Property Guide | Lease decay | October 2026

If your home is your retirement plan, the number that matters most may not be its price today. It is how many years are left on the lease when you need to sell, because that decides who can still borrow to buy from you. Lease decay does not wipe out a flat or condo overnight. It quietly shrinks your pool of buyers, year by year, until the people who can pay a good price can no longer use their CPF or get a full loan. The owners who do well sell or upgrade before that happens.

Direct answer

Lease decay is the loss of value in a leasehold home as its remaining lease runs down. On the SLA leasehold table that valuers use, often called Bala's Table, 60 years left is worth about 80% of freehold, 30 years about 60% and 25 years about 54.6%, as reported by EdgeProp. In practice, the bigger effect is on financing: CPF can be used in full only if the lease covers the youngest buyer to age 95 (CPF Board), so fewer buyers can afford an older home. Plan to sell or upgrade while most buyers can still finance your home in full.

96%Of freehold value at 99 years left
91%At 80 years left
80%At 60 years left
60%At 30 years left
54.6%At 25 years left
Age 95Lease must cover youngest buyer for full CPF use

Source: SLA leasehold table values as reported by EdgeProp; CPF Board rules on using CPF for property.

Why lease decay should shape your next move

Pay attention to lease decay if most of your wealth is in a leasehold home, you plan to sell or right-size in the next 10 to 20 years, and your home is already 30 years old or more. That is when the timing of your sale starts to matter more than the market.

Your buyers' financing sets your price

CPF can be used in full to buy a home only if the remaining lease covers the youngest buyer to age 95. If it does not, the amount of CPF they can use is reduced (CPF Board). Banks also lend less when the lease will not last the buyer's lifetime. A couple in their 30s buying a home with 55 years left will face limits that a buyer of a 90-year lease will not. When fewer buyers can borrow in full, fewer can pay your asking price.

The decline is slow, then faster

On the SLA leasehold table, a home loses only a few percent of its land value relative to freehold in its first 20 years. From 60 years left onwards, the curve steepens: 80% at 60 years, 60% at 30 years, 54.6% at 25 years (EdgeProp). In the early decades, rising prices usually hide the effect. Later, they may not.

Upgrading early keeps your options open

Selling an older leasehold home while buyers can still finance it in full lets you move into a home with a longer lease, or into freehold, on your terms. Waiting until the lease is short can mean accepting a lower price from a smaller pool of buyers.

Who does not need to worry yet

  • You own freehold or 999-year property. Lease decay does not apply in any practical sense.
  • Your home has more than 70 years left and you plan to sell within 15 years. Most buyers will still be able to finance it in full.
  • You will live in the home for the rest of your life and do not need to sell. The resale price matters less, though it still affects what you can pass on.

Hold, sell or upgrade: which fits you?

There is no single right answer. It depends on your age, your lease and what you want the home to do for you.

Hold
Stay in your current home
Works whenThe lease outlasts you, and you do not need to release cash
RiskA lower sale price later if plans change
Choose it ifYou are settled and your retirement does not depend on selling
Sell and upgrade
Move to a longer lease or freehold
Works whenYour buyers can still use CPF and loans in full
RiskHigher price and stamp duties on the next home
Choose it ifYou are in your 40s or 50s and want your wealth on a longer clock
Sell and right-size
Move to a smaller home and release cash
Works whenYou need retirement income or want less upkeep
RiskMoving costs and choosing the wrong next home
Choose it ifYour children have left and the home is bigger than you need

What the market isn't telling you

1. Rising prices can hide decay for decades

For the first 20 to 30 years, most leasehold homes rise in price because the market rises faster than the lease runs down. Owners see gains and assume the lease does not matter. It starts to matter when the market flattens and the lease is short enough to limit buyers' financing.

2. En bloc is a possibility, not a plan

Private condo owners can sell collectively, and a new law passed in September 2026 lowers the consent threshold to 70% for estates aged 40 to 59 years once it takes effect (EdgeProp). But many older estates have tried and failed, often because no developer would pay the price. My Braddell View review shows how that plays out. Treat an en bloc as a bonus, never as your exit.

3. HDB owners have fewer exits

HDB flats cannot be sold en bloc by their owners. SERS, the government's selective redevelopment scheme, applies only to a small number of estates chosen by HDB. For most HDB owners, the realistic exit is to sell on the open market while buyers can still finance the flat.

Key points to remember

Working in your favour
  • Little decay in the first 20 years of a lease
  • Market growth often outweighs decay early on
  • Selling early keeps the full buyer pool
  • Freehold and 999-year homes avoid decay
  • En bloc can sometimes reset the clock
Working against you
  • Value falls faster after about 60 years left
  • CPF limits for buyers when the lease is short
  • Banks lend less on shorter leases
  • En bloc attempts often fail
  • HDB owners have fewer exit options

Would you rather

A. Sell your 35-year-old leasehold condo now, at today's price, to a buyer who can still use CPF and a loan in full, and move into a home with a longer lease.

B. Hold for another ten years, hoping for an en bloc or a market rise, and sell later with about 50 years left.

James picks A, for owners in their 40s or 50s whose retirement depends on the home's value. You sell to the widest pool of buyers and put your wealth on a longer clock. If you are settled for life and do not need the sale proceeds, B is reasonable, as long as you accept the risk of a lower price later.

What I think you should do

Find out exactly how many years are left on your lease, then work out the age of a typical buyer for your home. If the lease will not cover that buyer to age 95 within the next five to ten years, that is your planning window. Run the numbers on selling within it, using my funds gap check to see what you could buy next.

If you are comparing older resale homes with new launches, read my resale condo pros and cons guide. For CPF, retirement planning and financing, speak to a licensed financial adviser for advice specific to your situation.

James's Note I meet many owners in their late 50s who planned to sell and right-size, only to find that the buyers who could pay their price cannot get the loan. The home has not lost much value on paper. It has lost buyers. Lease decay is not a reason to panic. It is a reason to plan. Know your lease, know who your buyer will be, and sell while that buyer can still afford you. James Ong, CEA Reg No. R008385F, PropNex Realty

Frequently asked questions

What is lease decay?+ Read- Hide

Lease decay is the fall in value of a leasehold home as its remaining lease gets shorter. Each buyer gets fewer years of use, so they pay less. On the SLA leasehold table used by valuers, the decline is slow in the early decades and faster once about 60 years or fewer remain.

What is Bala's Table?+ Read- Hide

It is the common name for the SLA leasehold table, which values a leasehold interest as a percentage of freehold. As reported by EdgeProp, 99 years left is about 96% of freehold, 80 years about 91%, 60 years about 80%, 30 years about 60% and 25 years about 54.6%.

Can buyers use CPF for a home with a short lease?+ Read- Hide

CPF can be used in full only if the remaining lease covers the youngest buyer to age 95. If it does not, the amount of CPF that can be used is reduced (CPF Board). This narrows the pool of buyers for homes with shorter leases.

When should I sell a leasehold property?+ Read- Hide

Plan to sell while most of your likely buyers can still use CPF and bank loans in full. For many homes, that means before about 60 to 65 years remain. The right time depends on your own plans, your next home and market conditions.

Who does not need to worry about lease decay?+ Read- Hide

Owners of freehold or 999-year homes, owners of homes with more than 70 years left who plan to sell within about 15 years, and owners who will live in the home for life and do not need to sell. It still affects what you can pass on.

Can an en bloc save my older condo from lease decay?+ Read- Hide

Sometimes, but do not rely on it. A new law passed in September 2026 lowers the consent threshold to 70% for estates aged 40 to 59 years once it takes effect (EdgeProp), but many older estates have tried and failed to sell. Treat an en bloc as a bonus, not an exit plan.

Not sure when to sell?

Send me your address and your plans. I'll check the lease left, who can still finance your home today, and what that means for when you should sell. You get the working in writing. No pitch.

WhatsApp James
Sources+ Show all 9- Hide
  1. EdgeProp, leasehold versus freehold, with SLA leasehold table values
  2. EdgeProp and Yahoo News Singapore, has lease decay set in for HDB flats?
  3. EdgeProp, perils of owning ageing leasehold properties
  4. The Edge Singapore, leasehold land: valuations are transparent
  5. CPF Board, using CPF for property and remaining lease rules
  6. MAS, loan-to-value limits for residential property loans
  7. HDB, Selective En bloc Redevelopment Scheme
  8. EdgeProp, en bloc threshold could fall to 70% for older developments, August 2026
  9. Yahoo News Singapore, new collective sale framework, September 2026
Disclaimer & Licensing+-

This article is for informational and educational purposes only. It does not constitute financial, investment, or legal advice. Property investments involve risk. Past performance is not indicative of future results. Readers should seek independent advice from licensed professionals before making any property or financial decision. James Ong is a licensed real estate salesperson (CEA Reg No. R008385F) with PropNex Realty Pte Ltd and is not a licensed financial adviser.

James Ong | CEA Reg No. R008385F | PropNex Realty Pte Ltd