Jamie McIntyre: Why I Believe Bali Property Is Entering a Once-in-a-Generation Boom
By Jamie McIntyre
Political Commentator, Chief Editor of the Australian National Review (ANR.news), and Founder of LUX Property Group
I have become even more bullish on the future of Bali and Indonesian property than I was just a year ago.
The reason is simple.
The demand is no longer being driven only by tourism or investors chasing rental returns. Increasingly, it is being driven by people looking for a different lifestyle and greater opportunities.
Many Australians, along with people from Europe, North America and other Western countries, are asking themselves a question they may never have considered a decade ago:
“Do I really want to spend the rest of my life living where I currently live?”
For many, the answer is becoming “maybe not.”
People cite a wide range of reasons for considering a move abroad. These include the rising cost of living, increasingly expensive housing, taxation, the ability to work remotely, lifestyle preferences, and a desire for a warmer climate and a different pace of life. Others express concerns about social change or the direction they believe their own countries are taking.
Regardless of the reason, one trend appears increasingly clear:
More people are actively exploring alternatives.
For Australians, Bali sits only a few hours away by plane.
It has already been Australia’s favourite holiday destination for decades.
Now it is increasingly becoming a destination people are considering for longer stays, retirement, part-time living, remote work, or investment.
If someone can earn an Australian, European or American income while living in Bali or Lombok, the lifestyle equation changes dramatically.
Instead of spending a significant portion of their income servicing an expensive mortgage and high living costs, many discover they can enjoy a very different standard of living while remaining close to Australia.
Remote work has accelerated this trend.
Thousands of professionals no longer need to be physically present in Sydney, Melbourne or Brisbane five days a week.
For many occupations, work simply follows the laptop.
That creates enormous demand for quality accommodation, serviced apartments, villas and lifestyle communities.
At the same time, Indonesia continues investing heavily in infrastructure, tourism and international investment.
Discussions about expanding Indonesia’s role as an international financial and business hub, together with continued tourism growth and foreign investment, could further increase international interest in destinations such as Bali and Lombok if these initiatives continue to progress.
When lifestyle migration combines with investment demand and tourism growth, the result can be a powerful long-term driver of property markets.
This is why I believe Bali remains in the early stages of a significant growth story.
That does not mean prices only move in one direction.
Every property market experiences cycles, and anyone investing should undertake their own due diligence and consider the risks as well as the opportunities.
However, looking at the bigger picture, I believe Bali and selected parts of Indonesia are likely to benefit from several structural trends:
* Growing international tourism.
* Increasing numbers of remote workers.
* Rising interest from retirees and lifestyle buyers.
* Continued infrastructure investment.
* Increasing global awareness of Indonesia as an investment destination.
* Limited premium land in many of Bali’s most desirable locations.
These are long-term trends rather than short-term speculation.
History shows that people often vote with their feet.
When enough people decide they would rather live somewhere else, property demand tends to follow.
That is one of the reasons I remain extremely optimistic about Bali, Lombok and selected Indonesian property markets over the coming decade.
As always, investors should obtain independent legal, financial and tax advice before making any investment decisions and ensure any property purchase complies with Indonesian laws and regulations.
