Property analysts have estimated that private rented villas in Bali will continue to see low occupancy levels after a slight decrease of around 9 percent, during the first half of this year compared to last year, the Jakarta Post reported.

The level of occupancy was affected by the increasing supply of accommodation and the decreasing length of time guests stay on the island, Hasan Pamudji, senior research manager Knight Frank, explained in the company’sBali Property Outlook.

“With the increasingly fierce competition, the rising supply of new villas, as well as the lowering volume of bookings for rented villas, the rental price is predicted to drop amid a price war, especially for three- and four-bedroom villas,” Pamudji said.

In line with the slowing demand for four-bedroom villas, rental prices have also decreased by eight percent during the low season, and up to 11 percent during the peak season, the newspaper reported.

The economic crisis in Europe has contributed to the slowing demand. August, which is usually a peak month for European tourists, saw demand decrease significantly. However, June, which is commonly a low month for rented villas, eventually turned out well due to the increasing demand from Australian and Asian tourists.

According to the results of Bali Property Outlook, the rental price of one-bedroom private villas grew by a significant 21 percent during the low season.

“Developers and buyers are mostly interested in buying one-bedroom villas, because there is still a high rental demand for this type of villa. Many tourists prefer villas with fewer bedrooms,” Pamudji said.

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