The government’s firm decision on the Singapore property market cooling measures is no deterrent for a group of property investors – Indonesians. Between January and August this year, Indonesians snapped up 30 Singapore properties worth at least S$5 million, a clear indication of their preference for luxury housing.
Some may argue that the cause of this is due to the passing of a law in Jakarta; one that enforces Indonesians to pay taxes instead of evading them by parking their wealth overseas. As countries including Indonesia and Singapore are adopting a global tax reporting agreement, Indonesian property investors are hoping that the assets taken into consideration are only assets in banks and not on properties.
Of course, not all Indonesians who invest in properties in Singapore are doing so to avoid taxes. Many of them see Singapore as a safe investment choice given the city-state’s stable politic and decent investment returns from financial markets.
An example would be luxury development OUE Twin Peaks, where Indonesians were the top foreign buyers. It is believed that they are attracted to luxury properties that are close to the city centre, and more so if they include amenities such as swimming pools and private lifts. Other locations include those close to medical facilities, as many Indonesians visit Singapore for medical check-ups. In contrast to local investors who usually take awhile before deciding on their properties, Indonesians are fast in deciding on properties so deals don’t take long to close.
