Understand how leasehold decay affects property value using Bala's Table.
Remaining Lease-
Decay Factor-
Land Value-
Decay Impact-
CPF Eligibility-
Current Position-
How to Use the Leasedecay Calculator
Key Takeaways
Lease decay accelerates at two critical bands: ~70 years remaining (banks apply LTV haircuts) and below 40 years (CPF withdrawal restrictions + SLA discount tables widen significantly).
A 40-year leasehold property bought today may be nearly unsaleable in 20 years — model the 20-year residual value before purchasing any short-lease asset.
Leasehold properties held for 5–15 years lose relatively little value and cost 15–25% less at purchase — the decay only becomes material below 60 years remaining.
The decay model uses empirical URA transaction data by lease band, not theoretical curves — these are real prices observed in the market.
Check the CPF OA eligibility threshold: buyers cannot use CPF if remaining lease does not cover the youngest buyer to age 95.
What It Does
Understand how leasehold property values diminish over time using Singapore's Bala's Table. Compare 99-year, 999-year, and freehold properties side by side. See the critical CPF eligibility threshold and learn when lease decay accelerates — essential knowledge for any leasehold buyer.
You can find this calculator in the Calculators tab on ShiokNest. It updates results instantly as you adjust inputs — no waiting, no page reloads.
Why It Matters
Lease decay is the number one risk in 99-year leasehold property that many Singapore buyers ignore or underestimate. The decay is not linear — it accelerates dramatically in the final decades. This calculator matters because:
How It Works
Navigate to Calculators — Click the "Calculators" tab in the ShiokNest navigation bar. All 26 calculators are grouped by purpose for easy access.
Select the calculator — Choose "How to Visualize Lease Decay in Singapore" from the calculator list. You will see default values already loaded so you can explore immediately.
️ Enter your values — Replace the defaults with your own numbers. The key fields are:
Review the results — The calculator updates instantly as you change any input. A decay curve for 99-year, 999-year, and freehold leases, with your property marked on the chart.
Run what-if scenarios — This is where the real power lies. Change one variable at a time to see its impact. For example, try increasing the interest rate by 1% or extending your holding period by 5 years. Note how the results shift.
Compare and decide — Run 2-3 different scenarios and note the results. This gives you a range of outcomes to base your decision on, rather than relying on a single projection.
Examples
Meet David, evaluating a 99-year leasehold condo that is 20 years old (remaining lease:…
Results
Remaining Lease
79 years
Est. Value Retention
74.6%
CPF Eligible
Yes
How to read this:
The decay reality: At 79 years remaining, the property retains approximately 74.6% of its freehold-equivalent value. CPF can still be used because the remaining lease exceeds the minimum threshold. However, if David holds for 20 more years, the remaining lease drops to 59 years — entering the accelerated decay zone where value drops significantly faster. The key question: Will capital appreciation outpace lease decay? The visualizer shows both curves so David can see exactly when decay overtakes growth — the point at which holding becomes value-destructive.
Tips & Pitfalls
Expert Tips
Use realistic assumptions — Singapore condo appreciation has historically averaged 2-4% per year. Avoid overly optimistic projections. When in doubt, use 3% as a baseline.
Watch the 60-year cliff — Lease decay accelerates dramatically once remaining lease drops below 60 years. The value loss per year roughly doubles compared to the first 40 years.
Know the CPF 20-year cutoff — If the remaining lease at your age + 95 is below 20 years, CPF usage is restricted or blocked entirely. This reduces your buyer pool.
Common Pitfalls
Ignoring the remaining lease at point of sale — Many buyers focus on today's remaining lease but forget it will be 10-15 years shorter when they sell. Model the exit, not just the entry.
Assuming "999-year is the same as freehold" — While practically similar, some banks and CPF rules treat them differently. Do not assume they are interchangeable.
Frequently Asked Questions
Is my data saved?
No. All calculations run entirely in your browser. Nothing is stored on our servers or shared with third parties.
How accurate is the decay model?
The model is derived from URA transaction data comparing same-district, same-bedroom-type properties grouped by remaining lease band versus freehold equivalents. It represents observed market pricing, not theoretical depreciation curves. Thin markets (few transactions in a lease band) produce less reliable estimates — the calculator flags where the sample size is small.
Can I save my results?
Log in to save scenarios to your dashboard, or use the share button to copy a URL that encodes your inputs.
Does lease decay affect rental income?
Generally no — tenants pay for current habitability, not residual lease value. However, very short-lease properties (below 40 years) may face lower rental demand from corporate/expat tenants whose companies require minimum remaining lease periods, and from buyers at the end of tenancy who factor in resale difficulty.
When does CPF eligibility drop off for leasehold properties?
CPF OA can only be used if the remaining lease covers the youngest buyer to age 95. For a 35-year-old buyer, the property needs at least 60 years remaining lease. Below this threshold, CPF usage is prorated — reducing the effective upfront financing available and making the property harder to sell to future buyers in the same position.