Bali: Condotel overdevelopment?

Bali: Condotel overdevelopment?

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Unless arrivals increase in tandem investment yields are likely to face downside pressure.

Bali Post quotes a Balinese property investor, I Gede Suardita, observing that the price of seaside property in Bali has “gone crazy” because of the fierce competition by developers to grab up every remaining piece of seaside land in Bali’s south.

As a natural consequence of the “land grab” Suardita is predicting that a large number of condotels will be built along all of Bali’s beaches in the coming few years.

Suardita, who serves as the vice-chairman for the Payments and Taxation Committee of the Bali Branch of the Indonesian Real Estate Association (REI-Bali), emphasized that most seaside lots of land are owned by investors from outside Bali, saying the shoreline from Kuta Beach to Soka Beach is now in the hands of investors. Adding: “We have merely become spectators because we lack the capital. This is even more the case as tourism development surges, further fueling the appetite for business development in Bali.”

The director of PT Ski Land Development, Gede Semadi Putra, also admits that most investors and developers of condotels in Bali originate from outside the Island. At the same time, he concedes that these new investors are helping to power the Balinese economy with their new injections of cash.

Semadi said he hopes Bali’s new investors will follow zoning and building regulations. He also called on the local governments to closely supervise new projects and take stern action when violations are discovered.

Bali Discovery

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