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If you're thinking about investing in rental property in Makassar, understanding the actual returns you can expect is essential before making any decision.
This article breaks down the current rental yields in Makassar, covering everything from gross and net returns to which neighborhoods perform best and what costs will eat into your profits.
We update this blog post regularly to keep the numbers as fresh and reliable as possible.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Makassar.
Insights
- Makassar's average gross rental yield sits around 6%, which is notably higher than Jakarta's prime districts where yields often compress below 4%.
- The gap between gross and net yields in Makassar typically runs about 1.5 to 2 percentage points, with the 10% income tax on rent being the single biggest deduction for compliant landlords.
- Landed houses in Makassar consistently outperform apartments on net yield because they avoid the service charge burden that can eat 1 to 2% of apartment returns annually.
- Tamalanrea delivers some of Makassar's highest yields at 7 to 8% gross, driven by steady demand from university students and workers near northern employment hubs.
- Premium waterfront areas like Tanjung Bunga and CPI often yield below 5% gross because property prices reflect lifestyle amenities rather than rental income potential.
- Makassar's vacancy rate averages around 7%, but correctly priced units in central areas like Panakkukang can run as low as 3 to 4% vacancy.
- The Makassar New Port expansion is expected to boost rental demand along connected corridors, potentially lifting rents by 5 to 15% in logistics-adjacent neighborhoods over the next few years.
- Smaller units, particularly compact 2-bedroom houses in the Type 36 to Type 54 range, tend to deliver the best yield per square meter because tenants pay for location rather than extra space.
What are the rental yields in Makassar as of 2026?
What's the average gross rental yield in Makassar as of 2026?
As of early 2026, the average gross rental yield in Makassar across all residential property types sits at approximately 6%, which means landlords typically collect around Rp 90 to 100 million per year on a property worth Rp 1.5 to 1.7 billion.
Most residential properties in Makassar fall within a gross yield range of 5% to 7.5%, with the exact figure depending heavily on location and whether you're buying a house, apartment, or townhouse.
Compared to Indonesia's major cities, Makassar's gross yields tend to run higher than Jakarta's prime areas, which often compress below 4%, making Makassar relatively attractive for income-focused investors in the Indonesian market.
The single most important factor influencing gross rental yields in Makassar right now is the gap between premium-priced lifestyle areas and practical, demand-driven neighborhoods, since premium zones like CPI waterfront see lower yields while areas near universities and employment hubs deliver stronger returns.
What's the average net rental yield in Makassar as of 2026?
As of early 2026, the average net rental yield in Makassar comes in at approximately 4.3% after accounting for all recurring costs and taxes that landlords face.
The typical difference between gross and net yields in Makassar runs about 1.5 to 2 percentage points, which is fairly standard for Indonesian secondary cities but worth planning for carefully.
In Makassar specifically, the expense that most significantly reduces gross yield to net yield is the PPh Final income tax, which takes 10% of gross rental income for compliant landlords, followed by vacancy losses and ongoing maintenance costs.
Most standard investment properties in Makassar deliver net yields in the 3.2% to 5.6% range, with the wide spread reflecting differences in property age, furnishing status, and whether landlords actively manage costs or let them drift.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in Makassar.
We made this infographic to show you how property prices in Indonesia compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What yield is considered "good" in Makassar in 2026?
In Makassar's rental market, a gross yield of 7% or higher is generally considered "good" by local investors, while anything above 5% net is viewed as a strong performer worth holding long-term.
The threshold that separates average properties from high performers in Makassar typically falls around the 6.5% gross mark, with properties below this often sitting in premium-priced lifestyle areas where capital appreciation, not rental income, is the main investment thesis.
How much do yields vary by neighborhood in Makassar as of 2026?
As of early 2026, gross rental yields in Makassar vary dramatically from around 4.5% in premium waterfront areas to as high as 9% in practical, demand-driven neighborhoods.
The neighborhoods that typically deliver the highest rental yields in Makassar are areas like Tamalanrea, Biring Kanaya, and Manggala, where property prices remain affordable but steady tenant demand from students, workers, and families keeps rents firm.
On the other end, the lowest yields in Makassar tend to appear in premium zones like Tanjung Bunga, the CPI waterfront area, Mariso, and parts of Ujung Pandang, where lifestyle pricing pushes purchase costs well above what rents can justify.
The main reason yields vary so much across Makassar neighborhoods is the disconnect between lifestyle-driven property pricing in premium areas and practical rent ceilings that tenants can actually afford, meaning you pay a premium for amenities that don't translate into higher rents.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Makassar.
How much do yields vary by property type in Makassar as of 2026?
As of early 2026, gross rental yields in Makassar range from about 5% to 7% for apartments and condos, while landed houses and townhouses typically deliver 5.5% to 8.5%.
Landed houses currently deliver the highest average gross rental yields in Makassar because they attract a broader tenant pool of families, have simpler cost structures, and don't carry the service charge burden that eats into apartment returns.
Apartments tend to deliver the lowest average gross yields in Makassar, particularly in premium locations like the CPI area, because purchase prices reflect developer positioning and amenities rather than achievable rent levels.
The key reason yields differ between property types in Makassar is that apartments often come with monthly service charges and furnishing expectations that add 1% to 2% to annual costs, while houses let landlords keep more of the gross rent as actual profit.
By the way, you might want to read the following:
What's the typical vacancy rate in Makassar as of 2026?
As of early 2026, the average residential vacancy rate in Makassar sits at approximately 7% for long-term rental properties, meaning landlords can expect roughly one month empty per year on average.
Vacancy rates across Makassar neighborhoods range from as low as 3% to 6% in prime, correctly priced locations to 10% or higher for overpriced or niche properties that struggle to find tenants quickly.
The main factor driving vacancy rates in Makassar right now is pricing accuracy, since units priced in line with neighborhood norms fill quickly, while landlords who overprice based on renovation costs or personal expectations often see extended vacancies.
Compared to larger Indonesian cities, Makassar's vacancy rate is relatively moderate, supported by ongoing infrastructure projects like the Makassar New Port expansion that continue to draw workers and create steady tenant demand.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Makassar.
What's the rent-to-price ratio in Makassar as of 2026?
As of early 2026, the average rent-to-price ratio in Makassar is approximately 0.50% per month, which means landlords typically collect monthly rent equal to about half a percent of the property's purchase price.
A rent-to-price ratio of 0.50% per month or higher is generally considered favorable for buy-to-let investors in Makassar because it translates directly to a 6% annual gross yield, which is the threshold where rental income starts to feel worthwhile after costs.
Compared to other Indonesian secondary cities, Makassar's rent-to-price ratio is competitive, sitting above places like Surabaya's premium zones but below high-yield frontier markets where prices haven't yet caught up with rental demand.
We have made this infographic to give you a quick and clear snapshot of the property market in Indonesia. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which neighborhoods and micro-areas in Makassar give the best yields as of 2026?
Where are the highest-yield areas in Makassar as of 2026?
As of early 2026, the top three highest-yield neighborhoods in Makassar are Tamalanrea, Biring Kanaya (including the Sudiang side), and Manggala, all of which benefit from affordable entry prices combined with solid tenant demand.
These high-yield areas in Makassar typically deliver gross rental yields in the 7% to 9% range, with Tamalanrea often hitting the higher end thanks to consistent demand from university students and workers at nearby employment centers.
The main characteristic these high-yield areas share is practical accessibility, since Tamalanrea, Biring Kanaya, and Manggala all offer affordable housing within reasonable commuting distance to jobs, schools, and essential services that tenants actually need.
You'll find a much more detailed analysis of the areas with high profitability potential in our property pack covering the real estate market in Makassar.
Where are the lowest-yield areas in Makassar as of 2026?
As of early 2026, the top three lowest-yield neighborhoods in Makassar are Tanjung Bunga and the CPI waterfront area, Mariso, and premium pockets of Ujung Pandang in the city core.
These low-yield areas in Makassar typically deliver gross rental yields in the 4% to 5.5% range, which can feel disappointing after you account for the higher purchase prices and ongoing costs.
The main reason yields are compressed in these areas is that property prices reflect lifestyle amenities, waterfront positioning, and developer branding rather than what tenants are actually willing to pay in monthly rent, creating a gap between investment cost and income potential.
Buying a property in a low-yield area is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Makassar.
Which areas have the lowest vacancy in Makassar as of 2026?
As of early 2026, the top three neighborhoods with the lowest residential vacancy rates in Makassar are Panakkukang, Rappocini, and Tamalanrea, all of which benefit from broad, everyday tenant demand.
These low-vacancy areas in Makassar typically experience vacancy rates in the 3% to 5% range, meaning well-priced units rarely sit empty for more than a few weeks between tenants.
The main demand driver keeping vacancy low in these areas is their central positioning near Makassar's jobs, malls, hospitals, and universities, which creates a deep pool of families, professionals, and students who need convenient housing.
The trade-off investors typically face when targeting these low-vacancy areas is that strong demand has already pushed property prices up, which compresses yields somewhat compared to more affordable fringe neighborhoods.
Which areas have the most renter demand in Makassar right now?
The top three neighborhoods currently experiencing the strongest renter demand in Makassar are the Panakkukang and Hertasning corridor for professionals, Tamalanrea for students and education workers, and the CPI and Citraland area for premium apartment seekers.
The renter profile driving most of the demand in these areas is working families and young professionals in Panakkukang, university students and staff in Tamalanrea, and higher-income tenants seeking modern amenities in the CPI zone.
In these high-demand Makassar neighborhoods, correctly priced rental listings typically get filled within two to four weeks, with well-maintained properties in prime micro-locations sometimes finding tenants even faster.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Makassar.
Which upcoming projects could boost rents and rental yields in Makassar as of 2026?
As of early 2026, the top three upcoming projects expected to boost rents in Makassar are the Makassar New Port expansion, the continued build-out of Summarecon Mutiara Makassar township, and ongoing development at CitraLand City CPI.
The neighborhoods most likely to benefit from these projects are corridors connected to the new port for logistics workers, areas surrounding Summarecon Mutiara Makassar for new township demand, and zones adjacent to CPI for premium apartment seekers.
Once these projects reach maturity, investors might realistically expect rent increases of 5% to 15% in directly affected neighborhoods, though the timeline could stretch over several years depending on construction progress and tenant absorption.
You'll find our latest property market analysis about Makassar here.
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What property type should I buy for renting in Makassar as of 2026?
Between studios and larger units in Makassar, which performs best in 2026?
As of early 2026, smaller units like studios and 1-bedroom equivalents generally deliver better yields per square meter in Makassar, while 2 to 3 bedroom family rentals typically win on occupancy stability and lower turnover costs.
Studios in well-located Makassar apartments can yield around 6% to 7% gross (roughly Rp 80 to 100 million per year, or $5,000 to $6,200 USD, or 4,800 to 5,900 EUR), while larger 2 to 3 bedroom units tend to yield 5% to 6% gross but with more consistent year-round occupancy.
The main factor explaining why smaller units often outperform on yield is that tenants pay primarily for location and convenience rather than extra square meters, so compact units capture nearly the same rent per month at a much lower purchase price.
However, larger family homes become the better investment choice in Makassar when targeting long-term tenants like transferred professionals or families who value stability, since these renters typically stay 2 to 3 years and cause far less vacancy and turnover cost.
What property types are in most demand in Makassar as of 2026?
As of early 2026, the most in-demand property type for renters in Makassar is the unfussy 2 to 3 bedroom landed house with easy parking and a practical commute to work or school.
The top three property types ranked by current tenant demand in Makassar are straightforward landed houses, apartments near premium amenities like CPI and Citraland, and compact townhouse-style units in established neighborhoods.
The primary demographic trend driving this demand pattern in Makassar is the city's growing middle-class workforce seeking family-friendly housing within reasonable distance of employment centers, malls, hospitals, and schools.
One property type currently underperforming in demand is the oversized luxury house with 4 or more bedrooms, which struggles to find tenants willing to pay the premium rent required to justify the high purchase price.
What unit size has the best yield per m² in Makassar as of 2026?
As of early 2026, compact units in the 36 to 70 square meter range (commonly called Type 36, Type 45, or Type 54 houses, or studio to 1-bedroom apartments) deliver the best gross rental yield per square meter in Makassar.
For that optimal unit size in Makassar, the typical gross rental yield per square meter runs around Rp 1.5 to 2.5 million per m² annually (roughly $95 to $155 USD per m², or 90 to 150 EUR per m²), compared to larger units that often fall below Rp 1.2 million per m².
The main reason smaller or larger units tend to have lower yield per square meter is that very small units can be hard to rent to families, while larger units require higher total rent that fewer tenants can afford, leaving a sweet spot in the mid-compact range.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Makassar.
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.
What costs cut my net yield in Makassar as of 2026?
What are typical property taxes and recurring local fees in Makassar as of 2026?
As of early 2026, the annual property tax (PBB-P2) for a typical rental property in Makassar runs approximately 0.05% to 0.20% of market value, which translates to roughly Rp 750,000 to Rp 3.4 million per year (about $47 to $210 USD, or 45 to 200 EUR) on a Rp 1.5 billion property.
Beyond property tax, landlords in Makassar should budget for neighborhood or cluster fees if the property is in a gated community, typically running Rp 100,000 to 500,000 per month (about $6 to $31 USD, or 6 to 30 EUR monthly), adding up to Rp 1.2 to 6 million annually.
Combined, these taxes and recurring fees typically represent about 2% to 4% of gross rental income in Makassar, which is manageable but worth tracking carefully to avoid surprises.
By the way, we cover all the hidden fees and taxes in our property pack covering the real estate market in Makassar.
What insurance, maintenance, and annual repair costs should landlords budget in Makassar right now?
Landlord insurance in Makassar is relatively affordable compared to the property's value, with basic coverage typically running Rp 1 to 3 million per year (about $60 to $185 USD, or 60 to 180 EUR) depending on coverage level and property type.
The recommended annual maintenance and repair budget in Makassar is about 0.8% to 1.5% of property value, which works out to roughly Rp 12 to 25 million per year ($750 to $1,550 USD, or 720 to 1,480 EUR) on a Rp 1.5 billion property.
The type of repair expense that most commonly catches landlords off guard in Makassar is water damage and humidity-related issues, since the city's coastal climate and heavy rainfall can accelerate wear on roofing, walls, and plumbing faster than inland locations.
All together, landlords in Makassar should realistically budget Rp 15 to 30 million per year ($930 to $1,850 USD, or 900 to 1,770 EUR) for the combined cost of insurance, maintenance, and unexpected repairs.
Which utilities do landlords typically pay, and what do they cost in Makassar right now?
For long-term rentals in Makassar, tenants typically pay electricity and water directly, while landlords of apartments sometimes cover service charges or maintenance fees that can include common area utilities.
When landlords do cover utilities, such as in furnished short-term rentals or apartments with bundled service charges, the monthly cost in Makassar typically runs Rp 500,000 to 1.5 million (about $31 to $93 USD, or 30 to 89 EUR) depending on unit size and building fees.
What does full-service property management cost, including leasing, in Makassar as of 2026?
As of early 2026, full-service property management in Makassar typically costs 8% to 12% of monthly rent, which works out to roughly Rp 640,000 to 1.2 million per month ($40 to $74 USD, or 38 to 71 EUR) on a property renting for Rp 8 million monthly.
On top of ongoing management, the typical leasing or tenant-placement fee in Makassar runs about 50% to 100% of one month's rent as a one-time charge, meaning Rp 4 to 8 million ($250 to $495 USD, or 240 to 475 EUR) each time a new tenant moves in.
What's a realistic vacancy buffer in Makassar as of 2026?
As of early 2026, landlords in Makassar should set aside approximately 8% of annual rental income as a vacancy buffer, which translates to about one month's rent held in reserve each year.
In practice, most Makassar landlords experience somewhere between 3 to 5 weeks of vacancy per year in a typical market, though overpriced or poorly positioned properties can sit empty for 8 weeks or more.
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What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Makassar, we always rely on the strongest methodology we can, and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Bank Indonesia Residential Property Price Survey | This is Indonesia's central bank running the official national housing price survey. | We used it as a macro compass to check whether Makassar prices are broadly rising, flat, or falling. It helped us avoid over-trusting portal noise and anchor our estimates to official trends. |
| BPS Makassar (Statistics Indonesia) | BPS is Indonesia's official statistics agency, and the city portal gives the cleanest view of local cost pressures. | We used it to understand the rent and cost-of-living environment affecting tenant budgets. It supported our inflation backdrop description for early 2026. |
| BPS South Sulawesi | This is the provincial statistics office with consistent methodology and local relevance. | We used it to triangulate the local inflation environment. It helped us contextualize rent growth expectations without guessing. |
| Rumah123 House Rentals Makassar | Rumah123 is a major Indonesian property portal with transparent median notes. | We used it to estimate typical asking rents at both city and district level. Its area medians helped us show how yields differ by micro-location. |
| Rumah123 House Sales Makassar | Same major portal exposing market-scale supply and district price medians in one place. | We used it to estimate typical purchase prices and compute rent-to-price ratios consistently. It helped us pull neighborhood price dispersion examples. |
| Rumah123 Apartment Rentals Makassar | One of the few sources showing actual apartment rent levels in Makassar at scale. | We used it to compare apartment versus house yield potential. It helped explain where apartment demand clusters in Makassar. |
| Pelindo Makassar New Port | Pelindo is Indonesia's state port operator, making this a primary-source project announcement. | We used it to identify structural job and logistics growth drivers. It provided concrete examples when discussing projects that can boost rents. |
| Boskalis Makassar New Port Project Sheet | This is a direct contractor project sheet with measurable scope detail. | We used it to corroborate the port's scale and timeline narrative. It helped us avoid hand-wavy "big project" statements. |
| Summarecon Mutiara Makassar | This is the developer's primary site describing the township and its positioning. | We used it to identify new supply nodes and where higher-quality tenants may cluster. It helped name specific projects when discussing future rent uplift. |
| Antara News Makassar | Antara is Indonesia's national news agency and typically cites direct stakeholders. | We used it to corroborate development progress beyond just marketing claims. It helped us describe what's actually happening on the ground in early 2026. |
| CitraLand City CPI Makassar | Primary-source project overview from a major national developer group. | We used it to anchor what "premium waterfront" actually includes in terms of amenities. It helped explain why some prime zones have lower yields but better liquidity. |
| PLN Official Tariff Page | PLN is Indonesia's state electricity company and this is their official reference page. | We used it to estimate landlord-paid utility risks and tenant affordability. It kept our operating cost discussion grounded in actual tariff structures. |
| CNBC Indonesia Electricity Tariffs | Major business outlet that time-stamps the early 2026 tariff decision. | We used it to confirm our January 2026 utility assumptions aren't outdated. It served as a recency cross-check against PLN's framework. |
| DJP PP 34/2016 PDF | This is a primary legal document hosted by Indonesia's Directorate General of Taxes. | We used it to explain transaction-related taxes in a legally grounded way. We kept it high-level so readers don't get overwhelmed. |
| BPK JDIH PP 34/2016 | BPK's regulation database is a trusted, searchable legal repository. | We used it to provide a second official legal reference path for triangulation. It helps readers who want a clean regulation index page. |
| Pajak.com PBB-P2 Explainer | Specialized Indonesian tax publication that cites the relevant articles clearly. | We used it to communicate the property tax ceiling logic in plain language. It helped us note that Makassar's actual rate depends on local regulations. |
| Ortax Rental Income Tax | Widely used Indonesian tax reference site showing worked examples. | We used it to quantify how income tax reduces net yield for compliant landlords. We kept it as a "check your situation" item since real setups vary. |
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