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Freehold vs Leasehold

Freehold vs leasehold

Differences between Freehold vs leasehold properties.

Malaysia has 3 types of Land Titles in Malaysia which is Leasehold, Freehold and Bumiputera Reserve.

Differences depend on availability, location, price differences, transaction procedure & mortgage.


In Malaysia there’s a lot of housing area which is either Freehold or Leasehold title. Freehold is popular but it is limited. Under the Land Acquisition Act 1960, the state can take any freehold land if it’s for economic development or other public purposes.


It is almost easy to find. It is not as limited as freehold. Normally Leasehold tenures usually last 30, 60, 99 or in some cases, 999  years.



The place might be out of town which is most likely undesired.


However, for leasehold, it is usually located in strategic and best places. Public transportation is also readily available. Normally it is located near to shopping malls, supermarket, post office .



Freehold land/properties are more expensive compared to leasehold. This is because the property belongs to the owner forever. Renovating and upgrading the house is upon owners discretion.


Leasehold prices are lower. Usually by 20%. Locations also affect the prices too. The reason why it is much cheaper is that the leasehold has a period of time that can expire.


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