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Medan's property market has experienced significant growth in 2025, with houses increasing by 67.8% year-over-year.
The city offers diverse investment opportunities from budget-friendly suburban properties to premium condos in central districts. Understanding current prices and market trends is essential for making informed investment decisions in Indonesia's third-largest city.
If you want to go deeper, you can check our pack of documents related to the real estate market in Indonesia, based on reliable facts and data, not opinions or rumors.
As of September 2025, average house prices in Medan stand at 1.3 billion IDR ($79,300), while apartments average 2.2 billion IDR ($134,200).
The market shows strong growth with houses up 67.8% year-over-year, driven by infrastructure development and foreign investment from Malaysia and Singapore.
| Property Type | Average Price (IDR) | Price per m² (IDR) | Year-over-Year Growth |
|---|---|---|---|
| Houses | 1.3 billion | 9.8 million | +67.8% |
| Apartments | 2.2 billion | 27.1 million | +47.7% |
| Townhouses | 693 million | 7.8 million | Stable |
| Commercial Properties | 2 billion | 9.2 million | +13.8% |
| Land | 4.2 billion | 10.2 million | +6-7.5% |
What's the current average property price in Medan?
As of September 2025, the average house price in Medan is 1.3 billion IDR (approximately $79,300).
This translates to approximately 9.8 million IDR per square meter ($598 per square meter). The Medan residential market has experienced exceptional growth in 2025, with house prices increasing by 67.8% compared to the previous year.
Apartments command higher prices at an average of 2.2 billion IDR ($134,200), reflecting the premium nature of vertical living in central districts. The price per square meter for apartments reaches 27.1 million IDR ($1,653 per square meter), nearly three times higher than houses.
Townhouses represent the most affordable option for buyers, averaging 693 million IDR ($42,273) with a price per square meter of 7.8 million IDR ($476). These properties offer excellent value for mid-market buyers seeking ownership without the premium costs of central apartments.
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How do prices differ between apartments, houses, and commercial properties?
Apartments are the most expensive property type in Medan on a per-square-meter basis, commanding 27.1 million IDR per square meter.
Houses offer better value at 9.8 million IDR per square meter, making them attractive for buyers seeking larger living spaces. The significant price difference reflects the premium associated with luxury vertical living in central business districts.
Commercial properties average 2 billion IDR per unit with a price per square meter of 9.2 million IDR, similar to residential houses. However, commercial properties have shown slower growth rates at 13.8% year-over-year compared to residential segments.
Townhouses provide the most affordable entry point into Medan's property market at 7.8 million IDR per square meter. These properties are particularly popular among first-time buyers and families seeking suburban living with ownership benefits.
Which neighborhoods are the most expensive, which ones are budget-friendly, and which are considered up-and-coming?
Medan Baru stands as the most expensive neighborhood in the city, with luxury condos priced between 2-3 billion IDR per unit.
Polonia and Setiabudi rank among the premium districts, favored by expatriates and wealthy locals for their large detached houses and high demand. These areas command premium pricing due to their proximity to business centers and entertainment facilities.
Up-and-coming areas include Kampung Baru, which is emerging as a commercial hotspot with rapidly rising property values due to new developments. Sunggal offers strong growth potential with affordable land prices, making it ideal for value-seeking buyers and developers.
Budget-friendly options are found in suburban areas and Taman Medan, where entry-level homes and budget flats attract first-time buyers and rental investors. These areas benefit from new infrastructure development while maintaining affordable purchase prices.
How do property prices vary depending on surface size, like small units versus larger homes?
Large homes ranging from 91-150 square meters typically cost between 950 million to 1.3 billion IDR, with premium pricing in city center locations.
Small flats and budget properties start from 170 million IDR for older houses in peripheral areas. These entry-level properties provide affordable access to Medan's property market for first-time buyers.
Luxury apartments in the city center with larger floor plans cost between 2-3 billion IDR, while suburban apartment units remain more affordable, generally under 1 billion IDR. The price variation reflects both location premiums and size factors.
Mid-size properties offer the best balance between space and affordability, particularly in emerging neighborhoods where buyers can secure larger properties at reasonable prices compared to central districts.
What are some concrete examples of purchase prices for different property types and areas?
| Property Type | Location | Typical Price Range (IDR) |
|---|---|---|
| 1BR Apartment | City Center | 1.8 - 2.5 billion |
| 1BR Apartment | Suburbs | 600 - 900 million |
| Mid-size House | Medan Baru | 1.4 - 2 billion |
| Small Townhouse | Outskirts | 300 - 600 million |
| Commercial Unit | Kampung Baru | 2 - 3 billion |
| Land | Sunggal | 800 million - 1.3 billion |
What's the total cost of buying a property in Medan once you include fees, taxes, and other charges?
The acquisition transfer tax adds 5% to your property purchase price, representing the largest additional cost beyond the listed price.
Value Added Tax (VAT) of 11% applies to new properties, significantly increasing the total investment required. Notary fees typically cost 1% of the property value or a fixed fee depending on the transaction complexity.
Registration fees add approximately 0.2% of the property value, while legal fees range from 0.5% to 1.5%. Agent commissions typically cost 2-3% of the purchase price if you use real estate services.
Annual Land and Building Tax (PBB) costs 0.5% of the property value each year, representing an ongoing ownership expense. Total transaction costs typically add 7-10% to the purchase price, and more if VAT applies to new developments.
How do mortgage options and borrowing costs affect the final purchase price?
As of September 2025, average mortgage rates in Medan stand at approximately 6.9% per year, with the lowest lending facility rates ranging from 5.25% to 5.75%.
Lower interest rates in 2025, following Bank Indonesia rate cuts, have improved buyer affordability and increased the number of qualified purchasers. However, higher property purchase prices can offset some savings from reduced interest costs.
Mortgage terms for foreign buyers typically require larger down payments and are usually available only for apartments and condominiums. Indonesian banks generally require foreigners to provide additional documentation and collateral compared to local buyers.
The improved lending environment has contributed to increased demand, which in turn has supported the rapid price appreciation seen across Medan's residential market in 2025.
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How have property prices changed compared to one year ago and compared to five years ago?
Medan's property market experienced dramatic growth in the past year, with houses increasing by 67.8% and apartments rising by 47.7% between 2024 and 2025.
Commercial properties showed more modest growth at 13.8% year-over-year, reflecting different demand dynamics in the commercial sector. This surge represents one of the strongest growth periods in Medan's recent real estate history.
Over the five-year period from 2020 to 2025, average home prices increased from 750 million IDR to 950 million IDR, representing growth of over 27%. The acceleration in 2025 was particularly pronounced due to infrastructure development and increased foreign investment.
The rapid price appreciation reflects improved economic conditions, infrastructure upgrades, and growing investor interest from neighboring countries, particularly Malaysia and Singapore.
What are the forecasts for property prices in Medan over the next 1, 5, and 10 years?
Property prices in Medan are projected to grow 1-2% in 2026 as the market stabilizes following the current surge.
Over the next five years, standard properties are expected to appreciate 1-3% annually, while well-connected and premium areas could see growth rates of 5-7% per year. These forecasts reflect continued urbanization and infrastructure development.
The 10-year outlook suggests cumulative gains of 30-50% for most properties, with the possibility of doubling in value over 20 years for properties in the best locations. This long-term growth potential is driven by Medan's position as a regional economic center.
Continued investment in transportation infrastructure, including new toll roads and public transit, is expected to support sustained property value appreciation across the metropolitan area.
What are the smartest choices today for buyers who want to live there, versus those who want to rent out short-term, long-term, or resell later at a higher price?
Owner-occupiers should target established central districts like Medan Baru, Setiabudi, and Polonia for long-term appreciation and reliable amenities.
For budget-conscious first-time buyers, Sunggal and Taman Medan offer excellent entry points with growth potential. These areas provide good value while benefiting from infrastructure improvements.
Long-term rental investors should focus on apartments and townhouses near universities, business centers, or transport hubs, which can generate yields of 4-6%. Properties with good connectivity tend to maintain steady rental demand.
Short-term rental investors should consider central condos or properties near tourist transit zones, though building regulations and management rules require careful consideration. Premium locations near business districts offer the best potential for short-term rental income.
Buy-and-hold investors seeking capital appreciation should target prime land in the city center or emerging corridors near toll roads and transport nodes. It's something we develop in our Indonesia property pack.
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.
How does the market in Medan compare with other big, similar cities in Indonesia or the region?
| City | Average House Price (IDR) | Price per m² (IDR) | Market Characteristics |
|---|---|---|---|
| Surabaya | 2.4 billion | 14.2 million | Highest outside Jakarta |
| Medan | 1.3 billion | 9.8 million | Best value, strong growth |
| Bandung | 724 million | 11.7 million | Rapidly rising prices |
| Palembang | Below Medan | Budget-friendly | Slow growth market |
| North Jakarta | 1.85 billion | Premium rates | Mature, stable market |
Based on today's trends, what are the best property investment strategies in Medan right now?
Emphasizing central or infrastructure-linked locations offers the best appreciation potential, especially near new toll roads and public transit developments.
Leveraging low mortgage rates while they remain favorable can increase buying power and improve investment returns. The current lending environment supports expanded purchase opportunities for qualified buyers.
Monitoring foreign investment patterns, particularly from Malaysia and Singapore, helps identify areas experiencing increased demand and price pressure. These international buyers are driving premium segment growth.
Avoiding low-lying and flood-prone areas is crucial as climate concerns increasingly affect property values. Environmental risks are becoming a significant factor in long-term value retention.
Diversifying investments by combining residential properties for rental yield with land or commercial properties for capital growth provides balanced risk exposure. It's something we develop in our Indonesia property pack.
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 exceptional opportunities for both investors and owner-occupiers, with strategic location selection being key to success.
The combination of infrastructure development, foreign investment, and favorable lending conditions creates a supportive environment for property investment across multiple segments.