The property market in Denpasar, Bali, experienced the highest annual price increase, reaching 13.2% among 13 major cities in Indonesia.
Based on data from Rumah123, the demand for houses for sale in Denpasar in October 2024 grew by 25.8% compared to the previous year.
Denpasar continues to show a significant increase in second-hand house prices, which reflects the potential of the property market in the region.
“As the economic, cultural, and tourism center of Bali, Denpasar attracts investors and homebuyers thanks to its strategic location, rapidly developing infrastructure, and the potential of the tourism sector that supports the development of high-value residential housing,” explains Marisa Jaya, Head of Research of Rumah123.
Highest in Certain Areas
The median price of second-hand houses in Denpasar varies: houses with an area of up to 60 square meters are priced at around IDR 850 million, while houses with an area of 61-90 square meters reach IDR 1.3 billion.
For houses with a size of 91-150 square meters, the median price is IDR 1.924 billion, while houses with an area of 151-250 square meters are priced at IDR 2.9 billion. Houses with a size of more than 251 square meters have a median price of IDR 6.5 billion.
In October 2024, a number of cities showed the highest price growth in certain residential area categories.
Bogor recorded the highest price increase in houses with an area of up to 60 square meters (18.9%), while Surakarta experienced a 25% increase in the category of houses of 61-90 square meters.
Denpasar recorded the highest increase in the 91-150 square meter and 151-250 square meter categories, with an increase of 13.2% and 11.5%, respectively. Meanwhile, Depok recorded the highest increase in houses with an area of more than 251 square meters, namely 19.6%.
Attractive Investment Option
The increase in property prices in cities such as Bogor, Surakarta, Denpasar, and Depok reflects the potential for favorable demand for sellers and investors, and shows that the property sector is still an attractive investment option.
In addition, the report also recorded seven cities with price growth higher than the annual inflation rate, including Denpasar which experienced a difference price growth of 10.2%.
This shows that property, especially second-hand houses, is still a stable asset that can protect against the impact of inflation.
Overall, house prices in 13 major cities in Indonesia increased by 1.7% on an annual basis. In the Greater Jakarta area, Bogor recorded the highest price increase of 4.5%, followed by Depok with an increase of 2.4% and Tangerang with 2%.
On the island of Java, Yogyakarta experienced a price increase of 6.8%, Semarang 3.9%, Surakarta 2.6%, and Bandung 0.4%. Outside Java, Medan recorded a slight increase of 0.7% in addition to Denpasar.
Trends affecting Property Prices
Furthermore, as reported by Kompas.com, the results of the Residential Property Price Survey (SHPR) of Bank Indonesia Bali Province continued to increase in the second quarter of 2024.
The Residential Property Price Index (CPI) was recorded at 104.27, with an annual growth of 1.86 percent (yoy), which was higher than the previous quarter’s CPI which reached 103.81 (1.48 percent yoy).
General Manager of NPG Indonesia Evgeny Obolentsev identified three main trends affecting the property market in Bali.
First, there is an increase in demand for environmentally friendly and sustainable properties, along with increasing awareness of environmental issues.
Second, digital transformation in the real estate industry, where online platforms, virtual tours, and digital marketing are now essential tools in property transactions.
Third, the demand for remote workspaces is increasing, with many remote workers and digital nomads looking for villas or residences with home office facilities, fast internet, and a comfortable working environment.
In addition, the government’s focus on a quality and sustainable tourism sector also contributes to increasing Bali’s attractiveness as a premium tourist destination, which aims to attract tourists with high spending.
Sources: Detik.com, Kompas.com
Image: via SevenStonesIndonesia.com
