Bali property developers target new areas for high-end housing

The high price of land and limited availability in Denpasar, Bali province, has driven real estate developers to target new areas outside the city.

Areas now being targeted for housing developments are Tabanan, Gianyar, as well as some parts of Klungkung and Bangli, property businessman I Gusti Made Aryawan said Monday.

“In fact, some parts of Tabanan are already crowded with new housing. We are seeking to develop Gianyar, Klungkung and Bangli,” the newly elected chairman of property developer organization Real Estate Indonesia (REI) Bali chapter said on the sidelines of the REI national conference.

He said that residences for the high-end market remained a trend due to high demand from domestic investors outside Bali, who had shown a property-buying “frenzy” during recent years.

“Luxury residences will still be a trend, because apparently they consider Bali a second home. And for those people, owning a property in Bali is prestigious. They buy the property for investment purposes.”

Therefore, he went on, these people still demonstrated strong purchasing power despite the skyrocketing price of land in the island's prime areas of Denpasar and Badung.

However, the sector would see slower growth this year, due to obstacles from the banking sector.

In addition to luxury residences, members of the REI Bali chapter have also set their sights on developing estates for lower-income families.