The term “lease decay” first gripped the attention of Singaporeans in 2017 when the Minister for National Development reminded the public that HDB flats are on 99-year leases — and when those leases run out, the flats return to the government, not the homeowners.
Fast forward to 2025, and the debate on lease decay continues to generate buzz, especially as $1 million dollar flats — some over 50 years old — continue to make headlines. As realtors, clients frequently ask us: “Is lease decay real? Should I still buy an old resale flat?” The answer is... it depends.
📊 Infographic: Key Takeaways on Lease Decay & HDB Flat Performance
📉 What the Data Shows
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🔁 Land value depreciates quickly with age
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80 years left: 91% of freehold value
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50 years left: ~75%
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25 years left: ~55%
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0 years: 0% (Lease expires)
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🏡 Terraced flats at Lor 3 Geylang (60-year lease) returned to SLA in Dec 2020
💰 Resilience in Older Flats Despite Lease Decay
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🏠 39 resale flats >40 years old were sold above $1 million in 2023
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💎 A 52-year-old terraced flat at Jalan Ma’mor sold for $1.568M
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📈 Price gains in older flats remain strong, particularly:
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Three-room flats (built 1966–1970) gained $67K from age 41–50
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Five-room flats (1971–1980) gained $350K once over 50 years old
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🔍 Methodology Used: Huttons Data Analytics
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Compared flats by age groups using a panel analysis
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Separated by flat type and lease commencement decade
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Controlled for factors like building height to reduce data skew
🧠 Commentary: What This Means for Buyers and Sellers
Lease decay is real in principle — a flat with a dwindling lease will eventually have a smaller buyer pool, limited CPF usage, and difficulty in securing home loans. However, the data shows prices have continued to rise in many mature estates and unique property types.
Here’s why:
✅ Older flats often have larger floor areas (some five-room units over 138 sqm)
✅ Many are in prime, central locations with MRT access and amenities
✅ Scarcity and charm of conserved or terraced HDBs add buyer appeal
✅ Despite age, flats in towns like Tiong Bahru and Whampoa command premiums
That said, demand does fall as flats age. Flats built in the 60s and 70s show a clear decline in transaction volume once they cross the 30-year mark — due in part to CPF restrictions and buyers opting for newer supply.
✅ Summary Highlights
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✅ Lease decay affects demand more than price for now.
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✅ Older flats in prime locations still command high resale prices.
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✅ Terraced and large-format flats are exceptions, often treated like semi-landed homes.
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✅ Buyers must be cautious — as leases shorten, resale and loan options narrow.
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✅ Policy changes (like CPF usage) and market preferences will increasingly shape price resilience.
📞 Thinking of Selling or Buying an Older HDB Flat?
Whether you're eyeing a charming unit in Tiong Bahru or wondering if it’s time to let go of your old flat in Queenstown, let’s have a conversation. Every property is unique — and strategy matters more than ever in this evolving market.
📲 Reach out to us for a personalised consultation today.