SINGAPORE: Residential properties in prime Singapore districts have become less popular with Indonesians investors, who are now focusing on cheaper apartments in outlying areas, real estate consultancy DTZ said on Tuesday (May 27).
DTZ said fewer than one in five of homes purchased by Indonesian investors during the fourth quarter of 2013 and the first quarter of 2014 were in districts 9, 10 and 11.
This is down from an average of 32 per cent between the first quarter of 2011 and third quarter 2013.
Indonesian buyers have historically accounted for a large portion of foreign demand for homes in districts 9, 10 and 11, which cover the upmarket areas around Orchard Road, Tanglin, Bukit Timah and Holland Road.
Data from the first quarter of this year, however, showed greater Indonesian interest in outlying areas such as District 19 (Hougang and Sengkang) and District 28 (Seletar and Yio Chu Kang), DTZ said in a report.
DTZ said Singapore property remains an attractive option for Indonesian buyers, especially in light of the upcoming presidential elections in Indonesia in July.
They have, however, become increasingly price sensitive.
"Indeed, the majority, or 35 per cent, of units bought by Indonesian buyers in the first quarter cost S$1 million or less," DTZ said.
- CNA/kk
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