When property agents tell you Estate in Perpetutity is freehold, is it really freehold?
Freehold property refers to property that you can own for an indefinite period of time. In Singapore, there are two types of freehold titles, “Estate in Fee Simple” and “Estate in Perpetuity”.
Estate in fee simple is the superior form of freehold title granted by the state to an individual without conditions while estate in perpetuity is a freehold title subject to the terms under State Lands Act; such terms include rights of the State to have free access to land, take minerals and resources underneath the land and duty to maintain boundary marks.
Freehold properties can be acquired by the Government under the Land Acquisition Act 1966. The Land Acquisition Act gives the government the right to acquire any parcel of land in Singapore for public purposes. This compulsory acquisition by the Government is indisputable and the decision of the Government is final.
Do Property Titles Matter?
Yes, property titles can influence both value and buyer preference.
Freehold properties often command a premium due to their potential for higher capital appreciation. This is driven by the limited supply of freehold titles, immunity to lease decay, and greater control for owners over their land use.
That said, whether freehold or leasehold is “better” depends on individual needs. Leasehold properties are generally more affordable, making them attractive to buyers who prefer lower upfront costs or want to avoid locking up too much capital. Ultimately, the choice comes down to the buyer’s financial goals and priorities.