Leasehold vs Freehold Sales in District 15

Leasehold vs Freehold Sales in District 15

Choosing between leasehold and freehold properties in District 15 depends on your investment goals, budget, and long-term plans. Leasehold condos offer a lower entry point and can be ideal for short to medium-term investments. On the other hand, freehold condos provide lasting value and stability, making them a worthwhile consideration for those seeking long-term gains and legacy planning.

Understanding these dynamics can help you navigate the property market in District 15 more effectively and make a choice that aligns with your financial objectives and lifestyle preferences.

Let’s break down the sales trends and key factors to help you make an informed decision.

Leasehold vs Freehold Sales in District 15

Sales Trends

Leasehold Condos:

• Price per Square Foot (Psf): Leasehold condos in District 15 range from $2,108 to $2,904 psf, with an average of $2,528 psf.
• Price Range: These properties are priced between $1,093,000 and $5,200,000, averaging at $2,229,092.
• Volume: A total of 771 leasehold condo units have been sold.

Freehold Condos:

• Price per Square Foot (Psf): Freehold condos range from $1,940 to $3,023 psf, with an average of $2,688 psf.
• Price Range: Prices range from $1,463,000 to $6,406,000, with an average price of $2,343,569.
• Volume: 196 freehold condo units have been sold.

Key Differences

1. Ownership Duration:
   • Leasehold: Typically, leasehold properties come with a tenure of 99 years. This means that after the lease expires, ownership reverts back to the state unless an extension is granted.
   • Freehold: Freehold properties are owned indefinitely, offering permanent ownership that can be passed down through generations.
2. Price Trends:
   • Leasehold: Leasehold properties are generally more affordable upfront. The lower initial cost can be attractive for buyers looking to invest in prime locations without a hefty price tag.
   • Freehold: Although freehold properties tend to be more expensive, they often hold their value better over time due to the perpetual ownership and scarcity of freehold land.
3. Resale Value:
   • Leasehold: The value of leasehold properties can depreciate as the lease term shortens, especially when it drops below 60 years. Buyers may be concerned about the remaining lease period, which can affect resale value.
   • Freehold: Freehold properties usually appreciate or maintain their value better, making them a more stable long-term investment.
4. Investment Perspective:
   • Leasehold: For those looking at shorter-term investments or seeking rental income, leasehold properties can provide good returns without the higher initial capital.
   • Freehold: Ideal for long-term investors or those looking to pass on property to future generations. The higher cost is often offset by the potential for appreciation and the peace of mind that comes with perpetual ownership.