TEMPO.CO, Jakarta – The 2022 MotoGP that is set to be held in Mandalika Circuit, Lombok, West Nusa Tenggara (NTB), affected the price of lands in the surrounding regions.
Head of research and consultancy of property consulting firm Savills Indonesia, Anton Sitorus, said many developers consider Mandalika, which is popular as the Next Bali, as a potential target.
“This triggers more transactions which resulted in the exponential increase in the land price around the area recently,” said Anton as quoted in the Market in Minutes of Savills Research, Wednesday, March 16.
In the early development stages by the Indonesia Tourism Development Corporation (ITDC), the prices of land in the residential area of Kuta and Lombok ranged from Rp5-10 million per 100 square meters or Rp50,000-100,000 per square meter.
However, after the 2022 MotoGP was announced to be held at the Mandalika Circuit, the value increased tenfold to Rp50-100 million per 100 square meters or Rp500,000-1 million per square meter.
Meanwhile, the price of land adjacent to the Special Economic Zone (SEZ) reaches Rp250-500 million per 100 square meters.
The land in commercial areas located on main roads or adjacent to tourist destinations also saw a surge in prices up to Rp1 billion per 100 square meters or Rp10 million per square meter.
“Land prices in neighboring regions such as Mataram and Senggigi city have also been affected in line with the growing interest of local investors because of MotoGP,” Anton explained.
In addition to the land value, the standard daily cost of construction labor also jumped from Rp80,000 to Rp150,000 per person.
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