Personal insights into the property market in Bali – A simple post to help you on your journey of buying or selling
- What has sold and who is buying?
Bali is resilient. It doesn’t seem to matter what happens here people seem to bounce back. Bali is also unique, and it doesn’t seem to matter if bombs explode or volcanoes erupt people are still attracted to be here.
Although there have been short-term dips from the recent volcanic activity of Mount Agung nobody here is expecting any significant long-term impact concerning foreign arrivals and investments.
And in terms of domestic investors or homebuyers looking for their slice of paradise, even the short-term dips haven’t been too hard.
In 2017, I was lucky enough to help homeowners successfully, and homebuyers sell and buy their dream homes and out of those just over 90% of them were with freehold titles ranging from IDR 1.5 – 4.15 billion.
I find this very interesting.
Here’s why … for me, property up to IDR 5 billion sells faster than higher-priced options. And I mean way faster. If the price is right, we’re looking at less than three months from coming to market to a completed transaction.
The same doesn’t seem to happen in a higher price bracket. Even if the price is right properties over IDR 5 billion tend to take longer to transact for some reason. And it is no secret that million-dollar features can, and have been on the market for years until they eventually get sold.
- But who actually buys these properties in Bali?
It’s my experience that almost 70% of my clients are Indonesian, middle class, and come from outside of Bali. They’re looking for a holiday home in a beautiful place with easy access to their current home. Indonesian’s tend to prefer freehold, which is why such a high percentage of my transactions were freehold.
The remaining 30% or so are foreigners (who tend to prefer leasehold titles), mixed marriage couples and upper class Balinese. Interestingly enough, this market segment is also buying leasehold properties, which just happen to be in that sweet price range of up to IDR 5 billion.
There’s a definite pattern here, and it follows our Personal Insights on the market
- Is it really a buyer’s market?
Yes, it is! For new home seekers in Bali, it might come as a surprise to know there are actually too many options available, and buyers have amazing choices available to them.
Sometimes, however, this can be confusing because when there are so many options on the table, buyers often spend more time looking than they were planning to do.
Multiple villa inspections and even various visits to Bali might be needed to make sure they don’t miss the best and most suitable home for them.
- Why are properties listed with multiple agencies in Bali?
Unlike other places in the world, in Bali (and the rest of Indonesia) it is widespread for homeowners to have something called an Open Listing Agreement with many agencies.
What this means is that whoever brings more potential buyers, and does it faster will most likely sell first. There are two points of views here; one believes that with open listings, there are more opportunities for a property or plot of land to sell faster. The other believes free listings are not efficient because agents are not committed to selling a home in a defined time-frame and actually have no incentive to perform.
With Exclusive Listing Agreements, however, the agent and agency have more of a vested interest to service the vendor and buyer more intimately and, therefore, transact faster.
We hope you found this blog post useful for the Real Estate market in Bali and that the Personal Insights can be to your advantage for your house search
source Harcourts Seven Stones.