Feb 27, 2024 | Investment | 0 comments

We are often approached by first time developers here in Lombok who are keen to have us involved in selling their upcoming real estate projects ‘off-plan’.

Unfortunately, more often than not, these would-be developers have already purchased a site, worked on villa plans, and started putting their project out in the marketplace via social media before consulting real estate agents and builders who can advise on market demand and provide solid build costs.  Essentially, the people they need to speak with to understand if their project is feasible in the first place.

Here are some tips to get your future project off on the right foot:

 

Location, location, location

Real Estate maxim 101, and for good reason. Often, a project site is selected because it is deemed cheap or a bargain. Often, when the numbers are analysed in an emerging market like Lombok, the additional cost ‘per villa site’ for a higher quality location will lead to a much higher selling price.

Our tip: Go smaller and higher quality for your first project.

Talk to those with experience

Who is selling properties off-plan in your area? Are they Real Estate Agents? Are they Developers? Are they locally based, or operating remotely? What resources and experience do they have?

Reach out to those operating in your market and see what you can learn. And please speak to an agent with experience in off-plan sales before buying that remote site for your dream project.

Our tip: Reach out to a local real estate agent or experienced developer or builder for advice.

Mengalung Villas
Beachside Villas

Feasibility Analysis

If you don’t have previous property development experience, sit with a professional who can work the numbers using industry standard spreadsheets to see where the opportunities lie.

Often, the simplest projects can be the most profitable.

Our tip: Contact us, we have witnessed or assisted on a number of off-plan projects in Lombok and with our prior financial modeling background can assist on the numbers.

Marketing Strategy and Funds

There are two items to consider here.

The first is High quality marketing collateral, think mind blowing renders showing off your product, a professionally presented and written brochure to send to potential purchasers and listings on the most relevant web portals.

 

Now that you have this collateral, which takes money and effort to produce,  you will need to get the information in front of as many eyeballs as possible. So secondly, you will need an advertising spend, and if you don’t want to waste money, this needs to be well targeted. Who is your likely buyer? Who does your point of difference appeal to? Where are they located?

Local Real Estate agents or advertising agencies with Real Estate experience will be best able to assist you with planning and budgeting for this process.

The above tips are a solid start. If you are planning a project or already have one underway in Lombok, get in touch to see if we can be of assistance.

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