Doomed to depreciate? Ageing 99-year properties and the question of value
Experts say that lease decay may not always mean a depreciation in prices and capital value
Add BT as a preferred source
THERE is a common understanding that the value of one’s home is intrinsically tied to its remaining tenure. An older 99-year leasehold condominium, for instance, is likely to see its market price decline as the lease runs down.
But experts said this is not necessarily the case in reality. Much depends on market conditions and the property’s locational attributes.
And in a robust market, the “depreciation effects of a declining lease may be overlooked”, said Cushman & Wakefield research head Wong Xian Yang.
TRENDING NOW
Singapore developer in limbo after Timor-Leste’s shock scrapping of major township project
On the board but frozen out: The Taib family feud tearing Sarawak construction giant apart
US-China summit: Trump sees ‘better’ ties, Xi warns over Taiwan, as talks conclude
That ‘cheap’ Malaysia condo could cost Singapore buyers far more than they think
