Lombok property market year in review and outlook for 2024
2023 has been a joy for us here in Lombok. We have loved seeing new businesses opening and thriving around the island, particularly the surge in new restaurants in Kuta further boasting the impressive dining scene of our little town.
We have enjoyed joining our customers on their purchasing journey. From an initial plan to invest in Lombok, to purchasing land, designing and building their dream villa to finally enjoying their new home.
We also built our new home in Lombok this year and could not be happier with the result. Building and owning a property in Lombok should be fun. And those that enjoy their time here and immerse in the community, seem to get the best results.
Here’s our quick review of the market as it stand, and our thoughts on what’s ahead for Lombok in 2024.
If you would like to learn more, pop us a message and we can set up a call or a chat over a coffee. We are based here in Lombok, but will also visit Singapore, Hong Kong and Sydney early in the new year. We look forward to assisting you to enjoy your time in Lombok as much as we do.
WHO WERE THE ACTIVE PURCHASERS IN LOMBOK IN 2023?
Foreigners who spend a significant part of the year in Lombok, or have relocated full time were the predominant purchasers this year.
These purchasers are attracted to the more developed locations such as Kuta and Selong Belanak as opposed to pure land speculation. They also tend to purchase multiple properties.
These purchasers have been attracted to completed homes, villas off-plan, or land that suits the build of their dream home sooner rather than later. If they purchase within a larger villa project, having flexibility to use the property full time or when they choose is a crucial requirement.
WHAT CHANGED IN THE MARKET THIS YEAR?
The era of ‘investors’ buying site unseen, as was often the case in 2020 and 2021, is slowing. This is a positive as we are seeing buyers make more educated and considered decisions.
More buyers are reaching out to us as experienced Lombok based Real Estate Agents to obtain a full market overview in order to do their research first, rather than receiving the single viewpoint of a developer with one project to sell.
We cannot stress enough how important it is for buyers to hear from those who have completed and operated projects in Lombok prior to their purchase. There will always be challenges here, but with the right advice and experienced people in your corner they can be overcome. Spending time in Lombok is the best way to get to know how things work here, allowing you to meet reputable service providers and see properties first hand.
WHERE TO INVEST IN 2024?
If you visited Bali this year you will know it’s BUSY, and that isn’t for everyone. Lombok has always been the obvious alternative, and today more than ever we are seeing the spill over from Bali. This includes not only holiday makers, but new full-time residents particularly families that require good quality housing. This means increased demand for accommodation, villas in particular, and the supply side just isn’t keeping up.
If you owned well located accommodation in Lombok this year, you did well. Kuta due to its proximity to the airport and it’s diverse range of amenities, such as restaurants, schools, gyms ad surf spots outperformed other parts of the Island. Selong Belanak with its stunning beach and relaxed village vibe, has also been a winner for owners, along with nearby Serangan which has enjoyed the opening of new boutique hotels and beachside dining.
With supply constrained, rental revenues increasing and purchase prices low compared with neighbouring Bali, we see the values of Villas in South Lombok continuing to increase in 2024.
Whilst there is an undersupply of villas, something Lombok does have in abundance is land for sale. Being able to develop that land is not always straightforward. For example, the cost of digging for water, connecting to the electrical grid and building roads can make many developments simply unviable. Having land that provides these services makes it unique and allows you to build affordably and with more certainty. Worth noting, we have seen serviced blocks of land in Selong Belanak double in value over the last two years, whilst neighbouring un-serviced sites sit unsold and unloved.
Selong Belanak, Are Guling, Kuta and Serangan have been the locations in most demand this year and these are the areas likely to outperform going forward. The reason being, they have the things that attract tourism; restaurants, stunning beaches and easy access.
WHERE ARE THE CHALLENGES IN THE MARKET?
The oversupply of unremarkable land being offered for sale. If you own land in a development that has 100+ undeveloped plots, it’s unlikely to be a highly liquid asset. If the nearest restaurant is 20 minutes drive away, that is also likely to be the case. Views are great, but they are also not rare in Lombok, and building up those hills can often turn out expensive and unfeasible. Don’t let the views alone blind you, otherwise you might be stuck with a plot you don’t really want to build on, but also can’t easily sell.
OK, now you have all this info and you want in, what do you do?
Simple book that trip to Lombok, we will see you soon.
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