episode 25:
Bali Real Estate Market in 2026: What the Data Really Shows

00:34
Okay, so Bali Business Club. I’m here with Tom from REID. Yeah? Did I pronounce it right? REID It’s easier with just the letters. So, what is it you actually do? What does it stand for? Sure. Explain it. Yeah, well, REID is stands for Real Estate Indonesia or real estate information also. It’s a bit of a play on acronyms. And basically we Bali and Indonesia’s only centralized real estate database. So we aggregate a variety of sources to create a platform to provide market insights,

01:07
information to the professionals with the industry so that investors, developers, agents, buyers, can make more informed decisions. And add a little bit more transparency and information to the real estate market. Data driven insights about the property market in Bali and Indonesia. Exactly. Okay. And how long you’ve been doing this? So we’ve actually been doing it for a few years. We started back in 2022. Okay. We only started publishing sort of insights, around the start of 2023. We took a long time to actually validate

01:40
that the information was legitimate and verified. Is it legitimate and verified? It is. It is. And we’re actually we’re very open with the information. So we publish a lot of free reports, a lot of free market information. Yeah, I love your reports. I take them, and. Thank you. Use them all the time. That’s great. Well, that’s kind of, you know, one of our key sort of tenants is access to information. We don’t want to gatekeep the information, but we’re very. We understand that trust is a

02:05
it’s a big thing within the market. So we publish our information quite freely. So that way, you know, if you do have questions or if you do want to verify it through your own portfolio or own market knowledge, it’s there for you to, I guess, test out or try before you buy. If you want to go a little bit deeper. Who’s using these reports and what is actually using them for? Yeah. So a lot of, our clients, you know, on the sort of paid side of the services, it’s definitely agents, developers,

02:32
some individuals who want to be a a little bit more in the know. But in terms of like our free reports, a lot of our content that we publish, it’s a really broad spectrum. It’s everything from individuals in the market who are just looking to understand Bali better through to new investors, people with existing properties. But like typically, So I say, it would be like a developer wanting market research on Ungasan. Yeah. About a, you know, 20 unit, kind of, apartment complex. Is it viable? Yeah.

03:00
And then they can extract what, market data around there to see if it’s positioned well, etc.. Like what? What kind of metrics would they typically be getting? Yeah. So they might want to verify, you know what that unit mix is what’s actually available in the market. You know what their competition might be. What the sort of property positioning might be. So size wise, making sure that pricing strategy is actually in line and how they can sort of position that pricing strategy. I think one of the things

03:30
that we always say to our clients is, you know, the data is not going to give you the answers necessarily, like this is exactly what you need to do, but it’s going to give you the context that you can surround, you know, your strategy with to actually sort of validate that strategy and give it that back up. Yeah. So you add, you know, your brand value, your USP, all that on top of, you know, a baseline of data and you sort of helps build a stronger case. So sort of like I presume your pricing brands,

03:57
your per square meter selling price, your. You know, availability. Yeah. We we also. Know how much is on the market exactly. The two one bedroom whatever, how many squares, etc.. Exactly. So, you know, you can actually really position where your asset is. It’s not just the I guess the brand positioning or the product positioning. It’s actually what context does that sit within the market And we also provide rental data as well Which we have a lot that we license, because there are multiple suppliers of rental data.

04:27
What do you mean by rental data? So that’s actual performance. So what is currently available for rent in the market, daily rates, occupancy, revenue, things like that, so that you can actually again put your projections up against some real data. Yeah. Because ROI is how developers use It’s a. Quite a creative process. Yeah, a bit of black magic. Okay. So you can actually back that up with like, real statistics and, That’s interesting. Exactly. And as I said, you know, it just gives you that context

04:57
and that baseline to work off and then, just give you a really solid foundation. And I think if you look at most or mature markets, you know, my background, my co-founders background, we come from commercial real estate. Any mature market you work in, data is the first call. Yeah, it’s the first port of call and then you go from there. So today we’re going to be talking about a little bit of the 2025 all the trends, what happened in 2025 and then what’s going to happen in 2026, yeah.

05:25
What may happen? I don’t know, you seem to have all the answer. I think is what is going to happen in 2026. Okay. We’re back with Tom from REID. And today we talk about, property statistics, property data, Bali, Indonesia. And then 2025, 2026. So 2025, sum the year up in a nutshell, what happened? What did you see? And what was surprising? I think 2025 was a little bit of a consolidation, of the last few years, sort of out of 2022. There was a lot of rapid growth within the market. I think 2025,

06:06
definitely a softening was happening. But I think there’s nuance towards that softening sort of actually means. I’m sure there is hotspots in that softening. to a softening and all kinds of little nuances going on. Yeah. I think some of the big, key trends we sort of saw was overall as a market prices softened. But when you actually break that down across segments and categories, there was actually some really positive growth in some areas. And that was a key, a couple of key sort of, segments that actually

06:35
probably had a bit of an out weighted impact on that market and also the market composition. What the market actually looks like in terms of different bedroom asset categories, that’s really starting to reshape the Bali market, which is a good thing, I guess from our perspective. You know, it signals maturity. It signals diversity. So I think it’s it’s catering to a wider audience, which is good. Sales volume is consistent with previous years, so there’s not so much a shrinkage of the market.

07:10
It’s more coming into, I think, a bit of a stabilization cycle. So no major plot twists, nothing extraordinary. We kind of all we’re presuming that there was going to be a slight softening of the market. Yeah. But nothing extraordinary happened this year. Look, I think if you know one thing, I hope we I think we found a bit surprising was the resilience of the market, you know, over the last few years, sort of the driving force of the market fundamentally is short term rentals. So it’s a tourism driven market.

07:46
And that’s obviously been on the rebound for the last few years. I’d seen really great uptick in numbers. This year has actually performed better than sort of pre-COVID years in terms of growth. So it’s actually showing how resilient this market is. And actually the growth, I guess still in this market. It’s just a balancing of, I guess, the development side versus the operational side. But that actual, resilience or continual growth is, is a really good indicator for the market.

08:20
Well, I took a look at your Q3 report. You know, obviously backed up what you’re saying about the market stabilization, I see off plan is back up to 38%, median prices holding around 300,000. Yeah. And the list is sold gap is narrowing. Where is the market actually sitting right now? Like if you had to look at those factors Yeah. So I think it’s really come into you know, growth especially in new projects is really quitend down. So the introduction of new projects is sort of flattening or plateauing new.

08:56
New projects as in off-plan. Off-plan or just yet an influx of new developments, new builds, but also, I guess, resale as well. I think a lot of people have bought into the market over the last couple of years. You know, that sort of secondary sale is, you know, it’s a relatively quiet or sort of very small part of the market. And so people obviously now holding their assets, trying to rent them out, take advantage of that upside. In the arrivals and in the operational part of the market. So,

09:29
we can actually see that from the supply side. Those numbers are actually declining a little bit. And there’s a couple of reasons for that. As I said initially, you know, not as many new projects, but also that has that 38% of the market that is off plan. Proportion of that market has been off plan or proposed for quite a long time. So an off plan project is not it doesn’t necessarily mean it’s under construction. So we could just be sitting on the market, proposed to be developed. And we have obviously been tracking

10:03
that over the last few years. And we can see a kind of a significant portion of that 38%, around 20% of it has been in that same position for over 18 months. So that signals, well, it’s a bit of a red flag. 38% off-plan, of that 38%, 20% is just not doing anything is on the market. It is not sort of progressed in its construction. In a progression is the 18 month indicator. Yeah. We’ve sort of taken a nominal like what would be a nominal, reasonable period to sell and also to actually, you know, progress it to be kind of completed.

10:38
20% isn’t selling really. Not selling and also just not being built. Not enough capital too, yeah. Unfortunately, Unfortunately, I think one of the nuances with this market is that, the barrier to entry to sort of introduce a project is really low. You don’t need a bank guarantee, You just need land actually. And some renders. You could almost just have a deposit on land, to be honest. You could have, you know, a LOI or a MOU on land and. You could get a notary issue. Yeah. I mean, possibly.

11:07
Possibly, possibly. But still, that barrier is quite low. Super low. So, you know, you can put something up and say, hey, villa’s coming, apartments coming. Whatever the case might be, there’s nothing to guarantee it will actually ever be delivered. it will actually ever be delivered. And a lot of the time it is relying on the sale to actually fund the build. 99% of it. Yeah. So if they’re not moving. You. Then, you know, you’re not building. So what we can see there is there is a significant

11:33
not an insignificant amount, but a significant sort of amount of properties that will never come to fruition. And so when you start to actually, you know, eventually they’re going to start cycling out and we’ll actually start taking them out of our numbers because we’re like, okay, physically we can say this is not getting built from the records. We can say they’re not moving. We’ll start filtering them out of what is available within the market. So you see that sort of idea

11:58
of the supply or the supply growth coming down a little bit. And I think that’s something that always people should factor in when they look at supply or oversupply or development within the market. Just register that, you know, close to 40% of the market is off plan, and it’s reasonable to assume that not all of that will be built. Well, I wonder what happens if you’re the third buyer on a project that doesn’t ever happen? I’ll be getting your money back. You know, you do hear stories of.

12:28
You know, you do hear stories of. Yeah, horror stories. People put down deposit and, you know, never, never eventuates or that’s, I guess, the risk and the reward of this market. So yeah, it’s a risky take. Yeah, yeah. And it’s a way for a lot of people to enter the market because obviously foreigners can’t take that, can’t take a mortgage, can’t take a loan. So, you know, they’ve got to sort of come in cash upfront if you don’t necessarily have that cash for an available property.

12:57
Often times a off plan property will give you that payment plan that gives you a bit of time to generate. Yeah. You know the. True. The closest thing to a kind of debt facility mortgage facility that is on the island. Exactly. I mean, some developers are doing like five year plans now and stuff. So yeah, it’s looking more and more more competitive. It gets more interesting it gets more for buyers in the off-plan space. Yeah. We we’re saying a few more developers provide terms, even post construction.

13:25
So you know, it’s not just. 3, 4, 5, 6 years now, I see, yeah. Exactly. And I think they realize, you know, vendor financing is a good way of getting people in. So, obviously they’re on the bigger end of the developer spectrum. Some of those smaller boutique firms can’t offer those terms. Okay, I see, occupancy is up, 65% or something across the island. Yeah, it’s hovering sort of. Yeah, around 60%. Yeah. But I see revenue is down. Yeah. How does that work? Basically more people coming,

13:56
but more villas to occupy. The villas are finding or taking advantage of that increased demand or the increase of arrivals. However, they’re spread across more villas now. And so to attract those new arrivals, a lot of villas are dropping their prices and in some cases quite significantly. But also hotels are doing the same thing. So. Well, we’re seeing that, you know, there is pricing competition to capture that market. There’s only so many tourists to go around. And it’s not just, you know,

14:32
villa vs villa competition, there’s villa vs hotel competition. And so I wanted to touch on that. Yeah. Yeah. So you know there’s occupancy is good to see how it’s performing and how attractive it is. But then, you know, you’ve got to adjust your pricing strategy to make sure you can keep your occupancy. You can keep people sort of coming through. So we’re just seeing more and more competition in that space. And yeah, I think, revenue has sort of taken a hit from that. And you’ve also got to remember, it’s

15:05
not just the new projects that are sort of coming to market, you know, all the old projects that have been around for ten, 15, 20 years. They’re like, well, hang on, we’re not trying to lose how occupancy either. So you’re seeing a lot of competition in the market right now. Let’s talk about like areas. Because I see Canggu, Seseh, Kedungu, it’s started.. And this was surprising to me. It’s starting to pull away from down south. Explain that because it was quite a surprise as far as market share.

15:35
Traditionally, you know what we classify as North Badung. So that’s kind of looking at yeah Canggu, Berawa sort of pocket. We sort of break down Badung into multiple submarkets because it’s just too broad. So that North Badung market, has traditionally been or I guess in, you know, this investment development cycle that Bali has gone through over the last 10, 15 years, that’s traditionally been the epicenter. You know, it’s essentially kind of started with Canggu and sort of grew from there.

16:07
And that really has, you know, the proven track record over that period of time. In the last few years, we have seen, Uluwatu, Bingin, basically market standing Bukit or South Badung as we classify it, have come up and gained popularity because it obviously does have a lot to offer. And that has attracted, a lot of developers, a lot of investors. The issue there is the The issue there is the development of infrastructure and amenities Is still a long way behind. Seminyak, Canggu, like these areas

16:40
even where we are in Pererenan and you can see that Pererenan only really starting to flesh out now. And so. We actually did a podcast on that says, Uluwatu: Why we will never invest there. It’s worth taking a look. That’s obviously not your opinion, but yeah. It’s still got a long way to go to actually sort of flesh out a lot of those. And I think, you know, what we’ve seen is in Canggu you kind of had these epicenter that it kind of grew out from sort of a singular point. Whereas in Bukit

17:10
you’ve kind of seen these little pockets all pop up. It’s sort of boomed across, a bit more of a broader area. So that means. And Bukit is a broader area? Yeah. So that means the infrastructure and, the amenities, they’ve got like bigger gaps to fill basically to service. Well, I mean I was down there a couple of weeks ago. It is it’s it’s for sure it looks like there’s a hell of a lot of activity Like. Absolutely. Construction acitivity going on there. So I was I was quite surprised at that stat.

17:36
I think the other thing is that, you know, as you said, there’s a lot of construction activity. And if you look at, South Badung specifically, it’s off plan ratio is closer, to sort of 50, 55%. Okay. So the majority of that, you know, down there Is off-plan Is off plan projects. Again, if you sort of looking at, you know, North and South, Badung comparing them. But North Badung is closer to sort of 30% off plan. So you actually have more options in terms of available properties, maybe properties

18:10
with track records in an area that, as I said, has got a proven history of rentals, but also has all of the amenities, has a bit more of a brand name. Track record. In association. You know, we’re living on the island, yet we know everything about Bingin. It’s very well known to us. Tourists coming in who maybe come, it’s their first time coming, maybe come once every couple of years. It’s like, oh, I hadn’t heard of Bingin before. What is that? Yeah, Seminyak, Canggu. Yeah.

18:42
So it takes a while for that to filter into what is driving the market. Yeah. And so that’s where you know, I think that sort of push and pull with those two locations. Some disparity, yeah. Sort of happens. I do think we actually see that oscillate a little bit between those two markets. I don’t think it’s sort of like a decline for that area. I would say it’s more just an ebb and flow. Yeah. These essentially now are the two growth centers of the market. Absolutely. Yeah. And then tell me

19:14
there’s another stat I read. It was 87% villas. 13% apartments. Yeah. And that’s holding pretty stable. Currently it is. But apartments have been through a huge growth. Yeah. Sort of would have thought. Yeah. But but 2025 was stable to 2024. Or was that a big…? Still growth. So from you know year on year it moved from about you know, 10% or just below 10% to where it sits now. Okay so it’s 3 or 4% shift. Yeah. Which relatively is like a 30% growth relative to what it was. Yeah. It’s still a significant bump.

19:50
It’s still a significant bump. In stock. Yeah. And when you look at that over sort of like a 2 or 3 year period apartment supply used to sit, you know, sub 5%. So now for it to be sitting around that 13% number is, is. So it’s just a trend towards higher density smaller apartments kind of model you see in off plan everywhere. Exactly. I think generally, you know there’s a few things that promoted that movement. I think first of all, you know, developers want to extract more value out of the land.

20:21
I think bigger more established developers came into the market with deeper pockets. So, you know, doing an apartment project versus doing say five villas, very different capital requirements, very different sort of capability requirements. But also people understanding that, okay, you know, this growth in one, two bedroom assets, that seems to be a real upside. There’s a lot of investors wanting to come in and say, I’d like I’d like to get into the market. The the price point might be

20:51
a little bit off for them. Apartments sort of answers that question with, the market from the operational sort of, you know, tourist side want apartments. I think that question is. Still to be seen. Yeah, TBC. You know, because just traditionally everybody wants a villa in Bali. It’s, it’s it’s kind of what traditionally you came for. Right. You kind of been again, Europeans and Australians, you know, apartment living. But that’s where they’re coming from. Yeah. It’s it’s not like it’s an

21:24
unusual thing for them. Sort of. Foreign concept. Yeah. Exactly. Yeah. So yeah it’s going to be an interesting thing to see. I know we said that last year. We said 2025. We’ll see all this stuff come online. We’ll see everything happening. Yeah. Hasn’t really shifted. I think we had probably had this conversation a year ago. Saying 2025 is oh there’s just so many units going to come on. Yeah. All these apartments and nobody’s going to want to stay in. But it seems to have come to fruition

21:47
and it hasn’t really made a big dent. And I think the bulk of the stock is yet to hit the market still. Yeah. So I would say mid to late next year when you’ll really see it. I think the issue then will be also and I sort of touched on this before was, you know, how the relationship between villas and hotels in terms of competition is close. It’s much closer apartments to hotels, you know, there almost like a direct correlation. So you know, hotel groups and and hotel brands are not just going sit by.

22:17
No, not rolling over. Yeah. I mean, there was Airbnb banning and all this talk, I mean, They’re not going to roll over because this is taking a big chunk out of, revenue. Exactly. So, you know. And discounting, I see a lot of hotels discounting, big discounts, Kuta, Seminyak, you know, and that means that they’re feeling the pinch and they’re going to blame apartments. Yeah. Off-plan apartments. Yeah. Most of those companies are going to have deeper pockets. And they’re going to have a

22:43
more of a long term outlook as opposed to maybe the new investor who came in. They’re like, you know, they grabbed an apartment for 160 K or something. So I think that will be quite an interesting, sort of 12 to 18 months as we see what happens there. I think the issue might be that where these apartments have been advertised, you know, they’ve been compared to hotels. If we look at the actual traditional, or the historic performance of apartments in the market, granted, you know, it’s a lot older stock, it’s

23:22
a very different sort of model. They don’t perform anywhere near. A hotel. A hotel performance. Occupancy is good, but rates are. It’s almost guesthouse type rates. And so that gap in revenue could be, could be something to get found out. I think people either want to stay at like the hotel people and they like the service. They want to stay in the hotel. And I get it. I mean, hotel is just easy or. Absolutely. They want a villa. They don’t mind doing a little bit of the shopping themselves, you know.

23:51
Yeah. But I, you know, if you want to do a villa but it looks like a hotel. Yeah. I’m. Yeah, it’s a bit of a, it’s a you kind of stuck in between, you know. It’s going to come down to the brand and the experience of those assets because you when you go to a hotel, you kind of know what you’re getting, right. You know, the service level, you know, you know, all of the included amenities. You have the brand reputation that goes with it. In an apartment, you don’t necessarily have that,

24:21
but you don’t necessarily have the upside of the privacy of a villa or the flexibility. Or the service of a hotel. That might be a bit of a gap that needs to be filled out, which, you know, some of the best hotel operators and professionals live on this island. So it’s it’s not too far of a leap to say, oh, okay, we can actually polish this, this apartment up and actually introduce some of that experience and sort of management as well. It’s potentially an opportunity in the market.

24:53
So your prediction for oversupply in 2026, how do you see it? Is there an oversupply? I wouldn’t say there is an oversupply kind of going back to what we’ll talking about with off-plan projects when we see the sort of supply numbers which kind of hover around, let’s say 12 to 13,000, it can look like a lot, but in reality, you know, it’s less than that. I think with the slowdown a little bit, the softening of some new projects, as I said before, I think the supply numbers will actually come down

25:26
and it’s a bit of a consolidation. We can already see some of the big developers already sort of planning some big projects that will come to market, sort of will be delivered sort of three, 4 or 5 years down the track. And I think you will start to see more established developers in the market. The boutique developer, operation, those that have been successful, I think will continue, that sort of smaller sites, those that have come in and maybe not found the same success. I think you might start to see

25:58
Trouble. Drop off a little bit, maybe, some people picking up some distressed assets or finishing uncompleted projects. I would say that we don’t really see this rapid growth coming back. I think we’ve we’ve gone through that period of expansion. We’re now in a bit of a, period of consolidation and stabilization in terms of, you know, this oversupply, you know, fear or concern. I think if you look at the scale of Bali, it’s really it’s it’s concentrated very much in one portion of the island.

26:33
Yeah. I mean, I get that a lot. Everybody’s like, oh, Bali’s too crowded. I’m like, drive ten minutes in that direction. You don’t see anybody. I would kind of maybe focus less on oversupply and sort of more on enhancing what exists rather than kind of going and finding these fringe markets because so many of these what you would call the coral, you know what I’ve sort of said with the epicenters already, they haven’t really been fully realized. So, you know, you can even drive through Canggu

26:59
and there’s still. An empty land. Empty land. It’s not that hard to see empty plots. Yes. Obviously people are pricing them at kind of. Ridiculous. Ridiculous levels. But it’s not from a lack of supply. It’s more just, you know, developers or investors coming in being like, I go, it’s cheaper for me to go and buy in, you know, Medewi. And it’s like, all right, but that’s not going to have the same market. The Canggu has. Doesn’t have volume of footfall. So talking about mispricing,

27:27
is there anything that you see mispriced in a sector, you know, whether it’s ultra luxury or apartments or villas is there something a correction that’s happening. That specific sector that you see people could is an opportunity lies. Yeah. Yeah. I think there’s a probably a couple of areas. An interesting one is definitely apartments. I think they have a couple of interesting factors. The first is I’ve seen a big not a big dip like a a dip in their prices. We would say less so to do with loss of value and more so

28:00
from the fact that it’s such a new segment that it’s sort of finding its feet, you know, so that price decline has been a few percent over this year. Is that the only sector of price decline or they’ve been others? No. There’s been like off plan has. So this is where it gets a bit tricky actually. Across the market you’ve seen a, 2% dip in prices. However, the main driving force in that reduction of prices has been the composition of the market. So it’s the volume of sales

28:30
in different categories. So previously, you know, a large or the majority of sales with three bedrooms and above. So you had higher price points selling high volume. Now this year we’ve see that tilt. That till about 53% now tilt towards one and two bedroom assets. So I mentioned before volume is about the same in terms of total sale. But people are buying smaller assets. So that’s changing the composition of the market. The market now the median price is coming down because the composition is different,

28:58
not because of the value loss. Do you think is the traveler has change? Is there less families coming here? Is Gen Z You know solo life kind of more prevalent? Yeah. We’ve heard that as, a theory or a potential reason. Less families. People having less children. I don’t know. Maybe. Do you think it’s a global phenomenon? Or do you think it’s something.. Looking at the numbers, we don’t see that decline in terms of like occupancy. Occupancy is up against all bedroom categories. So one to six bedrooms, all property assets are up

29:30
in terms of occupancy point of view. So it doesn’t the numbers don’t necessarily support that idea that groups or families are not traveling. Yes, there definitely has been an increase, I would say in solo or couple traveling. But then there’s also been a really big increase in one and two bedroom assets coming into the market. So two things can be true at the same time sort of thing. Previously, the market didn’t have this smaller asset segment fully fleshed out. So what we’ve seen in the last few years

29:57
is that the market has become more diversified, which is a really good thing because it means that you can have a more budget conscious one bedroom asset available, or you can have your luxury. What’s more robust? There’s more market appeal of market spread. Exactly. You know, and more people find entry points into this market now, which is great. It allows segmentation and allows, you know, niche sort of professionals to work. I think it’s a really. More price bending, all kind of stuff, yeah.

30:23
Yeah, even apartments. I think there’s a lot of people with maybe a bit of negative, negative sentiment about apartments, but at the end of the day, it signals maturity because of who is building and the scale of that, but also it signals diversity. And I think if you want the market to grow and mature, Yeah, you need these sort of things to happen. Coming back to pricing, yes, the market from a macro level has shifted, but it’s a compositional shift that’s taken place where we say, I guess

30:52
value loss is in things like apartment. I would say that that is more so about the apartments finding their feet. In terms of, okay, it’s such a rapid growth in that one particular segment. They’re kind of making up pricing. There’s nothing to to go off before. So I was like, okay, if I can sell it for 200, I will. But what is the market really going to pay for it? Yeah. So that has sort of seen some loss. And also the off plan segment of the market for, you know, fairly straightforward reasons,

31:23
a lot of competition, a lot of you need to sell to actually deliver. Yeah. So that’s where it sort of real price mismatches happen. I think also some of the projections for apartments, as we touched on before, I think it’s a bit of a mismatch there in in what that is. But time will tell. 2026 what’s your guess on micro allocations. What’s going to be kicking it off next year or is it the same as this year? Look, I think, you know, you will see a consolidation. I think you will see

31:52
some of the the core markets maintain their strength. I think you will see a bit of a back to the sort of basics in a way. I think some of the fringe markets might suffer a little bit. What were you see as fringe? is like Seseh fringe or? Yeah, I think what markets that don’t necessarily have a strong sort of brand reputation in a way. So you could have said that Pererenan was a fringe location a couple of years ago. Yeah. But it’s built a really strong brand as to what that location is.

32:25
You know, it’s a bit of a premium cool market. When somebody talks about Canggu now, it’s usually Canggu, Pererenan. Exactly. You know, so I think in Bukit especially some of these. And don’t get me wrong, some of the beaches and locations, they’re absolutely beautiful. But the serviceability and the location of those are just a little bit too far off. You know, when you start getting around to like Melasti a little bit further. For me, Melasti would be fringe. Yeah. And there’s a lot of development

32:51
going on there. It’s beautiful. And the potential of it as a location is fantastic. But real estate is a long lead term industry. It doesn’t just pop up in a year. So yeah, if you have a long term vision, absolutely. You know you can really getting ahead of the market there. But if you’re expecting to sort of come in and because again, the fundamental driver of this market is, is tourism. Tourists are not necessarily going to come and stay in these fringe locations. They’re on holiday.

33:21
They’re here for a week. They want to be close to where the amenities are. They want to maybe pop out to a couple of fringe locations on a little trip. So I think that’s something that needs to. I think living in Melasti would be quite I mean, not living, doing a five day or seven day holiday in Melasti would be quite boring at the moment. And that’s what traditionally down in Bukit. you know, was a resort market when in you were setting your resort and you kind of stayed. Nusa Dua kind of model.

33:47
And that’s why it was popular. That’s why that’s what that traditional market was. So I think some of those fringe markets might struggle a little bit. I think in terms of opportunities, one thing that we see is actually Sanur is a really interesting market, really undervalued sits below. Yeah. Some beautiful properties. Beautiful properties like International Hospital. Huge new shopping mall, like great infrastructure. You not having anyone repave the roads over there that already sort of done.

34:18
Yeah okay. It’s a little bit in terms of brand reputation a little bit of an older crowd and a. Bit fuddy duddy kind of family vibes. But it’s great, you know. Yeah. And it’s very accessible to get to other locations. Whereas if you’re in, you know, Canggu kind of. Stuck. Landlocked a little bit. So there’s actually a little bit of, I would say undiscovered value. Your call for 26 is Sanur? Yeah. And the supplies actually. Get to sign this document. This is not a financial advice.

34:46
But there’s not a huge, you know supply there. Like it’s the competition is pretty low. That was not new stuff is not being built much. It’s a little bit, but comparatively not barely anything. And it’s got old beautiful properties and those old, like original Joglo. Like good surf break coming from a non surfer. But that’s what I hear. So yeah I think markets like that there’s a lot of undiscovered value still cool. But that being said there’s still undiscovered value in.

35:13
Everywhere. Everywhere. Pererenan, Canggu. You just got to put in the time. You’ve got to put the time. You got to know your ask questions, go to validate. You know the information you you give it and. It’s takes time. To do the research. Yeah. Hopefully we can shave that time down for you. To get a subscription and save that time and half or even quarter. Yeah. Okay. Last one, if you had $300,000 right now, cash, what would you buy? Where would you buy and when? So 300, I’m probably going to get to a two bedroom

35:46
and change can maybe squeeze a three bedroom. I would probably say I would actually probably on what I just said, I’d go and look at Sanur. Probably find myself a good three bedroom. Like all these villa? Maybe an older one, do a bit of a, A renovation. A reno. Or depending on what my objectives were, I’d probably look at maybe a two bedroom in Pererenan Also already built. Or something from a developer with a really clear track record had delivered, you know, project you could actually see something

36:11
you could touch and experience from them And leasehold you’d go with, yeah. It’s the easiest entry to the market. I think if you’re looking for an easy entry, absolutely. If you are willing to, I guess, go through a little bit more set up and everything, freeholders gives you that longevity a much better upside on the capital appreciation, better exit strategies as well, because you don’t look at the local market as well. What percentage of transactions is it? 70, 80? In terms of transactions

36:43
close to 80%. So a lot more liquid. What mistakes have you seen this last year? Anything jumped out at you? New investor problems, anything? Look I think the mistakes in this market, the same sort of mistakes that people make in any market, getting caught up in hype. Yeah. FOMO, not necessarily doing the research. You know, I think, you know, one of the cool reasons we started was that Bali actually is like, it’s a really great market. It’s, it’s it’s one of the best and it’s,

37:15
it’s one of the few markets, it’s one of the few places you can buy an investment property that you want to go and stay in. Like how many people buy, like an investment apartment in a city and be like, well, I’d like to go and have a holiday there like that. That doesn’t exist. And, you know, it’s such, I guess, a low like, globally speaking, it’s a low entry price. So it has a huge upside. It’s just there’s a little bit some of the numbers and hype you see in the market,

37:43
they saying the right thing. It’s just over. Too many bells and whistles. There’s no need to actually. It sells it self. There actually is just really good core numbers. You can look at the I think that’s a more compelling story. I think if you’re looking to expand or attract new buyers or new investors into the market, you don’t need to tell them this kind of look at this magical market where people double their money. It’s like, well, that doesn’t happen, or it happens very rarely.

38:07
But if you look at, hey, this is actually a really solid market. There’s growth in the demand side. There are some of the best hotels, restaurants, bars, lifestyle sort of tourist destinations in the world here. Yeah, if not the best, yeah. Yeah, you can get a piece of that with this really like strong performance Why go and buy in Croydon. In London. Exactly. So I think a lot of people who exist or operating here, you know, we obviously part of the market and sort of we are really well informed about it.

38:42
I would dare say that the wider sort of community outside of Bali doesn’t know nothing. Yeah. When I talk to people back in Australia about they’re like, oh, that’s oh really? That’s an opportunity. I didn’t, there’s no, I guess advertising of that or kind of outbound, Positioning of that is true. It’s actually very badly handle. It’s getting better now. But the selling the Bali property market outside of. Yeah. Bali to foreign investors is the only thing that really has got

39:12
interaction is all the kind of scams that have happened. You know bad news sells It travels faster than good news. But I think that could be a lot better handled by somebody who can really speak to real foreign markets or buyer markets. Yeah, high net worth individuals who, you know, have some real budget. Yeah. And I think that could change. Yeah. And I think, you know, you see a lot of the advertising taking place on Instagram. The majority of people who are going to transact a property are not buying it off Instagram,

39:39
they might be informed or get introduced to the market. Sure. But they probably want some reinforcement. Oh. absolutely. So it’s just a top of funnel thing. I would say 90% of all transactions originated probably on meta. Yeah. At some point, you know. Yeah. Purchasing funnel thing. Yeah. Well, actually, I’ve got some, rapid fire question. Yes or no 60 seconds. Can I pass? Yes, no, or pass. is Bali still the best property market in Indonesia at the moment? Indonesia? Yes. Do foreign investors underestimate

40:15
Indonesia’s regulations? Yes. Is traffic the worst part of Bali life? Yeah. Do you check property listings every single day? Well, that’s kind of that’s kind of our job. So. Yeah. Would you be able to survive one week without social media? I don’t have personal social media. Really? Yeah. So no doom scrolling at night, going.. God, that’s great. Congratulations. Do you prefer driving a scooter or a car? Car. In Bali? Yeah. Wow. Do you drive a car around? No. I’d prefer a car. Do you generally trust the ROI

40:40
of returns, as developers have on their deck? Occasionally. You from Australia, yeah? Yeah. Would you ever move back there? Oh, yeah. Australia is the best country in the world. Oh, Jesus. I don’t so sure about that. That’s another podcast. Will AI replace some real estate agents? Short term, no. Long term, yes. Do you think failure is necessary? Yeah, to a certain extent. Is REID your biggest project to date? Yeah. Do you think the Bali’s growth is sustainable long term? If we look at the actual growth, yes absolutely.

41:05
Cool. Well I’ve done. Thanks so much. Yep. Tom from REID. What’s your website again? It’s realinfo.id. realinfo.id Check it out. There’s free reports, paid subscriptions, paid reports. I mean, if you’re in the industry or developer. I’m sure you probably already know about you. But if you don’t, get some of the reports if you’re a buyer or investor. Also super handy to look at. Yeah. But yeah, thanks for the time. Super informative. A pleasure. I really appreciate it. And, let’s do this again next year, yeah.

41:39
Yeah. We’ll do a review at the end of 26. See how many things you got right. Write it down. All right. Thanks so much. Yeah. Thank you. See you next time.