Bali Property Report
Bali Property Report : Is the Bali Property Market Already Recovering?
Are Bali and its previous booming property market already recovering from the ripple effect created by the extreme shutdown measures? What are the signs to look out for? We have been talking with a handful of local decision makers and we have learned that there are 4 indicators showing that our economy and with that – the housing market – is on its return. Let’s take a look at these 4 indicators and see how Bali is doing:
- The flattening curve
The first sign of things getting better is a flattening curve of new cases, right? And this is generally the case we are seeing in many countries around the world. The decrease in the total number of new cases – particularly in our Asian market – has allowed many countries to further their plans to reopen their borders. This is the first morsel of global good news for those of us whose lives are directly impacted by international and domestic tourism!
How is Bali doing? It is still quite a mystery how Bali seemed to escape a massive break-out. (I actually believe that we had a mini-breakout in December of last year). Nevertheless the island has been hit hard by the side effects, with the banning of all tourist arrivals until just recently following a nearly 3 month long shutdown. Ngurah Rai Airport here in Denpasar is open, however we are yet to see a steady stream of planes coming and going. The Island of the Gods is emptier than ever. Many jobs have been lost and businesses have gone bankrupt. While Bali may not have been as physically impacted as many other destinations around the globe, our pocketbooks have taken a tremendous hit.
However, the fact that there have been so few cases here promises good stuff ahead and the island is planning to reopen for tourism – full tilt – on 1 July. We all cannot wait to welcome tourists back to the island, guarding the new social distancing measurements, washing hands frequently and wearing face masks outdoors.
- Release of lockdowns and stay-at-home orders
While many countries went into a complete lockdown, this never really happened in Indonesia. Bali did however encourage people to stay home as much as possible and beaches were (and many still are) closed to the public. Many countries around the world are lifting the lockdown, allowing people to go out again, and this is a good sign! The local Balinese government along with the federal government have rolled out our return to normal timeline and just yesterday the shutters came off hundreds of shops around the island as the first phase of opening retail is underway. We are slowly recovering. It is expected that the infrastructure to return to ‘fully-functioning’ will all be open by the end of July. This includes airports, beaches, ferries, restaurants, hotels and managed villas. Bali’s bread and butter.
- Decrease in unemployment rates
Bali is very much dependent on tourism and as such, many people have lost their jobs or accepted pay cuts. As the economy gets back on track people will get back to work and there will be a decrease in unemployment rates which is what we want to see happening for Bali, for the Balinese people and for the property and tourism markets as well. We are on the way.
- Recovery of the hardest-hit sectors
Dining, lodging and travel are the sectors that have been hit the hardest. Predictions vary on how long it will take these sectors to recover from the major downfall. As the people start to pick up their daily lives, embracing the ‘new normal’ measurements while doing so, and they begin to travel again, everything will fall back to place here in Bali just as it has done in the wake of previous slowdowns. Surely, this will happen but it’s hard to know when. In the meantime, looking to invest in Bali property could be a great idea, preparing for the future and looking ahead with great tropical positivity, owning a beautiful villa in Bali to live in or rent out as tourism picks up. Prices of several properties have dropped and it might be a good time to go and find that perfect villa to buy here on the island.
Reach out to learn if your dream Bali villa has had a price reduction, +62 817 1973 3031/[email protected]