Why Resale Private Homes Will Stay in Demand—And Why Leasehold vs Freehold May No Longer Matter
- Megan Soo
- Apr 18
- 2 min read
Singapore’s private resale housing market is showing strong resilience—and all signs point to continued demand in the months (and even years) ahead. If you’re a buyer, seller, or investor, here’s what you need to know about why resale properties remain attractive—and why the old debate between leasehold and freehold condos is starting to shift.
Resale Private Homes: Demand Will Remain High
Despite rising interest rates and economic uncertainty, the resale market surged in 2024, with resale transactions rising by 25% year-on-year. What’s behind the strong demand?
1. Price Gap Between New Launches & Resale Units
One of the key reasons is the widening price gap between new and resale condos. Resale units, on average, are about 37.2% cheaper than new launch counterparts in similar locations. With prices for new private homes continuing to climb, many buyers are turning to the resale market as a more affordable alternative.
2. Limited Supply
There’s a supply crunch in the pipeline—especially in prime and city fringe areas. From 2025 to 2028, the supply of new private homes is expected to fall well below the 10-year average, putting further pressure on resale units.
3. HDB Upgraders Fueling Demand
Many resale buyers are former HDB owners who recently sold their flats at record-high prices. These upgraders are looking for move-in ready, spacious units—often choosing resale condos that offer better value than new launches.
4. Good-Quality, Move-in Ready Homes
Buyers today, especially families, want immediate availability and larger spaces. Resale units in mature estates with amenities, MRT access, and schools nearby are ticking all the right boxes.
Leasehold vs Freehold: Does It Still Matter?
Traditionally, freehold condos were prized for their long-term value. But in today’s market, the profitability gap between leasehold and freehold condos has narrowed—especially for homes near MRT stations.
Key Findings:
The median profit for leasehold condos is catching up to that of freehold units.
In 2024, leasehold projects near MRT stations posted median profits of $23,500 to $340,000, narrowing the historical gap.
Buyers are now prioritizing location, amenities, and connectivity over tenure. If a leasehold unit is well-located and near transport and schools, it often outperforms a poorly located freehold condo.
What’s Driving This Shift?
Rising costs of living and high home prices mean buyers are now more price-sensitive.
Leasehold projects tend to be more affordable upfront, giving them a stronger appeal.
More buyers are looking at returns over tenure—especially if they plan to sell within 10–15 years.
What This Means for You
Whether you’re eyeing a private resale home or choosing between leasehold and freehold, here’s what to consider:
For Buyers: Resale homes offer better value and availability. Don’t get overly fixated on tenure—focus on location, layout, and amenities.
For Sellers: If you own a well-maintained leasehold unit in a great location, don’t underestimate its resale potential.
For Investors: With the narrowing profitability gap, leasehold condos near MRT stations are worth a serious look.
In today’s market, value is no longer just about freehold tenure—it's about livability, connectivity, and smart buying.
So again, leasehold vs freehold, which is a better option? Need help navigating the resale landscape or figuring out your next move? Let’s chat—I’m just a message away.
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