Indonesians Are Major Buyers of Singapore Property
19 September 2011
According to the Singaporean authorities, Indonesians are one of the top foreign buyers of local property. The data from the Singapore Urban Redevelopment Authority shows that 1,706 Indonesians purchased residential homes last year. This compares to 2,060 Malaysians and 1,770 Chinese who bought homes in Singapore in 2010.
More than half of Indonesians buying property purchased homes costing between S$1.5 million and S$5 million. Slightly less than 25% bought homes costing between S$1 million and S$1.5 million while 5.7% bought homes costing more than S$5 million.
Property experts believe Indonesians are attracted to the property market in Singapore due to good economic growth and political stability. Indonesia is enjoying a favourable economic climate, and this is encouraging investors to put their money into property outside their own country, and while they are buying property in Singapore, they are also looking towards the UK, the United States and China. Singapore is likely to remain their favourite destination as it is regarded as a safe haven, but there are signs that some investors are looking towards higher growth areas.
Much of the luxury property in Singapore is being snapped up by foreigners, and they account for around 60% of transactions for high-end property. Last year they accounted for 46% of the luxury property market, and just 24% in 2005. In comparison Singaporeans accounted for just 20% of property transactions worth more than S$5 million during the first six months of the year. While most of the luxury property is being bought by the Chinese, Indonesians and Malaysians, it is also proving a popular destination with the British and Indians.