What is a 99-year land deed?
Oct 13, 2022
By   Internet
  • Guide
  • Land deed
  • house deed
  • '99 land deed
Abstract: On December 31 last year, the first private residential land lease in Singapore since the founding of the country expired.

A property with a 99-year lease is a rental property, which means that the property has a time-limited lease term. Most houses will be returned to the Housing Development Board and the land use rights will be returned to the government after the expiration of 99 years.


So is it true that the house will be repossessed after the lease expires?


The answer is yes. On December 31 last year, the first private residential land lease in Singapore since the founding of the country expired. The land deeds of 191 old row houses located in Geylang Three Lane expired, all the residents moved out and the land was officially returned to the government, and the owners will not be compensated.


Of course, 99 years old property with title deeds has its advantages.


1. 99-year deeded properties are relatively inexpensive and cost-effective for investment.


With the same location, configuration and size, the price of a 99-year property will be 15-20% lower than that of a freehold property.


For investors, the total price is low, the down payment is low, and the loan pressure is low. The rental income is not much different from the property with freehold deed, and the appreciation rate of the property in 20 years is comparable to the property with freehold deed, so the investment cost will be higher, especially suitable for short-term investment.


2. 1999 leasehold properties are more accessible and have more options.


Since the Singapore government has not launched any freehold projects since the founding of the country, more than 80% of the real estate projects on the market are 99 years old.


This also means that 99 year title deed properties make up the majority of the properties and buyers have a lot of options to choose from. And these properties are usually more conveniently located, closer to subway stations and schools, and have better supporting facilities.


3. 99-year title deeds have more choice of lots.


What is the most important thing to buy a house?


Location is always the most important factor to consider when buying a property.


A 99 year lease condo will have a better price increase than a freehold property in an average location.


So, if you have to choose between a 99-year leasehold condominium in a better location and a freehold condominium in an average location, the former is naturally better.


Features of 99-year lease in Singapore


1. 99 year old land leases are bigger in size and have better facilities.


The 99 year lease has a larger real estate market and larger area. As a compensation for the privacy and the age of the land lease, the amenities are usually better and the life is more convenient.


Whether it is for children to go to school, adults to work, or the elderly to retire, it will be more convenient.


2. 99-year deeded properties are traded more frequently and are easier to close.


Compared to freehold properties, 99-year deeded properties have a wider audience, a higher closing rate and more potential buyers. Whether for investment or owner-occupation, sellers can liquidate the property faster and have more flexibility in the form of equity.


3. 99-year deeded properties are located in hot new residential areas.


If you are looking at a popular new construction neighborhood, then you will have to choose a property with a 99-year land lease, as these new construction neighborhoods basically do not have a freehold.