SINGAPORE: With tighter curbs on local property,
more Singaporeans are looking offshore to buy investment
homes.
And some are opting for affordable luxury, closer to
home.
Only 30 minutes by boat from Singapore, one of
Indonesia Batam's key selling points is proximity.
Savills' director of International Residential Sales Julian
Sedgwick said: "Over the last two years, we've seen an increase of
Singaporeans looking for holiday homes, and buying in close
proximity to Singapore. It's about the buyer looking for ease and
access, and that's what Bintan, Batam, Bali offer.
"Historically, buyers have always bought for investment in London,
Sydney, New York, but we're also seeing people wanting a bit of
luxury where they can invest, get a good return on their
investment, but also to benefit from that investment."
Savills said Singaporeans now form up to 30 per cent of its
company's overseas second home buyers, up from just six to eight
per cent in 2007.
In a 2012 report by global property firm Knight Frank, Singaporeans
rank ninth on the list of top 10 buyers of prime holiday homes,
alongside nationals of larger advanced economies like the US and
Germany.
One project that's seeing brisk sales is the five-star Montigo
Resorts in Nongsa, known as the golf and resort side of
Batam.
Half the lease-hold units that have been sold so far are going to
Singaporeans.
The luxury villa costs less than one-tenth of what one will pay for
a similar property in Singapore.
But can affordability overcome Batam's less than glowing reputation
as the place for cheap seafood and naughty nightlife?
An interviewee Channel NewsAsia spoke to said: "The sleazy side of
Batam has always been known better than anything else, so it's hard
to run away from that impression."
Montigo's developers said their presence in Batam will help change
perceptions.
Ong Chih Ching, CEO, KOP Group, Montigo Resorts, said: "As a result
of that bad reputation no one has really come here and done
something new and something different. That is a baggage that
unfortunately now, as the pioneer for Batam, we have to carry. But
every time we bring someone here they change their
perception."
But facing stiff competition from destinations like Bali and
Phuket, Batam's pitch as a prime property market still has some way
to go.
- CNA/ck