Proposed Revision of SLA’s Leasehold Table

Christine Li • 21/05/2018

How Singapore Land Authority Leasehold Table’s Revision Can Upgrade The Singaporean Market

 Our report covers the local land law situation in Singapore, including:
  • Why does Singapore Land Authority’s Leasehold Table matter?
  • Decoding how the Leasehold Table is calculated
  • Why is the Leasehold Table obsolete – and why we need a revision
  • How to calculate a revised and relevant Leasehold Table
  • The positive impact an updated table will have on the Singaporean economy
Some key points for Singaporean landlords and developers include:
  • 4% - the variance between the current discount rate and what it should be according to expected market returns, private sector valuers, and applying a risk premium to a risk-free rate.
  • $155 million could be saved by a party had the Leasehold Table reflected current market situation – and that is just one instance.
  • A 30-year old property would be worth 82.59% under the revised table, in contrast to just 60% of its freehold value in the current Leasehold Table.

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