Real Estate Question In North Bali & Bedugul

[balinesesurfer]

I have been following the news about the construction of a new airport in North Bali. I haven't gone back to Bali since 2010, but I plan on going back home sometime this year or next year. Can anyone tell me the status of the airport's construction and when it is expected to be completed?

My parents own land in Pacung 2, east of Kubutambahan and land in Bedugul next to the Abandoned PI hotel. Realistically, what can I expect the price of land to be once the airport is completed in Pacung 2 and Bedugul? Additionally, does anyone know any good realtors with experience finding high-end domestic or foreign real estate lessees or investors.

Also, do you think the new proposed airport will also boost prices of land to the west of Seririt? Thank you in advance for those who respond to my post.

- Robin

 

[mat]

It seems far from clear where exactly the new airport will be now. All I know is that all investors are in place and there will be one somewhere. However there also seems to be plans for a larger road from Sererit to connect to 'sunset' in Denpasar. That is sure to increase prices once completed. Sorry can not be of more help.

 

[matsaleh]

An airport in the north has been discussed at length in a previous thread.

Jero Wacik hints at new airport location

From Bali Discovery: Beritabali.com reports that Indonesia’s Minister of Culture and Tourism, Jero Wacik, is not prepared to divulge the exact location of a planned airport for Buleleng in north Bali. However, while officiating at a festival at Lake Batur, Kintamani, Wacik hinted to the press...

balipod.com

 

[balinesesurfer]

Mat, thanks for the prompt response. But I thought the government already decided on building the airport in Kubutambahan, am I mistaken? Also, the road from Seririt to Denpasar will it go anywhere near Bedugul by chance? Thanks for your help.

 

[balinesesurfer]

Also thank you too Matsaleh for your response.

 

[mat]

Mat, thanks for the prompt response. But I thought the government already decided on building the airport in Kubutambahan, am I mistaken? Also, the road from Seririt to Denpasar will it go anywhere near Bedugul by chance? Thanks for your help.

I heard the planned route will roughly follow the existing road. So no not via Bedugal.

 

[balinesesurfer]

I read a few articles stating that the government might not go ahead with the construction of the airport in North Bali. Does anyone have an update regarding this?

Also, we purchased 3.4 hectares of land in North Bali in 2008. When we purchased the land, we planted 4000 teak wood (jati-mas) on the property. An investor recently offered us 3 miliyar rupiah for the whole land. Although we originally paid a relatively cheap price for this land, and by selling the land at the offered prices we would make a considerable profit, do you think I should wait it out until there is news whether or not the airport in North Bali will be constructed, do you think if the planned airport is cancelled I should wait on the teak wood to mature? Also, how liquid of an asset is teak wood in Bali? Is it very easy to sell teak wood in large volumes and to whom? If anyone can answer my questions, please do so, it would be very helpful to me. Thank you.

 

[pollyanna]

I can’t comment on the price offered for the land but land is usually a great investment and around the world people are moving away from planting trees that have a long time to maturity which means those who are planting slow-growth trees will have a ready market at maturity. If you don’t need the money quickly why not hold onto that land? And congratulations on your forward thinking in planting the teak trees.

 

[balinesesurfer]

Thanks for responding Pollyanna, I will definitely consider your input. I don't particularly need the money now, but I just don't exactly know the teak wood market in Bali. Once my trees matures in 11 years, I just don't know who to go to or where to go to find buyers for the trees. I envision selling the trees in bulk volumes to avoid the hassle of trying to sell in smaller quantities, realistically speaking, are there lots of buyers in bali willing to buy in bulk? And Does anyone know the current going rate of an average size and shape teak tree (jati mass specifically) at maturity so that I may have a number I can use to forecast future prices?

Anyways, thanks again for your advice Pollyanna, I hope to be enlightened by your wisdom in the future again = ). Have a wonderful day.

 

[SHoggard]

Hi Balinese surfer,
Well done on the plantation - good idea. Pollyanna is right, if you don't need the money now, why not wait till you do?
Re your questions about teak, values markets etc:
1. Answers can be found elsewhere on the internet, there is a smallish teak industry in Bali, but there aren't 'lots' of buyers willing to buy in bulk - but then why limit yourself to just thinking about the Bali market - teak is a commodity so buyers exist elsewhere in Indonesia, Singapore, or even the USA (a more complicated sale but probably higher revenue per cu.m)
2. Any information you do get here (or on the 'net generally) will be out of date in 11 years when it's time to start cutting - note 15 years is the MINIMUM time before a tree is considered mature - the longer you leave them to grow the bigger they get, the greater cu.m yield per tree the more money it sells for.... the 11 years left is just when you begin cutting.
3. Forestry isn't just a case of digging a hole & dropping a sapling into it. I hope you have someone who knows what they're doing looking after the place for you... I'm no expert, but I have been to a few commercially managed forests as part of my work.... and 4,000 trees on 3.4 ha land seems like too many for them all to grow up healthy.
It probably looked like not many when they were just baby saplings - but when they grow up they'll start competing to suck nutrients out of the soil - which will have to be put back (no chemicals, please, you'll loose any 'organic certification' & reduce the value) branches will grow & block light to the forest floor impeding growth.
Then there are diseases that could wipe out the whole crop (don't want to alarm you too much )
Maybe in the next year or two, someone should be surveying the plantation, lopping low branches to let the light in, identifying the weaker trees & culling them (maybe 5-10%).... it's not waste, you can still sell the smaller trees locally for furniture.

Of course, you should be planting trees every year to give a rolling-income for your grandchildren

PM me... I do know people in the sustainable forestry industry that might be able to advise on the management side.

 

[balinesesurfer]

Thanks for the advice SHoggard, I will take your input into my planning =). Yes, I have someone managing my trees while I am in LA. I know that 4000 trees is a crowd on a mere 3.4 ha, but my plan is to let natural selection take its course and (as you have said) cut weaker ones as time progress. And yes, my long term goal is to replant trees in 15 years intervals to support my parent's retirement and provide me with capital for future business ventures. But is it true that an average 15 year tree is currently worth approximately $1000 USD per tree? I have heard prices for an average shape 15 years mature tree is from $175 USD to $1000 UDS, which is is more accurate? Again, thank you everyone who has given me their inputs.

 

[meerkat]

Projections

 

[balinesesurfer]

Meerkat, thank you for you reply. The linked website explained a lot about price of the Teak would. Needless to say, based on the projections provided, I am very happy.