JAKARTA/INDONESIA – Uber-rich Indonesians buy new condos in Singapore and almost everyone knows that this has been going on for decades. Despite the decrease of this trend due to the weakening Rupiah and a strong housing market, Indonesians remain to be the top foreign real estate buyers in Singapore.
Singaporean private client lawyer Sim Mong Teck stated that Indonesians buy properties in the Core Central Region (CCR) based on buying trends from 1995 to 2010. Known as a collection of prime districts, CCR sits at the modern heart of Singapore including Watten Estate, Novena, Thomson, Orchard, Cairnhill, River Valley, Raffles Place, Ardmore, Tanglin, Bukit Timah, Holland Road, and Sentosa. Real estate price in Singapore is still sky-high due to strategic locations and surrounding amenities.
From luxury penthouses with price tags soaring up SGD 10 million, uber-rich Indonesians switched to condominiums located in suburban areas such as Jurong and Ang Mo Kio which costs SGD 1 to 2 million after 2010.
Multiple reasons urge Indonesians to buy real estate properties in Singapore with the first being investment. Singapore holds a huge number of the international population. Given the high-density environment, it won’t be difficult to find flat or condominium renters. The rental market is very tempting as quick money may possibly flow in once you purchase a property and have it leased to someone else.
The development level puts Singapore at a high rock compared to other metropolitan cities of Indonesia. The country offers a fulfilling life for those who plan to buy properties for personal use. World-class education, outstanding healthcare, state-of-art public infrastructure and very high-level of security in Singapore are indeed promising not only for Indonesians but also for other foreign investors.
The 1998 tragedy makes Indonesians think that it would be more secure for them to own a property in Singapore should the grim and fearful rioting ever happened again. Most of the buyers are Indonesians with Chinese blood and they are well-aware of the anti-Chinese sentiment in the archipelago. In their minds, another massacre is a possibility.
For Indonesians, it is financially easier for them to buy properties in Singapore. Teddy, a sales team leader from Far East Organization revealed several advantages in the Singaporean property market. First, their home country has a 12% mortgage rate while in Singapore, it is at 2%. Second, the maximum mortgage payment period in Singapore is 30 years, two times longer than in Indonesia. Lastly, the government imposes fine on the developer if the construction was finished late and this assures buyers that projects are being completed in time.
Other countries where Indonesians buy properties include Malaysia, Hong Kong, Australia, United States, and the United Kingdom.
Read More: Singapore property news 2020