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Makassar's rental market shows strong potential for investors and residents alike, with apartments yielding 5-11% annually and houses offering stable returns between 4.6-8%.
As of September 2025, studio apartments in Makassar start at $540-$660 monthly, while three-bedroom houses average $337-$429 per month depending on location. The city's rapid growth and strategic position as South Sulawesi's economic hub continue driving rental demand across all property segments.
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Makassar rental yields range from 5-11% for apartments and 4.6-8% for houses, with central locations commanding premium rates.
Mortgage payments typically run $290-$350 monthly for standard homes, while rental income covers these costs comfortably across most property types.
| Property Type | Monthly Rent (USD) | Typical Yield | Best Areas |
|---|---|---|---|
| Studio Apartment | $540-$660 | 8-11% | Tamalanrea, Tallasa City |
| 2BR Apartment | $840-$1,380 | 6-9% | Panakkukang, Mariso |
| 3BR House (Center) | $429 | 5-7% | Ujung Pandang |
| 3BR House (Suburbs) | $337 | 6-8% | Biringkanaya, Bontoala |
| Commercial Office | $75+ per person | 8-11% | Central CBD, Graha Pena |
What are the current average rents in Makassar for apartments, houses, and commercial properties?
Studio apartments in Makassar start at $540-$660 monthly, primarily concentrated in student-friendly areas like Tamalanrea and Tallasa City.
Two-bedroom apartments command $840-$1,380 per month, with pricing heavily influenced by location and amenities. Units in Panakkukang and Mariso districts typically fall within this range, while luxury apartments with premium amenities can reach $1,650-$2,160 monthly in central locations.
Houses show more variation by location and size. Three-bedroom houses in Makassar's city center average $429 monthly, while similar properties outside the center cost around $337 per month. Larger four-bedroom homes in strategic neighborhoods like Tamalanrea or Panakkukang range from $333-$383 monthly.
Commercial office space varies significantly based on grade and location. Grade-A buildings in the central business district, such as Graha Pena, typically quote prices on request, while serviced offices start at approximately $75 per person monthly. Large multi-unit commercial spaces in prime furnished locations can command $1,368-$1,374 monthly.
How do rental prices differ across Makassar's main districts?
Central Makassar, particularly the Ujung Pandang area, commands the highest rental rates due to proximity to business centers, shopping districts, and employment hubs.
Panakkukang and Mariso represent the mid-to-high rental tier, attracting new developments and modern apartments. These areas offer excellent connectivity and appeal to professionals and families seeking quality accommodations with reasonable access to city amenities.
Tamalanrea stands out as a more affordable option with rapidly growing student-driven demand. The proximity to universities makes this district particularly attractive for studio and smaller rental properties, keeping prices competitive while maintaining strong occupancy rates.
Biringkanaya benefits from fast development and airport proximity, resulting in rising prices that remain more competitive than central city rates. Bontoala offers affordable housing options with improving transit connections, making it attractive for budget-conscious tenants.
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What rental differences exist based on property size and configuration?
| Property Type | Size Range | Monthly Rent (USD) | Primary Market |
|---|---|---|---|
| Studio Apartment | 14-20 sqm | $540-$660 | Students, Single Professionals |
| 2BR Apartment | 40-60 sqm | $840-$1,380 | Small Families, Business Travelers |
| 3BR Apartment (Central) | 60-80 sqm | $1,290-$1,400 | Families, Premium Market |
| 3BR House (Central) | 80-120 sqm | $429 | Families, Local Professionals |
| 3BR House (Suburbs) | 100-150 sqm | $337 | Families, Larger Living Spaces |
| 4BR House (Premium) | 120-200 sqm | $333-$383 | Large Families, Gated Communities |
What additional costs should be factored into total rental expenses?
Base rental quotes typically exclude utilities and service charges, which can add $130-$180 monthly to your total housing costs.
Electricity, water, and garbage collection average $98 monthly for a standard 915 square foot unit, while internet service adds approximately $32 monthly. Apartment buildings often charge maintenance and service fees ranging from $20-$50 monthly, depending on amenities and building management quality.
Security deposits typically require 1-2 months' rent upfront. Short-term rental platforms may include 5-10% service charges, while long-term rentals generally don't impose direct tenant taxes, though property owners pay annual property tax (PBB).
When budgeting for rental properties, factor in these additional costs to determine true monthly housing expenses, which can increase your base rent by 25-40% depending on property type and location.
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How do mortgage payments compare to potential rental income in Makassar?
Mortgage rates in Makassar currently range from 5.75-6.25% for new home loans, with typical repayment periods spanning 10-20 years.
Monthly mortgage payments for standard three-bedroom homes priced between $50,000-$60,000 average $290-$350. This compares favorably against rental income potential, with apartments generating $540-$1,400 monthly and houses producing $337-$429 monthly rental income.
The coverage ratio works particularly well for apartment investments, where rental income can exceed mortgage payments by 50-300%. House investments show more modest but still positive cash flow, with rental income typically covering mortgage payments plus generating additional monthly cash flow.
This favorable mortgage-to-rent ratio makes Makassar attractive for buy-to-rent investment strategies, especially compared to higher-cost Indonesian cities where mortgage payments often consume larger portions of rental income.
What are the key profitability differences between short-term and long-term rentals?
Short-term rentals offer higher gross income potential through nightly rates but require more intensive management and carry variable occupancy risks.
Daily rental rates for studio apartments range $18-$22, while two-bedroom units command $28-$72 nightly depending on location and amenities. However, platform commissions, cleaning costs, utilities, and seasonal vacancy periods can significantly impact net returns.
Long-term rentals provide stable, predictable income with lower management requirements and fewer vacancy periods. Tenants typically handle utilities and daily maintenance responsibilities, reducing operational overhead for property owners.
Short-term rentals work best for prime-location properties with tourist appeal or business traveler demand, while long-term rentals prove more suitable for standard residential properties in student or professional markets where consistent occupancy is prioritized over maximum per-night rates.
Can you provide specific rental examples for common property types?
A studio apartment in Tamalanrea typically rents for $540-$660 monthly, targeting university students and young professionals who prioritize affordability and campus proximity.
Two-bedroom apartments in Panakkukang or Mariso command $840-$1,380 monthly, attracting small families, business travelers, and professionals who need additional space and modern amenities.
Three-bedroom houses show location-based pricing: central city properties average $429 monthly, while suburban alternatives cost around $337 monthly. These properties typically appeal to families seeking more space and private outdoor areas.
Premium four-bedroom houses in strategic neighborhoods like gated communities in Tamalanrea or Panakkukang range from $333-$383 monthly, offering larger lots and enhanced security features for affluent families.
Commercial examples include serviced offices starting at $75 per person monthly, while large furnished commercial spaces in prime locations command $1,368-$1,374 monthly.
What tenant demographics dominate Makassar's rental market?
Students represent a major tenant category, particularly in Tamalanrea and Rappocini districts due to university proximity and affordable housing options.
Working professionals favor central locations like Ujung Pandang and Panakkukang, typically choosing apartments and condominiums that offer convenient access to employment centers and business districts.
Families generally prefer larger houses or spacious apartments, with growing interest in Biringkanaya due to airport accessibility and infrastructure development, as well as peripheral districts offering better value for larger living spaces.
The expatriate community shows increasing rental demand, particularly for international-standard amenities in central Makassar locations. This demographic typically seeks fully furnished properties with reliable utilities and modern conveniences.
Young professionals and couples often target two-bedroom apartments in mid-tier districts, seeking balance between affordability and lifestyle amenities.
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What are the current vacancy rates across different property types and neighborhoods?
Makassar's overall residential vacancy rate stands at an estimated 5-7% for apartments and houses, with the lowest rates concentrated in central districts.
Student-populated areas like Tamalanrea maintain consistently low vacancy rates due to steady university enrollment and limited quality housing supply. These areas typically see vacancy rates below 5% during academic periods.
Newly developed suburban areas initially experience higher vacancy rates at launch, often reaching 8-12%, but these rates typically decline as occupancy builds and community amenities develop.
Central business district properties maintain lower vacancy rates due to consistent professional demand, while peripheral residential areas may experience seasonal fluctuations based on employment patterns and infrastructure development progress.
Commercial office spaces show varying vacancy rates depending on building grade and location, with Grade-A buildings in central locations maintaining lower vacancy rates than secondary office markets.
What rental yields can investors expect across different property categories?
| Property Category | Gross Rental Yield | Best Performing Locations | Risk Level |
|---|---|---|---|
| Studio Apartments | 8-11% | Tamalanrea, University Areas | Low-Medium |
| 2-3BR Apartments | 5-9% | Panakkukang, Central Districts | Low |
| Houses (Central) | 4.6-7.7% | Ujung Pandang, City Center | Low |
| Houses (Suburban) | 6-8% | Biringkanaya, Bontoala | Medium |
| Commercial Office | 5-11% | CBD, Grade-A Buildings | Medium-High |
| Mixed-Use Properties | 8-11% | Central Commercial Areas | Medium |
How have rental rates and yields changed over the past five years and one year?
Makassar rental rates increased by 4.8% in 2024 and 1.5% in 2025, reflecting steady urban demand driven by population growth and infrastructure development.
Over the five-year period from 2020-2025, rental growth has been consistent but moderate, with annual increases typically ranging 2-5% depending on property type and location. Student housing markets showed the most consistent growth due to university expansion and limited supply.
Rental yields experienced slight decreases in 2025 as new supply entered the market faster than immediate demand absorption, particularly in apartment segments. However, suburban markets maintained stronger yield performance due to larger living spaces and changing preferences toward remote work arrangements.
The overall market has shown resilience despite global economic uncertainties, with Makassar's position as South Sulawesi's economic center continuing to drive fundamental rental demand across all property categories.
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What are the rental market forecasts for the next 1, 5, and 10 years?
2026 forecasts indicate moderate rental growth of 1-3%, with yields remaining stable to slightly declining in central city areas as new supply continues entering the market.
The five-year outlook through 2030 shows continued urbanization driving rental demand, with city center property prices rising but increasing opportunities for quality suburban rentals as demand shifts toward larger living spaces and value-oriented locations.
By 2035, Makassar's rental market is expected to mirror other fast-growing Indonesian cities, featuring a mix of high-yield urban and suburban investment zones. Large homes and premium apartments designed for expatriate and professional markets are forecast to become the most profitable rental categories.
Suburban markets are expected to outperform central locations in yield terms over the medium term, as remote work trends and infrastructure improvements make peripheral areas more attractive to tenants seeking space and value.
Compared to Jakarta and Surabaya, Makassar offers competitive yields with lower entry costs, though rental growth rates may be more modest than in larger metropolitan markets.
How does Makassar compare to other major Indonesian cities for rental investment?
Makassar rental rates remain below Jakarta and Surabaya levels, but yields are highly competitive, especially for new-build apartments and well-located suburban houses.
Mortgage costs relative to rental income are more favorable in Makassar than in many Indonesian cities, making buy-to-rent strategies particularly attractive for investors seeking positive cash flow from day one.
The city's rapid infrastructure development and strategic location as South Sulawesi's economic hub provide growth fundamentals that support long-term rental demand, though at a smaller scale than mega-cities like Jakarta.
Investment entry points are significantly lower in Makassar while still offering institutional-quality rental markets, particularly in student housing and professional accommodation segments.
Vacancy rates tend to be lower and more stable than in oversupplied segments of larger Indonesian cities, providing more predictable returns for rental property investors.
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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.
Makassar's rental market in September 2025 offers compelling opportunities for both investors and residents, with competitive yields and growing demand across multiple property segments.
The combination of affordable entry prices, positive mortgage coverage ratios, and steady rental growth makes Makassar an attractive alternative to higher-cost Indonesian cities for rental property investment.
Sources
- Traveloka Makassar Apartments
- Tiket Makassar Accommodations
- Orbitz Makassar Travel Guide
- Pacific Prime Indonesia Cost of Living
- Rumah123 Makassar House Rentals
- OfficesIQ Graha Pena Makassar
- Regus Makassar Office Spaces
- BambooRoutes Makassar Area Guide
- BambooRoutes Makassar Real Estate Forecasts
- Global Property Guide Indonesia Yields