SINGAPORE: According to a recent report by Huttons Data Analytics, non-landed homes in Singapore that are either freehold or on a 999-year lease represent over 40% of the total condominium supply. This significant proportion contrasts with the common perception that such properties are exceedingly rare, although analysts warn that the supply of such flats could dwindle in the future.
Huttons’ analysis reveals that out of the approximately 328,305 non-landed housing units across Singapore, more than 142,000 are on either 999-year leases or are freehold. In contrast, around 56% of the stock, equating to over 185,000 units, consists of properties on 99-year leases.
The firm attributes the current substantial number of long-lease and freehold homes to historical land sales.
“The large number of 999-year/freehold homes may come as a surprise since they are currently billed as rare. These properties were built on land sold before Singapore’s independence in 1965,” Huttons explained.
Since then, residential plots have predominantly been sold on 99-year leases, leading to a constrained future supply of freehold and 999-year leasehold homes.
Looking forward, Huttons predicts that the availability of 999-year/freehold non-landed homes will diminish.
“New supply is extremely limited and hinges solely on the successful en-bloc and intensification of older developments. In the future, 999-year/freehold non-landed homes will become rarer and may hold their value better,” the firm stated.
The existing stock of long-lease and freehold properties is concentrated in ten districts: 10, 15, 9, 21, 14, 11, 12, 23, 19, and 5. These districts collectively account for nearly 84% of the current supply of such housing.
TISG/