Mon, 03 Oct 2005

Singapore developer targets Indonesians

Damar Harsanto, The Jakarta Post, Singapore

The fact that many Indonesians are eager to buy properties in Singapore has also prompted the country's largest private developer Far East Organization Pte Ltd to introduce its luxury apartments in Orchard Road.

During the first preview of the Orchard Scotts, Far East Chief Operating Officer Chia Boon Kuah said the plush residences -- equipped with four 60-meter-lap pools, three full-size tennis and basketball courts -- were mostly targeting non-Singaporeans.

"We expect 50 percent or more of the apartments will be bought by foreigners from Indonesia, Hong Kong, Malaysia and China," he said, declining to disclose the launching date.

At least 387 apartments, measuring 1,500 to 3,700 square feet, will be on offer.

"There is a growing demand for large luxurious units in prime districts of which there has been a limited supply in the past two years," Chia said.

Citing official data, there are at least 166 plush apartments being sold as of July this year, a slight increase from 163 units in the corresponding period last year.

"We have had several buyers from Jakarta and Surabaya in the past couple of years," he told The Jakarta Post.

Ku Swee Yong, the general manager of the company's representative office in Indonesia, confirmed Chia's statement.

"We sell between 20 and 30 units of apartments per annum," he said.

The apartments carry price tags at between S$500,000 (US$295,858) and S$4 million.

Ku said Indonesians buy properties in Singapore for reasons of health, education and investment.

Aside from having good hospitals and universities, Singapore also offers a promising growth of 10 percent to 15 percent per annum in terms of property investment, he added.

According to Chia, Far East is set to open representative offices in Medan, North Sumatra; Palembang, South Sumatra; Pekanbaru, Riau; and Semarang, Central Java; to garner potential buyers.

"We are also looking into the possibility of expanding our business in Indonesia. For instance, we have seen that some disputed land in Surabaya is good for our business," Chia said, adding his company is still studying a possible dispute settlement.

Far East is confident that the sales of the Orchard Scotts's apartments will be high, thanks to the Singapore government's plan to rejuvenate the entire Orchard Road area into one of the world's most vibrant shopping streets. It has allocated S$1.6 billion for the make-over of the area in the next five years.

The American architect behind the three-colored towers of The Orchard Scotts, Bernardo Fort-Brescia, who also attended the preview said he treated the new apartments "like a canvas" where he painted different colors and shapes.

"I hope this will give a new vision for the life (in the Orchard Road area) so that those who live in it will share a feeling that they are living in a place that is unique and different," said the internationally acclaimed architect who has created over than 500 high rise buildings in the United States, including the Atlantis and New York's Westin Times Square Redevelopment.