Despite the disruptions caused by the pandemic on the tourism industry, Bali has somehow managed to recuperate due to the shift in luxury real estate demand, reported C9 Hotelworks, founded and managed by Bill Barnett, a member of the PropertyGuru Asia Property Awards (Greater Niseko) judging panel.
Findings from C9 Hotelworks’ Bali Hotels and Hotel Residences Market Report 2021 revealed that lockdowns have prompted investors to reevaluate their needs, drawing their attention to luxury villas.
Leading the demand are local buyers from Jakarta and Surabaya who have either purchased high-end properties at premium rates in Greater Canggu and South Bali, or those who took advantage of “stress-driven” deals across a broader region.
Foreign buyers based in Indonesia, who have adopted work from home schemes, also helped boost the trend, snapping up homes in Canggu and all the way up to West Bali coast.
The hospitality consultancy foresees the trend to continue, “with a younger, digitally-enabled demographic profile emerging.”
Buyers from overseas, including Singapore, Hong Kong, Europe, and North America, have expressed renewed interest in resort locations across the region, but the Indonesian government has yet to introduce changes to the foreign ownership laws or incentives to encourage investors and stimulate the property market.
On the plus side, property prices and land transactions have been remarkably active, particularly for residential project developments and individual luxury-oriented villas. Local buyers still steered this demand, with the majority vying for premier sites and maturing areas.
As for developments on the market, their research uncovered that condominiums still surpass the 60 percent share albeit the positive growth forecast on the villa segment.
Throughout the past year, primary sales volume amounted to USD272 million, roughly a third of transaction levels pre-pandemic.
In 2021, C9 Hotelworks expect Java and Surabaya buyers to further accelerate the demand as they search for a second or holiday home after all the 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,” the report concluded.