Property appraisal is essential for informed investment decisions. I’m Jason, a Business Journalist at Bukit Vista, and I’m here to guide you through key perspectives on our latest video on Bali Business Review about the economy value of a 2 bedroom villa in Ungasan. Uncovering the latest discussion on our YouTube video about analyzing the revenue and investment potential of the Santa Michael Sunset two-bedroom villa in Ungasan.
Location Grade Highlights Strengths and Weaknesses from Property Appraisal
The Ungasan villa’s location earns a B+ in our property appraisal, reflecting a mix of convenience and trade-offs. Positively, it sits minutes from renowned beaches and beach clubs, with essential services like laundry nearby. This proximity appeals to guests seeking both leisure and practicality. However, unlike pedestrian-friendly areas such as Canggu or Seminyak, beach access here mandates a car or motorbike, introducing a dependency on transportation that can deter some travelers.
In comparative benchmarks, top competitors were assessed on distance to key attractions and airport routing. Morning traffic to Ungasan remains relatively light, suggesting smooth check-ins for guests—notwithstanding anticipated congestion near the airport during peak hours. Our analysis also highlights Toyaning as an emerging node in South Bali, underscoring the area’s growing appeal as Jing Cho Yang showcased in his market tour.
These locational insights provide investors a realistic view of accessibility versus amenity balance. While guests enjoy quieter surroundings and curated facilities, operators must account for transportation logistics in their pricing and guest-communication strategies to maintain high satisfaction and reinforce the villa’s location grade.
Villa Analysis: Design and Product-User Fit
Our villa analysis flags key design elements that drive guest satisfaction. High-speed Wi-Fi and a designated workspace cater to the rising segment of hybrid workers seeking a “vacation meets remote office” setup. A private swimming pool, once a luxury, has become a baseline expectation in Bali’s two-bedroom market. Additionally, dedicated parking—a rare asset—bolsters the villa’s appeal for guests arriving by car, supporting seamless guest experiences.
Despite these strengths, current renderings lack clarity on the villa’s layout and interior finishes. The absence of bespoke décor limits its standout factor in a competitive market where unique aesthetics can command higher rates. Upgrading common areas with distinctive furnishings or thematic accents could elevate the guest experience and justify a premium over standard offerings.
Material quality further strengthens the property’s position: the use of jetty wood in construction not only enhances durability but also conveys a commitment to long-term value. In comparison, many Bali builds rely on lower-grade materials that often require early renovations, diminishing net revenue. This attention to build quality underscores the importance of a thorough villa analysis in any property appraisal.
Revenue Potential Forecasts Monthly and Annual Returns
Accurate revenue potential forecasting relies on a blend of historical data and market guarantees. Monthly expectations factor in the highest-bid guarantee to mitigate pessimism, while average nightly rates gleaned from comparable listings feed into baseline projections. Crucially, a 17-day booking window and average stay of three nights inform occupancy curves and seasonal adjustments for the Ungasan villa.
Our model introduces “reliability” as a multiplier distinct from raw occupancy. This metric rewards expert property management with a steadier booking cadence, reducing vacancy risk. By isolating reliability from occupancy, investors gain clarity on how professional oversight translates directly into revenue uplifts and improved contract value.
Beyond headline numbers, guest behavior insights refine demand planning: with two-person groups dominating two-bedroom bookings, resource allocation—from housekeeping to consumables—can be optimized. This granularity ensures that revenue forecasts align with actual market patterns, enhancing the precision of the revenue potential estimates.
Investment ROI Projects a 4.61% Yield
Translating revenue streams into tangible returns, our appraisal calculates an annual contract value by multiplying the average monthly revenue by 12 and applying the reliability factor. Against a 6 billion IDR investment, this yields a pre-tax ROI of 4.61%, offering a clear benchmark for investor expectations.
Expense transparency bolsters confidence in this investment ROI. Fixed costs—covering routine maintenance, insurance, and management fees—persist regardless of booking volume. Variable costs scale directly with guest nights, encompassing utilities, consumables, and turnover cleaning. This bifurcated approach ensures that net profit estimates remain rooted in real-world operations.
Finally, the ROI framework empowers side-by-side assessments: even properties within the same Ungasan enclave can diverge substantially in returns based on design nuances, management quality, and amenity mix. By anchoring decisions in a disciplined, data-driven property appraisal, investors can target optimal investment ROI outcomes with precision.
🗒️ Read the transcript
Topic 1: Introduction & Appraisal Framework
Host: Opens the Bali Business Review, announcing today’s property appraisal of a real two-bedroom villa in Ungasan to assess its revenue and earnings potential.
Bella (Senior Revenue Manager): Frames the property appraisal for “Santa Michael Sunset Ungasan,” noting ranking as the top strategy and that the analysis will focus on two key attributes: location and design.
Topic 2: Qualitative Analysis – Location Grading
Bella: Assigns a B+ to location in this appraisal.
Positives: Proximity to beaches, beach clubs, laundry services, and easy road access.
Negatives: Unlike Canggu or Seminyak, guests must drive or ride to the beach.
Benchmarking: Compares competitor proximity to attractions and airport; highlights morning traffic patterns and mentions Toyaning’s rise—all part of the location assessment.
Topic 3: Qualitative Analysis – Design & Guest Fit
Bella: Awards a B+ for design and product–user fit.
Positives: Fast Wi-Fi and workspace for hybrid workers, standard pool, rare private parking.
Negatives: Renderings lack décor detail and clarity on layout.
Construction Quality: Emphasizes durable jetty wood, underlining material considerations in the appraisal.
Topic 4: Guest Profile & Booking Behavior
Bella: Shares market-derived guest insights for two-bedroom stays:
Average group size: 2 guests
Length of stay: ~3 nights
Booking lead time: ~17 days
Guest Priorities: Cleanliness, quiet setting, and reliable access amidst local construction.
Topic 5: Quantitative Analysis & Financial Projections
Bella: Introduces “reliability” as a distinct performance metric (not just occupancy).
Model Details:
Monthly revenue projections include a highest-bid guarantee.
Annual contract value = avg. monthly rate × 12 × reliability.
ROI: 4.61% pre-tax on a 6 billion IDR investment.
Expense breakdown: fixed vs. variable costs.
Topic 6: Conclusion & Key Takeaways
Bella & Team: Recap the B+ investment grade, cautioning that even nearby properties vary in performance by segment and management.
Call to Action: Invites viewers to subscribe for more market-fresh property appraisal insights; credits Lutfi and Gray for analytical support.
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