According to Bali Tribun, Bank Indonesia (BI) Bali is expecting this mild growth to continue into Q3-2019, suggesting the highest growth for primary residential property was in 'medium-type houses,' followed by 'intermediate type houses.'

The Secondary Residential Property Price Survey for Q2-2109 however, showed a slow down of 0.37-percent with large houses slightly more upbeat at 0.41-percent.

Tourism and Property

Deputy Director of BI's representative office in Bali, M. Setyawan Santoso explained the limited property growth in Bali was a reflection of national and global economic slowing as well as Indonesia's recent elections.

Unlike most other areas of Indonesia, domestic and foreign investors play a more significant role in Bali's property market than 'end-users' a fact that's primarily driven by the island's tourism industry, he continued.

BI believe last year's relaxation of the Loan to Value ratio from 80 to 85-percent is expected to stimulate credit growth in the property sector, especially as developers still tend to rely on loans, say Bali Tribun.

Sources: Bali Tribun, Bank Indonesia

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