Bali:the paradise of properties
Bali’s real estate market has weathered various local and international events: SARS epidemic of 2003 to the global financial crisis.
Between 2003 and 2014 prices for land in some places multiplied by 10. But that growth temporarily stalled in 2015 and 2016, with prices flattening for the first time in at least a decade and transaction volume dropping by about half.
Everyone seemed to think Bali was bulletproof. And it wasn’t,.
Since about 2005, new construction developments, including condo-hotel hybrids and resort-style apartments, have proliferated around the island’s southern side. Today the new resort-style construction developments make up about 10% of Bali’s real estate market and roughly % of its luxury market.
Prices last year continued to grow, but at a lesser rate than before: 10 or 15 %, compared to 20 to 30 % three to five years ago. Indonesian investors started returning this spring.
As a result of the earlier price growth and the recent stagnation, sellers who bought 8 to 10 years ago are able to sell at “realistic” prices, while sellers who bought when prices were higher will struggle to make a profit. It’s still absolutely a buyer’s market. Properties are closing at around 80 to 85 % of their asking price.
Luxury properties start at around $1 million and reach more than $10 million. Most fall between $1 million and $2 million. Place were market is better: Flores, Rote, Lombok and Sumbawa as options in the 17,000 island archipelago.
The vast majority of buyers are Indonesian. Foreign buyers tend to come from around the region : Australia, Hong Kong, China and Singapore.
[from NY Times]