HOT PROPERTY ISSUE 2 SAMPLE by Marie Dakin

HOT! Property Bali • Volume 2 • Autumn 2005

BALI

PROPERTY

The Complete Guide to Real Estate in Bali

20 The Bukit

Beverly Hills of Bali?

Off Plan Investment

Volume 2 | Autumn 2005

Million Dollar Villas

Rich Pickings or Virtual Insanity? What You Get for Your Money

IDR 75,000 • US$ 7.50 • HK$ 60.00 • RM 28.00 • AUS$ 10.00 • S$ 12.00

Most Wanted 40 Plus Pages of Prime Property

Customise Not Compromise

Designs for Your Ultimate Lifestyle

THE VILLAS AT JIMBARAN Location – Jimbaran Hills Freehold ocean views 18 luxury private villas Prices starting from US$225,000 Vendor finance available PARK VIEW HEIGHTS Location – Nusa Dua Freehold ownership 15 luxury homes Spectacular ocean views Prices starting from US$250,000 Vendor finance available GENDING KEDIS ESTATE Location – Jimbaran Bay Freehold ownership 19 luxury villas Spacious and luxurious living Prices starting from US$195,000 KARANG KEMBAR Location – Bukit Freehold cliff top views The most prestigious address in Bali 6 luxuriously appointed residences Stunning location and views Internationally acclaimed architects K+K (HK) International Limited

| Summer HOT! Property Bali

CANTI ASRI Location – Pererenan, Canggu Freehold ownership Phase 1 – 9 luxury villas Prices starting from US$245,000 Vendor finance available THE SUNGAI Location – Pererenan, Canggu Leasehold in perpetuity 8 luxury private villas Ultra modern design aesthetic High-tech facilities Prices starting from US$235,000 SANTOSA RESORT Location – Oberoi, Seminyak Freehold ownership 18 acres of beachfront land 200 meters from Ku De Ta Villas, apartments and suites Fully managed private estate Five star plus hotel services and facilities Prices from US$200,000 – US$3,000,000 SEKAR TAMAN2 Location – Oberoi, Seminyak Freehold ownership Close to restaurants and the beach 2 and 3 bedroom villas Prices from US$195,000 – 240,000

Guaranteed up to 10% return on investment. Vendor financing available on certain developments. Superior quality property investments in Bali’s most exclusive and sought after destinations. The architecture, interiors and finishing of all developments, in all locations, are of the highest international standard. For more information contact: 62 361 73 73 57, info@ppbali.com or visit us at www.paradisepropertybali.com, Jl. Lasmana #54, Kerobokan, Seminyak, Bali 80361 Indonesia. HOT! Property Bali Summer |

| Summer HOT! Property Bali

Volume 2| Autumn 2005

Cover Photograph: the Bukit enjoys a Mediterranean climate compared to the rest of the island

“I love the early morning hours, the late afternoons and the transition into the night… with the city lights in the distance… with the volcanoes as a backdrop”! –Walter Wagner

8 10 16 18 30 34 84 90 92 96

Bali Snapshot Maps and facts.

Market Update

A quarterly review on where we’re headed.

HOT! News A Piece of Paradise!

Land is officially discontinued, the gods aren’t making any more. Some buying land tips!

HOT! Picks

HOT! talks candidly with architect Yoka Sara.

At Home with Walter Wagner: Love at First Site With an awkward cliff face plot measuring a mere 550m2 Walter Wagner tells HOT! how he built a unique and unusual home on the Bukit.

HOT! Seat

There are several environmental issues currently facing Bali. The main ones are water quality, power supply and waste management. HOT! asked Michael Ricos of ELIA, a company at the forefront of bringing about environmental change in Bali, how developers can also help in resolving these ongoing issues.

Before You Sign

A look at foreign property ownership using the PMA method.

In-House

Services you can’t do without when buying property in Bali.

Directory

Contact Bali’s agents and service providers.

HOT! Property Bali Autumn |

Typically, people who have their properties custom made are less interested in commercialising their property, e.g. put it in a rental pool or with a large letting agency. A custom made home is by definition unique and owners tend to lend or rent these houses out to friends or business colleagues, if at all. They also usually have very specific ideas regarding design, materials used and the location. The very prospect of finding an architect who will design what you actually want, a builder you can trust to construct the property to the correct standards, on budget and on time, and the sheer bureaucratic nightmare of land acquisition, building permits and regulations, puts most people off. It is difficult enough getting a house built in any country without seemingly endless problems, so the thought of handling a building project remotely can seem daunting.

Volume 2| Autumn 2005

Tales of an Uphill Struggle

Opportunity Knocks

40 76 45 46 81 68 | Autumn HOT! Property Bali

The southernmost point on Bali known as the Bukit/ Nusa Dua peninsula enjoys a Mediterranean climate compared to the rest of the island. With spectacular views, cliff top locations and stunning white sand beaches – it’s no wonder it’s fast becoming the new HOT! Spot for investors.

Buying a property before a single brick has been laid may sound risky, but we reveal why investors are queuing up to do just that.

Looking a Million Dollars

Bali is set to become the southern hemispheres Riviera, with properties commanding prices in excess of a million dollars, but what do you actually get for that sort of money?

Maximise: Architects of Style

What makes your ultimate dream home? If you don’t want to buy off the rack when selecting interiors then having your villa custom designed for your needs and lifestyle could be just the ticket!

Property Showcase

40 plus pages of Bali’s prime property for sale and rental.

Sales

Existing, new and off-plan properties, the choice is yours.

Rentals

Luxury villa rentals to ensure a holiday to remember.

In Development

Bali’s current developments by location and price.

If you are looking at investing US$ 750,000 or more in a Bali property and don’t want to live in a development, have you considered having your home custom made? There is now a complete one-stop design and construction service for private clients.

Tropical Homes Private Residences work with several of Bali’s top architects, the islands best construction firms, and leading law firms in Indonesia. All works and projects are fully guaranteed to be delivered on time and on budget. We handle the entire project for you, effortlessly and efficiently without charging a fortune. We also offer post handover villa management, rental and marketing if requested. For a private appointment, please call Martin Friedrich on +62 361 767 888 or e-mail martin@tropicalhomes.com.sg.

Jl. Bypass Ngurah Rai 120F, Kuta, Bali 80361 Indonesia

Volume 2| Autumn 2005

Tales of an Uphill Struggle

Opportunity Knocks

40 76 45 46 81 68 | Autumn HOT! Property Bali

Buying a property before a single brick has been laid may sound risky, but we reveal why investors are queuing up to do just that.

Looking a Million Dollars

Bali is set to become the southern hemispheres Riviera, with properties commanding prices in excess of a million dollars, but what do you actually get for that sort of money?

Maximise: Architects of Style

What makes your ultimate dream home? If you don’t want to buy off the rack when selecting interiors then having your villa custom designed for your needs and lifestyle could be just the ticket!

Property Showcase

40 plus pages of Bali’s prime property for sale and rental.

Sales

Existing, new and off-plan properties, the choice is yours.

Rentals

Luxury villa rentals to ensure a holiday to remember.

In Development

Bali’s current developments by location and price.

Jl. Bypass Ngurah Rai 120F, Kuta, Bali 80361 Indonesia

Publisher: PT. Dua Dewata Bali PO. Box 3033 Denpasar, Bali 80030 Indonesia Fax: +62 361 736 920 Advertising: sales@hotpropertybali.com +62 818 350 515 International Advertising: +852 3188 3169 david@gkmal.com Information and Editorial: enquiries@hotpropertybali.com +62 817 067 0069 Website: www.hotpropertybali.com Designed by: PT. Maxwell Kreatif info@maxwellcreative.net Printed by: PT. Indonesia Printer, Jakarta, Indonesia

Dear Readers,

ust as this issue was going to print, news filtered through of a murderous bomb attack on two popular tourist destinations, Jimbaran beach and Kuta.

Understandably, reactions of shock, despair and anger at those who would perpetrate such atrocities have been to the forefront. For the Balinese themselves a cloud of concern hangs over their economic survival. Having shown remarkable determination and resilience over the past few years following the attacks of 2002, to reconstruct Bali as a sophisticated and desirable tourism destination in a global market, the immediate future would seem uncertain. Terrorism unfortunately, is now a global problem as events in London this past July have illustrated and no amount of security will prevent a minority from inflicting its hatred upon an innocent public. Individual responsibility and increased vigilance are positive steps that we can all take. The issue now would be how we react to such events. Do we run away and hide and hope that God willing our home town is not on a list of potential targets? Alternatively, do we stand up and refuse to allow intimidation and fear determine how we live our lives? At this time our thoughts and prayers are with the families, friends and loved ones of those who have suffered. We have received numerous messages of support over the past few days, which is encouraging. We hope you enjoy this issue as much as the first and look forward to hearing any comments/letters you may wish to share. E-mail: enquiries@hotpropertybali.com

International Distribution: Gold Key Media Ltd. Indonesian Distribution: Java Books Subscriptions: HOT! Property Bali c/o Gold Key Media Asia 1002 Park Commercial Centre 180 Tung Lo Wan Road, Hong Kong For enquiries, please call +852 2127 7003 or e-mail: subscription@gkmal.com

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Subscribe now and receive up to three chances to win a luxury villa weekend break for two in Bali! Help us improve by completing our Reader Survey at www.hotpropertybali.com and receive an extra entry into our draw. Offer ends 31 December 2005. Terms and conditions apply. Please see page 89 for subscription details or subscribe online at www.hotpropertybali.com.

Find out how to invest in Bali property safely... And secure an amazing lifestyle… “Lots of smart people like yourself, are taking advantage of the relaxed laws on foreign property ownership in Indonesia”… With a fantastic guaranteed return on investment paid annually, plus 15% capital growth per annum, the returns are enormous”… Your peace of mind is important, so your investment will need to be secure, the design, construction and finishing of your villa will need to be stunning… and of course you will want to be close to the beach”… Purchasing your dream property in Bali isn’t going to be easy... that’s why at Gending Kedis Estate you get a FREE step by step guide on how to purchase property in Bali. Learn all the secrets to buying property from the experts. This guide is essential and is guaranteed to save you thousands of dollars. With limited freehold property available in Bali, you will need to be quick to be one of the select few who invest early… And with FREE INDEPENDENT LEGAL ADVICE offered to our clients for a limited time only, you will be assured your investment is guaranteed to be 100% safe. Construction is well under way on this outstanding development at Gending Kedis Estate and with the last few luxury villas available you will need to act fast to secure yours. So call Steve on +62 813 383 139 66 or Douglas on +62 811 156 743 now to confirm your appointment.

Breaking News… Hadisuwarno Resort Development are soon to release their Seminyak Villas, so register your interest today and don’t miss out... www.gendingkedis.com - info@gendingkedis.com Ph: +62 361 708 906 – Fax: +62 361 708 905 Jalan Karang Mas Sejahtera 100Y, Jimbaran Bay, Bali, Indonesia

Dear Readers,

ust as this issue was going to print, news filtered through of a murderous bomb attack on two popular tourist destinations, Jimbaran beach and Kuta.

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Balifacts CURRENCY Indonesian Rupiah (IDR) exchange rates tend to fluctuate and most property prices are quoted in US$. Current exchange rate is approximately IDR 10,000 to US$ 1. POPULAR AREAS South Bali including Seminyak, Nusa Dua, Kuta, Sanur, Canggu, and Jimbaran. Due to improved infrastructure, areas to the east such as Candi Dasa are also gaining popularity. Cliff and beach front land are in high demand but there is limited availability. PRICE RANGES Many variables in terms of age, style, location and condition, so there is usually something to suit all budgets. VISA REQUIREMENTS Visas are required for all overseas visitors and are available for purchase either upon arrival at the airport or through the Indonesian consulate in your home country. MORTGAGES Generally unavailable to non-Indonesians. However, some developers are offering finance terms to buyers. CLIMATE Between 20-33˚C year-round. Rainy season October to March. | Autumn HOT! Property Bali

From June to September there is lower humidity and cooler evenings. POLITICAL CLIMATE Indonesia is experiencing a move towards democracy with a more liberal outlook. ECONOMIC CLIMATE Tourism, either directly or indirectly accounts for 80% of the island’s economy. TAX Assets and income in Indonesia are subject to taxation, it is advisable to consult a professional for details. POPULATION Over 3 million people, the majority of whom are Hindu. The island’s largest town and administrative centre is Denpasar with a population over 350,000.

Scale 1 : 130 000 2 3 4 HOT! Property KM Bali Autumn |

Market Update A quarterly review of the current market and where we are headed.

We ask leading Review of last 3 months and predictions local agents and to end of 2005? developers to give PP: There has been a marked increase in the of visitors arriving in Bali since the start of us their reviews number the year, especially over the last 3 months. Official of the last 3 arrival figures suggest that numbers are up by months together more than 6% on last years figures, which is almost higher than the best ever first half of the year with market 2% figures set in 2001. One look at the traffic jams in predictions to the Kuta, Seminyak and Canggu are testimony end of the next to this! Naturally, this quarter. leads to more and more

opportunities to rent, sell or lease villas and land. If travel industry predictions are anything to go by we should be seeing an increase Andy Barski of more than 11% Paradise Property by year end! So, the future is looking very bright indeed. We have also noticed a demographic change in the type of tourist to the island. There are more and more middle aged, financially liquid visitors, who are becoming increasingly interested in investing in Bali, either permanently (in the sense of looking at ways to settle down and live here) or as offshore investors.

10 | Autumn HOT! Property Bali

Volume 2, Autumn 2005

Needless to say the last 3 months have been very busy and we are positive and upbeat for the future. #41

Have the number of properties on your books and numbers of new buyers registering risen or fallen? PP: We have increased our inventory by 30% since

the start of the year and people are coming to us all the time! There are developers looking to have some sort of joint venture, villa owners wanting us to manage their properties and individuals wanting us to market and sell their land or private villa. As our inventory has increased, so too have the number of new buyers. We have been developing a number of interesting ways to attract potential investors and homeowners, both online and offline and they all seem to be paying off. Interestingly enough we are already receiving referrals from clients we have helped as well as from people who have invested with us. BVW: The number of properties we registered rose

by up to 20% compared to January. The number of potential buyers has also increased by around 15%. We have registered 20 potential new buyers per month on average compared to 16 per month at the end of last year. Sales have risen by 11% since early 2005.

EH: We have seen a strong increase in both listings for stand-alone villas and development projects. Enquiry levels are strong, but more importantly the quality of enquiries is better. TH: We never have more than four or five projects

on our books at any one time. We believe in quality rather than quantity. However, the number of buyers registering with Tropical Homes is up by 25% over the last 3 months. ERE: The number of properties on our books has

increased and with the amount of current building, this will only increase for both freestanding property and developments. The number of buyers registering has also been steady. Demand for quality cliff and sea view land far outstrips current supply. #41

projects) usually after 2-3 viewings. Numbers of completed sales are also up by 25%. ERE: It depends on how a property is priced due to

the unevenness of the selling season in Bali, but in general, I would allow a year for stand alone villas. #41

Land and property price rises in the last three months and predictions to the end of the year. PP: Land and property prices have been increasing

significantly over the last 3 months. If you see something you like and wait too long to put down a deposit, the chances are that it wonâ&#x20AC;&#x2122;t be there in the morning. We see the trend continuing and anticipate a very good 2005! BVW: Land and property prices have risen by

around five to 10% and we expect this to continue by another five to 10% to end of the year.

On average how long is it taking to sell a property? PP: Difficult question! How long is a piece of string?

Some sales go down very quickly indeed, while others can take weeks or even months. We have had some clients that see a piece of land or development for the first time, recognize the potential and buy immediately. While others will take their time, go back home and make their decision after a couple of return trips. We understand that buying property is an emotional decision and different people handle it in different ways. From a company perspective, we try to do our best with every client that comes through the door. We have a closing rate on sales of just over 10%. We think this is pretty encouraging but we are constantly looking for ways to improve. BVW: On average 6 months if it is priced

competitively within the market and is freehold. It can take up to 9 months for long lease properties. EH: It completely depends upon the location,

design, build quality and pricing. If you have all of those attributes, then very quickly. TH: It is taking about one week (for development

TH: Land prices are up

by 50% in the good areas of South Bali and house prices have risen by 10% at the top end. Since Yves Champommier we do not deal with the Bali Villa Worldwide lower end of the market, I cannot tell you how itâ&#x20AC;&#x2122;s faring. ERE: With the last 3 months being low season for

Paradise Property (PP) Paradise Property build and manage luxury villas and apartments, providing investors with all the facilities, services and amenities normally associated with international quality hotels and serviced apartments. They are also a construction company, able to assist with architectural plans and designs, construction and management with a team of international surveyors, inspectors and quality control experts experienced in developments in Asia, UK, USA and Europe. Villa rentals and land acquisition are fast developing areas of their operations. E-mail: info@ppbali.com Bali Villa Worldwide (BVW) Bali Villa Worldwide is the brand name of PT. Bali Consulting Worldwide, a company based in Seminyak. They provide a large range of services including property development consultancy, land acquisition, construction, villa management, financing and offer a wide selection of sale and rental villas. The main shareholder of the company is Asia Finance Worldwide, a holding company based in Hong Kong specialising in real estate development and financing mainly covering Asia. E-mail: yc@balivillaworldwide.com Elite Havens (EH) Elite Havens is one of the best-known brands on the island. The group specialises in luxury villa sales and rentals and through their subsidiary Bali Homes Management, luxury property management and marketing. E-mail: sales@elitehavens.com

buyers there has been little change, I would expect the year to finish above last year by about 30% and considerably more for cliff land. Statistics covering such a short period would not give a total overview; however, we do have evidence to support this trend over a three-year period.

Tropical Homes (TH) One of Baliâ&#x20AC;&#x2122;s leading Property Consultants with professional experience relating to all aspects of purchasing a home in Bali. They represent some of the finest, most exclusive villas and houses on the island. E-mail: info@tropicalhomes.com.sg

EH: We have witnessed substantial land price

Exotiq Real Estate, Nusa Dua (ERE) Exotiq is an independent property consultancy based in Bali with offices in Nusa Dua, Sanur, Seminyak and Phuket, Thailand. E-mail: nusaduabali@exotiqrealestate.com

increases.

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