Bali Discovery Tours: Homepage
Bali Hotels, Bali Villas and Bali News from balidiscovery.com
Home Bali Contact Bali Practicalities Bali News Bali Services Bali Transportation Bali Sports Bali Excursions Bali Villas Bali Hotels
Home · News · Bali Property Market in Decline?
Bali Hotels, Bali Villas and Bali News from balidiscovery.com
Bali Hotels
Bali Villas
Special Deals!
Packages
MICE Handling
Bali Excursions
Culinary - Dining
Guided Tour
Bali Spas
Bali Sports
Diving
Golf
Bali Transportation
Car Rental - Selft Drive
Private Jet Charter
Bali News
Bali Services
Bali Practicalities
Bali Contact
Bali Career
Home
 
Bali Update
Subscribe to our free weekly newsletter!
 
PATA header
PATA Gold Award 2007
Bali Update
PATA Gold Award Winner 2007
 
Bali Contact
Bali Discovery Tours
Jln. By Pass Ida Bagus Mantra,
Jln. Pucuk 1 No. 70X
Denpasar, Bali
Indonesia

24h:
+62 (0)812 3819724
Tel:
+62 (0)361 464 032, +62 (0)361 471 0242

Bali Discovery

SITE PATA ASITA
Bali News

Bali Property Market in Decline?

Downturn in Bali Property Business May be Short Term and Cyclical


Bali News: Bali, Indonesia, Bali Indonesia, KPR, Bali property business, Wayan Sukarja, Loan to Value ratios, Property prospects in Bali
Click Image to Enlarge

(4/20/2014)

The Bali Post reports that the property business in Indonesia as a whole, including Bali, is predicted to decline during 2014.

An observer of the local property market in Bali, I Wayan Sukarja, said on April 15, 2014, the decline will act as a natural filter, determining if new developers will be able to endure and survive.

Sukarja said property transactions are weakening at the current time as part of a natural cycle in the property market now on a downward swing. This is happening after a buying surge over the past few years.

“The decline is as much as 49%, Implementation of Loan to Value parameters are forcing developers not to sell homes on mortgage, leaving them in a difficult situation,” said Sukarja.

At the present time, an application for a homeowner’s loan (KPR) can only be processed by a bank if the construction of the subject home is 70% complete. Moreover, there are some banks now demanding that homes to be purchased on creditmust be 100% finished before a loan can be approved.

Sukarja said this situation means that strong and well-funded developers will survive while financially weak developers are in danger of bankruptcy.

Regarding skyrocketing property values in Bali, Sukarja sees high property prices as having a minimal effect. This is because Bali's land is seen as both unique and of limited supply. At the same time, Bali property remains cheaper than land parcels in other property markets in Asia, such as Singapore. In Sukarja’s view, any downturn in the number of property transactions in Bali is most likely connected to economic policies and domestic politics.

“Property prices in Bali are still affordable in the marketplace. Policies of Loan to Value ratios are presently clogging the process,” he explained.

Sukarja said any weakness in the Bali property market was temporary in nature, He predicts that by the end of 2014 prices will again begin to climb and demand will increase for at least the three coming years. “I am convinced that following the Presidential election the market will grow and become active again. What’s more, consumer demand in Bali is very high and the government must take a role in meeting public housing demand,” he added.


© Bali Discovery Tours. Articles may be quoted and reproduced if attributed to http://www.balidiscovery.com.

       

 
Bali News by Bali Update
Subscribe to the Bali Update
Receive the latest news from Bali by email!



Our [Privacy Statement] explains how we handle the data you are providing.

 
Bali News by Bali Update
Explore the Archive of the Bali Update
Find related articles in our news archive!




or try to use Google Search :

Home · Bali Hotels · Bali Villas · Bali Excursions · Bali Sports · Bali News · Site Map · RSS

Bali News: More News
Here Comes the Sun
Baliís Green School Receives Donation of Solar Panels to Take Campus Off the Power Grid
(4/22/2018)
Horses for Underground Courses
Plans Being Drawn for Additional Underpass Near Gatot Kaca Monument at Baliís Airport
(4/22/2018)
You Take the Long Road and Iíll Take the Short Road
Buleleng Regency Ready to Provide Land for Construction of a 1.8-kilometer Shortcut Highway Between Bedugul and Singaraja
(4/22/2018)
Itís Not Easy Being Green
Complaining Health and Crops are Affected, Celukan Bawang Residents in Demand Halt to Building Second Coal-Burning Power Plant in North Bali.
(4/22/2018)
Mythical Bird Scheduled for August Landing in South Bali
Garuda Wisnu Kencana Monument Promised to be Complete by August 2018
(4/22/2018)
The Cruelest Bite of All
Motorcycle Taxi Driver Who Had Tongue Nearly Bitten Off in Rape Attack Sentenced to 5.5 Years Prison
(4/22/2018)
A Sporting Chance
Bali Hopes to Win Bid to Host 2014 National Sports Games (PON-XX1)
(4/22/2018)
Fire: The Spirit of Creation
40th Bali Arts Festival June 16 Ė July 14, 2018
(4/22/2018)
Garuda Airways to Mumbai
Direct Flights between Bali and Mumbai Now Available from Garuda Indonesia
(4/22/2018)
An Evening of Mosel Valley Wines In Bali
Selbach-Oster Tastemaker Wine Dinner at St. Regis Baliís Kayuputi Restaurant on May 10, 2018
(4/22/2018)
Seeking the Full Extent of the Law
Bali Guides Protest Lenient Handling by Police of Criminal Assault by Illegal Guide Working in Bali
(4/22/2018)
Ultimate Golf in Bali
Ultimate Golf Series on Sunday, April 29, 2018 at Bali National Golf
(4/22/2018)
All [News]!