When chatting with friends, family, customers or clients around the world during 2021 we were firmly reminded how fortunate we are to call Lombok home.
Whilst 2021 was a great year for our young business what we will remember the most is the special experiences exploring Lombok and Indonesia (surfing and scuba diving trips, relaxing days on the beach, exhausting hikes, nights out at new venues) and sharing these experiences with new and old friends from all over the world. We hope we can share as many experiences like this as possible with you in 2022.
Below we highlight some of the trends we saw this year that were relevant to us; both as expats who have relocated to Lombok, as well as property owners in South Lombok (we bought additional land here this year and will commence another villa build later in the year). We hope some of this has relevance to you. We look forward to hearing from you if you would like us to expand on any items raised or would like to chat through your plans for 2022 and beyond drop us a line here.
Growing expat community driven by remote working trends and quality education offerings
2021 saw a strong increase in the diverse community that has settled along the South Coast with the increased trend towards remote working making this possible for professionals and entrepreneurs from nearby Jakarta as well as a healthy dose of international arrivals from all parts of the globe. International Schools such as Rinjani Indah and Nusa Alam have made this a more realistic option for many families.
This growing community has underpinned demand for a broader choice in restaurant and hospitality offerings, some of our new favourites include:
Views over Kuta with a cold craft beer and quality steak at Siwa Cliffs
Relaxed beachfront dining along peaceful Torok at Amber
Breakfast burritos in the morning and regular themed parties in the evening at Gecko restaurant and bar
Dumpling and noodles at Jiang Nan Chinese
A second office for many along with strong coffee in air conditioned comfort at Gratitude Cafe
Tacos and Margaritas at Kuta’s new Mexican hangout Satu Lagi
Much needed Ice Bath and Sauna time after a day in the waves at the upgraded and expanded Loka Gym and Recovery Centre
Unprecedented Infrastructure Development
2021 saw a massive level of government and private investment flowing into infrastructure upgrades in South Lombok to install the essential building blocks for long term growth in visitor numbers.
The Airport terminal has more than doubled the capacity of its arrival and departures halls. In addition, from the airport a new bypass road offers smooth dual carriageway access to the Kuta/Mandalika area in only 10 minutes. The new Kuta Mandalika hospital has also recently opened. These facilities were completed ahead of the successful staging of the World Superbikes race in October and will serve the area well ahead of the larger MotoGP event this coming March.
Lombok Property Market Continues to Mature
The property market has continued to be driven by individual investors purchasing housing or land for personal use. Strong buyer demand has continued from traditional markets in Australia, Jakarta, Singapore and Northern Europe, with many purchasers cementing their strong personal or family links to Indonesia with a land or villa purchase.
Perennially popular locations along the beaches of the South Coast led the demand. All the properties we sell are unique and are offered with varying levels of infrastructure in place or build readiness. Below is a broad overview of land transactions in recent months to give you a feel for what is changing hands. Please reach out to discuss pricing in more detail, whether you are looking to buy or sell.
|Selong Belanak||1,800 sqm||$82psm USD|
|Selong Belanak||1,100 sqm||$78psm USD|
|Torok||2,000 sqm||$80psm USD|
|Kuta||500 sqm||$122psm USD|
|Kuta||1,000 sqm||$70psm USD|
|Are Guling||1,600 sqm||$116psm USD|
|Serangan||2,000 sqm||$55psm USD|
What will we see in 2022?
More Villa Construction
With many land sales within serviced estates occurring in 2021 we are seeing many customers looking to commence construction of villas as soon as possible. A larger range of quality contractors are now available in Lombok allowing for more ambitious projects to be delivered to a high standard.
Increased Pricing in Key Locations
We expect land pricing for key locations, especially along the south coast to continue on an upward trend. Although we still see excellent value in these prime markets once you factor in low psm cost of land compared with comparable markets, the competitive price of construction and the expectations of high yields in the medium to long term with the undersupply of quality accommodation available.
Continued Undersupply of High-end Accommodation
Large events like the MotoGP this coming March highlight the lack of high-end accommodation in Lombok with hotels as far away as Bali positioning to pick up the slack during these periods. We expect villa owners to continue to benefit from this undersupply over the medium to long term especially with the increased desire for visitors to have self-contained villa accommodation suitable for groups and families.
We hope you enjoyed reading our take on 2021 and look forward to catching up with so many of you in 2022. In the meantime feel free to reach out via email to discuss your own plans or to get our view on what the best opportunities are for your circumstances. Take care and see you soon.
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