Many people are convinced that freehold properties are better than 99-year properties. But what they fail to understand is that there are several factors to consider even before choosing between freehold or 99-year. Let's explore some of these factors.
3 Important Factors
Price Gap
There used to be a fairly large disparity between freehold and 99-year properties in terms of new launches in the OCR with a 28.52% difference. This gap has shrunk by a lot over the years with only a 2.97% price difference now.
Even when we look at the resale market for OCR, the price gap between freehold and 99-year leasehold properties also shrunk from 14.91% to 5.24% over the past 10 years.
Prices of New Launch
Looking at the prices of new launches in 2024, we took the top 10 most popular developments to see what prices are like in the current market.
And if you notice the new launches in OCR that will be coming up in 2024 and 2025, we can tell that the estimated launch will be between $2,100 to $2,300 psf.
Right Entry Price
To sum it up, a 99-year new launch in the OCR has an average price of $2,1xx psf, while the upcoming OCR new launch would prove to exceed this amount, bringing the total average price of OCR developments higher.
What if there is a new launch in the OCR that is selling at $1,9xx psf ? Would that be a safe entry price you think?
Watch the video below to find out more and reach out to your preferred PropNex Associate to discuss!
Eric Choy
CEA NO. : R069045E
Disclaimer:
PropNex Realty Pte Ltd or its salespersons will not be responsible for any errors or omissions or for the results obtained from the use of this information. All information is provided with no guarantee of accuracy. If in doubt, kindly seek appropriate advice from your financial advisors or bankers before you make any property investment decision.
