Guide · Older homes

Should you buy an older property? Lease decay, renovation and resale risk

By Melissa Chan · From my YouTube video of 7 January 2026 · Updated 10 October 2026

It usually starts with a listing someone sends me: "Melissa, this looks quite good. The space is big, the location is good, and the price doesn't feel insane." Then there's a pause, because they're wondering: is this a smart buy, or something I'll regret later? This isn't old versus new. It's about when an older property actually makes sense, and when it quietly becomes a problem.

Prefer to watch? This guide follows the video, with extra detail.

Older homes have done well, for a reason

Look at prices in the suburbs (OCR) over time, for both condos and HDB flats. From 2020, both rose about 30%. Prices didn't just rise because people needed housing; people wanted space. Working from home, children at home, more time indoors. That wasn't normal market growth; it was demand being pulled forward.

After COVID, prices didn't collapse. They kept growing at a more normal pace, roughly another 14%. So when people say older properties always perform badly, the data doesn't fully support it: older resale homes, especially in the OCR, have done very well when demand and supply aligned. But past performance doesn't automatically mean future safety.

What we mean by "older"

An old leasehold and an old freehold behave very differently in financing, buyer psychology and resale demand. Once you see that, the rest makes sense.

Example 1: Simsville, next to an MRT interchange

Simsville, completed in 1998 and about 27 years old, sits a short walk from Paya Lebar MRT interchange, with shops, offices, food and transport within walking distance. On paper, the age puts some buyers off. Look closer and you see why older properties tempt families:

• Convenience that new launches can't easily replicate. You can't create a new MRT interchange next to your house.
• Amenities that are already there: the area is fully built up, with no waiting for future plans.
• Layout: proper-sized bedrooms and a generous living and dining area. Very livable, even by today's standards, and it works well for families.

So buyers naturally think: why pay more for a smaller unit when I can get space, location and livability here? It's a valid question. Simsville's prices rose sharply after COVID and kept climbing at a slower pace since, which makes buyers feel confident.

The risk most buyers miss: the early owners

Older projects always have day-one or very early owners who bought much cheaper. At Simsville, some owners bought at about $375 psf. If you enter today at about $1,428 psf and one of them needs to sell urgently, they have far more room to move: they can sell lower than you and still walk away with a very comfortable profit. That doesn't mean prices will crash. It means your downside protection is very different from someone who entered much earlier. With older properties, price history matters as much as location and layout.

Example 2: The Florida vs Riverfront Residences

The Florida in Hougang was completed in 2000 and is about 25 years old, in a very mature estate with schools, parks and daily amenities nearby. Its layouts are something you rarely see in new projects: a proper yard, a good-sized kitchen, clear separation between living and bedroom areas, and large bedrooms. Larger 3-bedrooms have been transacting at about $1,000 to $1,100 psf.

Just across the road is Riverfront Residences, almost brand new. Same general location, very different age, and a very different psf:

A 60% gap in psf, but a small gap in the total price, because you're comparing very different sizes. At The Florida you get a much larger 3-bedroom; at Riverfront you pay for something newer but noticeably smaller. So the real dilemma is: pay a little more for something newer and more compact, or take the older one and get much more space for similar money? Both are fair choices. The decision isn't about layout or comfort alone; it's about what you trade off in age, flexibility and exit.

Lease decay: who can buy from you later

Older properties can make money; we've seen it in recent years. But if you buy with profit in mind, be honest about who your future buyers are. Price growth depends on whether someone else can afford to buy from you later.

The Singapore Land Authority uses a leasehold table based on a long-standing guideline called Bala's curve, which shows how leasehold values decline relative to freehold as the remaining lease shortens. It isn't absolute: markets move and demand cycles change, which is why older properties still rose in recent years. Between 2013 and 2019, though, prices of many older flats trended down, very much in line with the curve, and that period is exactly why banks and HDB became more cautious.

The key point: when market prices move up, financing rules and CPF rules don't move with them.

• Bank loans: in my experience, banks generally start lending less once the remaining lease falls below about 60 years.
• HDB loans: the full loan is only available if the remaining lease covers the youngest buyer to age 95; otherwise the loan is reduced.
• CPF: the same logic. If the lease doesn't cover the youngest buyer to 95, the CPF you can use is pro-rated, and you need at least 20 years of lease left to use CPF at all.

When CPF and loans are restricted, buyers need more cash, and more cash means fewer buyers. So even if an older property can still make a profit, its pool of buyers naturally shrinks over time. That doesn't mean nobody will buy; it means fewer people can. The real risk of lease decay usually isn't an immediate price drop. It shows up as longer selling periods, fewer offers and more price-sensitive buyers.

Renovation and the sinking fund: the costs after you buy

With older homes, renovation isn't just making the place look nice. A lot of the cost goes into things you don't see:

• Electrical rewiring
• Plumbing replacement
• Waterproofing
• A kitchen overhaul
• New flooring

For a home you'll live in, these aren't optional upgrades, and once walls and floors are opened up, costs tend to rise quickly.

For condos, also check the MCST and the sinking fund. If the development is older and major works are coming, like repainting, facade repairs or lift replacement, a large budget is needed. If the sinking fund isn't enough, owners have to top up, through higher monthly fees or a special levy when the works happen. Ask for the latest MCST accounts and AGM minutes before you commit.

Same price, different total cost

In my video I compared an older resale and a newer resale, both at $1.6 million. To keep it conservative, I assumed the same price, the same loan and even the same MCST fees. The difference came from renovation: the older home needs rewiring, plumbing, waterproofing, a kitchen and flooring, while the newer home's renovation is lighter and mostly cosmetic. Add it up and the total cash you spend over a few years can be very different.

So don't just compare price or psf. Compare your total cash outlay, and how much flexibility you have left after it. Sometimes what looks cheaper up front costs more over the same holding period, and sometimes paying a bit more for a newer home buys you time, flexibility and a smoother exit. Neither is right or wrong, but skip this comparison and it's easy to underestimate the true cost of an older property.

Four tests before you buy an older home

1. The lease runway test. Not "is it old?" but how much runway is left. If the remaining lease will start limiting CPF use or loans for your future buyers, resale gets harder.
2. The price gap test. What are you really saving compared with newer homes nearby, in total dollars? If the gap is thin, you're taking on age and renovation risk without much compensation.
3. The renovation reality test. Separate what must be done from what's nice to have, and keep a buffer. With older homes, renovation almost never goes to plan.
4. The lifestyle test. Is this a home you'll live in for the long term, or are you buying with flexibility in mind? What's your holding period, and what do you prioritise most?

Some families are very clear: they want comfort, space and long-term living. Others still want capital appreciation because they plan to upgrade again. If you hope to sell after four or five years for a profit, be more careful with older properties: the size of the buyer pool and their financing matter much more over a short holding period. Ask yourself honestly whether there are other options that give you more flexibility to exit. When all four tests line up, older properties can work very well. When they don't, that's usually where people regret it.

Questions people ask me

Is it a bad idea to buy an old condo in Singapore?

Not necessarily. Older condos often have bigger layouts and better locations for the money. The risks are early owners who can undercut you, a shrinking pool of buyers as the lease runs down, and renovation and sinking fund costs.

How does the remaining lease affect my loan and CPF?

For HDB loans and CPF, the amount is pro-rated if the remaining lease doesn't cover the youngest buyer to age 95, and you need at least 20 years left to use CPF. Banks also tend to lend less on short leases. Check with HDB, CPF Board and your bank for your own case.

What is Bala's curve?

A guideline, used in SLA's leasehold table, for how the value of a leasehold property falls relative to freehold as its remaining lease shortens. Values fall slowly at first and faster in the later decades of the lease.

Is freehold always safer than an old leasehold?

There's no lease expiry to worry about, but freehold homes still need maintenance and renovation, and their prices aren't guaranteed to grow.

What should I check in an older condo's MCST?

The sinking fund balance, upcoming major works such as repainting, facade repairs or lift replacement, and whether owners have voted for special levies. Ask for the latest accounts and AGM minutes.

Related guides

• OCR hits $3,000 psf. Here's what still works in resale.
• Before you buy a resale condo: GLS and harmonisation.
• Your property might appreciate, but can you sell it later?
• Will HDB prices drop in 2026? Which flats feel the pressure first.

Price changes, psf figures and the Simsville and Florida examples are as shown in my video of 7 January 2026. Lease rules for HDB loans and CPF as published by HDB and CPF Board; check the current rules for your own purchase. This guide is general information, not financial advice.