Remaining lease

Remaining lease is derived, not asked for — from the block's own past sales, or the project's tenure. It adjusts the estimate in one case only: an HDB flat with under 60 years left, valued from its own block. Measured within the same block — where the location and the building are held fixed and only time passes — such flats lost about 1.5% a year against the market index, so each comparable is marked down 1.5% for each year since it sold, shown as its own line in the working. Otherwise lease is not used to adjust the estimate: measured across 238,000 recorded resale sales the effect is about $1/psf per year, but it ranges $0.75 to $9.65 by flat type, and for an HDB flat remaining lease and building age are the same number, so the effect cannot be isolated from age. A lease difference widens the stated range instead: each end moves out by $1 per sq ft for every year between your remaining lease and the comparables' median. The widening stops at 38 years of difference, wider than 99 in 100 town-wide comparisons measured, and a difference of more than 26 years (wider than 9 in 10) also caps the confidence at low, with the lease named as the reason. At block tier, every comparable here is from the same block, so they all share this lease — there is no lease gap here to widen the range for; within a single private development every comparable shares your own tenure, so there is none to widen for either. No recorded sale has fewer than 39 years remaining, so the shortest leases are untested.

One reason a shorter lease can still fetch less: CPF savings and the loan-to-value limit are pro-rated once the remaining lease no longer covers the youngest buyer to age 95, which shrinks the pool of buyers able to finance the flat. That threshold depends on the buyer's age, not the flat, so it is not something this page can work out for you.