Without proper evaluation, property buyers risk encountering hidden defects that can lead to costly repairs and renovations. Overpaying is another common pitfall, often due to a lack of market knowledge and financial analysis.

Market prices can be deceiving. As a 99-year leasehold property ages, it faces two “invisible” barriers that can trap your capital and shrink your pool of future buyers.

Understanding Asset Lifecycles: Bala’s Curve

Leasehold value doesn’t decline in a straight line — it follows a curve. Based on the Bala’s Table used by the Singapore Land Authority, a fresh 99-year leasehold property starts at about 96% of its freehold equivalent value. Value holds relatively steady for the first few decades, then depreciation accelerates: by around 60 years remaining, a unit typically retains only about 80% of freehold value, and the decline speeds up further as the lease shortens. This is why timing your sale — and understanding CPF and loan eligibility cutoffs — matters more the older the lease gets.

The “Loan Barrier”: The 95-Year Rule

This is the biggest hurdle for your future exit strategy. To use full CPF and secure a maximum bank loan, the Remaining Lease + Buyer’s Age must be at least 95 years.

• The Trap: If your property has only 55 years left, a 30-year-old buyer faces massive cash outlays because they cannot use their full CPF. This significantly lowers your selling price and increases the time it takes to find a buyer.