Navigating the Batam property market can be a rewarding experience for Singaporean investors. From scenic waterfront homes to bustling commercial spaces, Batam offers diverse real estate opportunities that cater to Singaporeans’ preferences and investment goals, making it an ideal destination for those interested in new property launches in Batam.
However, prospective investors must ensure they have the proper knowledge and strategies before engaging with Batam property agents or exploring Batam property listings.
This guide is designed to assist prospective Singaporeans in understanding and effectively participating in the Batam property landscape.
Overview of the property market in Batam
The Riau province’s planning and development agency predicts that Batam’s economy will grow 5-7% from 2023 to 2026. This forecast enhances Batam’s appeal to property investors aiming to leverage the region’s economic opportunities, including big property ventures.
Since 2020, Batam’s residential property market has shown resilience, with prices remaining stable despite inflation. This stability makes Batam properties a robust investment with reliable rental yields despite potential economic uncertainties.
The benefits of buying property in Batam
Many factors contribute to Batam’s allure as a favorable location for property and real estate investment, including:
1. Strategic location for property investment
Batam’s strategic location along crucial international trade routes between Indonesia, Singapore, and Malaysia enhances its appeal for property investment.
Its proximity to major Asian ports like Singapore and Malaysia’s Klang Port makes it an ideal choice, especially for international businesses investing in the region.
2. Favorable land conditions
Batam has favorable land conditions for property investment. Batam’s flat and less hilly terrain makes it suitable for property construction.
3. Property growth potential
Batam has witnessed increasing demand for properties in recent years, evident through large-scale industrial zones, shopping centers, hotels, and apartment developments.
4. Developing infrastructure
Rapidly developing infrastructure in Batam, including toll roads, an international airport, and modern ports, strengthens its position as a vital city in Southeast Asia.
5. Tourism boosts property value
Batam is a renowned tourist destination with beautiful beaches, historical sites, and amusement parks, attracting numerous visitors yearly. Hence, a lot of investors also looking for Batam Center property.
6. High rental potential
Apartments in Batam have high rental potential due to the many foreign workers employed in the city.
7. Affordable investment
Batam property investment is more affordable than in major cities like Jakarta or Surabaya. Batam’s relatively lower property prices allow investors to enter the market with less capital, appealing to those with limited funds.
8. Economic stability matters
Batam’s economy continues to grow and diversify, with various industries like manufacturing, technology, and international trade thriving. This economic stability makes Batam a promising and secure city for property investors.
9. Government supportive policies
The Indonesian government has implemented policies supportive of property investment in Batam, including tax incentives, streamlined permits, and more accessible import-export procedures.
10. Thriving industrial sectors
Batam continues to develop its industrial sectors, especially in manufacturing and technology. As a result, Batam has become an attractive destination for property investors interested in constructing homes or offices near these thriving industries.
Apart from those reasons, based on a recent survey by Bank Indonesia, there is significant interest in purchasing primary residential properties in Batam throughout 2022.
This demand is further boosted by the introduction the new Second Home Visa and record-high investments in Batam’s economy and infrastructure, indicating a stronger-than-ever need for property in Batam.
Read more: Batam’s manufacturing industry: key insights and analysis
Types of property available in Batam
There are several types of property to invest in Batam:
1. Residential
a. Apartments
Projects like Nuvasa Bay offer choices of vertical living spaces and landed houses for potential renters or buyers.
b. Houses/room rentals
There’s a demand for housing like houses and high-yield room rentals in Batam, making property investment in this sector promising.
c. Condotels
Condotels, similar to apartments for rent, are also a promising property investment option in Batam.
2. Commercial
a. Shophouses/stores/stalls
Commercial properties like shophouses, stores, and stalls have significant opportunities in this city, mainly due to the high population growth rate.
b. Offices
Many companies have offices in Batam, so the need for office properties is also relatively high.
c. Warehouses
As an industrial city, there’s a high demand for warehouse properties in Batam.
d. Land
There is still a demand for land in Batam, especially for business purposes such as Batam property for rent.
Can Singaporeans own Batam Property?
Property regulations in Indonesia for foreigners used to be encouraged to set up a foreign-owned company in Batam before purchasing their desired property.
However, the Indonesia Government Regulation No.10/2021 relaxed ownership rules for foreigners, including Singaporeans. To buy Batam property, foreigners only need their passports and visas as their document requirements.
The government may not require a Limited Stay Permit Card (KITAS) for buying the property, but if you plan to stay in the long term and manage the property in Indonesia as a foreigner.
Here are the requirements you need to meet to buy real estate in Batam:
- Minimum property value is IDR 1 billion (the value is different depending on the province you choose)
- Maximum land size of 2.000 m2
Another way is by forming a foreign-owned company (PT PMA). Singaporeans can acquire the right to build (HGB) or the right to use (HP). The procedure for acquiring property in Batam through a foreign-owned company involves several stages:
1. Document submission
Submit comprehensive forms and supporting documentation to the Indonesian National Land Office (BPN).
2. Compliance checks
Fulfill the conditions for HP, including a valid building permit (IMB) and proof of land payment.
3. Approval and issuance
Upon satisfying requirements, the BPN will grant an HP under your PT PMA‘s name.
4. Legal requirements for foreign property buyers
For those buying property in Batam not for business or commercial use, adherence to the following guidelines is necessary:
- Residency Status
- Minimum Property Value
- Ownership Limit
Guide to Doing Business in Batam & Surabaya
Finalize your Batam
Finalize your Batam property investment with InCorp Indonesia. Our comprehensive guide provides essential information for purchasing property in Batam, ensuring a smooth and secure transaction. Trust our expertise and extensive experience in the Indonesian real estate market to help you navigate the complexities of property acquisition in Batam. Contact us today to begin your property investment journey.
property investment with InCorp Indonesia
Considering the various appealing attributes that position Batam as an attractive property investment destination, Singaporean investors are increasingly encouraged to explore this opportunity.
For those aiming to start property investment in one of the most strategic locations in Indonesia, you can seek InCorp Indonesia’s assistance for property and land ownership and company registration services to capitalize on what Batam can offer in the property industry.
Fauzyah Fasya
Branch Manager – Batam Office at InCorp Indonesia
With 7 years of experience in business consultancy, Fauzyah Fasya brings expertise in managing clients from diverse backgrounds. She excels in delivering service information, fostering strong business relationships, driving brand strategy, evaluating product performance, and maximizing revenue through quality management system implementation and management auditing.
