First published 28 Oct 2026, 5:00am
As cost of living pressures continue to bite and property remains out of reach for many Australians, there’s an increasing number of people looking for cheaper homes and lifestyle alternatives overseas.
With more Aussies driven away from the property market at home – one industry expert has shared how a growing number are moving toward Lombok’s booming real estate scene instead.
Ex-sydney resident and principal of Reef Property Lombok Tom Merrett has noticed a shift among investor buyers looking beyond Australia for property options.
Mr Merrett, who spent close to two decades in commercial property in Australia before moving to Lombok where he now lives full-time, said two years ago Aussies made up 15 per cent of customers and now it hovers around 50 per cent.
According to Mr Merrett, his Aussie buyers tend to fall into two camps: older buyers with healthy super balances who intend to relocate and young families after an affordable holiday home that earns a real return.
“You have retired Aussies that have got so much cash to splash in retirement, I think is the main thing,” he said.
“They are the ones that have got the money to spend in an overseas country.
“There are younger families coming over there as well, and they might shift their whole life to Indonesia just for that cheaper lifestyle.”
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Two-bedroom, two-bathroom Villa Madita recently sold for $350,000 (AUD).
Two-bedroom, two-bathroom Villa Lotus is currently available for $225,000.
Aussies are said to be paying around $350,000 for a two-bedroom villa within walking distance of central Kuta and up to $1.2m for a five-bedroom with ocean views.
Cost of living pressures and new infrastructure in Lombok were highlighted as some of the biggest factors driving buyers. While there is also a chance this could accelerate in the wake of Australian federal budget reforms.
Mr Merrett said it was mostly holiday homes in the current market appealing to younger generations, offering them a chance to getaway a few times a year, while Lombok’s growing rate of infrastructure was also adding to its appeal.
“There’s world-class restaurants there now, more affordable flights – better surfing brakes than you have in Australia, less crowded empty beaches,” he said.
“I think one of the other big factors is Bali is just so crowded now and people are looking for an alternative.
“About a million Australians go to Bali each year and I think a lot of people are just bored with it and they’re looking for somewhere new and Lombok offers that feeling, it’s bit of a cliche, but they say it’s Bali 30 years ago.”
There has also been an addition of an international school teaching an Australian curriculum, which is also making relocating with school-age kids realistic, Mr Merrett said.
“For sure and that’s younger families, generally from Australia or Europe, having the school there just makes that a totally viable option for them,” he said.
“Maybe they do it for a year or two maybe they take a term out of Australia, but some will relocate for the long haul as well just for that cheaper lifestyle.
“It’s been a huge uptick in Aussies.
“I think a lot of more projects are being promoted to them, to be fair, and you’ve had some dodgy projects heavily promoted in Australia its just raised awareness in Lombok in general.”
Tom Merrett principal of Reef Property Lombok said he has seen an uptick in Aussie buyers over the past two years
Four-bedroom, four-bathroom Villa Coa Calina is currently available for $1m.
“You have skate parks, play areas, gyms, things like that, yoga centres and it just gives sea change lifestyle, but at a much more affordable price for an Aussie family,” he said.
Cost of living is likely to continue to drive Aussie buyers, Mr Merrett said this was what led his own relocation a decade ago.
“For sure and that’s why I moved 10 years ago, because cost of living just collapsed and it wasn’t just housing, it’s everything,” he said.
“I’d say that the main reason Aussies want to go there for a holiday or to live is because it’s a much, much cheaper lifestyle and it’s a much more relaxed lifestyle.
“Especially if you have young kids, you can give them a totally different cultural experience as well.
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Three-bedroom, two-bathroom Villa Varvet is currently available for $530k AUD
Five-bedroom, six-bathroom Villa Strata sold for $1.1m AUD
“I’m sure a lot of people would love to take six months in the south of France as well, but it’s not economically possible … taking a year off in Indonesia is certainly an option for people.
“You’ll save money, if you own a house here, you can rent it out and you’ll be ahead when you come back.”
While there is an increasing amount of people searching for overseas properties due to rising costs, Mr Merrett said it was also the ability to work remotely.
“People will move there and still run their businesses in Australia or keep their jobs in Australia,” he said.
“That just makes the geographical arbitrage a huge advantage.”
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