Ageing 99-year leasehold condos still appreciate, but lag benchmark median gain

A COMMON perception is that an ageing 99-year leasehold condominium is likely to see price declines as its lease decays, but a new study has found quite the opposite.

In examining transaction data of such condos that are at least 35 years old, ERA Research & Consultancy has observed that their prices have continued to increase over the past 13 years (See table).

The team went through almost 1,000 condos to arrive at a group of 64 condos aged over 35 years. This means 13 years ago, they were already at least 22 years old and starting to age.