Recovery 2021 ; Bali Property Report
Bali Property Report
What Will it Take to Be Ready?
For most of 2020 market conditions were, simply put, uncertain. Just a few weeks into 2021 and they still are.
Buyers and sellers know that sentiment has no place in today’s market and that prices should be adjusted lower, but by how much?
It has been said that the market won’t fully recover until people start paying a fair price for properties again. When the very subjective “market price” levels return and become the norm again, we can they say that the market is back. Nobody knows when this will be. As of this writing, there is no plan in place to open the borders at the end of the month. When we do have a plan in place, it will include a lot of factors and conditions. Vaxx or no-vaxx requirements. Quarantining; Self or Mandated? Visa Classifications. Re-entry to your home country; quarantining. How long and at whose cost? There are simply too many variables to predict accurately what the next new normal will look like, but there are some things that are for sure.
1. HAK MILIK BY THE BEACH IN SECURE ESTATE JUST 100M FROM JIMBARAN BAY
2. SECURE UMALAS ESTATE PROPERTY – BRAND NEW, LONG LEASE
3. CENTRAL SEMINYAK HAK MILIK/FREEHOLD: CAPITAL APPRECIATION AND RENTAL INCOME
4. STAY & EARN AT THE SAME TIME – CENTRAL SEMINYAK LEASEHOLD
While the Hak Milik/Freehold market saw a flurry of activity after the domestic airport terminal re-opened in August, sales have fallen off a bit since early December. Enquiries remain consistent from both domestic investors and foreigners alike, however given the recently implemented lockdown measures, transaction volume has fallen off a bit.
We are seeing more of a willingness on the part of the foreign market to make remote investments, albeit in some of the traditionally safer segments of the market. Longer and/or less expensive leasehold options, hak milik options that can operate commercially and options that allow the new to stay and earn at the same time have dominated our radar screens.
As one industry expert here in town reported, we “saw a sharp dip in both volume and value of transactions in the residential, commercial and development land segments in March and April, when the country observed a partial lockdown, before picking up in August and September when the restrictions were eased”.
He went on to say “I didn’t expect the market to come to a halt in 2020. Certainly, this is an unprecedented crisis and no one would have foreseen this to take place at such a magnitude. “
He was pleasantly surprised that large deals did occur and that he lockdown “did not scare away serious investors and developers”.
“Although the pandemic threw the market into somewhat of a tailspin, the overall reaction was not as severe as we had expected it to be.
“Significant deals did take place, especially for well-placed properties with potential. But there were much fewer deals in totality, with both volume and value decreasing significantly,”
What does this mean for your investment plans? Round and round she goes, where she stops nobody knows. Where do you want to be when this whole thing stops spinning? Give us a call today and let’s see if we can map a strategy going forward.
Contact Patrick on +628179733031/[email protected] to learn more about any of the topics above.