BREIG Aquamarine III: income per bedroom, instalments and lease extension
Balinsky recorded an interview with developer BREIG at the Aquamarine I complex in Canggu. The talk is about the new Aquamarine III project in Pererenan. It was recorded when construction had only just started. According to Balinsky's data, the complex is now completed.
The expert — Nikita Shelomentsev, BREIG. The company builds villas and manages them itself.
The figures below come from Nikita. Balinsky has not verified them. They are figures as of the recording.
1. Where the project is
- Aquamarine I and II are near Batu Bolong, in central Canggu.
- Aquamarine III is in Pererenan, across the road from the same developer's BALIWOOD I and II.
- The ocean is about 200 metres away. You can see it from the second-floor bedroom and from the roof. Above the roof there is also a viewing deck.
- According to Nikita, Pererenan grew fast once the shortcut road from Canggu opened: within six months to a year restaurants opened and new villas went up. The main street is 1–2 minutes away by scooter.
2. The key number: income per bedroom per night
Villas have 2, 3 or 4 bedrooms. To compare them, BREIG counts revenue per bedroom per night.
- At BALIWOOD (also in Pererenan), according to Nikita, it is $135 per bedroom per night at 94% occupancy.
- In the New Year month occupancy was 98%.
- Before the pandemic it was $80–90 per bedroom.
- By his calculation, at these figures a villa pays back in a little over 5 years.
3. Why 4 bedrooms pay better than 2
The pool and living room are shared by the whole villa. Each extra bedroom costs less than the previous one, while revenue grows with the number of bedrooms. Nikita's example:
- 3 bedrooms vs 2: price about +30%, revenue +50%.
- 4 bedrooms vs 3: price about +20–25%, revenue +33%.
So, in his words, villas with 3–4 bedrooms give the best return. Smaller villas are bought to try the model with a smaller sum.
4. Prices
- "Smart villas": 2 bedrooms plus a study with a sofa bed — from $300–330k at the foundation stage.
- Aquamarine III: a 4-bedroom villa, 300 m², two pools (downstairs and on the roof) — $750k.
According to Nikita, the price is final: no taxes on top, with furniture, decor and tableware.
5. How payment works
- 35% at the start of construction. This covers the land and the start of works.
- The rest is paid monthly as construction progresses, roughly 5.5–6% a month.
- Construction takes 12–14 months.
6. Price growth during construction
- According to Nikita, in the previous project about half of the early buyers resold their villas and half kept them.
- On average the growth is 30–35% from foundation to finished villa.
- Some made 50%, but they bought during the pandemic. Nikita advises not to count on that.
7. Yield: then and now
- Before the pandemic — 12–14% a year (about $80 a night, occupancy about 80%).
- At the time of recording — 15% and more, 20% on some properties. Occupancy is over 90%, nightly rates about 1.5 times higher than before the pandemic.
- Nikita himself says: whether this lasts, we will see in a year or two. Within 3–5 years yields may return to 12–14%.
- For comparison he named Dubai at about 6.5% and Thailand at 8–10%.
8. How management works
- A villa goes on the rental market 2–3 weeks after handover.
- Channels: booking sites (Airbnb, Booking) — 30–35% of revenue; agents — about a third; direct bookings from social media — about a third.
- Sales cost on average about 10% of revenue.
- Cleaners make a list of defects and get a bonus for each one they find. Small things are fixed between guests; bigger work is moved to the low season.
- Repairs up to $200 a month are done without the owner's approval. Major repairs follow an estimate the owner approves. At the time of recording BREIG was discussing a separate major-repair fund with investors.
9. Warranty and staying in your villa
- 12 months — for small and cosmetic defects.
- 7 years — for the structure, waterproofing and engineering systems.
- The owner can stay in the villa as long as they like. Dates must be given to the management company in advance, so bookings don't have to be cancelled.
10. Land: leasehold and extension
- BREIG works with leasehold — a long-term land lease. According to Nikita, freehold raises neither the nightly rate nor occupancy, while leasehold pays back faster.
- A villa, he says, usually sells for 5–7 years of income.
- Leases are taken for 30 years rather than 25: the land costs a bit more, but you get 5 more years of revenue — about +20% income over the whole term.
- The contract sets the extension at the market price of the land only. The price is set by independent valuers.
- The extension term is fixed where possible: Aquamarine III — 30 + 20 years. Balinese landowners, according to Nikita, agree to long extensions less and less often.
What's next
According to Nikita, next to Aquamarine III there are 800 + 300 m² for a restaurant and commercial space — most likely a spa or gym run by an outside operator. 300 metres away there are 2 hectares for Aquamarine IV: two phases, a 30 + 30-year lease, a layout with areas for children and walks.
The full interview (in Russian) is available via the video button below.
