Element Residence, Unit 5102
From $190,000
1-Bedroom Garden Apartments in Canggu for Chinese Investors
Quick answer: Canggu's 1BR garden units offer 8–14% gross yield on entry prices around $180,000. Foreign investors acquire 30-year leasehold titles registered with Indonesia's land authority. Flexible payment structures spread deposits and construction milestones over 3–4 years.
Key takeaways
- Entry price: $180,000 median for 1BR garden units in Canggu.
- 30-year leasehold tenure, registered with BPN (Indonesia's land office).
- Gross yield range: 8–14% for short-term rental operations.
- Standard payment: 30% deposit, 40% milestones, 30% at handover.
Available units (4)
Element Residence, Unit5104
From $190,000
Element Residence, Unit 5101
From $190,000
Element Residence, Unit 5103
From $190,000
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Why Canggu Garden Units Attract Chinese Investors
Canggu attracts 23% annual STR booking growth. One-bedroom garden apartments command premium nightly rates because guests value outdoor space.
Chinese capital flows to Canggu for three reasons: visa simplicity, established Chinese community networks, and transparent leasehold law.
Leasehold Ownership: What You Actually Get
Element Residence 1BR garden units carry 30-year leasehold tenure, expiring February 2055. You hold Hak Pakai (use-right certificate) registered with BPN.
This structure is legal for foreign investors under BKPM rules. Title transfers happen before a notary (PPAT) and appear in the national land registry.
Renewal pathways exist but operate project-by-project. Ask the developer about post-2055 policy before signing.
Revenue Outlook: 8–14% Gross Yield
Canggu's high STR velocity supports 8–14% gross yields on entry-price units. A $180k investment generating 12% yields $21,600 annually before tax and maintenance.
Garden units outperform studio layouts because nightly rates climb 15–20% when guests see usable outdoor space.
Property tax, management fees, and local taxes reduce net yield by 2–4 percentage points. Use the off-plan ROI calculator to model your specific scenario.
Payment Structure for Imported Capital
Standard Canggu payment plan: 30% deposit, 40% across construction milestones, 30% at handover.
Deposits are held in escrow accounts at licensed Indonesian banks. Milestone payments align with third-party inspection reports.
Chinese buyers often wire deposits via remittance firms or correspondent banking. Verify the developer's bank holds your funds in a foreign investor trust account.
Tax and Regulatory Path for Chinese Owners
BKPM permits foreign individuals to own one residential property under personal leasehold. Companies (PMA) face stricter rules but gain operational flexibility for short-term rental licensing.
Annual property tax (PBB) runs 0.1–0.3% of assessed value. Local administration fees add $50–200 yearly.
Short-term rental income is taxable. Most developers recommend hiring a tax agent in Denpasar to file quarterly returns.
How to Compare Garden Units in Canggu
Garden size varies: 50–80 sqm is standard. Larger gardens command 18–25% premium nightly rates.
Location matters. Units closer to Pantai Batu Bolong and Echo Beach attract digital nomads and families, lifting occupancy 5–10 points.
Check if air conditioning, kitchen appliances, and security are included. Developer-furnished units rent faster but limit your renovation upside.
Documentation Before Handover
Request a pre-purchase site visit. Inspect garden drainage, water pressure, and electrical panel. Document any defects in writing.
Obtain a copy of the master leasehold agreement (Hak Pakai induk) before deposit. Verify expiry date and renewal clauses match the PPAT notary's record.
Post-handover, register your ownership at the local BPN office within 30 days. Delays can complicate future sales.
Frequently asked questions
Do I own the land or lease it?
You hold a 30-year use-right lease (Hak Pakai) on Element Residence units, expiring 2055. This is leasehold, not freehold. The developer retains land title but you control the building. Renewal after 2055 is project-specific—ask the developer for written policy.
Can I get a 50-year lease in Canggu?
Market regulations permit lease stacking to 50 years total (25+25 or 30+20), but only if the developer structured the master lease that way. Element Residence offers 30 years expiring 2055. Confirm with the developer if renewal extensions are available.
What is the typical gross yield?
Canggu 1BR garden units deliver 8–14% gross yield. A $180k investment at 12% yields $21,600 annually before expenses. Use the ROI calculator to factor your management fees, taxes, and vacancy rate.
How much deposit do I need upfront?
Standard payment plan is 30% deposit. On a $180k unit, that is $54,000. Remaining 70% splits between construction milestones (40%) and handover (30%).
Can I operate short-term rentals?
Yes. Canggu's spatial plan (RTRW) permits mid-density tourist accommodation. You need a local business license (SITU) and must file quarterly tax returns. A Denpasar tax agent costs $400–800 yearly.
What happens after the 30-year lease ends?
That depends on the developer's renewal policy, which is not yet public for this project. Some Canggu projects offer extension options; others do not. Confirm in writing before purchase.
Who holds my deposit?
Licensed Indonesian banks hold deposits in escrow accounts. Ask the developer for the bank name and account number. Verify it is a separate trust account, not the developer's operating account.
Do I pay property tax?
Yes. Annual property tax (PBB) is 0.1–0.3% of assessed value. Local administration fees add $50–200 yearly. Short-term rental income is also taxable and requires quarterly filings.
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