With the ever-increasing price of land, developer Real Estate Indonesia (REI) has plans to build apartment complexes but in doing so they promise to comply with Balinese cultural and design standards.
“They’ve already allowed the development of condotels in Bali, so I think the same will go for apartments,” said Agus Pande Widura, Head of REI’s Bali region in Denpasar on Saturday (13/05), as quoted by Kontan. “But we’ll have to discuss it first with cultural and religious experts so we don’t deviate from Tri Hita Karana.”
Tri Hita Karana is a Balinese philosophy built on the three deep connections people make in their lives: with God, nature or the environment, and with other people. According to Windura, the plan is still in its early stages but he hopes they can realize it soon by following the rule that is applied throughout Bali, which is the height of a building should never exceed 15 meters, or the equivalent of a building with 4 – 5 floors.
“Now there are many kos [or boarding houses]. So why can’t we build an alternative? For example, a vertical residence with four floors that is in accordance with the local law,” he added.
He reasoned that apartments will be favored by people who are currently looking for a home to call their own but cannot afford to buy a house due to the exorbitant prices. “If foreign investors are the ones who build the apartment first in Bali, and if it’s only foreigners who can buy those apartments, then the prices could go up. We want to prioritize the local people because the demand is still high.”
He added that if developers wish to build vertical residences in Bali then they should partner with local developers to ensure the building complied with the local rule and culture.
Moreover, housing prices in Bali are more expensive than Jakarta, especially when compared to the cost of apartments. Windura provided an example that they could construct a 20-floor apartment building on a 50-are land, which could significantly reduce the selling price of each unit. While with the same land size they could only build 35 housing units with a price tag that would be way more expensive.
Tino Wijaya, Secretary of REI, said that his company has conducted an intensive study regarding the advantages of vertical residences in relation to price. For a 36 meter-square type with three bedrooms, the price range could fall between IDR300 million – 400 million with monthly installments between 3 million – 5 million.
Now, compare that to the price of houses in Denpasar which could reach up to 600 million – 700 million with monthly installments between 6 million – 7 million.
He remarked that REI will be more active in opening a line of communication with the local government, and some regional administrations have already given them a green light.
“Some of them have supported our plan because they understand the high demand, yet we still have to preserve the local culture,” he said.