If you’ve been browsing properties in Malaysia, you’ve probably noticed this term:
Freehold vs Leasehold — but what does it really mean, and how does it affect your decision?
For many Malaysians, this is one of the most important questions when buying a house or condo. In this guide, we’ll break it down so you can make a smarter choice for your budget, lifestyle, and long-term goals.
🏡 What is Freehold Property?
Freehold means:
- You own the property and the land it’s built on
- Ownership is permanent
- Can be passed on to future generations without renewal
- Slightly higher resale value in most cases
✅ Pros of Freehold:
- Full ownership with no expiry
- Easier to sell in future
- Banks tend to favor freehold for financing
❌ Cons of Freehold:
- Usually more expensive upfront
- Limited availability, especially in city centres
📄 What is Leasehold Property?
Leasehold means:
- You own the property for a limited number of years, usually 99 years
- After lease expires, the land reverts to the government
- Lease can be renewed, but often involves costs
✅ Pros of Leasehold:
- Lower price compared to freehold
- More options in strategic urban locations
- Often developed with better facilities (especially high-rise condos)
❌ Cons of Leasehold:
- Harder to sell as lease gets shorter (below 60 years)
- Banks may offer lower margin of finance
- Renewal process can be uncertain and costly
💸 Which One is Better for Investment?
It depends on your goal:
| Goal | Best Option |
|---|---|
| Long-term family home | Freehold |
| Affordable urban living | Leasehold |
| High ROI rental property | Leasehold (if priced right) |
| Generational wealth | Freehold |
🎯 Smart tip: If a leasehold property is newly built (90+ years remaining), it can still be a good buy — especially if location and rental demand are strong.
🏢 What About Condos and Strata Titles?
Most condos and serviced apartments in Malaysia are strata titled, and many are leasehold, especially in hot areas like:
- Cheras
- Subang Jaya
- Mont Kiara
- Johor Bahru city centre
💬 Don’t just ask “Is this freehold?” — check:
- Remaining lease years
- Developer’s reputation
- Facilities & rental demand
📌 Things to Check Before Buying Leasehold Property
✅ How many years are left on the lease?
✅ Will the developer or owner apply for renewal?
✅ What are the lease renewal terms and cost?
✅ Is it easy to get a housing loan for this unit?
✅ Can it be sold easily in the future?
Final Thoughts: Freehold vs Leasehold Isn’t About “Good vs Bad”
Both types of property have their advantages. What matters most is your budget, location preference, and how long you plan to own the property.
✅ If you want flexibility and future value, go freehold.
✅ If you want value and location, go leasehold (but choose wisely).
🏘 Need Help Choosing the Right Property?
At GanProperty, we guide you through the pros and cons of every listing — freehold or leasehold — so you can make a decision with full confidence.
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