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Palembang's property market offers diverse pricing across different property types and neighborhoods. Average prices per square meter range from Rp678,000 for suburban houses to Rp15,000,000 for city center apartments, making it one of Indonesia's more affordable major cities for real estate investment.
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As of September 2025, Palembang's residential property market shows apartment prices in the city center averaging Rp15,000,000 per square meter, while suburban landed houses cost around Rp678,000 per square meter.
The Palembang property market remains affordable compared to other major Indonesian cities, with significant price variations between neighborhoods and property types.
| Property Type | Average Price per Sqm | Location Type |
|---|---|---|
| City Center Apartments | Rp15,000,000 | Central Palembang |
| Suburban Houses | Rp678,000 | Suburban areas |
| Budget Area Properties | Rp672,000 | Sukarami district |
| Emerging Area Properties | Rp2,000,000-4,500,000 | Ilir Barat, Bukit Baru |
| Prime District Properties | Rp6,000,000-10,000,000 | Talang Kelapa, Kambang Iwak |
| Commercial Units | Varies widely | Business districts |
| Luxury Villas | Rp12,000,000+ | Premium locations |
What's the average price per square meter right now in Palembang overall?
As of September 2025, Palembang's average property prices vary significantly depending on location and property type.
For apartments in the city center, you're looking at approximately Rp15,000,000 per square meter, which translates to about $918 per square meter based on current exchange rates. This represents the premium segment of Palembang's residential market.
Suburban landed houses present a much more affordable option, averaging around Rp678,000 per square meter (approximately $44 per square meter). This dramatic price difference reflects the urban-suburban divide that characterizes most Indonesian cities.
Budget-friendly areas like Sukarami show even lower prices, with recent listings indicating approximately Rp672,000 per square meter. These areas offer entry-level opportunities for first-time buyers and investors seeking affordable real estate options.
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How does that vary by property type—apartments, landed houses, commercial units?
Property type creates the most significant price variation in Palembang's real estate market.
Apartments, particularly in central locations, command the highest prices at Rp15,000,000 per square meter. These units typically offer modern amenities, security, and proximity to business districts, justifying their premium pricing.
Landed houses in suburban areas represent the most affordable segment at Rp678,000 per square meter. These properties offer more space and land ownership rights, making them popular with families and long-term residents.
Upscale villas and luxury houses in prime districts can exceed $150,000 total purchase price, with per-square-meter rates reaching Rp12,000,000 or higher. These properties cater to high-net-worth individuals seeking prestigious addresses.
Commercial units show the widest price variation, depending heavily on location, foot traffic, and business potential. Prime commercial spaces in business districts command significantly higher rates than residential properties.
Which neighborhoods or districts in Palembang are currently the most expensive, and which are emerging or budget-friendly?
Palembang's neighborhood pricing creates distinct market segments for different buyer profiles.
The most expensive areas include the city center, Talang Kelapa, and Kambang Iwak districts. These prime locations offer superior infrastructure, amenities, and prestige, with prices ranging from Rp6,000,000 to Rp10,000,000 per square meter for premium properties.
Emerging neighborhoods like Ilir Barat I and Bukit Baru represent the sweet spot for many investors. These areas show strong development momentum and infrastructure improvements, with prices typically ranging from Rp2,000,000 to Rp4,500,000 per square meter.
Budget-friendly options include Sukarami and Alang Alang Lebar, where properties start around Rp672,000 per square meter. These areas attract first-time buyers and investors seeking affordable entry points into Palembang's property market.
The Jakabaring area deserves special mention due to its proximity to sports facilities and international events, which has boosted property values and investor interest in recent years.
How do average prices differ across small, medium and large units?
Unit size significantly impacts per-square-meter pricing in Palembang, following typical real estate economics.
| Unit Size Category | Typical Price Range per Sqm | Property Type |
|---|---|---|
| Under 50 sqm (Small) | Rp15,000,000 | City center apartments |
| 50-150 sqm (Medium) | Rp678,000-2,000,000 | Suburban houses, emerging areas |
| Over 150 sqm (Large) | Generally decreases per sqm | Large landed properties |
| Luxury Large Units | Rp12,000,000+ | Premium villas and estates |
| Commercial Large Spaces | Varies by location | Business and retail units |
Small units under 50 square meters, primarily city center apartments, command premium per-square-meter rates due to their prime locations and high demand from young professionals and investors.
Medium-sized units between 50-150 square meters offer the best value proposition, particularly suburban houses that provide optimal space-to-cost ratios for families and long-term residents.
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What's the total cost buyers are paying when including taxes, fees, notary, and transfer costs?
Property purchase costs in Palembang extend significantly beyond the listed price, requiring careful budget planning.
Notary and legal fees typically range from 2-3% for new properties, but can reach 6-9% for older or resale properties. These fees cover legal documentation, title transfers, and official registration processes.
Transfer taxes are often included in notary fees, but buyers should budget an additional 2-5% for various tax obligations and administrative requirements.
Additional administrative fees, including provision costs and various government charges, typically add Rp5-15 million to the total purchase cost.
For example, a city center apartment priced at Rp900,000,000 (60 sqm at Rp15,000,000 per sqm) would likely cost approximately Rp1,000,000,000+ when including all taxes, fees, and additional costs—representing roughly 10-12% above the purchase price.
What are the typical mortgage interest rates and monthly payments for a property at that average price?
Indonesian mortgage rates in 2025 show significant variation depending on the lender and loan terms.
Promotional mortgage rates from major banks like BCA start from 2.68% fixed for the first three years, representing the most competitive options available with specific requirements and qualifications.
Standard mortgage rates from Indonesian banks typically range between 6-12% per annum, with Bank Mandiri offering rates around 12.5% per annum for standard mortgage products.
For a typical Rp900,000,000 property purchase with a 20-year mortgage term at 8% interest rate, monthly payments would range from Rp7,500,000 to Rp8,100,000, excluding insurance and other associated costs.
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If I plan to live in a property myself, which options offer the best value today?
For owner-occupiers, Palembang offers several compelling value propositions depending on lifestyle preferences and budget constraints.
Three-bedroom houses in emerging suburbs like Ilir Barat and Bukit Baru provide excellent value for families, combining reasonable prices with strong infrastructure development and future appreciation potential.
One-bedroom city center apartments suit young professionals and couples who prioritize proximity to business districts, entertainment, and urban amenities over space.
Sukarami district offers the most affordable options for budget-conscious buyers, while areas like Talang Kelapa and Kambang Iwak provide lifestyle upgrades for those seeking premium locations.
Medium-sized units (50-150 sqm) consistently offer the best value across all neighborhoods, providing optimal space-to-cost ratios for most buyer profiles.
If I rent out—short-term versus long-term rentals—what property types or areas yield the best rental return per sqm?
Rental strategies in Palembang require different approaches depending on your investment goals and target tenant market.
Short-term rentals perform best with city center apartments near business centers and universities, often achieving rental yields exceeding 6% annually. These properties attract business travelers, visiting professionals, and short-term residents.
Long-term rentals show strong performance in suburban houses within growth districts, typically yielding 4-5% annually with more stable tenant relationships and lower management requirements.
The luxury segment has demonstrated boosted returns in recent years, though it requires higher entry costs and targets a more limited tenant pool of expatriates and high-income professionals.
Properties near transportation hubs, educational institutions, and business districts consistently outperform the market average regardless of rental strategy chosen.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Indonesia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
If I buy to resell later, which locations/types show the best potential resale gain?
Resale potential in Palembang concentrates in areas experiencing infrastructure development and urban expansion.
Emerging areas like Ilir Barat I and Bukit Baru show the highest projected appreciation due to ongoing development projects and rising demand from both residents and investors.
Luxury properties in established prime districts like Talang Kelapa and Kambang Iwak demonstrate consistent appreciation, particularly for well-maintained properties with unique features or superior locations.
Budget districts like Sukarami may show above-average gains with planned infrastructure upgrades, offering potentially higher percentage returns on lower initial investments.
Properties near the Jakabaring sports complex continue to benefit from the area's international profile and ongoing facility improvements, making them attractive for medium-term appreciation strategies.
Can you give example purchase prices for representative properties in the market now?
Current market examples demonstrate the price range available across Palembang's property spectrum.
| Property Type | Total Price | Price per Sqm |
|---|---|---|
| 1-bedroom city center apartment (60 sqm) | Rp900,000,000 | Rp15,000,000 |
| 3-bedroom suburban house (150 sqm) | Rp1,020,000,000 | Rp678,000 |
| Upscale villa (300 sqm+) | Rp4,000,000,000+ | Rp12,000,000+ |
| Budget area house (Sukarami) | Rp672,000 per sqm | Varies by size |
| Emerging area property | Rp2,000,000-4,500,000 per sqm | Varies by location |
These examples reflect actual market conditions as of September 2025, providing realistic expectations for different buyer profiles and investment strategies.
How have average prices per sqm changed compared to one year ago and compared to five years ago?
Palembang's property market has shown modest but steady growth over recent years, reflecting broader Indonesian economic conditions.
Over the past year (2024-2025), prices increased by approximately 1.3% in nominal terms, but decreased by 0.6% in real terms when adjusted for inflation, indicating a stable but not rapidly growing market.
The five-year price trend shows modest appreciation, with total growth estimated at 6-8% since 2020. This conservative growth pattern reflects Palembang's position as a secondary Indonesian city with steady but not explosive development.
Inflation adjustment reveals that real property values have remained relatively stable, making Palembang an affordable alternative to Indonesia's more expensive major cities like Jakarta and Surabaya.
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What's the forecast for average price per sqm in one year, five years, and ten years?
Palembang's property market outlook suggests continued modest growth aligned with Indonesia's broader economic development.
One-year forecast indicates steady annual growth of 1-2%, driven by continued urbanization and infrastructure development but tempered by economic uncertainty and moderate population growth.
Five-year projections suggest total price increases of 6-10%, assuming continued economic stability and infrastructure investment in South Sumatra province.
Ten-year estimates remain conservative, with total appreciation in the 15-20% range, barring major economic shifts or significant infrastructure projects that could accelerate development.
These forecasts reflect Palembang's status as a stable secondary market rather than a high-growth investment destination, making it suitable for conservative investors and owner-occupiers.
How does Palembang's current average price per sqm compare to similar major cities?
Palembang's property prices position it favorably among Indonesia's major cities, offering significant value compared to primary markets.
| City | Average Price per Sqm | Market Trend |
|---|---|---|
| Palembang | Rp15,000,000 (city center) | Stable/modest growth |
| Medan | Rp18,000,000 | Similar growth pattern |
| Bandung | Rp28,000,000 | Higher price tier |
| Surabaya | Rp21,000,000 | Moderate to high pricing |
| Jakarta (comparison) | Rp35,000,000+ | Premium market |
Medan, Bandung, and Surabaya all command higher prices than Palembang, making Palembang a relatively affordable option among Indonesia's major urban markets.
This positioning makes Palembang attractive for investors seeking exposure to Indonesian real estate growth without the premium pricing of primary cities like Jakarta and Surabaya.
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.
Palembang's property market offers attractive opportunities for both investors and owner-occupiers, with prices significantly lower than Indonesia's primary cities while maintaining steady growth potential.
The market's stability, combined with ongoing infrastructure development and moderate appreciation forecasts, makes Palembang suitable for conservative real estate strategies and long-term value creation.