Lease Decay
What is lease decay?
Lease decay is the fall in a leasehold property's value as its remaining lease gets shorter, because the land returns to the State when the lease ends. The government's own Leasehold Table shows the pattern: a lease with 99 years left is valued at 96% of freehold, 60 years at 80%, 30 years at 60% and 10 years at 30%.
Key facts
- Why it happens
- Leases are generally not renewed; the land reverts to the Government on expiry
- Leasehold Table: 99 years left
- 96.0% of freehold value
- Leasehold Table: 60 years left
- 80.0% of freehold value
- Leasehold Table: 30 years left
- 60.0% of freehold value
- Leasehold Table: 10 years left
- 30.0% of freehold value
- Financing effect
- CPF use and HDB loans are pro-rated if the lease can't cover the youngest buyer to age 95
As of 6 Nov 2026. Source: URA, SLA, CPF Board.
How lease decay works
A leasehold home is a shrinking asset in one specific sense: each year, the next owner gets one year less. Singapore’s lease policy is to let State leases expire, so the land and buildings generally revert to the Government at the end. Renewal is considered only case by case, with a land premium.
The government’s Leasehold Table
URA’s circular on the Land Betterment Charge includes a table that expresses a remaining lease as a percentage of freehold value. Selected values:
| Years remaining | % of freehold value |
|---|---|
| 99 | 96.0% |
| 90 | 94.6% |
| 80 | 91.0% |
| 70 | 86.0% |
| 60 | 80.0% |
| 50 | 74.7% |
| 40 | 68.5% |
| 30 | 60.0% |
| 20 | 48.0% |
| 10 | 30.0% |
| 5 | 17.1% |
The curve is gentle at first and steep at the end. In the first 39 years of a 99-year lease, the table value falls from 96% to 80%. In the last 50 years, it falls from 74.7% to zero.
Example
You compare two flats of the same size in the same area, using the table as a rough guide to relative land value:
| Flat | Years left | Table value | Relative to the newer flat |
|---|---|---|---|
| A | 90 | 94.6% | 100% |
| B | 50 | 74.7% | About 79% |
Flat B’s land would be worth about a fifth less under the table. Actual prices also depend on location, condition, upgrading and demand, so treat this only as a starting point.
Common mistakes
- Using the table as a price guide for a specific flat. It is a valuation table for government charges, not a market forecast.
- Ignoring financing rules. The age-95 rule for CPF and HDB loans limits how much later buyers of an older flat can borrow and use from CPF.
- Assuming en bloc will rescue an old lease. Collective sales need a high consent threshold and a buyer, and are not guaranteed. See en bloc.
Frequently asked questions
Is the Leasehold Table a forecast of HDB or condo prices?
No. URA and SLA use it to adjust the Land Betterment Charge for State leases with 99 years or less remaining. It shows how the government values a remaining lease against freehold, not what any home will sell for.
Does lease decay happen at a steady rate?
Not under the table. Value falls slowly while the lease is long and much faster near the end: the table drops 16 points between 99 and 60 years left, but 50 points between 60 and 10 years left.
How do government rules make shorter leases harder to sell?
Buyers can use CPF and take HDB loans in full only if the remaining lease covers the youngest buyer to age 95. Below that, both are pro-rated, and with fewer than 20 years left, CPF can't be used at all. This narrows the pool of buyers who can finance the purchase.
Related terms
Sources
- Land Betterment Charge circular DC22-08, Appendix 2: table of leasehold values as a percentage of freehold value (URA)
- Land Betterment Charge arising from planning applications (circular DC22-08) (URA)
- Lease policy (SLA)
- How much CPF savings can I use to buy a property if its lease does not cover the youngest buyer to age 95? (CPF Board)
Every figure on this page was checked against the official government sources above on 6 Nov 2026. See our editorial policy.
This is general information, not financial, legal or tax advice.