Bali Discovery Tours: Homepage
Bali Hotels, Bali Villas and Bali News from
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
Bali Hotels
Bali Villas
Special Deals!
MICE Handling
Bali Excursions
Culinary - Dining
Guided Tour
Bali Spas
Bali Sports
Bali Transportation
Car Rental - Selft Drive
Private Jet Charter
Bali News
Bali Services
Bali Practicalities
Bali Contact
Bali Career
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
Komplek Pertokoan
Sanur Raya No. 27
Jl. By Pass Ngurah Rai,
Sanur, Bali, Indonesia

++62 361 286 283

++62 361 286 284

U.S.A. Fax:(toll free)

U.K. Fax:

Australian Fax:

++62 812 3819724

Bali Discovery

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


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


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
Bali's Best Dining and Bars
Baliís Best Restaurants, Bars, And Cafes 2015 Crowned
Pray for Rain
Extended Drought Threatens Severe Water Shortage in Kuta and Other Areas of Bali
Double Bladed Consequence
Italian Tourist Goes berserk and Attacks Warung Owner with a Knife in Sanur Bali
A Night at the Museum
Baliís Arma Museum Named the Nationís Best Privately Owned Museum
Keeping Ahead of the Wave
New Tsunami Early Warning System Tower at Kedungu Brings to 9 the Total Number of Tsunami Warning Towers in Bali.
Needed: Stroke of Good Luck
New Kuta Golf Course 8th Anniversary October 10-11, 2015
A Ban on Reclamation?
Maritime Affairs Minister Announces Plans for a Moratorium on Reclamation of Seashores Nationwide
Liberalizing Indonesiaís Cruise Sector
Foreign Flagged Cruise Ships Allowed to Carry Domestic Passengers
Dogs Tied to a Poll
Bali Post Conducts Public Opinion Survey on Governmentís Response to the Rabies Crisis
Everything on your Plate
Police and provincial Authorities Warn that Motor Vehicles Staying More than 3 Months in Bali Must Convert to Local Police License Plates
Pearls of Wisdom
Pearls of North Bali and the Women Who Fashion Them at Living Lobby Art Exhibition Masters Showcase at Conrad Bali Resort Through January 10, 2015
When Kids Communicate and Collaborate
Global Issues Network Conference in Bali October 16-18, 2015
All [News]!