Is COVID-19 getting you down? Has lockdown slowly sent you stir crazy? Now is the best time to realise your dream of buying that Bali villa.
COVID-19 has only marginally affected real estate prices in Bali, and there are deals to be had. You can thank us later!
By Nathan Ryan, director of Bali Realty
Posted 10 June, 2020
For those buying Balinese Real Estate, COVID-19 is a great opportunity rather than a problem.
Prices over the last four to five years have been increasing year on year, and the COVID-19 pandemic has put a halt to these steady gains. For most would be Bali real estate investors; this is excellent news as it’s now a buyers market.
Vendors who are keen to sell their property have been are even keener to sell their villa or land as COVID-19 bites into the holiday villa market. While this is not good news for the sellers, it does present some golden opportunities for those astute buyers that have been watching Bali Real Estate prices climb.
COVID-19 has meant that villas or land, especially in popular tourist hot spots like Seminyak, Canggu, Sanur or Ubud is now within reach of a whole lot of potential buyers that we’re unable to afford to buy their slice of Bali real estate heaven. Over the past years, the dream of owning your villa was simply out of reach.
As real estate agents, we have seen many Australian, and foreign buyers walk away from the market because of the rising US dollar and the massive demand for villas. Prices started to escalate, and there was no end in sight; up until COVID-19. As of today 10th June 2020, we are beginning to see a combination of factors bring the price of Balinese real estate down. These include the Aussie dollar v’s US dollar plus the reduction in demand for holiday villas as borders remain closed.
Villa owners are now holding assets that are unrented and costing hefty monthly maintenance fees. While this will not last forever, because borders cannot remain closed for lengthy periods, the astute buyer is now in the driver’s seat and can negotiate a tad harder than before.
Real estate prices in areas like Seminyak and Canggu have come down by 10-15 %, and there are even villas offering up to 30% reductions. If you’re in Indonesia, you can go to Bali during these COVID-19 times to inspect any villas, but if you’re a foreigner, you will have to use Zoom, Skype or What’s app to speak to the agents.
Most agents will be accommodating and call you via a video chat when they’re at the villa and walk you through it. A virtual tour is the best way to view real estate without being there in person during COVID-19.
Paula Neron, one of the sales team at of Bali Realty, says that: ‘ over the past three or so months we have seen a strong and steady stream of inquiries filtering through from many ex-pats in Jakarta and Singapore. Demand is still there, and is presenting great buying opportunities in this market.’
How long will Bali real estate prices remain low during COVID-19?
No one knows the answer to this question, but as restrictions slowly ease throughout the world no doubt there will be an uptick in the Bali real estate market. If you do your due diligence and look around, you will see that this won’t last for too much longer. Perhaps six months, maybe eight but then as tourists flock back to the island prices will have nowhere to go other than up.