Australians eye near north for property diversification
Australian property investors are increasingly looking offshore as affordability pressures and tighter borrowing conditions reshape how portfolios are built. With capital city prices elevated and yields compressed across much of the domestic market, attention is shifting beyond Australia’s borders to markets where access and ownership structures are changing.
Property has long sat at the centre of Australian wealth creation. Investors are increasingly applying a global lens to real estate – and offshore markets, once viewed as complex or opaque, are becoming more accessible as legal frameworks and transaction processes improve.
Lombok’s Saraya Beach Resort: Australian investors are eyeing offshore property as diversification accelerates.
“Investor behaviour hasn’t really changed. Property investors have always focused on strong yield and prime locations,” says Adrian Campbell, chief executive officer, Kinnara Capital.
“The difference today is that those opportunities are harder to achieve in Australia, so investors are looking internationally. Overseas property markets are now also far more accessible, with the buying process becoming increasingly seamless and comparable to purchasing property within Australia.”
Southeast Asia has emerged as a focal point within this shift. Indonesia in particular is attracting attention due to proximity, tourism demand and comparatively earlier-stage market dynamics. Locations beyond Bali’s established core, including Lombok, are benefiting from infrastructure investment and growing international exposure.
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A key factor underpinning this trend is the increasing clarity around ownership structures. Historically, foreign participation in Indonesian property was often misunderstood, with many investors assuming they needed to rely on informal or uncertain arrangements.
“In the past there was a misconception that foreigners needed to use a local partner through nominee arrangements, which were often illegal and created uncertainty,” Campbell says. “In reality, the structure has long existed through PT PMA companies, which can be 100 per cent foreign owned.
Adrian Campbell, chief executive officer, Kinnara Capital.
“This framework is now far better understood internationally, making Indonesian property ownership clearer and more accessible for offshore investors.”
Under this model, foreign investors can hold property through a PT PMA entity [foreign-owned company] providing a recognised legal pathway for participation in the Indonesian market. Campbell says this structure shifts complexity away from individual buyers.
“Foreign investors cannot hold land directly in Indonesia, but they can own property through a PT PMA company, which can be 100 per cent foreign owned,” he says. “This structure allows the company to hold property under HGB title [long-term land use rights], which is widely regarded as the closest equivalent to foreign-style freehold ownership.
“Using a PT PMA entity provides a clear and recognised legal framework for foreign participation in the Indonesian property market.”
Developments are also evolving to accommodate international buyers more directly. Rather than requiring individuals to navigate regulatory processes themselves, projects are increasingly structured to define ownership, compliance and exit pathways upfront.
“More developments in Indonesia are now structured with international buyers in mind,” Campbell says. “That means clearly defining ownership structures, regulatory compliance and resale mechanisms from the outset.”
He says resale options can now be handled remotely, making property easier to trade as recognised platforms such as Kinnara Asia connect sellers, agents and buyers while improving access to the market. For investors, the exit process is becoming closer to what they would expect in markets such as Australia.
Campbell says the search for returns relative to domestic markets, alongside lifestyle considerations, is shaping interest in offshore property. He says many buyers are attracted to the combination of ownership and personal use, alongside exposure to different markets.
This shift is visible in emerging destinations such as Lombok, where tourism and infrastructure investment are expanding the opportunity set. The island has seen significant upgrades in recent years, including improved transport links and international exposure through major events.
“Lombok has benefited from significant infrastructure investment over the past decade, including an international airport, improved road networks and global exposure through the Mandalika MotoGP circuit,” says Saraya Beach Resort chief operating officer Julie Noorman.
As Bali has matured, Lombok has emerged as a neighbouring destination offering similar natural appeal with greater capacity for planned tourism development. Projects such as Saraya Beach Resort and Residences are being positioned within this evolving landscape, targeting international buyers seeking both lifestyle access and exposure to growing tourism markets.
“While Lombok already has several established five-star resorts, Saraya Beach Resort and Residences is positioned on one of the island’s most desirable beaches, known for its turquoise waters and natural coastline,” says Noorman.
The development sits within a designated tourism zone, where activity has expanded alongside infrastructure investment. The residences are designed to operate within a professionally managed resort environment, with centralised management overseeing guest services, maintenance and hospitality operations.
This allows owners to combine property ownership with personal use while ensuring the villas meet the standards international guests expect from a premium resort destination.
Interest in Lombok property is coming from a mix of lifestyle buyers and investors, particularly from Australia and nearby regions. Buyers are drawn to the combination of ownership and own use, alongside exposure to a destination that is earlier in its development cycle than Bali.
“Lombok’s proximity to Australia is virtually identical to Bali in terms of travel distance, making it just as accessible for Australian travellers and property owners,” says Noorman.
“As Bali has matured and become increasingly crowded, Lombok is naturally attracting attention as the neighbouring destination offering similar natural appeal while still having significant room for tourism growth and associated property development.”
For Australian investors, the broader shift is less about individual opportunities and more about how property fits within a changing portfolio framework. As access improves and ownership structures become more standardised, offshore property is moving from the margins towards the mainstream.
What was once considered complex is becoming more routine, reflecting a wider trend in how capital moves across borders. For investors navigating this transition, the focus is increasingly on how markets, structures and access points align with changing expectations around ownership and diversification.
To learn more about Kinnara Capital’s approach to offshore property and explore current insights, including opportunities in Lombok and Saraya Beach Resort, please visit kinnara.capital.
