SINGAPORE – Without minding the strongest blow being experienced by Singapore in its entire property market history, a new group continues its demand for Singapore’s condos for sale. They are no other than wealthy Indonesians.

Sales of Indonesian’s homes with price of up to S$5 million have quadrupled this year. This coincides with the implementation of a law in Jakarta that requires Indonesians to repatriate taxes or pay taxes on an estimated $300 billion which were transferred to Singapore during periods of unrest.  In July, the records of purchase at the luxury OUE Twin Peaks towers indicates that Indonesians are the top foreign buyers.

“We’re seeing a big increase in Indonesians buying the most expensive property,” according to Ang Kok Leong, a senior agent at SLP Realty Pte. “These people are generally in tune with this kind of situation back home, so if I’m not about to let the Indonesians know what I have, I will buy in Singapore.”

Despite the small actual number of sales, the surge of demand is pretty obvious upon comparison. From the beginning of the year to August 2017,  30 Singaporean properties were bought by Indonesians at the cost of S$5 million or more. Last year, only eight deals of same amount were closed as per data of the government’s Urban Redevelopment Authority.

Plenty of reasons go behind this. Property agents points out that the tax amnesty plan of the Indonesian President Joko Widodo aims for repatriation of Indonesian cash stored away in Singapore while giving evaders a way to come clean.

Speculations previously surfaced that some Indonesians tend to conceal their earnings thru buying properties. Sum Yee Loong, professor of accounting at Singapore Management University debunked this and said that “it does not make sense for Indonesians to ‘hide’ their unreported income in Singapore via property purchases,” which can be easily traced.

Indonesians must have fallen for the beauty of the city as well. Data showed that some of them are drawn to the heart of the country, especially the Orchard Road where the OUE Twin Peaks towers can be found. Other factors include some Indonesian nationals seeing Singapore as a safe haven while others liked the country’s hospital premium and health services.

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