Just a decade ago, Batam may not have been the place investors consider fertile for property development. But with the hospitality scene booming and visitors on the rise, more property developers have big plans for the island.
Photo credit: Nuvasa Bay project by Sinarmas Land
Besides the usual beach resorts, Batam was previously known more to be a highly-industrialised city. But the Indonesian government has been working on revising land laws for foreign investors and that could be the main push factor behind this recent interest in Batam. Already popular as a tourist destination, Batam’s land prices are also highly competitive, with immense potential for population growth and infrastructure development. Like in emerging markets such as Cambodia and Myanmar, the distance which property prices could travel is much more far-reaching than in saturated markets where property prices are already sky-high.
Photo credit: Nuvasa Bay project by Sinarmas Land
Developer Tuan Sing has recently joined the ranks of investors flocking to the island with their development of Marina City, a 85-hectare integrated mixed-development township which will include 2,000 apartment units, a hotel and also retail and entertainment facilities. Other investor favourites include the Meisterstadt project launched earlier this year by Pollux Habibie, the company owned by former Indonesian President B.J.Habibie; and the 228 hectare Nuvasa Bay project by Sinarmas Land, which will eventually yield up to 200 apartments and landed houses. Indicative prices are at $40,000 for a studio or one-bedroom apartment with views of the golf course.
Property experts are certain there will be Singaporean investors willing to take the first step, though the going may be slow initially. They cite the response to Iskandar as an example.
