House prices in Indonesia experienced an annual increase of 2.8% in July 2023 compared to July 2022. In the Jabodetabek region, Bogor led with an annual price increase of 4.7%.
According to the Flash Report from Rumah123.com in August 2023, Bali recorded the highest growth in popularity for housing searches in July.
From July 2022 to July 2023, Badung experienced a popularity growth from -1.5% to 1.4%, while Denpasar grew from -0.7% to 0.9%. This growth surpasses that of South Jakarta (0.8%) and Bandung (0.7%).
Local residents dominate the interest in properties on the Island of Gods, particularly from Denpasar at 45%. However, significant interest comes from Jakarta at 19.1%, and international enthusiasts contribute 1.4%, mainly from Australia, Singapore, and the United States.
Firman Pamungkas Putra, Associate Vice President Marketing at 99 Group Indonesia, states that Bali, as a global tourist destination, attracts interest from various societal layers.
According to 99 Group data, the most sought-after property types in Bali are land-based homes (70.4%), followed by land (16.7%), and commercial spaces (8%).
Compared to other regions like Medan and Makassar, the demand for land in Bali is higher due to its potential for residential and commercial development, either through ownership or lease.
The majority of housing enthusiasts in Bali fall within the age range of 25-34 years (27.1%), 35-44 years (23.1%), and 45-54 years (20.6%).
The top five popular regions for property seekers in Bali are Badung (48.2%), Denpasar (29.9%), Gianyar (13.1%), Tabanan (4.7%), and Buleleng (2.6%).
Badung, Denpasar, and Gianyar are favorites for both domestic and international tourists, with easy access from Ngurah Rai International Airport and comprehensive public facilities. Badung also records the highest yield at 4.9%, making it a potential property investment.
Property enthusiasts in Badung, Denpasar, and Gianyar generally come from the middle to upper-middle class, with a preference for property prices ranging from Rp1 billion to Rp3 billion. Meanwhile, in Tabanan and Buleleng, interest leans more towards the middle and lower-middle class, with budgets below Rp400 million to Rp1 billion.
Firman also mentions that besides being a tourist destination, property interest in Bali is influenced by regulations supporting the arrival of Foreign Nationals (FNs). The upcoming harmonization of Golden Visa-related regulations is expected to have a positive impact on property investment, not only in Bali but also in other regions of Indonesia.
Bali Properties, Property Popularity, Property Investment