HOT PROPERTY vol. 5 SAMPLE by Marie Dakin

IDR 75.000 - US$ 7.50 - HK$ 60.00 - RM 28.00 - AU$ 10.00 - S$ 12.00

THE COMPLETE GUIDE TO REAL ESTATE IN BALI vol. 5 I Winter 2007

The inside info from those who know

Canggu is now more fashionable than ever

Hotel operators want a piece of the action

Must haves for your ultimate play pad

A modern twist on tropical style

BALI MARKET PREVIEW 2007

A HIPPY HEAVEN?

THE SUITE LIFE

OBJECTS OF DESIRE

CUTTING EDGE DESIGN

Marketing Agents

• Only 28 freehold villas available – 1, 2 and 3 bedroom villas • Located in Southeast Asia’s number one 5-star resort tourist destination • Quality custom designed European fixtures and finishes – fully furnished • Managed by Bali Homes Management (BHM) – rental guarantee available • Facilities include: beach club, health spa, restaurant and business centre

Bali: +62 361 738 747

Our show villa is now open for viewing!

For inspection call +62 (361) 747 3030, email: sales@livbali.com, website: www.livbali.com

Marketing Agents

Bali: +62 361 738 747

Our show villa is now open for viewing!

For inspection call +62 (361) 747 3030, email: sales@livbali.com, website: www.livbali.com

Rural location Prime real estate - rural location but close to Seminyak Inspired architecture Individually designed 2, 3 and 4 bedroom villas Freehold title Security with capital appreciation. Professional management & FIVE STAR SERVICE

Construction commences in December 2006.

For further information or to make an appointment to view, please call:

www.thewabi.com www.knightfrank.com Jakarta +62 (21) 5707170

www.elitehavens.com Bali +62 (361) 738747

Construction commences in December 2006.

For further information or to make an appointment to view, please call:

www.thewabi.com www.knightfrank.com Jakarta +62 (21) 5707170

www.elitehavens.com Bali +62 (361) 738747

Contents

10 MARKETUpdate

What do you get if you group five of Bali’s real estate professionals in one room? Find out in our very candid Market Update

18 HOT!News

This Issue’s HOTTEST news

HOT!Tips-Environment to conserve energy & save on unnecessary expense

46 HOT!Seat

A roof top Jacuzzi, or your very own tropical Playboy

Cover Photograph Private residence in Sesetan Bali

Mansion, what would be on your dream villa wish list?

Subscriptions, Information and Editorial Tel +62 (0) 817 067 0069, Fax +62 361 703 336, email enquiries@hotpropertybali.com or on line at www.hotpropertybali.com Advertising +62 818 350 515, sales@hotpropertybali.com Publisher PT. Dua Dewata Bali - PO. Box 3033 - Denpasar, Bali 80030 Indonesia Magazine Design Maxwell Creative

must-haves in a Bali Villa.

66 DesignAdd Light, Increase Drama

lighting features can easily be added to existing rooms.

International Distribution Gold Key Media Asia Ltd.

72 PropertyShowcase

Indonesian Distribution Java Books

Properties for sale.

HOT! Property Bali is published quarterly by PT. Dua Dewata, Bali, Indonesia, No. 220817003302, ISSN 1858-0939. We cannot accept responsibility for any unsolicited contributions. No part of this magazine may be reproduced, in whole or part in any manner, stored in a retrieval system or transmitted in any form without permission. The opinions expressed in the magazine may not be that of the publisher and the publisher cannot be held responsible. HOT! expressly advises seeing a legal professional before entering into any contractual agreements.

HOT! Winter 2007

who owns a Bali hideaway what constitutes the 10

Jai Turner gives some practical advice and tips on what

94 Legal

LUXURY CANGGU VILLAS FOR SALE One of the owners of Ku de Ta (www.kudeta.net) and Downtown Villas (www.downtownbali.com) has teamed up with a 15 year resident developer to create two spacious freehold villas on a fabulous plot of riverside land in Canggu.

Whilst both villas are hidden away in a delightfully peaceful setting, they are only a 20 minute drive to the heart of trendy Seminyak with its shopping, dining and clubbing amenities.

HOT! decided to ask a designer/architect, and someone

In the final part of our enlightening adventure Lightcom’s

PANDAN VILLAS

Known as Villa Pandan I and Villa Pandan II, each villa sits on the banks of a delightful free-flowing river in a quiet Canggu village offering spacious accommodation on 25 and 30 are (2500 and 3000m2) respectively.

From vanquishing vampires to brick laying, some top tips

The highest quality materials are used throughout, including solid teak beams and frames, sirap roofing and terracotta flooring. Completion 31st December 2006. The villas are offered at: Villa Pandan I US$ 975,000 Freehold Villa Pandan II US$ 875,000 Freehold

unveiled.

Contact Bali’s agents and service providers.

Villa FEATURES: • •

• • • • • •

• •

•

The illegal villa debate heats up as amnesty program is

96 Directory

HOT! Winter 2007

For more information please contact Guy Neale in Singapore at tunguym@yahoo.com.sg or +65 96682027

Four/five en-suite bedrooms Villa II includes a magnificent Javanese hut right on the river Overflow 15 metre pools with sun-deck Massage bales Genset 5000 watt automatic generators Freehold tenure Integrated broadband wireless internet Huge pavilion providing multiple dining and living options Villa II includes working rice paddies Villa II also includes 150 year old Hindu temples Each villa will provide parking for a minimum of 5 vehicles

Contents

10 MARKETUpdate

What do you get if you group five of Bali’s real estate professionals in one room? Find out in our very candid Market Update

18 HOT!News

This Issue’s HOTTEST news

HOT!Tips-Environment to conserve energy & save on unnecessary expense

46 HOT!Seat

A roof top Jacuzzi, or your very own tropical Playboy

Cover Photograph Private residence in Sesetan Bali

Mansion, what would be on your dream villa wish list?

must-haves in a Bali Villa.

66 DesignAdd Light, Increase Drama

lighting features can easily be added to existing rooms.

International Distribution Gold Key Media Asia Ltd.

72 PropertyShowcase

Indonesian Distribution Java Books

Properties for sale.

HOT! Winter 2007

who owns a Bali hideaway what constitutes the 10

Jai Turner gives some practical advice and tips on what

94 Legal

Whilst both villas are hidden away in a delightfully peaceful setting, they are only a 20 minute drive to the heart of trendy Seminyak with its shopping, dining and clubbing amenities.

HOT! decided to ask a designer/architect, and someone

In the final part of our enlightening adventure Lightcom’s

PANDAN VILLAS

From vanquishing vampires to brick laying, some top tips

unveiled.

Contact Bali’s agents and service providers.

Villa FEATURES: • •

• • • • • •

• •

•

The illegal villa debate heats up as amnesty program is

96 Directory

HOT! Winter 2007

For more information please contact Guy Neale in Singapore at tunguym@yahoo.com.sg or +65 96682027

Features 20 Canggu

Loosely described as that green belt between Seminyak and Tanah Lot, Canggu was once known only for its rice fields and surfing: it is now a popular location for private villas and developments

32 A Suite Life

Imagine owning your own 5 star luxury hotel suite. HOT! examines the advantages of this growing lifestyle ownership option

52 Architecture - California Dreaming

Modern and minimalist, we took a look at a Bali Property

inspired by the West Coast design school of 60’s USA

60 Two of a kind

HOT! catches up with the Kember twins, who are fast building a reputation for aesthetic and functional designs throughout Asia

88 HOT! Winter 2007

88 Great Escapism

Escape to a villa that has that certain ‘X’ factor

HOT! Winter 2007

MARKETUpdate Steve - What I’m saying is that if the negative seems to be

that there are less people coming here, lets look at the positive, that the people who are coming here are spending more, thus we’re getting around this drop in numbers. Andy - What Dominique is saying is right. In terms of western visitors here, yes the number has decreased, and what you’re saying [Steve] is that average spend has gone up, but the hole that’s been filled is by Japanese, Koreans and Taiwanese; OK not necessarily the Japanese, the Koreans are half way there but the Taiwanese are definitely ‘budget travellers’. Guy - My sense is that the people who are coming to Bali now are more and more from Asia, but they tend to stay longer and have more money than the so called ‘budget travellers’ as Andy puts it. HOT! - It seems the consensus is that compared to it’s main competitor Thailand, Bali is lagging behind in terms of property price, revenue and numbers of properties sold. What is it that makes Thailand more attractive? Dominique - It’s not the general environment or level of

organisation amongst the real estate agents, it’s just that bigger players are involved in that market, bigger names, more international brands, which I guess makes it easier for buyers. Then there’s the legal environment in Thailand, despite what has happened recently it seems that people are more confident in putting money there than in Indonesia. Vic - It’s different in Thailand, I wouldn’t say it’s better than Bali, although the prices are a little higher there. We’ve got developments both in Thailand and Bali. Dominique - Would you say there was a lot more happening? I would say Phuket alone is doing three or four times what Bali does. Vic - I don’t know much about Phuket but Koh Samui is overheated, Koh Samui’s a much smaller island than Bali and they’ve got 60 developments. Are they all full? Are they all doing well? I don’t think so! Phuket is different - I don’t really know Phuket that well but the Koh Samui real estate market is only two or three years old, as opposed to Phuket which has been going for ten to fifteen years. HOT! - What is the difference in the profile of

HOT! Winter 2007

Andy:

“

In terms of western visitors here, yes the number has decreased, and what you’re saying [Steve] is that average spend has gone up, but the hole that’s been filled is by Japanese Koreans and Taiwanese; OK not necessarily the Japanese, the Koreans are half way there but the Taiwanese are definitely ‘budget travellers’.

HOT! Winter 2007

to me that he woke up that morning having no idea that he’d would be buying a property in Bali and ended up buying that day. It would be nice to have more of these. HOT! - What is the impact of other regional players, such as Malaysia and Thailand and can Bali compete? Vic - In lots of ways Malaysia is

somewhere that is ideal for development, it’s got good beaches, they spend a lot of money on promoting tourism and the land ownership laws are good in that foreigners can own land. The problem is that it has this image in Asia as being a low ticket holiday destination. It’s not Bali, it’s not Phuket. The place I think that’s coming up right now is Vietnam, that’s the one I’d point at as being the next big thing. And as far as Bali competing is concerned – Bali will always compete because Bali is the best holiday destination in Asia. That’s down to the people, the scenery, the culture and the infrastructure. I think that the only possible competitor would be Phuket, but from a personal perspective I still consider Bali to be better. That’s partly because of the sex tourism aspect of Thailand – I mean we all like sex; but I don’t want it shoved in my face every time I walk down the street, so in my view Bali is by far the best destination in Asia.

”

buyer you encounter here in Bali as opposed to those you find in Thailand? Vic - I‘d say that the one main obvious difference is that

here in Bali, we get quite a number of rich Indonesians buying, whereas in Koh Samui it’s completely different in terms of the local market. We thought that Bangkok would be a great market for us selling to rich Thai’s just as Jakarta is a great market for us selling to rich Indonesians – it just wasn’t the case – we only have one Thai owner right now. Andy - I think from our perspective the type of buyers we have are people who have been here more than once, they’ve rented villas, they’ve stayed in hotels, they’ve fallen in love with the place and want to keep coming back. Very rarely do we get people who just land at the airport and decide ‘yeah, I’m going to buy a house.’ HOT! - That’s interesting because several developers do have booths at the airport for precisely that purpose. Does it work? Vic - It worked better when we were the only ones there! Steve - I don’t think it works at the airport either but

there are people coming here not expecting to buy; they stay for a week or two and walk away owning a villa. HOT! - How many of those do you get? Steve - Not as many as I’d like, but I recall one client said

HOT! - When you do exhibitions or sales promotions, do you find that you sign a lot of deals on the day? Dominique - To be honest the number of people signing

up at expos or buying a property on the Internet without having actually viewed the property is next to none. Andy - I wouldn’t underestimate the power of the Internet – we just had one client who actually bought up one of our properties without seeing it – he had a look at it on the Internet and just said ‘yeah, I’ll go ahead.’ Most people do their research on the Internet, come to the island on holiday for ten days or two weeks and see everybody they can in that time. They’ll then go home, think about it and make a decision after that.

Queen Villa

Freehold • Price US$ 440.000 • Land; 7,5 are • Building 315 • European standard quality • Fully furnished (antique reproductions) • 3 bedrooms (AC)• 3 bathrooms • Large swimming pool & ponds • Plasma & home entertainment center • Location Canggu “Pererenan”• 20 minutes from airport/Seminyak • 5 minutes from Canggu Club • Rice field views • Western kitchen (antique reproductions) gas, microwave, freezer • Pantry on second floor Website: www.magellaan.com Email: magellaan_property@yahoo.co.id Telephone: 0856 9097300, 0361 789 0985, 0361 784 4715 (Heri)

in association with:

PUBLISHER

MARKETUpdate

HOT! GOSSIP “

We don’t get emails asking ‘Dear real estate agent, I wonder what ecological properties are available here in Bali because I’m really interested in buying one’– it never happens.

”

Welcome to what we firmly believe is our best issue yet, plenty of great shoots, cool articles, and practical steps to get eco friendly. In our market update feature we decided to change the format and invited a group of real estate professionals to sit down together and share their views on the main issues affecting Bali and what it means to you the potential buyers.

t miss ou r e v e n e and . Subscrib Proper t y in Bali T! on a HO t: online a com e ib r c s b Su r t ybali. e p o r p t o w w w.h all please c , s e i r i u For enq 27 7003 +852 21 : .com or email hotproper t ybali s@ enquirie

Location wise, we take a trip along Bali’s west coast and explore the reasons behind Canggu’s growing popularity. Want a modernist designed property in a tropical setting? We feature two articles: A stunning minimalist villa in Bali and two of Asia’s leading exponents of cutting edge design. A phenomenon is occurring in Bali: International hotel operators are getting involved in real estate and offering top quality service and investment to potential buyers: we review what’s on offer and what all the fuss is about. The holiday season is fast approaching and I expect many of you are considering a good place to unwind: We’re somewhat biased but Bali has plenty to offer and in this issue we take a look at some wonderful properties to escape to. Happy Holidays

HOT! Winter 2007

Dominique:

Knowing how popular our regular Market update feature is we thought it would be rather fun and enlightening to invite some of Bali’s leading property professionals together in one room to discuss some of the most pressing issues currently affecting the market. HOT! - What is the most important issue affecting the Bali property market in the medium to long term? Andy - I think that a respect for the environment and the culture of the island are absolutely crucial more than anything else, it’s this unique wonderful vibrant culture that brings people here. Steve - I ’m starting to get the feeling that environmental and cultural concerns are becoming more important to the government. For example there are decrees in Jakarta now where everyone has to put in a certain amount of rainwater storage per cubic metre of roofing space on new build. This is not only for rainwater harvesting and reuse but also to help stop localised flooding. Andy - [Respecting the environment] is not expensive and in the long run it’s actually cheaper to do things with solar energy, LED lighting and water recycling. The thing with environmental stuff like cleaning up the beaches is that you’ve got to have a financial motivation for local people to want to do it and until that’s been found then there is no reason I can see that it would work. Vic - It’s also hard to know if anyone really cares about these issues if no one is actually doing anything about them. Dominique - We don’t get emails asking ‘Dear real estate agent, I wonder what ecological properties are available here in Bali because I’m really interested in buying one’ – it never happens. Andy - But that’s perhaps because we’re not promoting the fact that this what we are doing here, but if perhaps we did, we would get those sorts of email. HOT! - The Australian government currently advises its citizens to ‘reconsider their need to travel’ to Bali giving it its second highest travel warning. Do you think that this kind of advice will continue to keep visitor numbers down in the future?

Andy - I think very much that there’s a political

thing going on, particularly between Indonesia and Australia … There’s a lot of dirty laundry between the two countries and Australia’s got it in for Indonesia politically, I think, on a big scale. Steve - The fact is that the bomb happened in a Muslim country. Visitors want to come here and although Bali is not a Muslim island, that’s where the association comes in. They’re not scared to go to Spain, England or anywhere else where terrorism has been happening for longer and a lot worse, but what happened here has been blown out of proportion. Dominique - People are starting to realise that Bali is part of Indonesia and that’s not necessarily a good thing. Steve - It’s also a very difficult thing to turn around in any way. – It is something that we have to look at; and we have to get around this.

Dominique - There’s only one place where they do it

properly which is Ku De Ta; the rest are not up to scratch. Steve - I agree, It’s being done but it’s not being done properly, that’s the failing point – If it’s being done it has to be perceived as being done thoroughly and across the board – In Jakarta the security checks for the four and five star hotels leave Bali way behind. They check the glove box, the boot, under the car, the bonnet – they’ll even open the back door and check any bags you have on the seat. It’s thorough, with every car, taxi –whereas here… Andy - In terms of perceived security in Bali, I think it’s got to come from other countries; the key players. It’s got to come from Australia, Europe and the United States. HOT! - Has the Security issue affected certain segments of the market more than others? Andy - After the first bomb the back packers left and they

were replaced by fewer but much higher quality spenders here …and I think that the resulting boom in property and real estate is a direct result of that. You don’t get so many guys back packing in the cheaper parts of Kuta now; you’ve got people coming over who want to spend some money. There are fewer of them but that’s what they’re doing. The fact is that the budget Steve - The fact is that the budget backpacker, Kuta hotel guy is backpacker, Kuta hotel guy is in in decline. Australians are 54 decline. Australians are 54 percent percent down since the first down since the first bomb, but the bomb, but the people who are people who are coming here now are coming here now are staying in staying in villas, shopping in villas, shopping in Seminyak, Seminyak, eating at the restaurants eating at the restaurants like like Ku De Ta. They’re spending Ku De Ta. their money and they’re staying in villas, which is what we want. So why are we just saying that the numbers are down when it needs to be communicated that the people who are coming here are of higher value and are spending more money. Dominique - I would disagree - If you look at the total market and the composition of tourists from the various countries, the Asian tourist is coming more now and they’re spending less – and they’re not spending as much time here as the average European tourist.

HOT! - Do you think that the recent increase in visible security measures at Bali’s nightclubs, bars, restaurants and hotels is likely to improve the perception of security on the island or the opposite? Vic - It gives people

jobs, which is a good thing, but I think it’s more cosmetic than truly effective.

Steve:

HOT! Winter 2007

“

”

PUBLISHER

MARKETUpdate

HOT! GOSSIP “

We don’t get emails asking ‘Dear real estate agent, I wonder what ecological properties are available here in Bali because I’m really interested in buying one’– it never happens.

”

HOT! Winter 2007

Dominique:

Andy - I think very much that there’s a political

Dominique - There’s only one place where they do it

jobs, which is a good thing, but I think it’s more cosmetic than truly effective.

Steve:

HOT! Winter 2007

“

”

By Thomas Jones Photographs by: Richard Mortimer

Just north of the Kuta chaos in an area hidden away from the eyes of most holidaymakers is the emerald oasis of Canggu. The kind of Bali that only long-term residents can remember with its wide-open spaces and unobstructed ocean views. Canggu is a sleepy, endless stretch of green, with traditional villages, rice paddies and virgin beaches devoid of the trappings of the rampant development to the south. No longer seen as being too far from town, interest in this area is increasing steadily and Canggu is fast becoming one of Bali’s most talked about secrets. Canggu has been well known in surfing circles for many years for its notoriously huge break and has for the longest time been deserted except for a few villas and the odd surfer warung. But all that is changing, and fast. Located just 45 minutes from Bali’s International Airport and only ten minutes from fashionable Seminyak, this corner of green offers a chance to step back in time to a Bali of old while still being only a stones throw from the action.

With it’s glistening black sand beaches, wild surf breaks and acres of rice fields Canggu has until now, been one of the best kept secrets of long term Bali residents, and offers a stark contrast to it’s chaotic neighbour Seminyak HOT! Winter 2007

Canggu seems to be a loose term among the real estate community, with a general opinion that the area comprises anywhere north of Umalas and Kerobokan and stretching as far as Tanah Lot. Investor interest is rising with many new luxury developments and private houses being built, pushing land prices as they go. Consequently land has doubled in value in the last three to four years. Despite this, developers are quick to point out that their vision is to keep Canggu relatively unchanged by building villas on larger parcels of land and restricting the numbers of Villas built on each site. Paradise Property has a cluster of developments under

HOT! Winter 2007

By Thomas Jones Photographs by: Richard Mortimer

HOT! Winter 2007