For those who find beachfront living in S'pore costly, there are options in Bali, Phuket
Don't let your dream of owning a beachfront home get washed away by rising prices.
In the lap of luxury: Waterfront bungalows at Bayou Water Village (left) in Johor cost about $500K, while villas at Alila Villas Tanah Lot in Bali (next) cost about $3m
Sure, an exclusive beachfront home at Sentosa Cove will cost anywhere in the region of $15 million to $20 million these days, but there are cheaper options.Consider that a bungalow land parcel in Sembawang went for around $200 psf at an Urban Redevelopment Authority (URA) auction this week - cheap compared to Sentosa Cove, where a bungalow site recently sold for over $1,500 psf.
Unfortunately, only one parcel out of 12 in the auction was designated for bungalow development.
To find an affordable beachfront villa, one will really have to look overseas.
The Alila Villas Tanah Lot in Bali costs just under $3 million. For this, you get a three-bedroom villa designed by award-winning Singapore firm SCDA Architects on about 6,000 sq ft of prime beachfront real estate near the fabled Tanah Lot temple.
Fu Hui Ling, whose family is in the mining business in Indonesia, is one of the partners behind the venture.
The development comprises 12 three-bedroom villas and 38 one-bedroom villas and all have been sold, mostly by word of mouth, and sight unseen.
Ads for property in Bali are easily found on the Internet but buying a property overseas does require some nerve. An unscrupulous developer will sell you a beachfront home that could be miles from the beach, say Ms Fu. She herself was talked into buying a beachfront property that was landlocked with no access from the road.
But such occasional pitfalls aside, property values are on the rise. Since 2005, prime property prices have increased 50-60 per cent, reckons Ms Fu.
'And nothing beats nature,' she enthuses.
Closer to home - just across the Causeway, in fact - nature is a little less expensive.
Bayou Water Village is the latest phase of the huge Leisure Farm Resort Residences in Johor developed by Mulpha International Berhad and waterfront bungalows there cost about $500,000. That is until they were all sold too. There are still terrace units available and these cost about $215,000. The built-up area for all three-bedroom units is 1,777 to 2,234 sq ft.
Peter Lim, sales manager at Leisure Farm, says that half the buyers of the waterfront homes are either Singaporeans or Singapore PRs. They include professionals, businessmen, and people, 'looking for a shortcut to their dream home'.
To give an idea of the capital appreciation, Mr Lim says that its The Pinggiran Bayou cluster homes were first launched at around $100 psf about four years ago while Bayou Water Village was launched at about $150 psf last year.
There are real challenges to buying property overseas, including restrictions and taxes pertaining to foreign ownership.
Mr Lim reveals that with the implementation of the special economic zone, the Iskandar Development Region, in Johor, certain obstacles are being removed. 'Among the slew of incentives to entice foreign direct investment into the region is the removal of the property gains tax, which immediately connotes a capital appreciation element in investing in Johor and that has translated into many more sales inquiries and purchasing activities for us,' adds Mr Lim.
Restrictions on foreign ownership vary.
Keppel Land, which is building luxury waterfront villas in Shanghai, says that foreign buyers have to provide proof that they have resided in China for one year with employment at the point of purchase. They are also required to declare that the property is their first in the city.
A Keppel Land spokesman also said: 'There are different taxes imposed on different property types and they also vary from city to city. In general, there is sales tax, capital gains tax, stamp duty and income tax on rental.'
Keppel Land's Villa Riviera, which is incidentally also designed by SCDA Architects, has waterfront bungalows that start at 6.5 million yuan (S$1.26 million) and go up to 13 million yuan, ranging from about 3,500 to 6,500 sq ft in size.
The development comprises 88 units of villas and 80 units of semi-detached and terraced houses, and so far, about 20 per cent of the buyers are Singaporeans. Keppel Land added: 'Most of them purchase for own occupation while some are for investment.'
Phuket in Thailand is also where the wealthy are going to build their beachfront homes. At present, there is no tax in Thailand on the occupation of property or ownership.
Other restrictions on ownership do apply but this has not stopped about 2,000 foreigners from buying condominiums, apartments and villas, says CB Richard Ellis (Thailand).
According to CBRE, luxury villas weigh in at under $2 million while your entry-level villa will cost around $700,000.
Some people will want to know how much domestic help will cost - after all, you don't want to be doing laundry in your own luxury villa, do you? But then, if you have to ask, you probably can't afford it.
Nevertheless, the good people at CBRE estimate that full-time staff such as maids, cooks, drivers and gardeners can be hired at approximately $300-$600 per person per month.
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