Leasehold Property on Freehold Land

Over the weekend, I visited the showflat of The Shore Residences, which is strategically located opposite Katong Shopping Centre. I am not exactly looking for a residential property at the moment because I think the price are way too high now. So I just wanted to pop in for fun.

Anyway, I was offered 5% off the launch price if I commit on that day. Despite that, the asking price (after discount) for a 2 bedder still came up to a whopping S$1,370+ for a 103 years leasehold property.

I recalled that this piece of land was supposed to be freehold and found it weird that the developer is selling it as a 103 years leasehold development. It was only after further questioning that I realized that the developer is releasing only 103 years lease for sale though it is a freehold land. Wah, new tactic!

Personally, I would never want to touch this development! Simply because, after a certain number of years, if this developer decides to take back the land, these property owners would have no other parties to sell to except that land developer. Property owners, in my view would be held ransom at the price that the land developer is willing to pay. What a raw deal they have gotten themselves into! And I really wonder whether they know what they have gotten into? Seriously, if I hold a private property, I would want to have the option to sell it the land enbloc to whoever is the highest bidder, isn’t it?

How different is this type of arrangement from HDB which is 99 years and government can take back these housing anytime they want to. For such developments, prices should be marked considerably lower than what they are offering now. I hope this is not the trend going forward, otherwise, land will be perpetually held by such big developers who will control and continue to hold land prices at exorbitant prices. Sigh…