Fractional vs. Full Ownership: What Percentage of Australians Choose Each in Bali?

Bali’s property market has never been more appealing to Australians. Villas, boutique resorts, and hotels are attracting investors who want both lifestyle benefits and strong rental yields. But not every buyer goes down the same path. In 2025, Australians are increasingly splitting between two key ownership models: fractional shares and full ownership.

So what percentage of Australians choose each, and why? Let’s take a closer look.

The Two Main Ownership Paths

1. Full Ownership (via legal structures)

Because foreigners cannot directly own freehold land (Hak Milik), Australians usually secure full ownership through:

• Hak Pakai (Right to Use): long-term rights over property, subject to minimum investment thresholds (commonly around IDR 5 billion in Bali).

• Hak Guna Bangunan (Right to Build) via PT PMA: allows a foreign-owned company to hold property legally.

• Leasehold agreements: typically 25–30 years, renewable, and still the most common ownership structure for foreigners.
  

2. Fractional Ownership

Fractional ownership allows a group of buyers—often Australians — to pool funds together. Each investor gets usage rights plus returns from a proportional share of rental income. 

What the Numbers Suggest in 2025

While hard government statistics aren’t published, industry data and brokerage insights paint a clear picture:

• Roughly 70–75% of Australians pursue full ownership models (leasehold, Hak Pakai, or PT PMA). This is particularly common among more established investors, retirees, and those planning to operate independent rental villas.

• Around 25–30% are opting for fractional ownership—a figure that has grown sharply since 2022.  Australians have accelerated this shift, especially among younger buyers priced out of full ownership.

In other words, while full ownership remains, fractional property ownership is the fastest-growing trend.

Why Australians Choose Fractional Ownership

• Lower entry costs: $65,000 AUD investment for a 5% fractional share, compared to $500k+ for full purchase.

• Shared risk: Costs are split.

• Hands off investing: No need to manage the property with 100% hands-off professional management in place.

• Lifestyle access: Buyers get guaranteed usage each year.
  

What This Means for Australians in 2025

Fractional ownership is no longer a fringe option—it’s a mainstream pathway for Australians who want Bali property exposure without the full capital outlay. 

The balance between the two models is shifting: fractional shares could rise to 40% or more by 2027 as more Australians embrace accessible, tech-enabled property investment.

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