Indonesians continue to be lured to Singapore to invest in residential property.
The Singapore property market has historically been lucrative. Investors locally and overseas have identified its potential and have been snapping up property. Despite the market having taken a bit of a battering recently thanks to government intervention to try and cool it, today it show signs of heading in the right direction.
Data released from firm JLL suggest that the residential market is moving towards an ‘upbeat market’. The real estate firm notes that there has been an 81.8 percent increase in private residential units sold by developers in March 2017 if compared to the previous month. The highest number since June 2013 when the market peaked before the government cooling measures implemented in 2011 took effect.
News of the easing of Stamp Duty and Total Debt Servicing Ratio (TDSR) have influenced the market. Announced in March of this year transaction numbers are now on the up. JLL believe that this will be a ‘new phase in the market’. Anticipating that due to prices bottoming out transaction numbers will increase. This sentiment has already been echoed including Morgan Stanley’s prediction that values will double by 2030.
The top three international investors keen for their own slice of Singapore are Indonesians, Malaysians and the Chinese. Interestingly although the Chinese are known globally for their property shopping sprees, they have only been players in Singapore since the last ten years. This is according to real estate firm List Sotheby’s International Realty.
Whereas Indonesians and Malaysians have always played an important role. For Indonesians there are a number of reasons why they are keen to own property in Singapore. Firstly many want a base as they flock to the island state to seek medical attention. Secondly, it is also known for its educational offerings. So some Indonesians buy property for their children to live in during their studies. Finally, Singapore is a financial hub for the region combined with its safe haven status draws people to invest their money to safeguard their futures.
Indonesian’s tend to buy property in a few different places. They were the first to move into Marina Bay which has now become a popular destination in its own right. But are also drawn to Orchard Road, considered to be one of the most important shopping districts, in addition to Keppel Bay and Sentosa Island. The latter which is the only place that foreigners are permitted to own land in Singapore.
