Real estate market survey of the south-western, southern and central Sumba.
Today south-western Sumba is more attractive for investments. The infrastructure here is more developed, there is an airport, a network of transport junctions with still more to be constructed and modernized. While the eastern part of the island is more aimed at the local market. Such sectors as cattle breeding and agriculture are basically developed there. Although there are several hotels and resorts with water sports, they are more an exception to the rule and are more aimed at the tourists arriving from the neighbouring islands of Flores and Kupang.
The climate which rather distinctly divides the western and the eastern parts of the island also has an impact on that. This is because in the west, where the land is sold and bought, more precipitations fall out, the land is believed to be more fertile and as a consequence more people live there and the ground relief is most suitable for construction, while in the east the relief of the ground is mountainous with grass plateaus and valleys, some of the parts are considered to be hard-to-get-to and uninhabited.
Investors showed interest in the island more than five years ago and have been buying the land in Sumba with the positive dynamics. Over sixty miscellaneous hotels and apartments were built here during these years. Lively interest in the island necessitated the construction of one more airport and new roads. The primary real estate market has already reached its peak at the moment. It can be safely said that the primary real estate market in this region has practically come to an end. On the map below/above the purchased land lots of the western and eastern Sumba and the attractive lots which are still vacant have been marked. It is worth mentioning that 80-90% of the land at the seaside has already been sold out. The second real estate market with a higher price range starts to develop. For instance, the land lots with the certificates already cost twice as much as they did only a year ago. The lands sold lower than the market price and without certificates are more likely to have some legal problems. Whereas the prices of commercial real estate in the central Sumba next to the airport have increased fivefold. If previously complete streets were available for purchase, now it is only a few land lots. These selected lots are available in our company. The land prices in Tambolaka area now constitute 150 000 – 200 000$ and 70-80% of the market has already been sold out. Some remaining lots can still be bought at rather favourable prices. However, judging from the current situation, further price rises can be anticipated soon.
The south-western sea coast territories bought out by the major players long ago, where you can hardly find even a small piece, start straight within the boundaries of the city of Tambolaka, in the region of the Weikelo gulf, pass through Kadul district with a big administrative complex and farther through the beaches of Kawona, Bukambero, Huma. About the same situation can be observed in the direction of the closest to Tambolaka north – these are the beaches of Oro, Kita, Ketewel. All of them are only within half an hour drive from the airport along the circular road Jl Pantura, all of them have the shape of the land lots convenient for construction and long sand beaches. Naturally the prices in these parts are way over the limit and will soon be close to Lombok and Sumbava and according to some expert forecasts, in a couple of years the market may be close to Bali market, after all, already now the lots start to be sold by ares, while in all the other parts of the island they are sold by hectares.
The beaches of Karoso, Pero, Retengaro and Tosi are most popular and picturesque part of the island. This is the place of the sunset, breathtaking coast lines and inimitable beaches, surfing spots and the venue of the Pasola festivals. Key developments took place here about two years ago, nowadays the market is practically closed.
The south of the island, with the famous and the first in Sumba hotel Nihiwatu in the centre, continues to be very vivacious and mobile. The whole coastline is already in rotation, therefore now it is time for the active wave of the market of the second line of the hills with a view. And the views here are amazing and unique in their beauty and prospects. The beaches of Marosi, Lamboya, Kerewe, Rua, Gaura are the most active.
The majority of investors entering Sumba are very well aware of the ”overheated” real estate market of Bali and point out that for the first time in ten years the prices of the land and the villas in the island of the Gods started to decline. There are instances when a villa originally sold at 600 000$ was finally bought at 300 000$, that is, the actual buyer was ready to pay twice as little as the seller initially wanted. It is the same with regard to almost any object. The prices of the majority of the objects in Bali are unreasonable, which causes the so-called discord in the real estate market, when the sellers keep a low profile awaiting the sale of their objects at the overestimated price and the buyers keep resisting and are waiting for the price reduction.
In Jacarta the real estate market has been on the rise in the last years and the annual growth of 15-30% was registered. However, in 2015 the market halted.
In Sumba as distinct from the ”paused” Jacarta and the bursted ”soap bubble” of Bali the market is going up from very low marks and therefore has the potential.
Because of the very low land price in Sumba and high infrastructure development rates the investors from Jacarta, Bandunga and Surabai invest in the future of the island. Foreign investors showing interest in the challenging island join them and their number continues to grow more and more every year.
Today there still exists a unique opportunity to jump onto the taking off train of the premium real estate market of Sumba, however, very soon it will be next to impossible, as the market develops in line with its own laws and the coastline will sooner or later come to an end. It is the right time to make your choice and buy the ticket for the luxury compartment of Sumba real estate flying express.