HOT | Report
”Not
If, But
When?”
rincahill courtesy andryhermansyah
Shape of Things To Come
Latitude 8.1 Hospitality-led residential
project near Senggigi
• Tourism limited to mainly niche surfer
segment
• Resort grade land–(USD4-8m2) but
expect to wait a longtime to cash out
- 50 villas priced from USD400,000, with
management by Archipelago
Snapshot - Flores
Sumba
• Entire tourism market premised success
of a single resort property – Nihiwatu
• Nihiwatu opened in early 2000’s – 27
villas now open
• Acquired by Burch Capital this year
• Island has no central urban area, lacks
roadways and other public infrastructure
• Property buying is driven by speculation and word of mouth, but market lacks
fundamentals
• Resort grade land–(USD5-10m2)
opment
• Disconnect between South Bali
retail property buying pool of domestic
Indonesian and question marks over who
will be Greater Bali property purchasers
• What effect will South Bali cooling have
on wider area?
• Tourism gateway to Komodo and Rinca
islands
• Labuan Bajo becoming a key tourism
gateway
• Destination is tapping into global rise of
adventure and cultural travel
• Established urban area, proximity to airport and support infrastructure is driving
development
• Resort grade land–(USD20-80m2 while
in townUSD100m2)
Snapshot - Sumbawa
Real Estate – Now Trending
• Of all Greater Bali markets has the most
severe limitations to grow
• Island’s economy is driven by multinational mining interests
• Transportation infrastructure is limited
and in poor condition
• Lack of notable transactions
• Foreigners buying small lots in resort
location
• A number of large parcels for sale
• Those actively looking at either motivated by land banking or mixed use develJelenga reef, Sumbawa courtesy indonesia travel
www.hotelier-indonesia.com
HOTELIER INDONESIA | SEPTEMBER 2013 • 11