BUYERS REPORT
Q4 2023
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EXECUTIVE SUMMARY
Welcome to REID's Q4 Buyers Report! The following is an overview of the properties analyzed by REID in Q4 of 2023. REID’s carefully crafted and curated selection of data from key regions and neighborhoods will empower readers to become informed purchasers in Bali’s real estate market.
As a point of reference, key changes from REID’s Q3 Buyers Report to the Q4 report include:
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The proportion of leasehold and freehold properties remained the same at 71% and 29% respectively.
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The median listing price decreased from $336,000 to $329,000.
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The median sale price for the market was $333,000 in Q3 and decreased to $313,000.
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The supply of rental properties in the market increased by 11.7%.
MARKET
DEFINITION
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In Q4 of 2023, Bali’s real estate market displayed an overall total increase of leasehold and freehold properties, with positive growth from Q3 of 14.3% or 1,086 properties.
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This report analyzed 6,143 leasehold properties and 2,543 freehold properties, noting that leasehold continued to maintain the dominant market share at 70.7%.
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Given the significance of the leasehold market, our Q4 Buyers Report will primarily focus on the data around this ownership type.
6,100+
LEASEHOLD PROPERTIES
2,500+
FREEHOLD PROPERTIES
LEASEHOLD PROPERTIES
FREEHOLD PROPERTIES
MARKET SUPPLY
BY SIZE
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The market supply by the number of bedrooms remained consistent with Q3. Maintaining its status, 3- bedroom properties were the most popular leasehold and freehold asset in the market, with 1,823 freehold and 763 leasehold properties.
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Two-bedroom leasehold properties were the second most popular group, with an increase of 27.8% from Q3. Properties of 2-, 3- & 4-bedrooms continued to maintain the majority share of the leasehold market supply at 75%.
BEDROOM SUPPLY
LEASEHOLD SUPPLY
BY REGION
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North Badung and Mengwi remained the market leaders in the supply of leasehold properties in Q4 at 40% and 22%, respectively.
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All other regions remained stable with negligible movement (+/- 1%), continuing to convey the market’s consistency of leasehold supply.
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Due to the overwhelming amount of data in Badung, REID divides this regency into 4 smaller regions – North Badung, Central Badung, South Badung, and Mengwi.
SUPPLY
BY REGION & SIZE
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Two-, 3- and 4-bedrooms were the major supply group, with the largest being 698 3-bedroom properties in North Badung.
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As a note from our Q3 Buyers Report, the REID team made an amendment to the infographic data relating to ‘Supply by Region & Size’ due to revised leasehold and freehold data. Please feel free to view this update in our Q3 Buyers Report.
MEDIAN LISTING PRICE
LEASEHOLD MEDIAN PRICE BY REGION
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​Mengwi held the highest median leasehold price for all regions at $355,000 and experienced the lowest movement from Q3, indicating the perceived positive worth by the market.
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Some examples of median neighborhood list prices within Mengwi were Seseh at $341,000, Pererenan at $450,000, and Cemagi at $352,000. For comparative purposes, Canggu, located in North Badung, saw a median list price of $365,000.
MEDIAN LISTING PRICE FROM Q3
LEASEHOLD MEDIAN PRICE
BY REGION & SIZE
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Consistent with Q3, Mengwi and South Badung had the majority of listed property prices above the market median. Central Badung did not eclipse the market median listed price for any bedroom size in Q4.
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Regions like Denpasar and Tabanan only showed above market median listing prices for 5- & 6-bedroom properties.
ABOVE MARKET MEDIAN
BELOW MARKET MEDIAN
MEDIAN SALE PRICE
REGIONAL SALE PERFORMANCE
LEASEHOLD MEDIAN SALE PRICE BY REGION & SIZE
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Four-bedroom leasehold properties were the largest group that consistently sold for above the market median, indicating an unmet demand and a lower supply, driving up sale prices. For example, in South Badung, the median sale price was 40% greater than the market.
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Mengwi and South Badung generally tracked higher than the market median, closely followed by North Badung and Tabanan.
ABOVE MARKET MEDIAN
BELOW MARKET MEDIAN
SUPPLY OF RENTAL PROPERTIES
AVERAGE
OCCUPANCY
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Average rental occupancy for 1- to 6-bedroom properties exhibited a variance of 7.4%, indicating stable performance across the market.
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The lowest rental occupancy was 1-bedroom properties at 49.5%; however, this is supported by the fact that this was the largest supply group to the market.
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From the previous quarter, there was an average decrease in occupancy of 17.1%, largely due to tourism seasonality.
AVERAGE DAILY
RATE
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From Q3, average daily rate of the market decreased by 5% due to seasonality. Noting that supply variances are driven by different factors like long term rentals becoming available or owner occupier properties becoming holiday rental properties, it could also be interpreted that the change in ADR was attributed to the large supply increase to the market of 6,325 rental properties, therefore giving rise to a more competitive rental market.
THANKS FOR READING!
Looking for a specific neighborhood or data point? Contact us to learn more.
In summary, Q4 of 2023 showcased consistent trends with previous quarters, and overall indicated further expressions of stability and confidence in Bali’s real estate economy. The market experienced an increase in both freehold and leasehold property supply, while expressing a decrease in the median listing and sale prices. Additionally, the supply of rental properties grew significantly, with lower but stable occupancy rates in Q4.
As the Q4 Buyers Report is a high level snapshot and summary of the market, REID also offers more precise and tailored solutions. Contact us to see how we can meet your real estate needs.
See our other reports below: