Hindsight is a great thing and lets face it, pretty much everyone wishes they had gone ‘all in’ on Bali after covid when prices are low. So what are the trends, where can I find value, what’s a good investment out there without breaking the bank.
Welcome again to my blog where in this instance three opportunities that shine above all others. For this “Petes property picks’ we look at a land opportunity near Canggu with a motivated seller slashing the price to well below market, a 3 bed completed villa in Sanur reduced over 20% in price and finally a stunning piece of land in Lombok to build (best architect and construction companies on site), that’s a fraction of the cost to Bali, on a headland with views to a bay/beach below to the east and again to the beach and sunset to the west.
Pete’s Property Picks
To give some good reasons why you may want to take notice, I’ve lived in SE Asia for 25 years. I first bought land in Bali in 2004, building in 2005 and subsequently launched my first development of 15 villas in 2008. My career background is largely investment-related (then property) as far back as the late 90s as a commodity broker. Investments and property perfectly intertwine in Bali, where margins for developers are excellent and ROI for investors exceptional. I also have a Master’s in International Business Management, hence also look at property opportunities from an analytical perspective. I do live and breathe the market every day, hence do know a thing or two.
The Opportunities
Firstly let’s look at the land in Padonan Canggu. Beautiful peaceful location, 1000m2, prime for 1 villa or to build many. As a developer you can 2X on your investment (we can recommend construction companies) and the motivated seller has reduced the price from 18m/are/year (US$1095.16 per 100m2 per year) to 12.5m/are/year (US$760.53). With a plot size of 1062m2 and 28.5 year lease, in US$ terms that’s US$229,756. The beauty with this property is the 25 extension can be exercised at any point for the duration on the lease at only 9m/are/yr (which is unheard of but was locked in over covid). Develop and 2X or build 2 sizeable villas and let one villa be sold so you effectively receive your own villa for free.
Second we have a 3 bed villa just completed, down a nice quiet street in Sanur. Bali is ever more popular with its new Bali International Hospital and Icon Mall. Close to many international schools and you can also enjoy the promenade beach walk that stretches some 7km. This was a very well priced buy at IDR4.9 billion (US$298,128) but has been reduced to US$3.8b (US$231,231), a bargain when you consider conservative nightly rents. If only 65% occupied and at a conservative US$200 per night, a gross revenue of US$46,800 equal to 20.24% (staff, utilities and tax taking a few percent off that but certainly 15%+)
The final opportunity is in south Lombok and just over 1000m2. Its in a gates community with unblocked views to the east and west, the development is sure to be an award winning phenomena and will have ten F&B outlets including different restaurants and also a beach club. They are quite far in the development with a further 68 villas to be built next year, official soft launch for the development the end of Q1 next year and full land end of the year. You can self build, or there is a team on site (best of the best) on site. Rather than paying retail price for a villa, you would be paying cost price, hence substantial upside build cost to completed value. The views etc are really breathtaking, and with comparable land in busy Bali being 5x the cost of here, the opportunity is 10/10, AAA etc.
The Most Coveted Land Plot in South Lombok – Where Natural Beauty Meets Smart Investment
So there you have it. 3 very different opportunities, all exceptional in there own way. If any are of interest, please reply to this email or call/whatsapp me on +62 821 4720 4580
Best Wishes,
Peter Taylor
Head of Sales
Harcourts Purba Bali
