Bali Outperforms Australia in Rental Yields: 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.