Wondering if you should buy a 99 year tenure lease landed? Most landed buyers only consider freehold properties, however, in recent years, 99 years tenure strata-landed have been selling well.
Everyone knows buying freehold properties is the safer option as you need not worry about tenure. However, in Q4 2017, many developers have gone to an en-bloc spree, buying 99 years leasehold development over freehold developments. Why is it developers prefer 99 years leasehold?
- Leasehold owners have more urgency to sell as compared to freehold owners. Making leasehold owners easier to come to an agreement to sell.
- 99 years tenure plots are usually bigger than freehold developments. Hence there is more flexibility for developers to increase plot ratio and earn profit.
- 99 years leasehold buyers would have bought their unit for a lower price, hence developers would rather buy over their units as compared to freehold owners who would ask for a much higher price.
One such well selling 99 years tenure landed is Victoria Park Villas, starting at just 3.9million compare to its freehold neighbours which cost double the price at 8million for a semi-detached. With it’s approximately to renown schools such as Nanyang and Raffles Primary School, owners get to enrol your children to these schools without paying a drastic price.