Property prices on the Indonesian island of Bali could rise by as much as 10 percent, according to forecasts issued by Bank Indonesia citing fluctuations in fuel prices as the main reason.
Speaking to reporters last weekend, the Head of Bank Indonesia Bali Dewi Setyowati said: “It is estimated that the market outlook for properties (primarily home) is still good, in line with the estimated increase of about 5 percent to 10 percent in prices.”
She added a number of government policies that are positively supporting both businesses and employment influenced her predictions.
The Central Bank had previously surveyed members of the Indonesian Real Estate Association (REI) and the Indonesian Real Estate and Broker Association (AREBI), and that revealed favourable business conditions that are forecast to remain positive in 2015.
“The indicator is the consumers demand for properties less than Rp1 billion,” Setyowati added, noting prospective areas considered for development with the selling prices around Rp1 billion include Tabanan District, Negara District, Klungkung District, Bangli District, and the eastern region of Karangasem District.
She also cautioned that developers will likely become more selective in selling or marketing their properties.