22 November 2023
Nestled within the Lesser Sunda Island chain, Lombok is set to become Indonesia’s next holiday hotspot.
Nestled within the Lesser Sunda Island chain, Lombok is set to become Indonesia’s next holiday hotspot. The not-so-secret island gem is experiencing a rise in visitors, as the direct flights between Perth and Lombok have contributed to a massive 425% increase in tourists. Not including the 13,814 Australians who have landed in Lombok so far this year, many foreign tourists already visit the tropical destination via Bali. However, as more direct flights between Lombok to Perth, Kuala Lumpur, and Singapore become readily available, there will be a potential endless flow of holidaymakers.
Aside from its idyllic beaches, rainforests and local culture, Lombok’s growing popularity can be attributed to the Indonesian government and property developers committed to transforming it into the third fastest-growing tourism area in the Asia Pacific region.
The Indonesian government plans to replicate the economic effects of tourism in Bali on a national level through the ‘10 Balis in 10 Years’ project, with the goal to raise their tourism GDP from 11% to 20% in the long term. Lombok is a key player in achieving this goal, receiving substantial funding, new roads, waterways, transport, and an operating international airport. Additionally, South Lombok is preparing to host the world’s first MotoGP street circuit in 2021, with the new circuit being completed in Mandalika. The project brings a local investment of USD $150 million and is expected to transform the area into a world-class tourist destination.
It’s not just tourists who have a close eye on Lombok, but early-mover investors who are looking for new and upward trending opportunities. Land prices in Lombok are 5 to 10 times lower than its developed neighbour Bali, and given its strong infrastructure and economic planning, property values are expected to increase over time.
Several property development companies have already noticed the brimming potential and are taking advantage of this situation. Lombok Property Group (LPG), a diversified and highly experienced real estate, construction and tourism company, are one of them.
Primely located in Central Kuta and progressing through multiple development projects, Lombok Property Group is well-positioned to receive the expected influx of tourists. Its established projects include holiday resorts fitted with private pools, restaurants, bars and day spas, as well as a social clubhouse which will be the first of its kind for the area.
Lombok Property Group has attracted the attention of commercial real estate firm Jones Lang LaSalle (JLL), receiving a property valuation of AUD$ 26 million. This has given it a strong start to be recognised as one of the big hitters in Lombok and to play an integral part in transforming the area.
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*Reach Markets have been engaged by LPG to assist with private investor management.
Reach Markets have been engaged by LPG to assist with private investor management. Lombok Property Group has recently launched a brand new website detailing development updates and more information for its unique SIWA Cliffs project. You can see more at https://www.siwacliffs.com/
*Reach Markets are the advisors assisting with the management of this offer and may receive fees depending on whether an offer is taken up by investors.