TEMPO Interactive, Jakarta: Purchase of apartments in Singapore by Indonesian citizens between 2003 and 2005 continues to rise.
In 2003, Indonesians bought as many as 500 apartments in Singapore and in 2004 the number rose to 600.
The amount rose again in 2005 to 830 apartments, or an average19.44 percent increase in those two years.
Quoting data from the Real Estate Information System (Singapore’s property statistics agency), Anton Sitorus, Research Head of Jones Lang Lasalle Indonesia, explained the total of apartment sales in Singapore to foreign citizens during that period reached 7,400 units and 1,930 out of these were by Indonesian citizens.
“Indonesian people are already regarded as very potential buyers. Thus (foreign property) exhibitions are often held here (Jakarta),” Anton told Tempo yesterday (26/11).
“The second most buyers come from Malaysia.”
Survey results show that most Indonesians buy upper class apartments at prices of Sin$1,115 (around Rp6.6 million) per square meter.
The remainder are middle and lower class apartments costing between Sin$465 and Sin$750 (Rp2.7 million to Rp4.4 million) per square meter.
According to Anton, the tendency of property purchase in Singapore by Indonesians has been rising sharply since 1998, when the economic crisis hit Indonesia.
“Many people, especially those of Chinese descent, joined in the exodus to Singapore after the rioting in Jakarta,” he said.
Regulations in Singapore’s property sector is also beneficial for investors.
Anton cited the right of use for foreigners in Singapore can reach 99 years, while in Indonesia it is only 25 years.