Investment Guide

South Lombok coast has seen strong capital gains over the past several years as the international airport opened, Indonesia's economy remains bouyant and Mandalika Resort project gathers momentum. However, although we expect the overall market to drift higher we are also we expecting to see some divergence with specific beaches outperforming others.

The property market is now dominated by developers, versus land-bankers, which have a very different set of requirements from a location and from a property. This change in demand has already resulted in some locations appreciating quicker than others, such as the hills in Selong Belanak. 

We remain positive on the overall property market in South Lombok, but have chosen 3 focal areas to concentrate our listings on. The selection criteria for these locations is (a) localized infra (b) localized developments and a (c) supportive local community. 

Gerupuk

Driven by its popularity with surfers, Gerupuk has attracted a lot of foreign direct investment (FDI) over the past several years. However due to the usual issues associated with a local fishing village, such as rubbish / stray dogs / noise / privacy, most of the buying has not been in the village itself but the surrounding areas of the bay.

The eastern side of the bay is zoned forestry and is unable to be safely purchased or developed. There are rumors of the Forestry Dept issuing leases but investors need to be very careful on anything concerning forestry land. The northern side of the bay has seen a lot of purchases and a few developments are underway but nothing of notable size/scale/completion. Lobster Bay is the largest development but the construction stops/starts with no clear end date. Kirar Hotel is finished and open but is located in an unusual area, not managed well and very small at <6 rooms. Bumbang Ku is completed and open but a cheap locally run operation.

On the western side of the bay closest to the fishing village, lies Ebuak and Siwak Bays. More coves than actual bays, these are the prettiest beaches in Gerupuk, most accessible and directly adjacent to the Tanjung Ann section of the Mandalika Project. There are 2 develoments located here - Ebuak Bay (residential subdivision estate) and Inlight Lombok (boutique hotel). They have brought a lot of access / infra improvements to the area and given iether project is completed, potentially offer investors opportunities to purchase at great prices still. 

Being located close to the village they have a few dining options and lots of surf schools / basic shops to choose from, which will only improve over time. Whats more it has the only decent all weather boat access from which to surf the various breaks in the bay which is what draws tourists here in the first place.

Selong Belanak

Despite its superior natural beauty, sunbathing/swimming and direct airport access, Selong has been second to Kuta Lombok in drawing FDI for much of the past decade.

Kuta’s appeal lies with the proximity to restaurants and bars, but also the Mandalika Project. For the reasons it will always lead the property market on price. However in the near term the Mandalika will become one large construction and it's clearly leaning towards a mass market destination.

Selong Belanak's appeal resides in its relative affordability, accessibility and more recently high end boutique developments that are moving in. The likes of Selong Selo are setting the standard in the hills and Laut Biru on the beach. These early developments set the tone and bring in a certain type of high end retail investor that doesn't want to in the mass market destination like Kuta. 

Normally in a new location, it’s the beachfront that develops first. In Selong however it’s the hills (with the exception of Sempiak Villas/Laut Biru) due to a lack of available beachfront land and/or high prices. There hasn’t been any beachfront for sale here in over 3 years for instance. Dubbed ‘the Golden Mile’ by local media, the hills in Selong are attracting a lot of attention these days. Referred to locally as ‘Jabon’, this is the home of Selong Selo – a major residential estate with over 30 luxury villas under construction. The development is winning awards nationally and internationally, bringing a lot of people and public awareness to the area. Located within it, is their clubhouse Aura which in itself is drawing a large crowd on a daily basis.

Around them is a concentration of commercial developments all currently under construction. Together these developments have extended electricity / fiber optic cables from several km away and doing a great job of conditioning the local community for tourism development. Its turning into a hillside destination comprised of high end residential villas and resorts.

Serangan

Long overshadowed by Selong Belanak due to its difficulty of access and lesser beach, Serangan is the most recent addition to our focus list.

Electricity was extended into the Serangan in 2015 and the road linking Selong Belanak was completed in late 2016, reducing travel time from Selong down to 5mins (from 20mins). That makes it 30mins to the airport, which is closer than every other beach except Selong and Kuta.

On a relative pricing basis its very attractive and although quiet now there are some large developments getting under construction with more underway in Q1 2018. Jogo Hills is a +50 plot subdivision which started in Sep 2017. Serangan Indah is a +40 plot subdivision by Selong Selo slated to start in Feb 2018. Naga Indo has a few clients that who are building a 20 key hotel on the beachfront.

Smart money has already started flooding in 2017 with beachfront prices +50% and everything fully sold. The hillsides are still attractive if you can buy in the next few months, especially given how close they are to the beach.