Expert-Selected Secondary Real Estate in CangguStrong investment appeal indigital nomad hotspot

Why Consider Secondary Real Estate in Canggu

Canggu, a once-sleepy coastal village on Bali’s southwestern coast, has become a dynamic hotspot for international property investment. Located between Seminyak and Tanah Lot, it offers a unique balance of laid-back tropical charm and modern urban appeal. With black-sand beaches, a thriving café culture, yoga retreats, boutique shops, and co-working spaces, Canggu now attracts digital nomads, long-term expats, and global lifestyle investors.

Unlike pre-construction projects, secondary real estate refers to completed and operational properties that are being resold by individual owners or investors. This market segment provides a safer and more transparent acquisition route, especially in destinations like Canggu, where development is rapid, and off-plan risks are significant. Investors seeking immediate occupancy, rental income, and clear title documentation often favor the resale market.

Types of Secondary Properties Available

The Canggu secondary market features a wide array of property formats catering to various buyer profiles—from budget-conscious relocators to luxury investors. The most common categories include:

• Leasehold Villas: The majority of secondary villas in Canggu are sold on leasehold titles, typically 25–30 years with optional extensions. These villas range from simple 1-bedroom units (~$150,000) to luxurious 4-bedroom compounds ($400,000–$900,000), often featuring pools, gardens, and staff quarters.
• Freehold Villas via Local Nominee or PMA: Indonesian citizens may hold freehold (Hak Milik) titles, and foreigners can access these through legal PMA (foreign investment company) structures. However, legal compliance is key.
• Studio and Boutique Apartments: Fully built resale apartments, often in serviced buildings or private compounds, are priced from ~$100,000 depending on amenities and location.
• Subdivided Land Plots: Buyers can acquire small freehold or leasehold plots with existing zoning for residential or tourism development. Prices vary from ~$200–$500 per m², depending on proximity to the beach and access roads.
• Completed Off-Plan Turnkeys: Some developers resell units that are completed but never occupied. These come with full infrastructure and are ready to rent out or live in.

The most sought-after districts in Canggu include Berawa (near Finns Beach Club), Batu Bolong, and Pererenan—each offering slightly different atmospheres, from trendy social hubs to serene residential areas.

Ownership and Legal Aspects

Foreigners are not allowed to own freehold land in Indonesia under individual names. However, there are fully legal alternatives to invest in secondary real estate:

• Leasehold (Hak Sewa): This is the most common method for foreigners. It grants the right to use and rent the property for a fixed term, typically 25–30 years, with renewal clauses. Leasehold agreements are notarized and registered with the Land Office.
• PMA Company Ownership: A foreign investor can establish a PT PMA (foreign-owned limited company) which is legally allowed to own Hak Guna Bangunan (Right to Build) or Hak Pakai (Right to Use). This is more complex but allows control over freehold structures.
• Nominee Structure (not recommended): Some buyers use an Indonesian nominee to hold title. However, this method is discouraged due to legal risks and unenforceability in disputes.

When buying secondary real estate, it is essential to conduct proper due diligence with the help of a licensed notary and legal advisor. Steps include:

1. Verification of land and building permits (IMB or PBG)
2. Confirmation of zoning regulations (residential vs. commercial)
3. Review of lease agreements (remaining duration, extension rights)
4. Checking the property’s tax status and outstanding obligations
5. Clarification of VAT or income tax responsibilities in resale transactions

Engaging a notaris (notary) and a legal consultant familiar with Canggu’s property laws ensures all documentation is valid and compliant. Foreign investors are advised to use official bilingual contracts and avoid informal cash transactions.

Pricing and Market Trends

Canggu's secondary real estate market has seen consistent appreciation over the last 5–7 years. Rising international demand, constrained land availability, and growing tourism have driven up prices, particularly for well-positioned resale villas and operational rentals.

• Average leasehold villa prices range from $1,700 to $2,500 per m²
• Beachfront and prime-location villas can command $3,000+ per m²
• Secondary apartments in serviced residences average $120,000–$180,000 for studios or 1BR units
• Rental yields range from 8% (long-term rental) to 15–20% (short-term, daily/weekly)

The value of resale property lies in its proven rental performance and verified legal standing. Many secondary listings include financial statements of past rental income, occupancy rates, and property management track records. These are vital for assessing ROI.

The post-pandemic recovery of tourism has further boosted rental demand, with Canggu becoming a base for long-term stays, workations, and international retreats. Properties near major beach clubs, schools (e.g. Green School satellite campuses), and co-working spaces see the highest demand.

Investment Scenarios in the Resale Market

Secondary property in Canggu suits several investor profiles:

• Buy-to-Rent: Turnkey villas with solid occupancy histories are immediately rentable via Airbnb, Booking.com, or local agencies.
• Buy-to-Hold: Investors purchase resale property with long lease terms or freehold (via PMA) for future personal use or capital gain.
• Buy-and-Renovate: Older properties are acquired at discount and upgraded for resale or higher rental returns.
• Vacation Homes with Partial Rental: Owners use the property for part of the year and lease it out the rest of the time.

Example:

A 2-bedroom villa in Berawa purchased for $260,000 (leasehold, 27 years remaining) generates $35,000/year gross rental income. After expenses (~30%), the net return is ~$24,500, or 9.4% ROI. If sold after 5 years for $320,000, capital gain would add further return on investment.

How VelesClub Int. Supports Secondary Market Buyers

VelesClub International assists investors and expats in navigating the Canggu secondary property market with an end-to-end approach:

• Property Search and Sourcing: We maintain exclusive access to curated resale listings that meet legal and financial criteria.
• Due Diligence and Legal Review: Our legal team ensures title clarity, valid zoning, and clean leasehold or PMA structures.
• Negotiation and Structuring: We manage offer structuring, deposit terms, and seller representation to secure favorable terms.
• Transaction Coordination: Notary appointment, tax compliance, transfer process, and final closing support are all handled by us.
• Rental Management Setup: If desired, we coordinate onboarding with top-tier rental operators, from listing setup to guest services.
• Exit Strategy Planning: For long-term investors, we develop resale or refinancing timelines aligned with your investment goals.

Our on-the-ground team in Bali speaks English and Bahasa Indonesia, working with trusted legal partners, notaries, and agents. We eliminate risk and simplify the acquisition process for buyers worldwide—from initial inquiry to post-purchase rental monetization.

Conclusion: Why Canggu’s Resale Market Makes Sense

Secondary real estate in Canggu presents a rare combination of tropical lifestyle, reliable income, and clear legal pathways for foreign ownership. While Bali’s property market remains competitive, resale properties stand out for their lower risk profile, immediate usability, and performance visibility. Whether you’re seeking a rental-generating villa, a long-term family residence, or a hybrid personal-retreat-plus-asset, the Canggu secondary market offers versatile options with proven returns.

With prices still favorable compared to other global beach markets, and leasehold options accessible from $150,000–$250,000, now is a strategic time to explore Canggu’s resale opportunities. Partnering with VelesClub Int. ensures your journey into Bali’s property market is safe, structured, and aligned with long-term goals.