Buying Waterfront Property in Brunei: A Guide

Published on October 5, 2025 and written by Cyril Jarnias

Brunei, a small sultanate nestled on the island of Borneo, offers a unique opportunity for seaside real estate investment. With its golden sandy beaches, crystal-clear waters, and lush tropical setting, this country is attracting more and more international investors seeking their own piece of paradise. In this article, we’ll guide you through the nuances of buying seaside property in Brunei, revealing the best places to invest and the key steps in the acquisition process.

Brunei’s Coastal Gems: Where to Invest for Maximum Potential

Brunei, though small in size, is full of coastal treasures that deserve your attention. Here’s an overview of the most promising areas for your seaside real estate investment:

1. Muara: The Northeastern Pearl

Located at the northeastern tip of Brunei, Muara is a thriving coastal town attracting increasing numbers of investors. Its deep-water port and developing infrastructure make it a prime destination for those looking to combine investment with quality of life. Seaside properties in Muara offer breathtaking views of the South China Sea and benefit from easy access to urban amenities.

Muara Beach, with its white sand and turquoise waters, is one of the region’s major assets. Properties located near this beach are particularly sought after, offering high rental yield potential, especially for seasonal rentals.

2. Serasa: A Water Sports Enthusiast’s Paradise

Just a few kilometers from Muara, Serasa is renowned for its pristine beaches and water sports facilities. This area is ideal for investors targeting an active and sporty clientele. Seaside properties in Serasa benefit from an exceptional natural setting, with preserved mangroves and rich marine biodiversity.

The recent development of the Serasa Watersports Complex has significantly increased this area’s appeal. Villas and apartments with sea views in this region offer significant appreciation potential, given Serasa’s growing popularity among tourists and local residents.

3. Jerudong: Luxury by the Sea

Jerudong, located on Brunei’s north coast, is synonymous with prestige and luxury. This area is home to some of the country’s most exclusive properties, attracting high-end clients seeking privacy and comfort. The famous Jerudong Park, with its royal palace and amusement park, adds a touch of glamour to the region.

Seaside properties in Jerudong often feature exceptional characteristics such as private beaches, infinity pools, and lush tropical gardens. Although the initial investment may be higher, the long-term return potential is considerable, particularly for luxury rentals and high-end second homes.

4. Kampong Ayer: A Unique Water Experience

Although technically not “seaside,” Kampong Ayer deserves special mention. This traditional “water village,” located in the capital Bandar Seri Begawan, offers a unique investment opportunity. The stilt houses of Kampong Ayer combine historic charm with aquatic living, attracting investors seeking an authentic experience.

Investing in a property in Kampong Ayer can be an excellent option for those looking to stand out in the tourist rental market. Demand for unique accommodation experiences is constantly increasing, and a renovated traditional house on water can offer attractive rental returns.

Navigating Bruneian Real Estate Waters: Practical Guide to Buying

Buying seaside property in Brunei may seem complex for foreign investors, but with the right information and adequate preparation, the process can be smooth and rewarding. Here’s a step-by-step guide to help you realize your dream of property acquisition in Brunei:

1. Understanding Legal Restrictions

Before diving in, it’s crucial to understand the laws governing foreign property ownership in Brunei. Unlike many Southeast Asian countries, Brunei has strict restrictions on land ownership by foreigners. Generally, foreigners cannot own land outright in Brunei. However, there are options:

• Long-term lease: Foreigners can obtain long-term leases, typically up to 99 years, on residential properties.
• Condominium ownership: Purchasing apartments or condominiums is often more accessible to foreigners.
• Establishing a local company: In some cases, setting up a company in Brunei can facilitate property acquisition.

It’s highly recommended to consult with a local lawyer specializing in real estate law to navigate these legal complexities.

2. Financing and Tax Considerations

Financing your property purchase in Brunei requires careful planning. Local banks may be reluctant to grant mortgages to foreigners, so it’s often necessary to consider other financing options. Here are some points to consider:

• International financing: Explore loan options with international banks or in your home country.
• Cash payment: Many foreign investors opt for cash purchases to simplify the process.
• Taxation: Brunei imposes no capital gains tax or annual property tax, which can be advantageous for investors.

It’s crucial to fully understand the tax implications in both your home country and Brunei before proceeding with the purchase.

3. Finding the Right Property

Searching for the ideal seaside property in Brunei can be challenging, especially for foreign buyers. It’s recommended to work with a reputable local real estate agent who understands the nuances of the Bruneian market and can guide you toward the best opportunities. Here are some tips:

• Online research: Start by exploring online real estate portals to get a feel for the market.
• Site visits: If possible, make a scouting trip to Brunei to visit properties and areas of interest in person.
• Due diligence: Make sure to carefully check the property’s condition, ownership titles, and any usage restrictions.

4. Purchase Process and Negotiation

Once you’ve found your dream property, the purchase process can begin. Negotiation is an important part of real estate buying in Brunei, and it’s common to negotiate both price and conditions. Here are the typical steps:

• Purchase offer: Submit a formal offer, usually through your real estate agent.
• Negotiation: Be prepared for back-and-forth on price and conditions.
• Sales contract: Once agreement is reached, a sales contract will be drafted.
• Legal due diligence: Your lawyer will review all legal documents and conduct necessary checks.
• Finalization: Once all conditions are met, the transaction will be finalized and funds transferred.

5. Post-Purchase Considerations

After purchase, there are several aspects to consider to maximize your investment:

• Property management: If you don’t live in Brunei, consider hiring a local management company to take care of your property.
• Renovations and improvements: Consider enhancements that could increase your property’s value or rental potential.
• Legal compliance: Make sure you understand and comply with all legal obligations related to property ownership in Brunei.

Conclusion: A Promising Investment in a Tropical Paradise

Investing in seaside property in Brunei offers a unique opportunity to own a piece of paradise in a stable and developing country. Although the process may seem complex, with proper preparation and appropriate guidance, it can be a rewarding and potentially lucrative experience.

Brunei, with its natural beauty, political stability, and evolving economy, presents interesting potential for real estate investors. Whether you’re looking for a luxury second home, a rental investment, or simply a place to enjoy the beauty of tropical coasts, Brunei has much to offer.

However, as with any international investment, it’s crucial to exercise due diligence, thoroughly understand local laws, and work with trusted professionals. With the right approach, your seaside investment in Brunei could not only provide you with a personal haven but also become a valuable asset in your international real estate portfolio.