Four reasons why Indonesians invest in Singapore

Singapore has long been popular with Indonesian investors.

Wealthy Indonesians have long had an interest in collecting real estate in neighboring Singapore.

In 2014, Indonesia accounted for 24 percent of Singapore’s property purchases, and while foreign investments in general slowed last year, including those from Indonesia, the city-state remains in favour.

While the full pros and cons list for investing is more complex, here are the four main reasons according to Global Indonesian Voices for why Indonesians today are choosing Singapore as a place to plant their money:

1. As a sound investment

As a buy-to-let market, Singapore is reliably strong.

With a significant international population and limited land area, generally speaking it’s not difficult to find people looking to rent a flat or a condominium, and landlords can expect to make handsome returns.

2. For the quality of life

In terms of the high-level of amenities, Indonesian cities can’t stand up when compared with Singapore.

Indonesians may look to buy a property in Singapore for their own use in order to make use of the world-class education, healthcare, public infrastructure, cleanliness and safety.

More: Why Indonesia’s millennials are demanding more from real estate

3. The memory of the 1998 tragedy

Sadly enough, anti-Chinese sentiment is still felt in Indonesia.

Global Indonesian Voices feels that fear of another massacre is a driving point for buyers of Chinese descent investing in a property in Singapore.

4. Ease of purchase

Indonesians find fewer barriers to buying property in Singapore than their home country.

Singapore boasts a low mortgage interest rate of 2 percent (in Indonesia it’s 12 percent). There is a generous mortgage repayment of 30 years; double that of Indonesia.

Singapore is also reliable in terms of projects being completed on time, as construction delays will be met with a fine to the developer from the Singapore government.

Have we missed anything?

Read next: Property developers in Indonesia celebrate relaxed mortgage rules

Source: Property Report