Bali Property Market Skyrocketing
Asia's popular tourism destination Bali is experiencing unparalleled growth in its real estate market.
Spending the last week on the island doing research we found that sales pace for 2010 and for the first quarter of 2011 remains high. One key segment is the condo hotel or commonly referred to condotel segment with over 4,000 units in the market.
Indonesian buyers mostly from Jakarta are flocking to these both for investment and lifestyle/usage.
Branded projects in the sector include names such as Anantara, Outrigger, Ramada, All Seasons, Pullman, Citadines and Aston.
Up on the luxury level million dollar offerings with chain management by Banyan Tree, Bvlgari, Starwood's W and a soon to launch Westin project are seeing activity from both domestic and overseas purchasers.
Unlike Phuket which has limited traction from Thai buyers for resort grade real estate, Indonesian's remain keen on financial returns, capital appreciation and complimentary holidays.
From a cyclical standpoint demand is outpacing supply with resale's on a marketwide basis still the vast minority of transactions.
Clearly soaring tourism numbers and hospitality led residential products are filling a niche with average room rates that far exceed those in Phuket at the moment.
Sentiment remains positive and expectations are for double-digit growth are expected for the remainder of the year.