Tue, 21 Oct 2008
Monday, 20 October, 2008 | 18:46 WIB

TEMPO Interactive, Singapore:Indonesians are still very much the target of the Singapore property sector. Property buyers from Indonesia are currently in second place after Malaysia.

Far East Organization executive director Chia Boon Kuah said Indonesian citizens are a potential market for Singaporean property developers. He said many Indonesians own apartments or condominiums in his country. Far East, the biggest developer in Singapore, currently operates 2.400 homes.

Boon Kuah explained that 25 percent of Singapore's total property i is owned by expatriates. "About 19 percent of them are Indonesians," he said last week. According to him, buyers from China and India come in the third and fourth place, respectively.

Boon Kuah further said that Indonesia was previously on top of the list of property buyers in Singapore, but was moved down last year, when Malaysian buyers started flooding into Singapore.

According to Boon Kuah, his company is currently developing the Silversea Condominiums on Singapore's eastern coast. "Indonesians know that area quite well. Many of them even live there," he added. The company plans to market the condominiums to prospective buyers in Indonesia.

The Far East Marketing deputy general manager, Eindrata Tanukusuma, said the Singaporean government will provide facilities to prospective property buyers from other countries, among others by exempting them from the sales profit tax and providing them with permanent resident permits.

Prospective buyers can also apply for up to 70 percent bank loans, Eindrata said. "The interest rate is only 2,5-3,5 percent," he added. Singapore laws require property developers to save 20 percent of their project's value in an escrow account. "The government will monitor the account, therefore we must work according to the agreed plan," he explained.

The Singaporean government has targeted a population growth of 6 million people from 4,6 million, in the next three years. The government has granted permanent resident permits to 480.00 expatriates," he said.

Singapore's population growth seems to be going in line with several mega projects. "Some of the projects include the construction of a casino at Marina Bay and Sentosa Island, as well as the development of industrial areas in Jurong," Eindrata said. All the projects need considerable number of human resources.

The Singaporean government is expected to grant permanent resident permits to 40.000-50,000 expatriate residents every year. Around 25 percent of property buyers in Singapore are expatriates, including Indonesians.

The following is a list of Top Five Property Buyers in Singapore.

Malaysia 20 percent
Indonesia 19 percent
India 14 percent
China 12 percent
England 8 percent

Ali Nur Yasin

Source: FAR EAST ORGANIZATION



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