Bali or Lombok? Jamie McIntyre on Property, Expat Demand and Choosing a Developer
By Jakarta Newsdesk
Australian property developer, political commentator and Australian National Review founder Jamie McIntyre believes investors looking at Indonesia should focus on two questions: where future demand will come from, and whether the developer can actually deliver.
Speaking to Jakarta Newsdesk, the Bali-based LUX Property Group founder outlined why he favours Lombok’s longer-term potential, sees Bali becoming more competitive, and believes completed properties tell investors more than promotional promises.
His central prediction is that Indonesia’s property market will increasingly serve foreigners relocating for lifestyle and affordability, alongside holidaymakers.
“What started as a trickle could become a flood”
McIntyre says he has encouraged his investor network to consider diversifying some Australian property exposure into Bali and Lombok for several years.
“Australian property has done very well for many people, including investors who have followed my views over the past 25 years,” he said.
“But three or four years ago, I started encouraging people to look at Bali and Lombok and consider diversifying some of their assets outside Australia.”
His argument centres on the cost of living in Australia, Europe and North America.
He expects more people to consider living overseas, creating demand for homes and communities rather than accommodation designed solely for short holidays.
“What started as a trickle after COVID could become a flood over the next five to ten years,” he said. “These people need somewhere to live.”
That remains a forecast. Strong tourism activity alone does not establish how many foreign residents will relocate or which developments they will choose.
Nevertheless, McIntyre says this anticipated demand underpins his proposed six-location Indonesian mini-city strategy, beginning with Nesara Bay City in South Lombok.
“Bali cannot accommodate everyone,” he said. “Our vision is to create communities with the accommodation, facilities and services people need to live there.”
Bali’s maturity versus Lombok’s potential
McIntyre describes Bali as the more established market, with a wider choice of accommodation and increasing competition between properties.
He believes that competition will put pressure on rental yields, particularly for villas without distinctive facilities or strong management.
“A few years ago, we talked about opportunities offering 20 to 30 per cent gross rental returns,” he said. “As a market matures, those returns can come down.”
“In my view, a property achieving 10 to 15 per cent gross could still be attractive, but buyers need to understand the costs and the actual performance.”
Those figures represent McIntyre’s assessment of potential opportunities, rather than independently established market averages. Gross rental yields are calculated before operating expenses and do not represent the owner’s net return.
For Lombok, he sees greater potential in an earlier stage of development, particularly in well-positioned beachside and hillside estates.
“I’m very bullish on Lombok,” he said. “My view is that it will take time for developers to deliver enough quality accommodation and facilities to meet growing demand.”
The investment case, he argues, depends on buying a suitable property in a location that can attract guests and residents as the market develops.
Why facilities and management matter
McIntyre believes buying an ordinary standalone villa and assuming bookings will follow is becoming a more difficult strategy.
Instead, he favours villas connected to resort facilities and professional hospitality services.
“You want your own villa, but also access to reception, check-in and check-out, security, maintenance, cafés, restaurants, a gym and wellness facilities,” he said.
He believes this combination can improve the guest experience and help a property compete for bookings.
Management capability is equally important, he says, particularly whether the operator has an established customer database and can generate repeat guests and direct bookings.
“A beautiful property still needs bookings,” he said. “You need to understand who will manage it and how they will bring guests through the door.”
He also favours flexibility for owners who prefer to manage bookings themselves, where the development’s arrangements permit it.
“Show me what you have built”
McIntyre’s strongest advice concerns a developer’s track record.
“Ask them a simple question: ‘Can I see the properties you have completed?’” he said.
“Can you visit them? Can you stay in them? Can you see how they are maintained and managed?”
He cautions against accepting claims such as “the largest” or “the fastest-growing” without evidence of completed work.
Photographs and architectural renders, he says, should lead to further questions about what the company itself has delivered.
A limited track record does not establish fraud. However, McIntyre considers an inability to substantiate delivery claims a serious warning sign.
“If a developer cannot show you what they have built, I would stay away,” he said.
He also encourages buyers to inspect construction quality and day-to-day operations, rather than judging a development entirely from its sales presentation.
What happens if a project is delayed?
McIntyre says buyers should examine their options if construction takes longer than expected.
He describes LUX Property Group as debt-free and says its four projects, landholdings and existing property portfolio provide flexibility to offer alternative properties in some circumstances.
According to McIntyre, LUX offers transfer arrangements that can allow eligible clients to move into another property rather than continue waiting for a delayed project.
“We want clients to have an alternative,” he said. “If a project is delayed, the ability to transfer to an existing property can be valuable.”
Such arrangements depend on the written contract, available replacement properties and the developer’s ability to honour its commitments. A transfer clause does not, by itself, guarantee repayment or prevent investment losses.
For McIntyre, however, the underlying question is one every buyer should ask before paying a deposit: what practical options exist if the original plan changes?
His overall message is that choosing between Bali and Lombok is only part of the decision.
Investors also need to assess the property, its management, the developer’s delivery record and the terms governing their purchase.
“Go and see what they have built,” he said. “Stay there, experience the management and ask the questions before you commit.”