In an exclusive interview to Holiday Home Times, Colin Reid, Sales Director of Double-Six Seminyak development speaks about his development, what buyers can expect in Bali and about the Bali property market in general.
Firstly, please give us a brief paragraph on the development Double-Six Seminyak.
The Double-Six Seminyak, is a 146-unit hotel located on Bali’s famous Double-Six beach. This is an unparalleled location on the island, and provides 150 metres beach frontage in the heart of Seminyak.
Designed beyond convention, the Double-Six will espouse all the elements of a traditional 5 star hotel, the highest quality in finish, service and facilities.
However, in addition this development will provide unique oversized rooms. The Double-Six has a broad unit portfolio, consisting of 1 and 2 bedroom studios, suites and penthouses. They begin with a 62 meter square studio and culminate in the Super Penthouse. A two level, 805 meter square, 3 bedroom space that will excite your senses.
This visionary design concept has created a destination for both discerning travelers and astute investors.
In brief please tell our readers about your work in Bali?
At present my focus is predominately within the Double-Six sales team, the most exciting new hotel development in Bali. I have been involved throughout the planning and pre development phase and it has been incredibly rewarding and interesting so far.
Why, according to you, should one buy property in Bali?
Today, the Asian property market is a complete contrast to international trends. While Europe and the US are continuing to see a decline, with few predicting gains in the short to medium term, land values in the Bali are increasing at record levels. In Seminyak where the Double-Six is situated land values have increased by on average 85% in the last 12 months, with prime beach front locations like ours more than doubling in price.
What is the current status of the Bali real estate market?
The real estate market here is going from strength to strength. Values here are underpinned by strong tourism figures and domestic investment. Some tourism analysts predict tourist numbers will reach six and a half million by 2015, and with no sign of the Indonesian economy slowing domestic investment is only going to increase.
According to you where in Bali should one look for a property? Why do you recommend these locations?
1. Obviously I am going to pick Batu Seminyak where the Double-Six is situated. A somewhat biased decision I admit but I can honestly say it is ideal – the beating heart of an upscale Bali home of all the high end spas, boutiques and restaurants. Land values are high but as I have already pointed out last year averaged an increase of 85% with some prime properties increasing by even more.
2. In or around Berawa. Ten minutes from Seminyak there is still some value for money here. A more sedate feel but close to the action.
3. Soca beach. This is at present untouched by the development boom. The area is still a local Balinese village. Land values are reasonable and development is sure to increase over the next few years. This is for the brave long term investor as the really impressive gains seen elsewhere will rely on the implementation of a plan to extend an existing dual carriageway to the region.
What is the buyer profile that you usually see who are buying property in Bali? Are they largely expats? From which country/ region do you ideally see buyers inquiring or investing in a property in Bali?
The ratio of investors in Bali was probably 75 percent domestic and 25 percent foreign/expat. Although the ratio has changed considerably in recent years and both demographics are increasing in numbers year on year. It is the burgeoning middle and upper classes of Indonesia that are increasing exponentially this domestic led investment.
Are most of these buyers just investors or they are buying to stay? What is the rough ratio between investors to residents?
In my experience the domestic investors are looking for good returns; it is a return driven investment. However among the expat market, it is probably an even split between those looking for a holiday home and those looking for astute property investments.
What are the property types that most developers in Bali are currently offering?
Without a shadow of a doubt the most common development in Bali at present is the 3 star hotel developments.
For a buyer, what are the things one should keep in mind while choosing a property to buy?
I believe it is important for foreign investors to realise that the Indonesian constitution states very clearly that land cannot be owned by foreign nationals. There are ways to circumnavigate this, but I strongly urge against it. I also advise using a reputable legal representative to complete a comprehensive due diligence on land titles building restrictions, etc.
Can you name some good developments which are worth investing in? Do you think it’s a good idea for a buyer to approach the developer directly rather than going through a real estate consultant/ agent in terms of discounts or offers?
I am obviously going to mention Lime-Villas, as it is a premium product that provides return and occupancy options that can be tailored to any investor’s requirements. However if you were to twist my arm I would have to mention the Double-Six in Seminyak. I think this will set a new standard on the island as a destination and investment.
Other than the property, what are the facilities/ amenities should a buyer look at when short listing properties to buy? What is Bali as a place to live in contrasting with Phuket or Singapore?
I would always look at suitable power supply. Many villas do not have adequate electrical supply or generator backup. In terms of infrastructure, Bali is closer to Phuket than Singapore. What makes Bali special is the Balinese people. They are what bring people back and make it a unique destination.
What about the rates of property in Bali? Can you give us the various price brackets and what a buyer can expect (or gets) in these price brackets?
Between US $150,000 to US$500,000 one can expect an older villa with 10-15 years on the lease or a 3 star Condotel development, while for US $500,000 to US $1,000,000 one can buy a new villa with 30 years + on the lease or a 5 Star Condotel development.
What are the rules in Bali for expats wanting to buy property? How difficult or how easy is it for foreign nationals to buy a property in Bali?
As I said previously the Indonesian constitution states very clearly that land cannot be owned by foreign nationals. There are ways to circumnavigate this but I strongly urge against it
What are the residency rules for foreign nations to stay in Bali? What are the different visas available for long stay?
Most countries can obtain a tourist visa on arrival for US$25; this is valid for 30 days. Longer stays require a social visa that must be arranged through the Indonesian consulate in the traveller’s home country. There is also a residency visas for retirees, and some countries have arrangements where pensions can be collected here.
In terms of appreciation, how do you see an average Bali property in the next 5, 10, 15 years?
I can only see the upward trend continuing. Maybe not at the rates we are currently witnessing but who knows.
You give assured rentals to owners. Can you tell us briefly how this works?
The Double Six has 3 guaranteed ROI options:
- Reduced – 6% for 3 Years
- Standard – 6% for 6 Years
- Extended – 6% for 10 Years
How should any of our readers get in touch with you in case they are interested to buy a property in your developments?
For more information one can always contact me at firstname.lastname@example.org, email@example.com or call me: (+62) 852 9261 6666