3 reasons why a Freehold new launch in RCR is a better choice than a Leasehold new launch in RCR
What is RCR?
RCR stands for Rest of Central Region. It is sandwiched between the more affordable mass-market properties in the Outside Central Region (OCR) and the higher-end luxury condos in the Core Central Region (CCR)
See below for Singapore District Map.
Reason #1 Price Gap
Looking at the chart below, the price gap between a new Freehold (FH) and a new Leasehold (LH) in RCR is very narrow. This represents a SAFE opportunity to buy FH as FH usually commands a premium over LH.
Reason #2 Safe Entry Price
We can see that a new 99LH condo in RCR costs about $2,500~$2,750psf, if you have an opportunity to get a new FH condo in RCR, 5 mins to MRT in the same price range, do you think it is a safe choice?
Reason #3: FH launches will be limited
Moving forward, freehold properties will be scarce as government has stopped offering freehold land for sale.
This means that freehold supply will only come about through en-bloc sales. (Developers buying over old developments which are FH and redeveloping them.)
With limited supply and healthy demand, the prices are extremely likely to appreciate.
