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Property prices in Surabaya have reached an average of IDR 20 million per square meter (about $1,330/m²) as of September 2025.
The Surabaya residential market shows significant variation between property types, with apartments starting from IDR 500 million ($35,000), houses typically beginning at IDR 1 billion ($70,000), and luxury properties exceeding $1.5 million. Commercial properties offer exceptional rental yields of up to 40% in strategic locations, while residential properties maintain strong growth momentum driven by infrastructure development and urbanization trends.
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Surabaya's property market offers better value than Jakarta with median residential prices of IDR 2.21 billion ($150,000) and rental yields averaging 7.2%.
The most expensive neighborhoods include Citraland and Darmo, while budget-friendly options exist in Manyar and Kertajaya, with emerging opportunities in Rungkut and Gubeng districts.
| Property Type | Average Price Range | Key Features |
|---|---|---|
| Apartments/Condos | IDR 500M - 2B ($35K - $140K) | Lower entry cost, oversupply risks |
| Landed Houses | IDR 1B - 10B+ ($70K - $700K+) | Strongest appreciation, family-oriented |
| Townhouses | IDR 800M - 1.5B ($56K - $105K) | Mid-range option, good value |
| Luxury Homes | IDR 20B+ ($1.5M+) | Premium locations, high-end amenities |
| Commercial Properties | Variable pricing | Yields up to 40%, strategic locations |
| Budget Properties | IDR 500M - 800M ($35K - $56K) | University areas, rental potential |
| Growth Areas | IDR 900M+ ($63K+) | New infrastructure, emerging districts |
What's the current average property price in Surabaya?
The average property price in Surabaya stands at IDR 20 million per square meter (approximately $1,330/m²) as of September 2025.
The median residential property price reaches IDR 2.21 billion (about $150,000), making Surabaya an attractive alternative to Jakarta's higher prices. This average encompasses all residential property types across the city, from budget apartments to luxury landed houses.
Price variations are significant across different districts, with luxury areas like Citraland and Darmo commanding IDR 30 million per square meter, while emerging neighborhoods like Manyar and Kertajaya offer properties at IDR 9-13.5 million per square meter. The city's strategic position as East Java's economic hub and ongoing infrastructure investments continue to drive steady price appreciation.
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How do prices differ between apartments, houses, and commercial properties?
Property prices in Surabaya vary dramatically between residential and commercial segments, with apartments offering the lowest entry point but facing oversupply challenges.
Apartments and condominiums typically start at IDR 500 million ($35,000) for basic units, making them accessible to first-time buyers and young professionals. However, the apartment market faces localized oversupply in certain segments, creating downward pressure on prices. Modern apartments with tech-enabled features and eco-certification command premium prices, often 20-30% above standard units.
Landed houses represent the strongest segment, generally starting from IDR 1 billion ($70,000) and significantly outpacing apartment price appreciation in 2025. Family-oriented homes in suburban districts show particular strength, driven by urbanization and the preference for landed property among Indonesian families. Townhouses occupy the middle ground, usually priced around IDR 800 million ($56,000), offering a compromise between affordability and space.
Commercial properties demonstrate the highest rental yields, with prime locations achieving 30-40% returns. These properties command variable pricing based on location and potential, with strategic business and logistics corridors showing exceptional performance.
Which neighborhoods are the most expensive, the most up-and-coming, and the most budget-friendly?
Surabaya's neighborhood pricing reflects a clear hierarchy based on amenities, location, and development status.
The most expensive neighborhoods include Citraland and Darmo, where luxury houses command prices from IDR 3-10 billion and apartments reach IDR 2-5 billion. Darmo Permai stands out as a gated luxury community with exceptional amenities and high demand from affluent buyers. These areas offer premium infrastructure, international schools, and upscale shopping centers.
Up-and-coming neighborhoods show strong growth potential and improving infrastructure. Pakuwon City represents modern family-centric development with good value propositions, offering houses from IDR 1-3 billion. Rungkut benefits from major new infrastructure investments and shows high growth potential, with new developments starting from IDR 900 million. Gubeng combines cultural attractions with seaside location, creating emerging investment opportunities.
Budget-friendly options concentrate around university areas like Manyar and Kertajaya, where small apartments cost IDR 500-800 million and houses range from IDR 1-1.5 billion. These areas benefit from vibrant rental scenes due to student populations and young professionals, offering strong rental yields despite lower purchase prices.
How much does the price vary depending on the size and surface area of the property?
Property pricing in Surabaya follows a clear per-square-meter structure, but larger properties benefit from land value premiums.
The average price per square meter of IDR 20 million represents city-wide residential averages, but significant variations exist based on location and property size. Less central areas offer prices as low as IDR 9-13.5 million per square meter, while prime and luxury districts reach IDR 30 million per square meter.
Larger properties, particularly detached houses, carry higher absolute prices and benefit from land value premiums. A 200-square-meter house in a prime area can cost significantly more per square meter than a 100-square-meter apartment in the same location due to land scarcity and exclusivity factors.
Apartment pricing generally remains more consistent per square meter within the same building or development, as shared facilities and standardized construction reduce individual unit variations. However, premium floor levels, corner units, and those with better views command 10-20% premiums over standard units.
What are some example purchase prices in different districts?
Surabaya's district pricing demonstrates clear segmentation based on development level and location advantages.
Central Gubeng, representing trending neighborhoods, offers modern apartments from IDR 700 million and houses from IDR 1.5-2 billion. This district benefits from cultural attractions and improving infrastructure, making it attractive to young professionals and cultural enthusiasts.
Darmo and Citraland, the luxury districts, command premium prices with houses from IDR 3-10 billion and apartments from IDR 2-5 billion. These areas offer the highest quality amenities, international schools, and proximity to business centers, justifying their premium positioning.
Pakuwon City provides mid-range options with houses from IDR 1-3 billion and townhouses and condos from IDR 800 million to 1.5 billion. This modern development appeals to families seeking contemporary amenities at reasonable prices.
Budget-conscious buyers find opportunities in Manyar and Kertajaya, where small apartments cost IDR 500-800 million and houses range from IDR 1-1.5 billion. The proximity to universities creates strong rental demand.
Rungkut represents growth potential with new developments starting from IDR 900 million for townhouses, benefiting from infrastructure improvements and growing demand.
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How much should you expect to pay in additional costs like taxes, legal fees, and agent commissions?
Additional costs in Surabaya property transactions typically add 7-10% to the sticker price, requiring careful budgeting beyond the purchase price.
Notary and transfer fees represent the largest additional cost at 5% of the purchase price, covering legal documentation and ownership transfer processes. Agent commissions typically range from 2-3% of the purchase price, though luxury or complex deals may command higher rates.
Legal fees add another 0.5-1.5% of the property price for due diligence, contract review, and legal representation throughout the transaction process. These fees ensure proper legal compliance and protect buyer interests.
Value Added Tax (VAT) applies to new builds at 11%, but current government incentives provide significant relief. First-time buyers receive 100% VAT relief for properties up to IDR 2 billion until June 2025, followed by 50% relief for the remainder of 2025. This incentive substantially reduces costs for most residential purchases.
Annual property tax (PBB) requires ongoing budgeting at approximately 0.5% of assessed value, representing a manageable ongoing cost for property ownership.
What does the typical mortgage cost look like, including interest rates and monthly payments?
Mortgage costs in Surabaya remain competitive with promotional rates starting as low as 2.68% and standard rates ranging up to 6%.
Interest rates tie directly to the Bank Indonesia (BI) Rate, currently at 5.5%, with promotional rates available for qualified borrowers and specific property types. Banks compete aggressively for mortgage business, creating favorable conditions for borrowers with good credit profiles.
Loan-to-value ratios remain relatively generous due to relaxed regulatory environment, allowing higher borrowing amounts relative to property values. This accessibility helps buyers leverage their purchases effectively.
A practical example demonstrates typical payment structures: purchasing a IDR 1 billion house with a 20-year mortgage at 6% interest results in monthly payments of approximately IDR 7.15 million. This calculation helps buyers understand the relationship between purchase price, loan terms, and monthly obligations.
Administrative fees from lenders typically range from 0.1-0.2% of loan value, though competitive market conditions keep these fees minimal. Some banks waive administrative fees entirely for qualified borrowers or promotional periods.
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How have prices changed compared with one year ago and five years ago?
Surabaya property prices show consistent growth patterns with acceleration in recent years driven by infrastructure development and urbanization.
One-year growth from 2024 to 2025 reached 3-5%, representing steady appreciation above inflation rates. This growth reflects ongoing economic development and infrastructure improvements, including new transportation links and business district expansions.
Five-year growth from 2020 to 2025 demonstrates substantial appreciation of 33-43%, representing a compound annual growth rate (CAGR) of 6-8%. This period encompasses significant infrastructure investments and post-pandemic recovery, driving strong demand for residential properties.
The ten-year perspective from 2015 to 2025 shows remarkable price doubling, with average prices rising from IDR 10 million per square meter to IDR 20 million per square meter. This long-term appreciation reflects Surabaya's evolution into East Java's primary economic center and Indonesia's second-largest city.
These growth rates consistently outpace Indonesian inflation, creating real wealth appreciation for property owners and demonstrating the market's fundamental strength over extended periods.
What are the forecasts for property prices in one year, five years, and ten years?
Property price forecasts for Surabaya indicate continued growth with moderating rates as the market matures.
Next year's forecast predicts 3-5% growth, maintaining steady appreciation driven by ongoing infrastructure projects and urbanization trends. This growth rate reflects sustainable market development without speculative bubble formation.
Five-year projections through 2030 suggest a compound annual growth rate (CAGR) of 7.95% for residential properties, with potentially higher rates in growth districts benefiting from new infrastructure. Districts like Rungkut and Gubeng may outperform city averages due to development momentum.
Ten-year outlook indicates moderating growth rates as the market reaches greater maturity, but continued appreciation underpinned by Indonesia's urbanization trends and infrastructure spending commitments. Surabaya's position as East Java's economic hub supports long-term value creation.
Key risks include apartment oversupply in certain segments, potential policy changes affecting foreign investment, global economic conditions, and possible construction cost increases. However, fundamental demographic and economic trends support positive long-term prospects.
How does Surabaya's property market compare with other large, similar cities in Indonesia or Southeast Asia?
Surabaya offers compelling value compared to regional alternatives, balancing affordability with strong rental yields.
| City | Average Price/m² | Median Property Price | Rental Yield |
|---|---|---|---|
| Surabaya | IDR 20-29.7M | IDR 2.21B | ~7.2% |
| Jakarta | IDR 27M+ | IDR 2.5-5B | ~4.3-6.6% |
| Bandung | IDR 12.3-15.3M | IDR 1-2.5B | 8-10% |
| Bali | IDR 26.7M | Variable (Villas) | Up to 16% |
Surabaya demonstrates better value than Jakarta, offering lower purchase prices with higher rental yields than the capital. While Jakarta commands premium prices due to its status as Indonesia's business center, Surabaya provides similar urban amenities at more accessible price points.
Compared to Bandung or Batam, Surabaya trades higher purchase prices for better infrastructure, larger market size, and more diverse economic opportunities. The city's rental yields of 7.2% compare favorably to most regional alternatives.
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What are the best options if you want to buy for living, renting out short-term, renting out long-term, or reselling later at a higher price?
Investment strategy determines optimal property selection in Surabaya's diverse market segments.
For personal residence, landed houses in safer, well-connected districts offer the best lifestyle value. Darmo and Citraland provide luxury living with premium amenities, while Pakuwon City offers modern mid-range options with excellent family facilities and infrastructure.
Short-term rental investments benefit from central condominiums near business and entertainment districts. University areas like Manyar and Kertajaya generate high rental demand from students and young professionals, while proximity to business centers ensures consistent occupancy from corporate travelers.
Long-term rental strategies favor suburban houses in up-and-coming areas like Rungkut and Gubeng, where infrastructure improvements drive rental demand and capital appreciation. These areas attract families and professionals seeking value outside premium districts.
Capital gains strategies focus on peripheral districts near new infrastructure developments, emerging mixed-use developments, and properties with green certification or tech-enabled features. These characteristics appeal to younger buyers and align with future market trends.
Given today's market, what seem to be the smartest choices for buyers?
Smart buying strategies in September 2025 focus on landed houses in infrastructure-linked suburban districts and modern properties with value-adding features.
Landed houses in suburban districts connected to new infrastructure represent the strongest opportunity, offering the best combination of price appreciation potential, rental yields, and owner-occupier demand. These properties benefit from urbanization trends and infrastructure development while maintaining affordability compared to premium districts.
Tech-enabled and eco-certified apartments and townhouses outperform standard units, particularly appealing to younger buyers and professionals. These features command premium rents and demonstrate stronger resale values as sustainability consciousness increases among Indonesian buyers.
Properties in growth hotspots like Kenjeran, Rungkut, and Gubeng offer exceptional value, benefiting from infrastructure improvements and development momentum. These areas provide entry points into Surabaya's property market with strong appreciation potential.
Buyers should avoid non-premium apartments in oversupplied areas unless priced at significant discounts. Focus instead on differentiated properties with unique features or locations that command premium positioning in their segments.
The market's fundamentals remain strong, supported by infrastructure improvements, foreign direct investment, favorable government incentives, and ongoing urbanization, making strategic property selection crucial for maximizing returns.
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.
Surabaya's property market in September 2025 presents compelling opportunities for both investors and residents, with average prices of IDR 20 million per square meter offering better value than Jakarta while maintaining strong growth potential.
Smart buyers focus on landed houses in developing districts, tech-enabled properties, and areas benefiting from infrastructure development, while avoiding oversupplied apartment segments unless significantly discounted.
Sources
- Juwai Asia - Indonesian Property Market Analysis
- BambooRoutes - Surabaya Price Forecasts
- BambooRoutes - Surabaya Property Market
- BambooRoutes - Surabaya Real Estate Trends
- What's New Indonesia - Surabaya Neighborhood Guide
- Travel Food Expert - Surabaya Areas Guide
- Indonesia Real Estate - Property Taxes
- BCA Bank - Mortgage Programs Surabaya
- Katadata - Indonesian Mortgage Interest Rates
- Global Property Guide - Indonesia Price History
-Complete Guide to Buying Property in Surabaya
-How Much Does Property Cost in Surabaya
-Foreigner's Guide to Surabaya Property Investment
-How to Invest in Surabaya Real Estate
-Should You Buy Property in Surabaya
-Surabaya Property Market Forecast