09 August 2013

Property in Bali too expensive.

The Bali branch of Bank Indonesia has warned that rising property prices across the island are becoming a cause for concern.

Head of Bank Indonesia Regional Office for Bali and Nusa Tenggara, emphasised that property prices in Bali have been increasing significantly from year to year. The price of property in Bali is overstated, and does not reflect the real value, often due to the activity of brokers and the fact that buyers pay all the prices. This condition is similar to what has happened in Jakarta, South Sulawesi, Batam and Riau. Actually, the price of land in Bali is not that much in real terms.

Another factor is that land prices in Bali continue to rise because of the recent (and planned) infrastructure improvements on the island such as the new Benoa toll road project and the development of Ngurah Rai Airport.

Entrepreneurs often do not realise that sites they might purchase are subject to tight restrictions on building development as zoning regulations require them to remain as predominantly open land.

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