More S’poreans buying holiday homes in neighbouring islands.
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.
Source : CNA – 7 May 2012
Lush Dream Home 