BANGKOK, 19 March 2021: Bali’s tourism remains battered and bruised from the ongoing impact of the global pandemic, but the “island’s real estate sector has experienced a new wave of luxury property sales mostly in the villa segment,” says C9Hotelworks managing director Bill Barnett.
“Indonesia’s barrier to overseas travel is, in an unlikely turn of events, prompting a substantial trend in luxury villa sales that has been driven by domestic buyers from Jakarta and Surabaya.”
Bali’s property market shifts are highlighted in C9 Hotelworks and Horwath HTL’s new Bali Hotels and Hotel Residences Market Report 2021 released earlier this week.
Another key impact of Covid-19 has seen foreign buyers already in Indonesia, adopting a work-from-home lifestyle and purchasing homes. This is especially prevalent in Canggu and the rapidly expanding West Bali push up the coastline. We expect this to continue to trend, with a younger, digitally-enabled demographic profile emerging,” says Barnett in his latest industry email post
The report highlights the Increasing interest from Singapore, Hong Kong, and other city-based buyers from Europe and North America looking at resort locations across Asia to live and work from home.
Despite the vibrancy in overseas investment into Bali, there remain no new significant changes in Indonesia’s foreign ownership laws nor pandemic-driven incentives to date.
Meanwhile, land sales and property prices have remained extremely active, especially for residential project development and individual luxury-oriented villas. Domestic buyers are the key players in this sector, with competition high for prime sites and maturing locations.
One market that has seen sharp declines is hotel-branded or hotel-managed investment-type developments. Given stress in the tourism market and saturation of condominium hotels, the report suggests this class of real estate will remain sidelined for the remainder of 2021.
“Given many of these projects are focused on foreign buyers who are presently unable to visit Bali, there is little reason to expect a rebound in transactions until the broad international tourism market returns.”
Looking at projects currently for sale in Bali, the research shows that condominiums still exceed a 60% share, though the villa segment is poised to grow. Primary sales volume over the past year totalled USD272 million, which is approximately a third of pre-Covid transaction levels.
The report looking forward identifies a continued domesticated push from Java and Surabaya in Bali’s real estate buyers who are motivated to purchase a second or holiday home after numerous lockdowns. Looking further ahead, Bali’s appeal to international buyers will attract more demand as bedroom communities like Greater Canggu develop more critical mass and infrastructure.
To download the full report click the following link: https://www.c9hotelworks.com/wp-content/uploads/2021/03/2021-03-bali-hotels-branded-residences-market-report.pdf
SOURCE: C9Hotelworks
