Freehold's premium may provide clue on valuing infrastructure spend
Buyers are willing to pay a premium of 15-20 per cent for freehold tenures over a 99-year leasehold condominium
Singapore
PROPERTY buyers in Singapore value freehold tenures enough to dish out a premium of 15-20 per cent over a 99-year leasehold condominium, going by findings from a study by the National University of Singapore (NUS).
From studying condominium transactions in Singapore over 1995 to 2015, the researchers found low and declining long-run discount rates, with market discount rates declining to levels below previous estimates.
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