http://www.straitstimes.com/archive/...nyone-20130420
Waterfront homes near Batam, anyone?
Development offers villas at a fraction of the prices of similar homes in S'pore
Published on Apr 20, 2013
By Esther Teo Property Correspondent
THE prospect of owning a waterfront villa remains an impossible dream for most Singaporeans, but it could be in reach with a trip to a small isle near Batam.
The island is home to a development that is offering such homes at a fraction of the price a similar property here can command.
Indonesian-based firm P.T. Batam Island Marina is behind the ambitious project to build both residences and a tourist park featuring the 328ha island's many eco-attractions such as nature hikes, fishing and snorkelling.
The leasehold development, which is on track to open in the middle of next year, will have 600 homes - 450 villas and 150 apartments.
About 250 of the villas have already been snapped up, with 70 per cent of the buyers from Singapore. The rest are foreigners largely from Europe and the United States, said Mr Michael Yong, director of the project's management and marketing firm, Funtasy Island Development.
The villas, some of which are built over the water, were sold at an average of about $500,000 when they were launched in 2011, or about $235 per sq ft (psf), said Mr Yong, 42.
Prices have since risen to about $362 psf - an appreciation of almost 55 per cent, he noted.
The firm will push out its low-rise condominium project, the 150-unit The Cove, at the end of the month.
A 638 sq ft apartment would start from $535 psf - or about $348,000. It will come with an 8 per cent rental guarantee for five years as the homes can be rented out to tourists if the buyers choose not to live in them.
This seems a steal when compared with the exclusive waterfront enclave of Sentosa Cove, just 16km away, where the rich and famous own some of Singapore's most expensive homes.
About $200 million in sales has been collected from villa sales alone on Funtasy Island.
About 1,000 visitors are expected to visit the island's theme and water parks when the attraction opens, and the number is likely to swell to 3,000 within two years.
But arrivals will be capped at 3,000 a day - or about 1 million a year - to ensure that the island's flora and fauna are conserved, said Mr Yong.
Once it hits its maximum capacity, running the island is expected to bring in $70 million in gross operating profit for the firm every year.
"We wanted to develop something that can complement Singapore. In a way, we are hoping to bring back kampung life and also provide an escape from the city life for the younger generation," said Mr Yong.
But although Funtasy Island is just 20 minutes away from the Singapore Cruise Centre, some experts say that buyers should find out more about issues such as security and accessibility.
Mr Yong said the firm will ensure 24-hour in-house security on the island. It is also working with the Indonesian marine police to keep the island safe.
A direct 20-minute ferry ride will bring visitors straight to the island from HarbourFront from next year. Visitors currently have to go through Batam to get to Funtasy Island - a trip that takes about an hour.
The project has four directors - two from Indonesia who own the land, former Singapore banker Goh Yeok Chay and Mr Yong, a Malaysian.
Mr Yong was previously part of the Malaysian Retailer-Chains Association. Some of his partners also have experience in developing real estate projects in Malaysia and Indonesia.
Retiree Serene Cheong, who is in her 50s, picked up an OceanFront Villa about a year ago for $500,000. Even though the project is in Indonesia, she felt a certain level of comfort.
"You get to enjoy the comforts of modern living while staying in the midst of a mangrove or forest," she said.
"With all projects, there is risk. But all things considered, this is not a humongous amount if you want to get a home like this."
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