Investors Look Beyond the Mainland
Bali has emerged as one of the world’s hottest property markets for rental returns, consistently outperforming mature destinations such as Australia.
While Australian cities like Sydney, Melbourne, and Brisbane are known for their stability and long-term growth, the reality for investors is that gross rental yields typically hover between 3% and 4.5%. Rising property prices relative to rents continue to squeeze income potential, and new regulations on short-stay rentals — including a 7.5% levy in Victoria and strict caps in New South Wales — have limited the upside for those targeting Airbnb or holiday-let strategies.
By contrast, Bali’s tourism-driven villa market tells a very different story. In prime areas such as Canggu, Berawa, Seminyak, and Uluwatu, gross yields of 8–12% are achievable, with many well-managed villas delivering consistent cash flow year-round. Even after management fees, operating costs, and local taxes, many investors still see net yields in the 6–8% range — more than double what is typical across Australia.
The Appeal of Lifestyle + Income
Bali also offers something Australia cannot: the ability to combine a holiday lifestyle with strong returns. Investors often spend part of the year in their property, then let it out at premium nightly rates when they’re away. With Bali attracting millions of visitors annually — many of whom now prefer villas over hotels — the demand pipeline remains strong.
“For the same budget as a small apartment in Sydney, investors can purchase a luxury villa in Bali that generates two to three times the rental income,” says Elly Herriman, Director of Marketing & Innovation at International Property Alerts. “It’s not just about numbers. It’s about lifestyle, flexibility, and tapping into one of the world’s most resilient tourism markets.”
Developments Leading the Way
Projects such as Elle Resort Beach Club and Kingswood Villas are designed to cater to this demand, offering modern, stylish properties fully set up for short-stay income. These developments combine professional management services with prime locations, giving overseas buyers confidence that yields are not just theoretical, but realistically achievable.
The Investor’s Choice
For those prioritising capital growth and regulatory stability, Australia remains a safe, long-term market. But for investors looking for cash flow, flexibility, and lifestyle, Bali has quickly become the standout choice in the Asia-Pacific region.
As Herriman notes: “The message is clear — Australia might be a great place to live, but Bali is where your money works harder.”
