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As of September 2025, Medan's property market is experiencing dynamic growth with houses averaging IDR 9.8 million per square meter and apartments reaching IDR 27.1 million per square meter. The city's strategic position as North Sumatra's economic hub makes it an increasingly attractive destination for both local and international property investors.
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Medan's property prices vary significantly by type and location, with central apartments commanding premium rates while suburban houses offer better value for money.
Recent price surges of up to 67.8% for houses and 47.7% for apartments over the past year reflect strong market momentum driven by infrastructure development and urban growth.
| Property Type | Average Price per sqm (IDR) | Average Price per sqm (USD) |
|---|---|---|
| Houses | 9.8 million | ~$598 |
| Townhouses | 7.8 million | ~$476 |
| Apartments | 27.1 million | ~$1,653 |
| Commercial | 9.2 million | ~$561 |
| Land | 10.2 million | ~$622 |
| Luxury Condos (Central) | 30 million | ~$1,900 |
| Suburban Condos | 12.7 million | ~$800 |
What's the current average price per square meter in Medan?
As of September 2025, Medan's property market shows distinct pricing tiers across different property types.
Houses in Medan average IDR 9.8 million per square meter (approximately $598), making them one of the most affordable options for buyers seeking larger living spaces. Townhouses offer even better value at IDR 7.8 million per square meter ($476), particularly attractive for families looking for multi-level living.
Apartments command premium prices at IDR 27.1 million per square meter ($1,653), reflecting their popularity among expats and upper-middle-class locals who prioritize modern amenities and central locations. Luxury condos in the city center can reach up to IDR 30 million per square meter ($1,900).
Commercial properties sit at IDR 9.2 million per square meter ($561), offering competitive pricing for business investments, while raw land averages IDR 10.2 million per square meter ($622).
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How do prices vary depending on the type of property?
Property type significantly impacts pricing in Medan's real estate market, with apartments representing the premium segment.
Apartments are the most expensive option per square meter, especially luxury city center units that average IDR 27.1 million per square meter. These properties attract expats and affluent locals who value modern amenities, security, and proximity to business districts. The premium reflects the comprehensive facilities typically included in apartment developments.
Houses and townhouses offer substantially better value per square meter, with houses at IDR 9.8 million and townhouses at IDR 7.8 million per square meter. Suburban units within these categories are considerably less expensive than centrally located ones, making them attractive for families and investors seeking larger properties.
Commercial properties hover near mid-range home prices at IDR 9.2 million per square meter but offer strong rental yields, particularly in busy areas like Kampung Baru. Raw land presents opportunities at IDR 10.2 million per square meter for development projects or long-term appreciation strategies.
The price differential reflects not just location but also the level of development, amenities, and target market for each property type.
Which neighborhoods are the most expensive, up-and-coming, and budget-friendly?
Medan's neighborhood pricing reflects the city's development patterns and infrastructure quality.
| Neighborhood | Price Range (IDR per sqm) | Characteristics |
|---|---|---|
| Medan Baru | 27-30 million | Modern, luxury, central location with rapid appreciation |
| Medan Johor | 18-24 million | Upscale residential area with new developments |
| Polonia/Setiabudi | 20-25 million | Established expat and upper-class area |
| Kesawan Old Town | 15-20 million | Historic area with infrastructure upgrades |
| Sunggal | 7-10 million | Budget-friendly with future growth potential |
The most expensive areas—Medan Baru, Polonia, and Medan Johor—benefit from superior infrastructure, modern amenities, and strong demand from affluent buyers. Kesawan Old Town represents the primary up-and-coming area, benefiting from government infrastructure investments and historical preservation efforts.
Budget-friendly options like Sunggal and outer suburbs offer significant value for money, with much lower entry costs and potential for appreciation as urban development expands outward.
How do prices compare between central areas and suburban locations?
The price gap between central and suburban areas in Medan is substantial, creating clear opportunities for different buyer profiles.
City center luxury condos reach up to IDR 30 million per square meter, while suburban units can be as low as IDR 7-10 million per square meter. This represents a price differential of 300-400% between premium central locations and budget suburban areas.
Central locations command premium pricing due to better infrastructure, higher demand, and proximity to business districts, entertainment, and government facilities. These areas typically experience steeper annual price growth and higher transaction volumes, reflecting their desirability among affluent buyers and investors.
Suburban areas offer significantly larger land plots at much lower prices per meter, making them ideal for buyers seeking lower upfront costs, family-friendly environments, or investment properties targeting future appreciation as development spreads outward.
The infrastructure quality gap between central and suburban areas continues to narrow as the city expands, potentially reducing this price differential over time.
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What's the typical total purchase cost including all fees and taxes?
Buying property in Medan involves substantial additional costs beyond the purchase price.
Transaction costs for buyers range from 6.5% to 9% of the purchase price, including property transfer tax at 5%, legal fees between 0.5-1.5%, notary fees of 1-2.5%, and registration costs around 0.2%. New builds also incur 11% VAT, while annual land and building tax adds 0.5%.
Roundtrip costs (buying plus selling) total 9.5-14% of the property price, with most fees and transfer taxes being buyer obligations while agent commissions are typically paid by sellers.
For a property worth IDR 2 billion ($122,000), buyers should budget an additional IDR 130-180 million ($8,000-11,000) for transaction costs. These costs are generally non-negotiable and must be factored into total investment calculations.
Buyers should also consider ongoing costs like annual property taxes, maintenance fees for apartments, and potential property management costs for rental properties.
How do current mortgage rates affect property buying costs?
Mortgage financing significantly impacts the total cost of property ownership in Medan.
As of September 2025, average mortgage rates stand at approximately 6.58% for 30-year fixed loans across Indonesia. Local Indonesian banks may offer slightly better rates for primary residences, while second properties and commercial assets typically carry higher interest rates.
High interest rates substantially increase monthly repayments and total purchase costs over the loan term. For example, a IDR 1.5 billion mortgage at 6.58% results in monthly payments of approximately IDR 9.7 million over 30 years, totaling IDR 3.5 billion in payments.
Buyers should shop around for both fixed and variable rate options, and consider government-backed mortgage programs that may offer more favorable terms, particularly for first-home buyers. Some banks provide special rates for specific developments or property types.
The financing landscape remains competitive, with banks offering various packages to attract qualified borrowers, making rate comparison essential for optimizing purchase costs.
What are example purchase prices for different property sizes?
Property prices in Medan vary significantly based on size, type, and location, offering options across different budget ranges.
| Property Type | Area (sqm) | Price (IDR) | Price (USD) |
|---|---|---|---|
| Small Central Apartment | 40 | 1,000,000,000 | ~$61,000 |
| Medium Suburban House | 120 | 1,200,000,000 | ~$73,000 |
| Luxury Central Condo | 100 | 2,700,000,000 | ~$164,000 |
| Large Villa | 325 | 4,350,000,000 | ~$268,000 |
| Modest Suburban House | 120 | 900,000,000 | ~$54,600 |
These examples demonstrate the wide range of options available to buyers with different budgets and requirements. Prices vary significantly based on quality, location, and amenities, with "turnkey" properties and newer builds in central districts commanding premiums over older or suburban alternatives.
First-time buyers often start with smaller apartments or suburban houses, while investors may target larger properties in emerging areas for better appreciation potential.
How have property prices changed over recent years?
Medan's property market has experienced remarkable growth, particularly over the past year.
The one-year change from 2024 to 2025 shows dramatic increases: houses rose 67.8%, apartments increased 47.7%, commercial properties grew 13.8%, and land appreciated 6-7.5%. These substantial gains reflect strong demand, infrastructure development, and economic growth in the region.
Over the five-year period from 2019 to 2024, average house prices for 91-150 square meter units increased from IDR 750 million to over IDR 950 million. City center prices per square meter have trended consistently upward, now reaching approximately $1,900 per square meter compared to much lower levels in 2019.
The rapid recent growth suggests the market may be entering a more mature phase, with future increases likely to moderate from these exceptional levels. However, the strong fundamentals driving growth—urbanization, infrastructure investment, and economic development—remain intact.
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What are the forecasts for property prices in Medan?
Property price forecasts for Medan indicate continued growth at more sustainable rates following the recent surge.
Short-term forecasts for the next year suggest 1-2% annual growth, representing a significant slowdown after the rapid 67.8% increase in house prices during 2024-2025. This moderation is expected as the market adjusts to the recent price surge and broader economic conditions.
Medium-term projections over the next five years anticipate steady infrastructure-driven growth, especially in central and up-and-coming areas. Price appreciation is likely to outpace inflation, particularly for condos and commercial properties that benefit from continued urbanization and business development.
Long-term forecasts over 10 years remain optimistic, supported by continued urbanization, infrastructure investment, and foreign direct investment. Mixed-use developments, transit-adjacent properties, and emerging neighborhoods are expected to offer the highest upside potential as the city continues expanding and modernizing.
These forecasts assume continued political stability, economic growth, and infrastructure development in the region.
How does Medan compare to other major cities in price per square meter?
Medan offers competitive pricing compared to other major Indonesian and Southeast Asian cities.
| City | Average Price per sqm | Market Position |
|---|---|---|
| Jakarta | IDR 35.77M (~$2,209) | Most expensive, capital premium |
| Surabaya | IDR 14.2M (~$877) | Leading secondary city |
| Bandung | IDR 11.7M (~$723) | Rapid growth center |
| Medan | IDR 9.8M (~$598) | Value with strong growth |
| Ho Chi Minh City | ~$2,800/sqm | Regional business hub |
| Bangkok | ~$3,000/sqm | Regional financial center |
Medan represents excellent value compared to regional hubs like Bangkok and Ho Chi Minh City, while offering significantly lower entry costs than Jakarta. This positioning makes it attractive for investors seeking growth markets with reasonable entry points.
The city's strategic location and economic importance suggest potential for price convergence with higher-tier cities over time, making current prices attractive for long-term investors.
What are the smartest property investment choices right now?
The optimal investment choices in Medan focus on areas with strong growth fundamentals and rental demand.
Medan Baru, city center condos, transit corridors, and up-and-coming areas like Kesawan Old Town offer the strongest appreciation potential and rental demand. These locations benefit from infrastructure development, government investment, and increasing urbanization.
Value seekers should consider Sunggal and outer suburbs for lower entry prices with significant growth upside as urban development expands outward. These areas often provide better yields and substantial appreciation potential for patient investors.
Commercial and mixed-use developments near new infrastructure projects offer diversified returns and benefit from both rental income and capital appreciation. These properties often outperform residential investments during economic growth periods.
Transit-adjacent properties, particularly near planned or recently completed infrastructure projects, represent some of the best long-term opportunities as transportation improvements typically drive significant property value increases.
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What are the best buying options based on your investment goals?
Investment strategy should align with specific goals and risk tolerance in Medan's diverse property market.
- Living there: Central district condos or suburban family homes near transport offer the best lifestyle experience and long-term appreciation. Priority should be on amenities, schools, and transportation access.
- Short-term rental: High-end, centrally located apartments and condos with premium amenities generate strong demand from business and tourist travelers. Focus on properties near airports, business districts, and entertainment areas.
- Long-term rental: Budget-friendly houses in suburban districts like Sunggal and outskirts provide moderate yields and steady tenant demand. These properties often appeal to local families and young professionals.
- Resell later: "Up-and-coming" districts like Kesawan Old Town, areas adjacent to infrastructure projects, and mixed-use developments typically offer the best price appreciation potential.
- Diversified portfolio: Combine central locations for immediate rental income with emerging areas for capital appreciation, balancing risk and return across different property types and locations.
Central locations work better for short-term rentals, expat-focused properties, and fast-track capital gains, while peripheral and emerging areas offer higher yields and appreciation potential if chosen carefully for future infrastructure growth.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Medan's property market in 2025 presents compelling opportunities for both investors and residents, with strong fundamentals supporting continued growth despite recent rapid price increases.
The combination of competitive pricing compared to regional peers, ongoing infrastructure development, and diverse investment options makes Medan an attractive destination for property investment across different strategies and budgets.
Sources
- BambooRoutes - Medan Price Forecasts
- BambooRoutes - Medan Property
- BambooRoutes - Medan Which Area
- BambooRoutes - Medan Real Estate Trends
- Wise - Buy Property in Indonesia
- Global Property Guide - Indonesia Buying Guide
- My Mortgage Insider - Current Mortgage Rates
- BambooRoutes - Medan Real Estate Market
- Indonesia Real Estate - Medan Villas
- Mordor Intelligence - Indonesia Real Estate Market