Lombok — an up-and-coming resort investment frontier?

By Michael Lim / The Edge Property | May 6, 2016 12:00 PM SGT
Located to the east of Bali is the less famous Indonesian island of Lombok. The 4,725 sq km island boasts pristine beaches and is known as a great surfing spot. Apart from white sandy beaches, it has mountains, forests and waterfalls as well as great hiking trails.
Andrew Corkery, managing partner of Indonesian resort developer Selong Selo Group, first saw Lombok’s potential as a resort destination in 2009 when he visited the island with his business partners. “We saw its untapped potential as the next tourist destination,” he says. “We felt Bali had become saturated and commercialised.”
Corkery: We saw Lombok’s untapped potential as the next tourist destination. We felt Bali had become saturated and commercialised.
The 38-year-old Australian was a director of foreign exchange options trading at RBS Global Banking and Markets in Singapore before he decided to call it quits after 11 years in financial services. In 2010, he became a full-time partner of Selong Selo Group, which he co-founded with several investors and an Indonesian partner in 2009.
The group has since purchased 70ha of development site on the hillslope of southern Lombok. The first phase comprising 15ha is currently being developed into its maiden villa project called Selong Selo Residences. The project was showcased in Singapore last November and on April 23 this year as part of its overseas roadshows.
First phase 74% sold
To date, 46 of the 62 plots of land offered for sale at Selong Selo Residences have been taken up. Of the 46 plots, 10 were purchased by expatriates in Singapore, another 20 by Hong Kong-based expatriates, and the rest by those from Australia, Indonesia and the US.
While Indonesians are allowed to buy and own freehold land, foreigners in Lombok are restricted to buying property on a 100-year leasehold tenure. At Selong Selo Residences, land sizes range from 5,400 to 16,000 sq ft. Buyers are given two choices of villa designs, namely the bespoke Bale Samar Collection and the standard Kayu Villa Collection.
View of the sea from the living room of a two-bedroom Kayu villa