By Teo Kuan Yee

One sure indicator of a red-hot property market is the way 99-year homes are being snapped up. Their prices are also skyrocketing faster than freehold units.

In the past, most home buyers would give leasehold homes the snub, thinking that freehold ones are superior in terms of long-term value.

A freehold title allows the homeowner to have perpetual ownership of the property, while a leasehold title allows possession for a stated number of years, be it 99 or 999 years. When the lease expires, the title of the property goes back to the state.

If the current price tags of some leasehold properties are any indication, it seems most buyers now don't give a hoot about whether the property is leasehold or freehold. One much-talked-about deal was a 99-year leasehold bungalow in Sentosa Cove that reportedly went to a foreign buyer at a jaw-dropping $36million (or $2,403 psf) in June.

The $36 million home Click on thumbnail to view

In fact, the average prices of Sentosa Cove bungalows rose by 55 per cent to $1,959 psf in the second quarter of 2010, over the same period a year ago, according to a Savills property report.

Eric Cheng, CEO of ECG Property explains: "Foreigners do not mind leasehold properties as the 99-year lease is still better than 60-year leases in Hong Kong and China. Sentosa is considered a mid- to above-mid-value property compared to Hong Kong, Shanghai and other cities. Besides, buyers today are purchasing properties based on concepts and lifestyle. Sentosa Cove with its unblocked sea view and yacht berth, coupled with Singapore's security, is in demand."

Read also:
	Freehold better than leasehold? Price gap may vanish in boom but will appear as property ages; experts say younger set more open to leasehold homes.
	Buying a home: freehold vs leasehold We examine how both tenures perform in rising and falling markets as well as in collective sales.
	Chasing away leasehold worries The key to a wise property choice lies in buying to suit your budget and preference.
	Bargain houses in Singapore Yes, some houses can be had for a bargain. So what's the catch?