Bali Discovery Tours: Homepage
Bali Hotels, Bali Villas and Bali News from balidiscovery.com
Home Bali Contact Bali Practicalities Bali News Bali Services Bali Transportation Bali Sports Bali Excursions Bali Villas Bali Hotels
Home · News · Bali Property: A Bubble That's Ready to Burst
Bali Hotels, Bali Villas and Bali News from balidiscovery.com
Bali Hotels
Bali Villas
Special Deals!
Packages
MICE Handling
Bali Excursions
Culinary - Dining
Guided Tour
Bali Spas
Bali Sports
Diving
Golf
Bali Transportation
Car Rental - Selft Drive
Private Jet Charter
Bali News
Bali Services
Bali Practicalities
Bali Contact
Bali Career
Home
 
Bali Update
Subscribe to our free weekly newsletter!
 
PATA header
PATA Gold Award 2007
Bali Update
PATA Gold Award Winner 2007
 
Bali Contact
Bali Discovery Tours
Komplek Pertokoan
Sanur Raya No. 27
Jl. By Pass Ngurah Rai,
Sanur, Bali, Indonesia

Tel:
++62 361 286 283

Fax:
++62 361 286 284

U.S.A. Fax:(toll free)
1-800-506-8633

U.K. Fax:
++44-20-7000-1235

Australian Fax:
++61-2-94750419

24h:
++62 812 3819724

Bali Discovery

SITE PATA ASITA
Bali News

Bali Property: A Bubble That's Ready to Burst

Bank Indonesia Says Baliís High Property Prices are Not Sustainable


Bali News: Bali, Indonesia, property bust, property boom, Putu Dewa Selawa, REI, Real Estate Indonesia, Bank Indonesia, real estate bubble, Dwi Pranoto, zoning regulations, green zones
Click Image to Enlarge

(7/28/2013)

Solopos.com reports that the Bali branch of Bank Indonesia will continue to try to control real estate prices on the Island in a sector the Bank views as “on alert” against a possible bubble, capable of bursting and sending prices tumbling.

Dwi Pranoto, the head of Bank Indonesia – Bali and Nusa Tenggara said the rapid and significant increase in real estate prices from year to year requires caution in the face of high costs, especially in South Bali.

The close supervision of property prices by Bank Indonesia is needed to prevent a bubble economy. Bank Indonesia’s current view is that properties are priced at unsustainably high levels.

Continuing, Dwi described how real estate brokers in Bali are involved in speculation. He contends that the growing bubble built by speculation resembles past bubbles that have occurred in Jakarta, South Sulawesi, Batam and Riau. “In fact, the price of land in Bali, in real terms, is not so high,” Dwi said.

The Bank Indonesia
executive blamed the current spike in property prices in Bali on brokers who justify higher prices with the completion of various infrastructure projects, including the Island’s first toll way, the underpass at Simpang Siur and the renovation of the Ngurah Rai Airport.

To try to moderate Bali’s property prices Bank Indonesia is reviewing loan to value ratios against loans extended by Indonesian banks. Changes in the current loan-to-value ratios will be introduced by Bank Indonesia in September 2013.

Meanwhile, Bali business interests are urging the government to quickly define areas reserved for tourism development in the face of diminishing land areas remaining for shared public use and other purposes.

Government Failing its Regulatory Responsibilities

The chairman of Real Estate Indonesia-Bali (REI-Bali), Putu Dewa Selawa, said the increasing loss of land for development projects demands that clear zoning laws be implemented as soon as possible. Developers need clear guidelines on lands available for development and lands reserved as no-build green zones.

At the same time, Selawa, called on the government to set aside areas for essential services, such as hospitals and places of higher learning. The real estate businessman reminded the government that they are failing in their role as a regulator by not clarifying zoning regulations.

Selawa acknowledged the need for a role by foreign investors in property development in Bali, while, at the same time, insisting the role of foreign property investors must be controlled by firm rules in order to prevent losses to Indonesia.

He said that a lack of socialization regarding no-build green zones in Bali has resulted in people purchasing land in these areas.

Tourism operators are also urging the government to delineate tourism zones, residential areas, and zones for government or public use in order to improve the business and investment climate in Bali.


© Bali Discovery Tours. Articles may be quoted and reproduced if attributed to http://www.balidiscovery.com.

       

 
 
Bali News by Bali Update
Subscribe to the Bali Update
Receive the latest news from Bali by email!



Our [Privacy Statement] explains how we handle the data you are providing.

 
Bali News by Bali Update
Explore the Archive of the Bali Update
Find related articles in our news archive!




or try to use Google Search :

Home · Bali Hotels · Bali Villas · Bali Excursions · Bali Sports · Bali News · Site Map · RSS

Bali News: More News
Fly me to the Ginger Moon
Bali Culinary Professionals Monthly Luncheon at Ginger Moon Ė Saturday, February 28, 2015
(1/31/2015)
An Epidemic of Death
Governor Calls for Detailed Study of Suicide in Bali
(1/31/2015)
A Toothless Tiger
Minister of Transportation Order to Bar Overloaded Trucks from Entering Bali Remains Unenforced in the Face of Defiant Truck Drivers
(1/31/2015)
Tourism Minister Visits Bali
Indonesian Tourism Minister Thinks Bali Needs a 100,000-person Capacity Exhibition Hall
(1/31/2015)
Take Me for What I Am
Indonesian Visitors without Valid KTP Refused Entry to Bali at Gilimanuk Port
(1/31/2015)
When Policemen Take License
NZ Media Couple Report Inappropriate Request from Bali Traffic Cop
(1/31/2015)
International Crime Busters
Australian Federal Police Will Continue to Provide Information to Assist Indonesian Police in the Arrest of Australian Lawbreakers
(1/30/2015)
Left Holding the Bag
Baggage Storage Facilities at Bali Ngurah Rai International Airport
(1/30/2015)
Altitude Sickness
Indonesian Airlines Required to Check Cockpit Crews Health on Each Flight Before Takeoff
(1/30/2015)
Service Charge Included
Garuda to Resume Inclusion of Passenger Service Charge in Ticket Price Effective February 1, 2015
(1/30/2015)
Bali Will Crack Down on Illegal Workers in 2015
Immigration, Police and Manpower Officials to Closely Supervise Foreign Workers in 2015
(1/30/2015)
Five Stars in the Indonesian Skies
Garuda Indonesia Earns Five Star Rating from Skytrax
(1/30/2015)
All [News]!