Your point is from the buyers, what people like, different buyers have different preference, you are right, if you are looking from an agent perspective,.... but in terms of value preservation , risk profiling and time degradation for condo properties, for a property buyer i think leasehold will never hold value.
The question is perferences: dealing from a agent, there is too many reasons. But my preferences is: on why would I want to buy a CONDO on a leasehold land?
1) I don't own the land, and i would be paying for a property which is not located on a land i own. The government have the first right of refusal to renew the lease. If all condo owners does not want to renew the lease, logically the government would get the land back. There are 300 owners on one condo, and if only one owner do not renew the lease then the land lease is not renew. I would not want my future generations to inherit a liability. Agents will say no problem, government will sure renew. But think of it this way, have you seen any condo's lease being renewed? Is there any law for this? Condo owners have first right of refusal? most condos were built within 30-40 years back. And not even one have finished its 100 years lease. What make you think that in the future that the condo would not be in shitty condition and the government take back the land for other development? It's a really shitty thing to leave your future generation. Claims that most agents say the government will renew leases have no weight as non had been done yet. Just ask any one , do you know any condos which finished its 100 years lease and have been renewed?
2) In a down turn, if people don't have enough money they would not buy any property, you are right. But if people have money, and there a some buyers, and many sellers (due to down turn) which property do you think they will buy? Of course given the chance, of course they will buy freehold! I like A and B, both property similar, nearby location, quality is similar, price similar but A is freehold, B is leasehold... Duh.. what an easy choice.
3)Your view is that due to most buyers circumstances changes, after 10 years they will want to upgrade and change place to leave or so. You are right. I would want to do the same. But in that time, if i want to sell, after 20 years, a freehold would have an edge over a leasehold anytime. The restriction on leasehold properties, and such, a freehold is not only is difficult to sell. I am talking as a owner. I want to sell my property. In such economic conditions, even freehold in good location is finding difficulties to sell. What more leasehold. So many properties/choices out there now,. Withing a 10 km square ,,i am pretty sure you can find similar quality, location and both freehold and leasehold property, because KL is so dense. If there is a choice , they will choose freehold over leasehold.
4)Why should a Malaysian Citizen buy leasehold? Duh.. overseas investors cannot buy freehold properties in most countries around SEA. Only in Malaysia they can. (thanks to our government policy of selling land to foreigners) Do you really want to buy a "restricted" property at high prices? That's why foreigners want to buy freehold. Because it is un-restricted. If you have the choice why would you want to buy a restricted property? my personal thoughts are.. people only buy leasehold because they have no choice..! Not because price is right. Its so sad for them. Actually i pity them, The government dictate where they live, the toll they have to pay and the prices they have to pay.
5)Leasehold for me is like renting a piece of land. But if i want buy, i want to OWN it. That's the concept of buying. I would OWN it. I am not leasing it. That's why its called leasehold. And when you are leasing a property, make sure you are doing a business on it because you are actually renting. Thats why the only leasehold properties should only be commercial property.
6) As a buyer, I am always looking at preservation of value of my properties. On a different view, some people would look at the reasons why people are moving, and try to convince most people that they would not stay for long for a reason. (agents). Do you think at this point, when everything else is crashing, and the banks are the last line of defence.. in this economy..a leasehold property is what you want to invest in? The banks doesnt care as long as you owe them money. If they cant sell the property out at a price, you will still owe them the money minus the sale value. The laws favours the banks. Hence its in the buyers interest to buy any property that can retain/preserve value. Freehold is the only way to go.
7) My thoughts are, leasehold properties, are lands which are leased from the government at a cheap price and expensive developments are built and sold from it. Its really shitty to buy a property on rented land, unless i can move the house once the land leased finished,
LOL.