Will 2016 Be Lombok’s Year?
Over the past few year’s Indonesia’s Lombok has caught a decided buzz for hotel and residential development. One of the strong drivers is the international airport which gives it the all important airlift advantage, yes the island has not been able to captivate the Bali fringe development push which has driven the Island of the Gods. Will 2016 finally be Lombok’s year. C9 Hotelworks and Horwath HTL have released a report called Lombok Hotel and Branded Residences 2015 which will provide a strong update on market trends.
Taking property, over the last five years, there has been substantial growth in the Lombok real estate market. Early hospitality-led residential projects selling condominiums/apartments and villas emerged along with tourism growth and development of hotels in the areas of Senggigi, Mataram, and the Gili Islands.
More recently, the residential development radius has expanded to South Lombok, in particular the Kuta, Selanak Blanok and Sekotong areas concurrent with the airport relocation. Another segment that has experienced traction has been land plot sales. Driven by relatively low pricing points and carrying the potential for significant capital appreciation, it has attracted mainly overseas investors.
Despite growing rapidly, project risk remains an issue in the early stages of the property cycle. Market sales pace this year has slowed as there has been an overhang of reserved unit which did not convert into transactions. Affiliating with branded hotel operators and offering products with the prospect for income and investment values are the key marketing tools for Lombok projects to boost sales performance.
There is currently a mix of both domestic and international buyers in Lombok with Indonesians viewing the property pricing points as lower than South Bali and hence having stronger upside potential. Looking forward, growth in higher quality developments with income potential and the anticipated weakening of Indonesian Rupiah create a optimistic investment outlook for overseas investors.
To download the full report, click on the link below: