steven 13th July 2020 Real Estate Guides no responses

Seminyak is the chicest and the most popular tourist beach town in Bali.

It has been the most popular tourist destination in Bali for decades already and if you are looking to invest in Seminyak Villas, you can be pretty sure of fabulous returns despite the high competition in the villa rental market in this area.

Updated by Nathan Ryan on 8 February 2023

The streets in and around Seminyak define the Greater Seminyak area of Bali, specifically, Jalan Legian, Seminyak,  Basankasa, Laksmana, Kerobokan, and Petitenget with Kuta and Batubelig forming the beachside outskirts.

Seminyak remains prime real estate due to its proximity to the beach with fabulous sunsets, surf, day clubs, first-rate shopping, dining, spas galore, quality supermarkets, and nearby malls, everything that has made the area justly famous. Most things have stayed the same, aside from other hot spots. Traffic nightmares across the island promote more demand here due to easy access to the airport and the rest of Bali.

 Is Seminyak still a wise investment?

During Covid, Greater Seminyak became a domestic Indonesian holiday haven with all its luxury villas, with big city folk fleeing coronaviruses to take refuge in villas away from the crowds. Hence, quality short-term rental properties were in high demand. Marketing companies had not previously targeted Indonesians, as most local people prefer large resorts, but much has changed.

Also, during Covid, many large freehold rental villas in Seminyak and beyond were removed from the market, now converted to domestic residential estates, because the nation’s political capital is moving to East Kalimantan, where Jakarta power brokers see Bali as the ideal location for families, especially because Nusantara, as it is dubbed, is a cultural and recreational desert.

The international hospital being built with the USA Mayo Clinic will create more potential for retirement homes.

The war in Ukraine has made Greater Seminyak a preferred destination for Eastern Europeans to escape hostilities, pushing demand ever higher.

Many people who don’t need permanent offices are moving to Bali from major Asian cities to raise kids, only travelling for business. Bali offers a much cheaper relaxed living standard than most of these countries. You cannot compare residing in an affordable villa with a private pool, staff, services, and facilities to housing in an expensive city.

Of all the Bali locations, Seminyak still has everything that a visitor wants other than the beach: The best boutique shopping; beach clubs such as Ku De Ta, PotatoHead, Mano, W, Alila, and Mari; restaurants of note like La Lucciolla, Kilo, Merah Putih, Mauri, Jemme, Sisterfields, Bambu, Plantation Grill, Boy n Cow, Mamasan, Kura Kura, Sardine, and Salvaje (formerly Metis), in fact, more choice than any holiday visitor can sample.

Sunsets are always a draw, coupled with a fantastic beach; the fabulous colours at sundown are spectacular. Low tide walks beachside with partner and fur friends set the scene that life shouldn’t be too hard!

The beach is much cleaner these days, especially during the wet season, primarily through the hard work of Sungai Watchkeeping rivers free of rubbish and plastic. In fact, Christmas and New Year 2022 were the first peak season holidays in recent memory to have the most rainfall and clean beaches.

Traffic can be problematic, so Seminyak’s proximity to the airport is an easy booking choice.

The beachside walkway that connects Kuta to Discovery shopping mall now links to Oberoi, with plans to tie up with Canggu. Soon a quick bicycle trip to Canggu will be possible.

And finally, to the many Bali lovers who have been returning every year forever, Seminyak will always remain a sentimental destination.

Key Locations in Seminyak

Kuta is known for massive resorts, hotels, inns, and budget hotels, not villa accommodations.

Jalan Basangkasa runs from Jalan Legian on the outskirts of Kuta down to Jalan Laksmana, or beachside from Padma Resort to Jalan Double Six, known for large beachfront resorts and cheap local bars.

Jalan Laksmana runs to Jalan Petitenget, encompassing Jl Drupadi to Oberoi, beachside from Double Six to Ku De Ta, known for its upscale restaurants, spas, bars, and boutique shopping, seaside 5-star hotels and private villa rentals.

Petitenget starts from Ku De Ta beachside to W hotel, while inland includes Jl Pangkung Sari to Batubelig using Jl. Kerobokan, as the border, is also known for its restaurants, boutique shopping, and villa destinations.

The Greater Seminyak area includes Jl. Kerobokan, which starts at the end of Sunset Road to Petitenget across to Jalan Kunti II, anything further is Denpasar, known for interior design shops and furniture factories.

Finally, Batubelig forms the boundary of Greater Seminyak as it turns to Berawa and the start of Canggu. A massive nightclub (ERA VIP) is being developed halfway down the road, making that area interesting.

Bali Realty Holiday Villas has a decent portfolio of 1 to 5-bedroom affordable, fully-staffed luxury villas throughout these areas providing guests with unforgettable vacations.

How much is a Seminyak villa?

Leasehold land is approximately IDR 15 million to 40 million per ara per year (1 ara = 100 sqm). Freehold land, on the other hand, is IDR 800 Million to 2.5 Billion per ara.

A small 2-bedroom traditional open-plan house on a reasonable lease could cost USD 250,000 – 350,000. More significant properties can demand higher prices, such as a 3- or 4-bedroom villa whose bracket might be USD 500,000 – 1,200,000. 4 to 5-bedroom places set back from the beach demand USD 1,800,000 to 4,000,000. Space is the key; an absolute beachfront freehold estate in Seminyak solicits upwards of USD 10,000,000.

Apartment blocks are under construction in Greater Seminyak, but determining the cost is too early.

Countless cookie-cutter villas look the same, so fabulous designer places will always demand higher rates due to limited availability. Hotels, restaurants, and beach clubs occupy optimal seaside land, but steps away, there are still buying opportunities. Just avoid loud establishments. Those properties close to shopping and restaurants in quiet neighbourhoods are most in demand; just a hop-skip-and-jump to consumer heaven.

View our Seminyak villas for sale.

How do I buy a Seminyak villa?

Buying freehold and leasehold properties is possible, but nothing here is straightforward. Foreign individuals cannot purchase freehold land with a Hak Milik title, which is achievable through a company PT PMA. Through a recent law change, people can now buy freehold apartments. But the ground on which the apartment block rests is not available.

The land titles to understand 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.

There is plenty of chat that non-Indonesians cannot own Hak Milik, which is partly correct. An individual cannot, but it is possible through company ownership via a PT PMA. In brief, the PMA acquires an 80-year HGB lease, which converts back to Hak Milik when sold to an Indonesian national.

Using a nominee to hold the Hak Milik title was common in the past. However, this method is illegal, with many people being seriously burnt by this practice, and the majority have lost their properties.

Considering this, having a reputable, experienced agent represent your interests is advisable.

Also Read: How to Buy Land and Build Your Own Dream Villa in Bali

How about budgeting post-build?

Once the villa is complete, there are more costs to consider. Remember that a beautiful place will need equally impressive images should they wish to sell the property either nightly, yearly, or permanently. In addition, staff recruitment and training, video, floor plans, brand design, and websites, to name a few. It is a competitive market, so the best photos and other quality marketing materials are essential.

Are there any must-have features for a successful Seminyak villa sale?

Considering that the long and short-term rental market is ludicrously competitive, creating innovative architecture generates kudos. Designing the villa to be different from the rest is essential to maximize returns.

Adding a bar, Jacuzzi, gym, or children’s slide from an upstairs bedroom to the dining room makes a difference. Or keep it simple by adding a BBQ deck, Sonos sound system, living room sofa swing, or just a lawn for the children to play.

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.

If managing your villa is too hard, consider a professional management company. Bali Realty Holiday Villas has years of experience managing a respectable portfolio of Bali villas. Earn a decent profit while keeping the asset in immaculate condition, and have the staff trained to treat all guests like VIPs.

Seminyak buyers beware!

 The protections available in other parts of the world are not always practised in Indonesia, so each person must perform effective due diligence. There are too many pitfalls for the unsuspecting. We reiterate the need for a trustworthy agent to walk a potential buyer through the various laws, local regulations, and customs. It may seem tricky, but it is worth it. Performed right, owning a property in Indonesia can be highly profitable.

Many naysayers are out there project doom and gloom, but they probably didn’t listen to sound advice!

Our team at Bali Realty is here to help.

Also read:

Bali Real Estate Guide

Sanur Real Estate Guide

 

Bali Realty Nathan RyanThis article was posted by Nathan Ryan who has had over a decade of experience in the Seminyak real estate market. If your thinking about buying, selling or investing in the Seminyak property market, Nathan is you’re ‘go-to’ guy. View some of Nathan’s best Seminyak properties for sale.