if you apply.
List of Freehold Condominiums in Singapore
Anyone who has invested in private property would desire to buy a freehold tenure property. However, many decide not to due to the high prices over comparable properties of 99-year leasehold tenure. As a result, we’ve compiled a list of freehold condos in Singapore that you should definitely take a look at.
Dunearn 386 by Roxy-Pacific Holdings Limited is a beautiful freehold condo that is located in the prestigious District 11 and consists of 35 exquisite homes. Nestled in a serene side of a private enclave close to nature’s beauty, this is located a short walk from Dunearn and Adam Road.
In addition, future homeowners will be near some of the best shopping centers and schools on the island. There are also plenty of food options within the vicinity, so you’ll always find something to suit your desired dining experience.
Meyer Mansion situated in the privately-owned Meyer Estate is a freehold condo. Tenants in the residences will be awed by the magnificent views of the ocean and low rise affluent neighborhoods. Families will enjoy staying in a tranquil home while being just a short distance away from the CBD area.
Motorists will enjoy easy accessibility via major expressways, like the Central Expressway (CTE), meaning that you’ll be at the center of world-class urban indulgences. Its nearness to the best education, in a way, makes it the best ideal choice for parents with young children.
If you would like to stay in a quiet and peaceful environment away from the city’s hustle and bustle, then you will love Amber Park of CDL homes. This new freehold condo is being developed by a trusted property developer. Known globally for their high-rise residential developments, UOL has been accorded international status for their exclusive project.
Considering the high standards of their home construction and the fact that this renowned developed has bagged ma awards, residents can rest easy knowing that their new apartment building will be of great structures and finishes with a timeless design. The new seller bought the land through the Amber Road en bloc.
The two towers, built on this freehold plot, comprise 35 floors, with each floor featuring 4 units. The new condo buyer will enjoy 24-hour security, a playground, BBQ pits, an indoor gymnasium, and the allure of a 50-meter size lap pool. The property will also feature one of the most exclusive condo entrances.
This upcoming exclusive condo is being developed by All Green Properties Pte Ltd. If you’re parents with school-going children in your home, you’ll be pleased to know that Juniper Hill of the renowned Bukit Timah collection is located just walking distance away from several excellent schools and a short drive away from the Stevens MRT line.
Fyve Derbyshire in the prime District 11 is situated along the city fringe at 5 Derbyshire Road and can be a great place to call home. It is located at the heart of Novena Planning Area and the Core Central Region.
The Fyve Derbyshire freehold property comprises 71 houses from a range of 1 to three-bedrooms apartments & penthouses with ample space. As a prospective unit owner in the residences, you’ll have the possibility of several options to choose the right home for you.
Freehold condominiums come with a lot of benefits. However, they also have their fair share of disadvantages. It’s important for first-time homebuyers to be extra careful when choosing the right freehold property (instead of leasehold properties) or where to live.
When choosing a freehold property, it’s essential that everyone understand the terms and conditions before making any decisions or offers to ensure a safe and stress-free future.
Now you know all the latest freehold condominiums in the real estate market. You can find more information, finance tips, alerts, and the latest updates on the exclusive new launches so you can make an informed decision.
If you are looking for the recently released floorplans and price lists of any new launch condo and seeking to view any condo show flat, get in touch with us today!
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