With only a few days left of 2019 we take a look at the year here in Lombok and the key property market trends. As we look forward to 2020, we also consider the upcoming year for Lombok and what we believe will be the major tourism and property market trends and opportunities. Read our take below and if you have any questions please contact us here or leave us a comment below.
Lombok Property Market in 2019
Growth in Lombok property prices was concentrated in key markets, particularly along the South Coast of Lombok in the tourism magnet of Kuta and towards Selong Belanak and beyond. Real estate prices have been spurred by a combination of factors including:
– increasing tourism numbers;
– government infrastructure (into Roads and the Airport in particular); and
– private investment into hotels, restaurants and retail.
Areas close to this infrastructure and investment spend have benefited from increased land and property values.
2019 was notable for:
– Increased international tourism numbers underpinning strong occupancy levels for villas and hotels, especially in South Lombok.
– Expansion and continued upgrade of the international airport
– New flight routes both domestically and internationally
– Commencement of the MotoGP track construction close to Kuta
– Large hotels, boutique guest houses and private villas opening in Kuta and Selong Belanak in particular
– Increased tourism interest in the South West Gili region
– A raft of new restaurants opening on Kuta’s central ‘eat street’ featuring international chefs
– New retail offerings in Kuta including both boutique and larger retail operators including a large supermarket and Rip Curl clothing store. With two new scuba diving shops opening in town and expanding their operations beyond the Gili Islands, the area is also starting to see an influx of divers keen to explore the undiscovered diving spots of the South Lombok coast.
What does 2020 Hold for Lombok Property Prices and Tourism Development?
As has been the case in Bali, increased interest from tourists will be the key driver for property income and capital growth in the future. Below are the key factors we believe will influence property prices in Lombok in 2020 and beyond:
– The start of direct flights from Austalia’s East Coast likely to commence. Melbourne most likely to be serviced initially followed by Sydney.
– Additional direct capacity to Singapore as AirAsia looks to expand routes from their Lombok hub.
– More large sporting events coming to Lombok ahead of the MotoGP and Superbikes in 2021, with Lombok to host its first international Ironman triathlon in July 2020
Where do we see property price growth focused and where are the opportunities?
Price growth won’t be uniform and this has been clear in recent years as some regions have sped ahead of others.
We see growth in both land and villa prices being focused in markets that have the following:
– An existing tourism market
– Proximity to popular beaches, surf spots, restaurants, bars and other facilities that attract tourists and make them return visitors
– Proximity to the International Airport
– Ready access to existing infrastructure (Roads, Electricity) and importantly access to water during the dry season
– Areas close to population centres where it is easy to attract quality staff for construction and hospitality
So where do we see the opportunities?
We believe the opportunities at present include:
For existing Lombok land owners, you can take advantage of an under supplied accommodation market by bringing accommodation to the market as soon as possible.
If you are looking to invest in Lombok take advantage of this undersupply by purchasing completed properties already generating returns, rather than land banking. For more details on why yields are so high, read our article here.
If your preference is to purchase land there are diminishing opportunities to purchase flat, well located blocks in tourism hotspots, such as central Kuta Lombok, and this type of ready to build block would be one key area of focus. See our top tips for buying land in Lombok.
Get in Touch
Lombok continues to offer opportunities for real estate investors looking for immediate high yielding opportunities, or for passive investors looking for capital appreciation. We are career property professionals and we want you to benefit from our personal experience of building and managing accommodation in Lombok.
Whatever your investment goals we look forward to chatting with you, showing you the options in Lombok and making sure you benefit from our on-the-ground experience as full time Lombok residents. You can contact us here.
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