steven 1st February 2023 bali property no responses

Canggu is the current holiday and residential favourite.

Berawa, BatuBolong, Echo Beach, and Pererenan traditionally shape the Canggu district, with Jalan Raya Canggu as the border. However, inland, Padonan and Tumbak Bayuh also form part of Greater Canggu, which are becoming ever more appealing areas.

Pre-Covid, only the beach side of Jl Raya Canggu was considered optimal; however, scooters present traveller convenience, facilitating economic movement and accessibility.

The hinterland is captivating, offering potential renters and buyers the traditional Bali landscape of verdant green paddy fields intermixed with Balinese architecture and temples. Better for families with kids at the Green School, and a quicker school run.

When visiting Canggu, one can expect a lively, vibrant atmosphere mixed with a laid-back, old-world Bali charm.

Why is Canggu so popular?

Berawa, Batubolong, and Echo are already well established, with famous beach clubs, slick restaurants, cafes, and spas, plus giant supermarkets Pepito and Frestive competing for business.

During the Covid lockdown, foreign and domestic travellers sought properties away from busy Seminyak and Kuta, preferring retreat-style living in favour of space, fresh air, and room to breathe. Social media projected to everyone globally in lockdown the desirable freedoms of Canggu and the new party scene. According to The Australian Financial Review, Buyers grab bargains in Bali’s devastated property market during COVId and this trend has continued to rise even though the property market has recovered and is now booming.

Canggu has become the favourite location for the Eastern European horde, escaping the war. Many other nationalities have noticed its potential as a residential and holiday destination, with people flocking to join this relaxed lifestyle and party nerve centre. If you’re looking to buy a Canggu villa make sure you conduct your due diligence and only use a Canggu real estate agent that specialises in villa and land sales.

Key Locations in Canggu

Besides Tumbak Bayuh, everywhere in Canggu has vast amounts of quality cafes, healthy eateries, spas, boutique shopping, gyms, restaurants, and bars, all within easy reach.

Finns Recreation Club offers its plethora of entertainment, including games pitches and a water park, with its massive sister, Finns Beach & VIP Club, and its equally massive neighbour, Atlas, which form the mainstay of Berawa. There is still land available, but wise to stay clear of the beach due to noise pollution.

Nelayan is the first beach after Berawa, now a hive of activity, popular with health and fitness through the Body Factory, and expansive apartment blocks, plus 1, 2, and 3 bedroom villa complexes, all available in the latter part of 2023.

Next is Jl Batubolong, accessible via the shortcut, which can be treacherous: paddy field mud baths await the complacent. Beachside is Old Man’s, The Lawn, and Tugo Hotel. There is still plenty of land for the taking, with multitudes of villas, apartments, and townhouses almost ready for sale.

Padang Linjong and Echo still have plenty of land up for grabs, the beachfront now filled by Como and La Brisa, with the up-and-coming beachfront Intercontinental hotel about to take centre stage.

Pererenan still has that sleepy village vibe. That said, development is relentless, the skyline distorted by massive cranes building the yet-to-be-named Serpong hotel group’s newest baby. As with other neighbourhoods, the cafe scene is superb.

Padonan, on the north side of Raya Canggu, is developed roadside, but venture off track, plenty of villa development is in progress. Tumbak Bayuh is ideal for the buyer looking for the authentic Bali experience of rolling paddy fields and a view on a clear day towards volcanoes in the distance.

Bali Realty Holiday Villas has an extensive portfolio of 1 to 6-bedroom fully-staffed luxury villas throughout these areas, providing guests with unforgettable holidays.

Are there any must-have villa features?

Space is luxury. Villas with nice pools and gardens, preferably a fair size lawn for the kids to play, can increase rental yields, as will all bedrooms having ensuite bathrooms. A bedroom without an ensuite is considered half a room, and the price increase is minor. Each bedroom should have a large TV. For discerning guests, consider adding a Nespresso, Bluetooth speaker, laptop size safe, plenty of drawers and hanging space, a choice of pillows, iron, and board, and strong air-conditioners.

The villa might need a modern BBQ, dedicated TV/cinema room, staff, and show kitchens, with plenty of entertainment spaces. What would you like on holiday? A private sports bar? A soundproofed nightclub in the basement with DJ decks and a dance pole? Sofa swings? The essential consideration is to make the villa unique.

Everything works best in Bali with proper supervision. Staff management is vital. Note that the team becomes ineffective and bored within a seldom-used residential property.

Suppose a competent full-service company like Bali Realty Holiday Villas manages the villa. In that case, the team is supervised, trained, and constantly working with guests to offer the best experience. Owners benefit from this quality service and attention to their future guests.

How much are land and villas in Canggu?

Leasehold land is approximately IDR 20 million to 40 million per ara per year (1 ara = 100 sqm). Freehold land, on the other hand, is IDR 1.2 Billion to 3 Billion per ara.

Cheap 1-bedroom villas or lofts can cost anywhere from $120,000 to $250,00, which can book from $100-$250 per night with a full calendar, while 2- or 3-bedroom 30-year lease modern villas range from $300,000 – $700,000, bookable from $250-450 per night. Still, rates depend on build quality and land size: the more luxurious the villa, the higher the nightly rate. There is a need for more high-quality 4-6 bedroom villas that can demand $600-$3,000 per night.

Beachside apartments start at USD 450,000, becoming fashionable since the law changed, allowing freehold purchases. Unlike villas, an apartment enables its owner to lock and leave it.

How about budgeting post-build?

It is crucial to remember that once the villa is complete, quality FF&E is essential, especially for the discerning traveller demanding high quality, which defines that nightly rate.

Budget for linen, cutlery, glassware, chinaware, kitchen equipment, modern large flat-screen TVs, pool table or equivalent, games room facilities, staff recruitment and training, photography, video, floor plans, brand design, website, and content. The best quality influences bookings and rental prices.

How to buy a Canggu villa?

Both leasehold and freehold are possible. The land titles of note are:

Hak Sewa – The Right to Lease (land or buildings);

Hak Pakai – The Right to Use;

Hak Guna Bangunan (HGB) – The Right to Build; and

Hak Milik – The Right to Own.

Foreign individuals can acquire leaseholds but not freeholds. That said, foreigners can purchase freehold through a PT PMA, although it is not straightforward and requires you to buy HGB-titled land through a PT PMA valid for 30 years, extended for 20 years, and renewed for a further 30 years, giving the PT PMA an 80-year lease. This HGB title allows for that land to be transferred in the future. When sold to an Indonesian national, it can be converted from lease back to freehold, i.e., HGB to Hak Milik.

Also Read: Can Foreigners Own Freehold Property in Bali?

In the past, buyers would use a now illegal nominee structure. Often a trusted local would hold the Hak Milik title on behalf of a buyer, with a mortgage-style arrangement to safeguard the agreement. Too many owners have fallen prey to greedy nominees and lost their property. The best way to buy is through a PT PMA, which is legal and regulated. Our team can guide you through the setup and facilitate the whole process removing any obstacles.

Buyer beware!

Expect different protections than found in Europe or Australasia. Buyers must perform appropriate due diligence. Too many people fall foul of silly scams. It is essential to have a reputable agent represent you that speaks your language to guide you through leasehold or freehold purchases. The legal hazards are legion but worth also having professional insights into the rental/sale market, location, demand, and local risks, plus having the right connections regarding legal requirements.

Our experienced team at Bali Realty led by Nathan Ryan is here to help. Buying a suitable villa in Bali with all the trimmings can be remarkably lucrative.

About the author

Bali Realty Nathan RyanNathan Ryan is one of the best real estate agents in Bali and will be able to help you secure your wonderful piece of paradise in Canggu. He’s got a wealth of experience and knows everything there is to know about buying and selling real estate in Bali.