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Bali Villa Rental Villa Market Declines

Author: Bill Barnett. Category: Real Estate. Posted: 25th Nov 2012

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In the news from Bali is a story about shrinking occupancy in the villa rental sector.

Knight Frank Indonesia has published research, which indicates a 9% drop in volume for the first six months of 2012.

Citing new supply and volatile rates, most of the pressure is on large villas, especially four bedroom units.

The most popular unit type for travelers is the one bedroom, which is enjoying strong demand.

We spoke to Ian Maccaulay of the leading agency BHMVillas.com who said that increases in supply has impacted trading. Those most affected products are located in inland areas especially Canggu.

Based on their booking trends the 3-4 bedroom sector is feeling the pinch, while the ultra villas with 7 bedrooms and above remain popular given limited competition.

He added that his group is still seeing year-on-year growth in bookings which is being bolstered by a strong Australian market.

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