What are freehold condominiums in Singapore?
Freehold condominiums refer to a type of ownership where the buyer possesses both the purchased unit and the land it is constructed on.
Due to limited land availability and a growing population, the majority of condominiums in Singapore are on a 99-year lease. Freehold and 999-year leases have become less common in recent times.
As such, these condos are often considered more favourable investment opportunities and typically command higher prices than similar leasehold condos.
Leasehold vs freehold – What’s the difference?
The primary distinction between the two types of land titles lies in the ownership of the land where your property is situated.
In the case of freehold properties, you have complete ownership and rights over the property without any government control.
In contrast, leasehold properties are built on land that the government owns. As the owner of a leasehold property, you hold the rights to the property for a specified duration of 99 or 999 years. Once the lease period expires, the land ownership reverts to the State unless the lease has been renewed before its expiration.
Will I always own my freehold condominium in Singapore?
There is a common misconception that freehold properties in Singapore are exempt from government acquisition and can be held indefinitely. However, this might not always be the case.
Although a condominium may hold a freehold status, it does not guarantee perpetual freehold tenure. Given Singapore’s limited land area and the ever-evolving nature of the country, the government has the authority to reclaim land on which freehold properties are built by invoking the provisions of the Land Acquisition Act (LAA) for development purposes.
While homeowners will receive compensation at market value, this process may not be as ideal as having the ability to sell the property on one’s own terms.
Another circumstance that may result in freehold condo owners losing their property earlier than anticipated is through collective en bloc sales. In such cases, property developers can acquire the entire estate’s land if at least 80% of residents within your development consent to it.
How do I know if my property is freehold or leasehold?
To ascertain the title of a property, it is necessary for each land parcel in Singapore to be officially registered in the Land Titles System as mandated by the Land Titles Act 1993.
This registration ensures that the property holds legal recognition in the Singapore Court of Law. Property details, including land titles information, can be obtained by conducting a search in the Integrated Land Information Service (INLIS). Note that this may be subject to a nominal fee.
