Rentals

harryopal

It seems suddenly owners of properties for lease are now seeking rental payments double or triple what have been the previous amounts requested. Here in Jimbaran quite ordinary houses, not villas, are seeking rental amounts at upwards of $170 a week for something which previously may have been $80. Our 5 year lease expires in February so it will be interesting to see how we go with negotiating a new lease. Ours is a basic, two storey house with a reasonable size lounge/kitchen; a small ,main bedroom with ensuite bathroom. A smaller bedroom upstairs with ensuite and another small room which we basically use for storage. Gated parking and small to tiny gardens front and back. Anyone else noticed this trend?

Mark

harryopal

It's happening in many places, not just Bali. Singapore, for example. [URL]https://www.channelnewsasia.com/singapore/housing-rent-prices-expats-70-increase-landlords-tenants-3060231[/URL]. Simply a matter of supply and demand, and clawing back as much as possible from the pandemic losses.[/QUOTE]Yes, it seems to be a global trend. I've a friend in small town Pagosa Springs in Colorado and it is happening there also.

YachtRock

Yes, it's a global trend for sure but the reasons are different depending on location. What do you all reckon is the catalyst here in Bali? If I had to guess, the pandemic really did wonders for the remote work movement that seems to be permanent. I've noticed wayyy more "digital nomad" types in Bali than ever before. This could be putting pressure on the rental market in certain areas of Bali. as we all know, as demand increases, supply decrease and property owners are more than happy to jack up the price to meet this demand. I personally also know some Balinese property owners who admitted to me over some arak that they were intentionally raising their guest house prices to make up for lost cash they lost during the pandemic. That has nothing to do with supply and demand per say but moreso just taking a gamble and seeing how high they can push the price before bookings decrease.

PERtoDPS

Happening really badly here in Sydney, though not quite 2x or 3x the rent but I've seen close to double for tiny inner city apartmentments that were considered very hard to rent and heavily discounted in covid times.

Mark

Yes, it's a global trI personally also know some Balinese property owners who admitted to me over some arak that they were intentionally raising their guest house prices to make up for lost cash they lost during the pandemic. That has nothing to do with supply and demand per say but moreso just taking a gamble and seeing how high they can push the price before bookings decrease.[/QUOTE]That's the definition of supply and demand. Seeing how high or low prices can be pushed by the market given the circumstances, until some sort of equilibrium is found.

harryopal

That's the definition of supply and demand. Seeing how high or low prices can be pushed by the market given the circumstances, until some sort of equilibrium is found.[/QUOTE]It is also classic capitalism as defined by Marx. The end result now seems to be pretty well world wide that house prices and rentals are squeezing every last available drop of blood and leaving millions more in poverty.

YachtRock

That's the definition of supply and demand. Seeing how high or low prices can be pushed by the market given the circumstances, until some sort of equilibrium is found.[/QUOTE]That's true! Thanks for correcting me :)

AuroraB

tel522

Markit

YachtRock

The problem is not only greedy landlords: I found the following on facebook for Sanur Property from today, posted by possibly a Russian lady:"[I]sanur! Still looking for a villa of 3 bedrooms or more. luxury, clean, fresh. up to $8000. for a month's rent. family of 2 adults and 2 children.[/I]"[/QUOTE]You make a very good point. I'll share this story I heard the other day from a friend of mine currently shopping around for contractors. He is a very budget-conscious guy and he said he's found the majority of contractors won't give him the time of day for that very reason.They are so used to many foreigners coming over here with boatloads of cash, no common sense, and a need to spend it all very quickly. Hence, they think that all foreigners are like that perhaps? Can't really blame them when there are lots like that on the island.Kind of ruins it for us regular guys just trying to get a fair price

Balifrog

12The price wouldn't be all that surprising for just one month or 2 but if it's long term that's a different thing.[/QUOTE]125 Million per month ? Now I feel like a Cheap Charlie ....

AuroraB

They are so used to many foreigners coming over here with boatloads of cash, no common sense, and a need to spend it all very quickly.[/QUOTE]I can only guess that the KYC (Know Your Customer) concept in order prevent money laundering is not very strong here (I'm trying to be nice).So the more money spent on a property transaction the more money gets laundered! I'm not expecting any major clampdown on this activity as nobody want to stop foreigners from overspending!

YachtRock

I can only guess that the KYC (Know Your Customer) concept in order prevent money laundering is not very strong here (I'm trying to be nice).So the more money spent on a property transaction the more money gets laundered! I'm not expecting any major clampdown on this activity as nobody want to stop foreigners from overspending![/QUOTE]Damn, you nailed it. There is no way that many people can be so stupid to overpay for property like we see all the time. This has to be it.

Markit

YachtRock

Don't use a contractor then.[/QUOTE]Good advice :)

RossM

Yes, it's a global trend for sure but the reasons are different depending on location. What do you all reckon is the catalyst here in Bali? If I had to guess, the pandemic really did wonders for the remote work movement that seems to be permanent.I've noticed wayyy more "digital nomad" types in Bali than ever before. This could be putting pressure on the rental market in certain areas of Bali. as we all know, as demand increases, supply decrease and property owners are more than happy to jack up the price to meet this demand.I personally also know some Balinese property owners who admitted to me over some arak that they were intentionally raising their guest house prices to make up for lost cash they lost during the pandemic. That has nothing to do with supply and demand per say but moreso just taking a gamble and seeing how high they can push the price before bookings decrease.[/QUOTE]My observation is that HOTEL prices are about the same, and a couple I've booked for my next stay are marginally less than they were in 2020.

RossM

Don't use a contractor then.[/QUOTE]The scenario you paint of foreigners arriving with a bucket of cash and a desire to spend it fast reminds me of a post I saw a few days ago.Some clown said he willingly pays A$50 for a car airport to Seminyak and vice versa (a Bluebird is about $10 max), $20 for a massage (normal $10), and tips everybody, including the front desk staff at hotels. When I pointed out that he makes it tough for everybody else, because a 'new normal' price is established, I was branded a tight ar$e.

RossM

You make a very good point. I'll share this story I heard the other day from a friend of mine currently shopping around for contractors. He is a very budget-conscious guy and he said he's found the majority of contractors won't give him the time of day for that very reason.They are so used to many foreigners coming over here with boatloads of cash, no common sense, and a need to spend it all very quickly. Hence, they think that all foreigners are like that perhaps? Can't really blame them when there are lots like that on the island.Kind of ruins it for us regular guys just trying to get a fair price[/QUOTE]The scenario you paint of foreigners arriving with a bucket of cash and a desire to spend it fast reminds me of a post I saw a few days ago.Some clown said he willingly pays A$50 for a car airport to Seminyak and vice versa (a Bluebird is about $10 max), $20 for a massage (normal $10), and tips everybody, including the front desk staff at hotels. When I pointed out that he makes it tough for everybody else, because a 'new normal' price is established, I was branded a tight ar$e.