Whilst elsewhere, for example from Australia and the USA, we hear mid-year reports about falling property prices by about 8-15%,  property values in Bali, supported by our own observations here in Ubud, will be in an upward trend by up to several years.

Reasons:

• According to BI , Bank Indonesia, there is an ease and speed-up of local credit taking, due to lowest interest rates.
• Rising inflation rates on the other hand are supporting property ownership.  We will not discuss the economical function here and why that is. Too complicated for a short newsletter. If interested, check out uncle Google.  Fact: Inflation goes up – so do property prices.
• The Minister of Economy, Airlangga Hartanto, said during a press briefing, “The G20  meeting will encourage global investors with profitable partnerships to accelerate economic recovery.”  With Bali moving into the limelight, some larger investment projects are likely to add fuel to local property price increases.
• Also – each time, before Presidential elections there is talk about easing the regulations regarding property ownership by foreigners.  Having a ‘no bull–President’ in power, can this time possibly lead to a real result.
• LED.  This new regulation about land classification is protecting agricultural lots. Building permits are not, or seldom issued over these lands any more. Properties, which are near already developed areas, do not fall under this ruling. These are increasing in value, as a building permit can be obtained there.
• Global warming.  In 2030 the average temperature is said to rise by another 3 degrees. Then living in Ubud, and the slopes above, will experience increased demand, compared with coastal residences, again leading to higher prices.

Anyone thinking about buying or leasing land or a home in Ubud, is well advised to take some or all of the above into consideration.

Let’s see which news we will receive in September . . .

Until then, make good use of the changing times – and as always – when in doubt, ask

UbudProperty.  Always honest and professional advice given, for FREE.

          See you then,

                    Ray, for the team of UbudProperty

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