Buying a property?

Subi Member

1POSTS

13 years ago

Hi
I've been looking at buying a villa in Bali, mainly as an investment, and have just got back from a research trip which has been a little disillusioning.
There's a huge amount of building activity going on, and admittedly it was fairly quiet while I was there, but having spoken to a couple of independent people (not with a property to sell) I'm told there's a huge surplus of villas having difficulties in getting rented and not to expect to break even.
I'd really like to hear any thoughts and opinions from anyone that can help me before I make a decision.
Many thanks.

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Harmonie ViP

19273POSTS

13 years ago

Hi Subi and welcome to 大咖福利影院!

Hope that you'll soon be enlightened.

Harmonie.

Fred Indonesia Expert

30549POSTS

13 years ago

This is an easy one.
It's not legal for an Australian to own land in Indonesia.
Loads of people will offer you a way round the law but there are scammers everywhere.

aussiehj Contributor

180POSTS

13 years ago

Hi Subi

Your research is quite correct, Bali is currently in an oversupply situation of not only Villas but Hotels also. This is forcing down the price of accommodation for tourists.Good for them.

However,many people choose to lease the land on which they build there
Tropical homes.This is much cheaper and legal Its now also legal to own a Condo apartment which are popping up all over Bali, but naturally you still do not own the land.

The growth of Bali over the last decade has been massive and I feel the market will sort itself out given time

Howard

Rennyabadikusuma New member

4POSTS

13 years ago

Hi,

We have 2 villa in seminyak and always rented by australian. So, dont worry if u want to invest and rent your villa with reasonable price. My husband from perth, if you want to sharing or ask some information, just send me email.

Renny

frendyhoras Guest

0POSTS

13 years ago

In Bali have alot of nice Villa and Mansion. Hope you get the best ones

DiderBali Member

1POSTS

13 years ago

Hi, desillusions ? Could you tell more ? DiderBali

Nicktutty Member

3POSTS

13 years ago

Hi Subi,

True the market is a little bit flooded at the moment but mainly after a couple of quiet seasons. Certain areas though are booked out all the time. You need to find your special area and what marketing point of difference. I have a PMA and a villa for sale in a very up and coming area on the west coast which is drastically under catered for by villas at the moment. I urgently need funds so need to cash out so it is priced well under value. The website is specialized and has online booking. We have German guests right now and it's off season. Please email me if you are interested. Nicktutty@balidreamproperty.com

Nicktutty Member

3POSTS

13 years ago

I'm in Perth also if you want to meet or chat about it on the phone

jonny199 Member

10POSTS

13 years ago

#10

Hi anyone,
Can you please enlighten me if it's possible for foreigner to buy apartments in Jakarta. How could someone find out if a project is for foreign investment or not? Is there a price difference in apartments set a side for foreign investment?
Thaanks

Ubudian Indonesia Expert

3214POSTS

13 years ago

#11

This entire issue of foreigners building villas on Bali for investment purposes is becoming a rather thorny issue on Bali these days. I know this first hand because my Balinese brother in law is a member of the Bali Provincial legislature, (DPR Bali) and a well known architect.

Depending on the particular regency of Bali, this issue runs from almost red hot to luke warm.

There are a whole lot of issues at play here (Provincial, Regency and Banjar) and the topic is way too complicated to discuss by simple postings on this forum.

A foreigner wanting to build a property to live here is one thing聟but to develop the land with a villa for investment is quite another issue.

jjanistamia New member

3POSTS

2 weeks ago

#12

@Subi

The people you talked to on the ground are telling you the truth, Bali villa supply has outpaced demand in the last 2-3 years, particularly in Canggu, Pererenan, and parts of Uluwatu. ADRs have flattened or dropped, new-unit occupancy in year 1-2 is closer to 55-65% than the 75-85% marketing decks still quote, and break-even on a fresh leasehold at 2026 entry prices is genuinely difficult. The "huge amount of building activity" you saw is exactly the supply wave that's compressing yields right now, and most of those units come online in the next 12-24 months which will pressure the market further. Your instinct to pause is correct.

That said, "villa investment in Indonesia" and "villa investment in saturated Bali micro-markets in 2026" are different propositions. Different parts of Indonesia are at very different points on the supply curve. South Lombok specifically is roughly where Canggu was in 2017-2018, the new Lombok international airport is operational, the Mandalika MotoGP circuit is pulling consistent year-round tourism, and supply is still well behind demand. Same legal framework (PMA + HGB), 30-50% cheaper entry, and the upside curve still has runway rather than being on the saturated downside. Worth at least modeling Lombok numbers alongside Bali before deciding the whole asset class is broken. Either way, pay for independent due diligence on any specific deal before committing, the gap between marketing projections and ground truth is wider here than almost any other market.