Bali property prices up by 10 percent

JAKARTA. Property prices in Bali could increase by 10 percent in 2015 due to a fluctuation in fuel prices in the market, according to a forecast by Bank Indonesia’s (BI) Bali office.

“It’s estimated that the market outlook for properties [primarily residential] is still good, in line with the estimated increase of about 5 to 10 percent in prices,” BI Bali office head Dewi Setyowati said on Sunday.

She said these predictions were influenced by several government policies that positively supported businesses and employment.

The central bank had previously conducted a survey on business members of the Indonesian Real Estate Association (REI) and the Indonesian Real Estate and Broker Association (AREBI).

The survey revealed that business conditions were relatively favorable and had forecast them to remain positive in 2015.

According to her, favorable conditions would be consistent with the high level of demand, especially for houses measuring 36 square meters (sqm) and 70 sqm.

“The indicator is consumer demand for properties priced under Rp 1 billion,” Setyowati pointed out.

Prospective areas considered for development with selling prices hovering around Rp 1 billion are the districts of Tabanan, Negara, Klungkung, Bangli, and the eastern region of Karangasem district.