Indonesian Real Estate Expert Predicts Huge Increase in Demand and Prices for Select Properties in Jakarta, Bali, and Lombok This Year
Improvements in the World Economy and Proposed New Foreign Ownership Laws are Setting the Stage for the Largest Run up in Demand and Prices in History.
Jakarta/Bali, Indonesia (PRWEB) March 30, 2010 — According to 13 yr Bali resident and real estate expert Lawrence Bellefontaine director of the 140 strong PT. B.A.L.I. “ the stage is set for the largest increase in prices for properties that are attractive to foreigners in Jakarta, Bali and Lombok”.
Bellefontaine has had an uncanny track record of predictions for real estate trends in Indonesia and worldwide over the past 10 years. He was one of the first pioneers of the investment villa market in Bali in 2002 when he copyrighted © Bali Luxury Villas. Thereafter a three bedroom villa with pool rose from $147,000 over 100 % to $295,000 in just seven years or 14.2 % per yr. Owners who rented their villas to tourists also received an additional 5% to 15% per yr.
He say’s’ “Considering over the last decade we had a very unstable Government and then two major bombings which were public relations nightmares it amazing that prices never dropped and continued to show handsome returns”.
His company stopped developing in 2008 when he predicted a worldwide recession and real estate collapse. Now he predicts “with the recession over and Asia becoming the powerhouse of the world the time is ripe for another major bull market”.
The primary demand for Bali and Lombok real estate in the past has been from tourists. As he often states “Bali real estate demand is directly proportional to tourist demand”. Although the rest of the world suffered severe downturns in tourism the last few years Bali has enjoyed record tourism with a 14 % increase last year alone. He estimates “tourism this year will grow by 15 % to 25 %”.
Bellefontaine has just turned bullish on southern Lombok real estate for the very first time. He cites the fact that “a brand new international airport is opening this year in an area that is two hours form Sengigi”. He believes that “Southern Lombok’s pristine beaches only one hour from the airport will be the “Next Bali” and investors who buy prime beachfront properties for as little as $79,000 will double and triple their money in the near future.
He cites several new demands coming into the market right now. First and foremost is the 24% of the population born between 1946 & 1954 called the Baby Boomers. Demand from Boomers in Australia, Singapore, Jakarta, Japan and Korea has increased substantially recently as they approach retirement and are looking for a second home or full time retirement in a low cost, sunny safe oasis such as Bali and Lombok.
The baby boomers and tourists will see © Bali Luxury Villas selling for as little as $99,000 and beachfront estates staring at $159,000 as a real bargain at 50 % to 70% discounts from other popular tourist islands.
Finally he believes that pending real estate law changes allowing up to 90 year foreign ownership will cause a several hundred percent increase in demand and prices for specific Condominiums and Apartments in Jakarta and other Indonesian cities.
In conclusion he states, “In the 13 years I have lived here I have seen the country go from a dictatorship to an unstable government and finally to a strong democracy. Indonesia with its abundant natural resources and huge inexpensive labor source has the potential of being one of the most powerful economies in the world this decade. This prosperity will generate new demands for luxury accommodations which will make those that invest early unbelievable profits.