Experts say that lease decay may not always mean a depreciation in prices and capital value
THERE is a common understanding that the value of one’s home is intrinsically tied to its remaining tenure. An older 99-year leasehold condominium, for instance, is likely to see its market price decline as the lease runs down.
But experts said this is not necessarily the case in reality. Much depends on market conditions and the property’s locational attributes.
And in a robust market, the “depreciation effects of a declining lease may be overlooked”, said Cushman & Wakefield research head Wong Xian Yang.
