We're told that the head, not the heart, should rule in investment property decisions, but it's hard not to want a piece of Balinese paradise.
The 'island of the gods' is Indonesia's premier holiday resort, boasting all the major five-star hotel brands and spas that are continuously voted among the world's best. Its friendly people, sun-kissed beaches and laid-back lifestyle make Bali a top tourist destination, especially for Hongkongers who find 'Bali time' a welcome respite from their city's hectic pace.
The peaceful paradise was shattered by terrorist bombings in 2002 and 2005, but even though tourists were temporarily deterred, they are now back in droves. As one visitor explains, while relaxing on a palm-fringed beach, 'Bali is too beautiful to resist'.
It's lovely to visit, but how practical to buy there? Agents say the fundamental reasons for choosing Bali remain the same: compelling attractions, good infrastructure, convenient airline connections and high rental returns. They add that Bali prices are cheaper than other places, and that the island's property values continue to appreciate, 'even during difficult times'.
Indeed, Knight Frank's 2009 Wealth Report found that Bali held up well during last year's lean times, when 'off-plan sales in Europe, North Africa, the Caribbean and Middle Eastern resorts struggled to maintain traction and development plans were either scaled back or put on hold'. Out of 55 prime residential markets worldwide surveyed in the report, Bali ranked third fastest growing at the end of last year, behind Bangkok and Jakarta, notching up a 3.7 per cent gain over the second half of the year.
While this might sound like a modest gain, Richard McCandless, director of PT Raja Prima Management, points out it still makes Bali real estate owners 'among the happiest property investors worldwide, just based on the numbers. And that is without factoring in the joy of ownership on the world's most magical island,' he adds.