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How to Successfully Invest in a Bali Villa in 2015

The good old days of Bali's affordable property prices are long gone; Asking prices for villas more than doubled in the last 2 years.
Villa-Bali.com
2015-10-27 06:00 1834

SYDNEY, Oct. 27, 2015 /PRNewswire/ -- Bloomberg just reported about Bali: "The world's hottest island property market is about to get even hotter". Question is where exactly is the island heating up and how much hotter can it get? Villa-Bali.com, the agency leader in Bali for villa rentals has just published an Infographic based on 12 months of villa rentals that illustrates the following insights on Bali villa investments. Read more >

"Bali continues to be a magnet for foreigners. It is a popular attractive destination and has large affordable houses that can be turned into rentals easily," shared David Chambat, CEO of Villa-Bali.com. "Australians represent about 20% of our villa owners in Bali. However with an influx of new villas and lower Australian dollar, supply has recently surpassed demand and overall occupancy has decreased." Is it still worth investing in Bali? Villa-Bali.com shares their insights.

Insight 1: Know your target market

When investing in a villa, consider your target market. Chinese and Japanese visitors still prefer hotels. Primary focus should be on the Australian, European, Hong Kong and Singaporean travellers who represent 80% of villa rentals.

Insight 2: 75% of villa travelers want Seminyak

During the past 10 years, boutiques, restaurants and bars have transformed Seminyak into one of the trendiest destinations in the world. With the highest average gross revenue of $76,270 per year, Seminyak is the best and safest investment you can make in Bali. (Infographic)

Insight 3: North Bali is the hidden gem

"What is the most popular isn't necessarily the best" - David Chambat, CEO of Villa-Bali.com. Surprisingly, villa investments in the northern region of Bali require the shortest break-even time (7 years) due to high occupancy rates, low cost of land (10 times cheaper than Seminyak) and the region being a popular choice among European travelers. (Infographic)

Insight 4: Know what locations offer a good return

Despite their distinct characteristics, the other locations in Bali have similar yields (about 10 years to break even). For example, East Bali has a low occupancy rate but commands higher prices, while the opposite is true in Canggu. Ubud is a riskier investment, due to a combination of low occupancy, high number of existing villas and low night rates. (Infographic)

Insight 5: Consider neighboring islands

Bali is a hot property market, but it is not the only destination investors should focus on. The neighboring islands of Flores and Lombok are beginning to get a share of Bali's limelight. With investments from government (cf.$3 Billion to Lombok) and organizations to bolster tourism industries, "We expect villas to pop-up in Flores and Lombok within 2 years," adds David, "however there are higher risks since these are still new markets. Nevertheless, there will be advantages for being the first-movers."

Contact: Yvonn Ong / +65-9658-3926 / yvonn@villa-finder.com

Source: Villa-Bali.com
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