Bali property market holding up

The Jakarta Port, Jakarta

Despite the deadly bomb blast in 2002, Bali remains a potential market for property investors as indicated by the occupancy rate of hotels and villas, currently averaging 85 percent, with annual increases of property prices by 10 percent, said executives.

"Tourists from Australia and New Zealand visit Bali in the middle of the year and tourists from Japan, the United States and European countries visit the island at the end of the year and domestic tourists in between," said president director of real estate agent Century 21 Tony Eddy on Monday.

He therefore believes such conditions make Bali a promising market for property investment.

According to Tony, more and more visitors go to visit the island and because Bali has a limited supply of accommodation facilities, property prices continue to increase.

As an example, he said the Nusa Dua Golf Resort, which was set to break ground in June on a 4.8-hectare plot of land in the Bali Tourism Development Corporation (BTDC) area, southern Bali. Century 21 is the main property consultant for the resort.

"The project will be built with an investment of US$19 million," president director of developer PT AKR Corporindo Tbk Haryanto Adikoesoemo said.

The project will consist of six towers with 125 condominium- hotel (condotel) units and four towers with 51 apartments as private residences. Each of the "condotel" and apartment units will be sold at prices ranging from US$140,000 to US$300,000.

"In addition, the 51-unit serviced apartments will be offered to prospective customers who need a private second home in the BTDC area," Haryanto said.

President director of PT Metafora International, an affiliate to AKR Corporindo, Stanley Handawi said the building would cover only 20 percent to 25 percent of the land area, while the remainder would be allocated for the landscape. (004)