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Oversupply to the Fore in Bali Villas

Baliís Villa Sector Under Price and Occupancy Pressure

(11/4/2012) Bali Daily (The Jakarta Post) quotes a “Bali Property Outlook” study by Knight Frank’s senior research manager Hasan Pamudji predicting that private rented villas in Bali will experience declining occupancies during the first half of 2013.

Predicting occupancies to dip by “around 9%,” Knight Franks cite increasing supply, lower booking levels and an ongoing price war as all contributing to lower revenues in Bali villa sector.

The greatest competition is projected to occur in the three and four-bedroom segment of the market .

Against the background of reduced revenues will be higher costs incurred in villa operations as trained and qualified employees to work in the villa sector are seeking and getting higher wage levels.

“This increasing need for better human resources has caused higher costs,” Pamudji stated. 



Reduced demand from Europe is, to some extent, being redressed by growing demand for villas from the Australian and Asian markets,

The report said the highest demand for villas is occurring in the one-bedroom segment of the market with prices increasing in some instances by 21% for these units.

Seminyak, Canggu, Bukit Jimbaran and some Tabanan are the most popular areas for rented villas with Seminyak and Canggu the hottest areas in the villa rental market.