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As we reach mid-2025, property prices in Makassar are experiencing steady upward momentum driven by rapid urbanization and limited land supply.
The city's residential property market has shown remarkable growth over the past five years, with house prices more than doubling and apartment prices surging by over 600%. Key districts like Panakkukang, Rappocini, and Tamalate are leading this price appreciation, supported by infrastructure developments including the Makassar New Port expansion.
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Makassar's property market is experiencing robust growth with prices rising significantly across all property types as of June 2025.
Infrastructure development, population growth exceeding 1.7 million residents, and land scarcity are the primary drivers pushing property values upward in this eastern Indonesian hub.
| Metric | Current Value (2025) | Trend/Growth |
|---|---|---|
| Average House Price | IDR 960 million (~$58,560) | +109.9% over 5 years |
| Average Apartment Price | IDR 1.1 billion (~$67,100) | +619.9% over 5 years |
| Price per Square Meter (Houses) | IDR 13 million (~$793) | Steady increase |
| Price per Square Meter (Apartments) | IDR 16.7 million (~$1,019) | Strong appreciation |
| Annual Price Growth (2024-2025) | 4.8% (2024), 1.5% (2025) | Moderate but consistent |
| Population Projection | 1.7M (2024) → 2M+ (2035) | Sustained demand driver |
| Mortgage Rates | 5.75-6.25% | Competitive financing |
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.
What are the current average property prices in Makassar as of June 2025?
Makassar's residential property market shows distinct pricing tiers across different property types and locations as of mid-2025.
Average house prices in Makassar currently stand at IDR 960 million (approximately $58,560), while apartment prices average IDR 1.1 billion (around $67,100). The price per square meter varies significantly, with houses averaging IDR 13 million ($793) per square meter and apartments commanding IDR 16.7 million ($1,019) per square meter.
District-specific pricing reveals significant variations across Makassar's neighborhoods. Panakkukang, the premium district, commands median house prices around IDR 2.5 billion per unit, reflecting its concentration of commercial facilities and public amenities. Makassar District, the city center, shows median prices of approximately IDR 1.85 billion per unit, while Rappocini, popular with students and young professionals, averages IDR 1.6 billion per unit.
These price points reflect Makassar's position as an emerging secondary city in Indonesia, offering more affordable entry points compared to Jakarta while maintaining strong growth potential. The pricing structure demonstrates clear premium placement for central locations and established neighborhoods with superior infrastructure access.
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How much have property prices increased in Makassar over the past year?
Makassar's residential property market experienced continued price appreciation throughout 2024 and into 2025, maintaining the city's upward trajectory.
Property prices in Makassar grew by an estimated 4.8% during 2024, followed by an additional 1.5% increase projected for 2025. This represents a moderation from previous years' more aggressive growth rates but demonstrates sustained market strength. The growth pattern reflects broader Indonesian market trends while outpacing national averages for secondary cities.
The price increases have been broad-based across property types, though apartments have shown particularly strong performance. Market analysts attribute this growth to ongoing urbanization pressures, infrastructure development projects, and population increases that continue to drive housing demand. The Makassar New Port expansion and associated infrastructure improvements have been key catalysts for this appreciation.
Local market dynamics suggest this growth rate represents a sustainable pace that balances buyer affordability with investment returns. The moderated growth from previous years' dramatic increases indicates market maturation while maintaining attractiveness for both investors and end-users.
Expert forecasts suggest this moderate growth pattern will continue through 2025, supported by economic development initiatives and demographic trends favoring continued urbanization in Makassar.
Which neighborhoods in Makassar have seen the fastest property price growth in 2025?
Several key districts in Makassar are experiencing accelerated property price appreciation driven by specific development catalysts and demographic shifts.
Panakkukang continues to lead price growth with the highest median property values, benefiting from its established commercial infrastructure and concentration of business activities. The district's mature development profile and limited available land supply contribute to sustained price pressure as demand consistently outpaces new supply.
Rappocini has emerged as a particularly dynamic market, driven by strong student population growth and rental demand from nearby universities. The district's appeal to young professionals and families seeking affordable alternatives to city center living has created competitive buying conditions that support price appreciation.
Tamalate represents the fastest-growing peripheral district, experiencing significant price increases linked directly to infrastructure improvements. The new access roads connecting to Makassar New Port and improved transportation links have transformed this previously less accessible area into an attractive residential option. Property values in Tamalate are rising as buyers recognize the area's development potential and improved connectivity.
These neighborhood-specific trends reflect Makassar's expansion patterns, where infrastructure development acts as a primary catalyst for property value increases. Buyers and investors are increasingly focusing on areas with confirmed infrastructure projects and transportation improvements.
How do current property prices compare to five years ago in Makassar?
Makassar's property market has experienced extraordinary growth over the five-year period from 2020 to 2025, with dramatic price increases across all residential property categories.
| Property Type | 5-Year Price Growth | Annual Growth Rate | Market Performance |
|---|---|---|---|
| Houses | More than 100% increase | +109.9% annually | Strong appreciation |
| Apartments | More than 600% increase | +619.9% annually | Exceptional growth |
| Land Prices | -74.7% decrease | Significant decline | Scarcity-driven shift |
| Commercial Units | +3.4% moderate growth | Steady but limited | Stable performance |
| Overall Market | Robust expansion | Sustained upward trend | High growth trajectory |
| Investment Appeal | Significantly enhanced | Strong investor returns | Attractive market |
| Market Maturity | Rapid development | Emerging market status | Growth potential |
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What are the property price forecasts for Makassar in 2026 and beyond?
Long-term projections for Makassar's property market indicate continued growth supported by fundamental demographic and economic drivers through the next decade.
For the next five years (2025-2030), experts anticipate continued moderate price growth ranging from 1.5% to 5% annually. This forecast is supported by ongoing urbanization trends, infrastructure expansion projects, and sustained population growth. The city's strategic position as Eastern Indonesia's commercial hub provides underlying economic support for sustained demand.
Population projections show Makassar growing from its current 1.7 million residents to over 2 million by 2035, creating sustained housing demand pressure. This demographic expansion, combined with limited developable land supply, supports expectations for continued upward price pressure over the long term.
Infrastructure development remains a key price catalyst, with major projects like the Makassar New Port expansion and improved regional connectivity expected to enhance the city's economic profile. These developments support expectations for sustained investor and end-user demand throughout the forecast period.
Long-term forecasts suggest that while growth rates may moderate from recent exceptional levels, Makassar's property market should maintain its upward trajectory for the next 10-20 years, making it attractive for both investment and residential purposes.
Which property types are experiencing the biggest price increases in 2025?
Makassar's property market shows distinct performance patterns across different property categories, with apartments leading price appreciation trends.
Apartments have demonstrated the strongest price performance over recent years, with annual growth rates reaching 619.9% over the five-year period. This exceptional growth reflects the increasing demand for urban living options and the limited supply of high-quality apartment developments in Makassar. Modern apartment complexes with amenities are particularly sought after by young professionals and expatriates.
Single-family houses have also shown robust performance with 109.9% annual growth over five years, driven by local families and investors seeking residential properties. Houses in established neighborhoods with good infrastructure access command premium pricing and continue to appreciate steadily.
Land prices present a contrasting trend, declining by 74.7% over the five-year period. This decline reflects land scarcity as available plots are developed into residential and commercial properties. Raw land is becoming increasingly rare in desirable locations, pushing buyers toward completed properties rather than development opportunities.
Commercial properties have shown more moderate growth at 3.4%, indicating a stable but less dynamic market compared to residential properties. The commercial sector's steady performance suggests sustainable demand without the speculative pressures affecting residential markets.
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What are the current mortgage interest rates for property buyers in Makassar?
Makassar's mortgage market offers competitive financing options that support continued property market activity as of mid-2025.
Current mortgage interest rates in Makassar range from 5.75% to 6.25%, representing favorable financing conditions for homebuyers. These rates are competitive within the Indonesian market context and significantly more attractive than Indonesia's national average mortgage rates of 8% to 10%. The favorable rates reflect both local market conditions and government initiatives to support homeownership.
Bank Indonesia's monetary policy decisions have contributed to rate stability, with the central bank maintaining its key rate at 6.00% through 2024 to support economic growth while controlling inflation. This stable policy environment has translated into predictable mortgage costs for property buyers in Makassar.
Local banks and financial institutions are actively competing for mortgage business, creating favorable conditions for borrowers with good credit profiles. The availability of competitive financing has been a key factor supporting continued property market activity despite rising property prices.
The favorable mortgage environment is expected to continue through 2025, with economists predicting that rates will remain in the current range. This stability provides confidence for buyers planning property purchases and supports expectations for continued market activity throughout the year.
How do property prices in Makassar compare to other Indonesian cities like Surabaya and Medan?
Makassar's property market positioning relative to other major Indonesian secondary cities reveals attractive value propositions for buyers and investors.
| City | Average House Price | Price per Square Meter | Population | Market Position |
|---|---|---|---|---|
| Makassar | IDR 960 million ($58,560) | IDR 13-16.7 million ($793-1,019) | 1.7 million | Growing secondary market |
| Surabaya | IDR 1.75 billion (higher) | IDR 18-20 million ($1,098-1,220) | 3.0 million | Established major city |
| Medan | IDR 950 million (similar) | IDR 12-14 million ($733-854) | 2.5 million | Comparable secondary market |
| Cost of Living Comparison | Makassar: 4% less than Surabaya | More affordable overall | Regional hub advantage | Value positioning |
| Growth Trajectory | Outpacing Jakarta growth rates | Strong appreciation potential | Infrastructure development | Emerging opportunity |
| Investment Appeal | Lower entry costs | Higher growth potential | Strategic location | Attractive fundamentals |
| Market Maturity | Less saturated than major cities | Room for appreciation | Development opportunities | Growth phase market |
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 economic factors are driving property price changes in Makassar in 2025?
Multiple economic drivers are converging to support continued property price appreciation in Makassar throughout 2025 and beyond.
Indonesia's projected GDP growth of 4.7% to 5.5% in 2025 provides a strong macroeconomic foundation supporting real estate demand. This economic expansion translates into improved employment opportunities and increased purchasing power for local residents, directly supporting housing market activity in Makassar.
Population growth represents the most fundamental driver, with Makassar's population increasing from 1.7 million in 2024 toward a projected 2+ million by 2035. This demographic expansion creates sustained housing demand that consistently outpaces new supply development, maintaining upward pressure on property prices.
Infrastructure development continues as a major catalyst, particularly the Makassar New Port expansion and associated transportation improvements. These projects enhance the city's economic profile as Eastern Indonesia's commercial and logistics hub, attracting businesses and residents while improving property accessibility and desirability.
Government policy changes, including tax incentives introduced by President Prabowo Subianto's administration, have removed the 11% VAT and 5% land acquisition tax for 1-3 years. These measures directly reduce property purchase costs and stimulate market activity by improving affordability for buyers.
Land scarcity represents an ongoing constraint that supports price appreciation. With Makassar's urban expansion consuming available development land, the supply-demand imbalance continues favoring property owners and supporting sustained value appreciation across all property types.
How strong is current demand for residential properties in Makassar?
Residential property demand in Makassar remains robust as of mid-2025, driven by multiple demographic and economic factors supporting sustained market activity.
Overall demand continues to increase, supported by population growth from 1.7 million residents in 2024 toward projections exceeding 2 million by 2035. This expansion represents both natural population growth and continued urban migration as people seek economic opportunities and improved living standards in Makassar.
Rental market demand shows particular strength in districts near universities and city-center areas. Rappocini district exemplifies this trend, with strong rental demand from students and young professionals creating competitive conditions that support both rental rates and property values. The presence of international schools and educational institutions continues attracting expatriate families and creating sustained demand for quality residential properties.
New residential supply is entering the market through various development projects, but analysts suggest this new supply may moderate rental yields rather than significantly impact overall property values. The balance between new supply and growing demand continues favoring property appreciation, though at more sustainable rates than previous years' exceptional growth.
Foreign buyer interest remains active, particularly for properties near international schools and in premium districts. Government regulatory changes allowing foreign apartment ownership in designated zones have opened new demand channels, though this primarily affects higher-value properties in specific locations.
It's something we develop in our Indonesia property pack.
What impact are infrastructure projects having on Makassar property prices in 2025?
Infrastructure development continues serving as a primary catalyst for property price appreciation across multiple districts in Makassar throughout 2025.
The Makassar New Port expansion represents the single most significant infrastructure driver affecting property values. This major logistics hub development has increased commercial activity and improved the city's strategic position for Eastern Indonesia trade. Properties in Tamalate and surrounding areas have experienced particular appreciation due to improved port access and associated economic activity.
New toll roads and connectivity improvements have reduced travel times and stimulated property transactions in previously peripheral districts. These transportation enhancements have made outlying areas more accessible and attractive for residential development, expanding the geographic scope of Makassar's active property market.
Urban development projects aligned with the Makassar Livable City Plan are improving flood control and urban resilience. These improvements enhance property desirability and reduce investment risks, particularly in areas previously affected by seasonal flooding. Properties in improved areas are experiencing value appreciation as buyers recognize reduced environmental risks and enhanced livability.
Commercial infrastructure development, including shopping centers and business districts, is creating employment centers that drive residential demand in surrounding areas. The concentration of jobs and amenities in specific districts continues supporting property values through improved convenience and lifestyle offerings for residents.
Future infrastructure projects already in planning stages continue supporting long-term property appreciation expectations, as buyers and investors anticipate continued improvements to transportation, utilities, and urban services throughout Makassar.
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.
Based on comprehensive market analysis and current trends, property prices in Makassar are definitively going up.
The evidence overwhelmingly supports continued price appreciation driven by population growth, infrastructure development, and limited land supply creating sustained upward pressure on property values throughout 2025 and beyond.
Sources
- Own Property Abroad - Buying Property in Makassar Guide
- Numbeo - Property Prices in Makassar
- BambooRoutes - Makassar Real Estate Forecasts 2025
- BambooRoutes - Makassar Property Market Trends 2025
- Global Property Guide - Indonesia Property Market Analysis
- Rumah123 - Houses for Sale in Makassar
- Wise - Buying Property in Indonesia Guide
- Mordor Intelligence - Indonesia Real Estate Market Report