Is it worth it buying property in Makassar in 2025?

Authored by the expert who managed and guided the team behind the Indonesia Property Pack

Everything you need to know before buying real estate is included in our Indonesia Property Pack

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Makassar. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At BambooRoutes, we explore the Indonesian real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Makassar, Jakarta, and Surabaya. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

What kinds of properties are actually available to buy in Makassar in 2025?

Makassar's property market offers an extensive selection of over 3,800 listed properties as of September 2025.

You can find modern minimalist homes, cluster houses with clubhouse access, traditional shophouses, luxury villas, and even auction properties through banks. The market includes both residential apartments and ongoing new developments with modern amenities.

Property types range from affordable suburban units in Biringkanaya to upscale options in the city center, including prestigious developments like Citraland City CPI and Sunset Cove. Cluster developments in Tanjung Bunga offer a middle-ground option with modern facilities and community amenities.

New off-plan opportunities are particularly attractive in 2025, with projects launching in fast-growing areas like Daya and Sudiang. These developments often provide better value and customization options compared to completed properties.

It's something we develop in our Indonesia property pack.

Is it generally smarter to buy or to rent if you're planning to live there?

Buying makes more financial sense for mid to long-term residents planning to stay in Makassar for over 3-5 years.

Property prices are rising moderately but consistently, while the robust new supply keeps price increases less steep than in other major Indonesian cities. Current mortgage rates hover around 6%, making financing accessible for qualified buyers.

The oversupply of new builds in some areas means buyers have negotiating power and good selection, while rental yields are expected to drop slightly as more properties enter the market. This trend favors buyers over landlords in the current cycle.

Short-term expats on temporary assignments or those testing the market should rent for flexibility. However, those planning to establish roots, start families, or work long-term contracts will benefit from the stability and equity building that comes with ownership.

The cost advantage becomes clear when comparing long-term rental costs ($150-450/month for city center apartments) against ownership costs including mortgage payments, which often result in similar monthly outlays while building equity.

How have property prices changed over the last few years, where are they now, and what's the forecast?

Makassar residential prices have climbed consistently since 2019, driven by population growth and limited land availability in prime areas.

As of September 2025, median prices stand at $1,555 per square meter for apartments in the city center and $614 per square meter for suburban houses. The median home price in the high-demand Ujung Pandang district reached $410,700 in 2025, representing a 2% increase from 2024.

The price trajectory shows steady but moderate growth compared to Indonesia's tier-one cities. This measured appreciation reflects Makassar's emerging market status and the continued development of new supply to meet growing demand.

Forecasts indicate property prices will continue rising moderately through 2025-2027, fueled by major infrastructure projects, continued urbanization, and new policies welcoming foreign investment. However, rental yields currently ranging from 6-10% in prime areas may soften as supply expands.

The price stability makes Makassar particularly attractive for investors seeking predictable returns without the volatility seen in more speculative markets.

What are the main trends shaping the real estate market in Makassar right now?

Foreign investment is surging thanks to Indonesia's new "Golden Visa" and "Second Home Visa" policies, which have simplified buying procedures for overseas buyers.

There's a notable boom in modern and luxury housing developments, responding to demand from young professionals, tech startups, and growing local affluence. This trend is particularly visible in new cluster developments and high-rise apartments with contemporary amenities.

Student rental demand remains consistently strong in areas like Rappocini, making these locations favored by rental investors seeking stable, long-term tenants. The university population provides a reliable tenant base with predictable seasonal patterns.

Major infrastructure upgrades are transforming the city's accessibility and property values. Projects include airport expansions, new toll roads, Bus Rapid Transit (BRT) systems, and comprehensive city center revitalization initiatives.

Short-term rental hosting is growing rapidly, similar to Airbnb-style accommodations, though professional hosts with multiple properties are beginning to dominate this segment over individual homeowners.

How exactly does the buying process work step by step, especially for foreigners?

Foreigners cannot directly own land in Indonesia ("Hak Milik" is restricted to Indonesian citizens), but several legal pathways exist for property acquisition.

Foreign buyers can acquire property through 25-year leasehold arrangements, "Hak Pakai" right-to-use agreements (available with KITAS/KITAP residency), or by establishing a PT PMA (foreign investment company) for investment and rental purposes.

Recent reforms implemented between 2023-2025 allow foreigners to purchase property using their passport in specific cases, subject to investment minimums and property size regulations.

1. **Find and Evaluate Property**: Use reliable agents and online platforms to identify suitable properties2. **Check Title and Eligibility**: Verify the property qualifies for foreign purchase and select the appropriate ownership structure3. **Conduct Due Diligence**: Examine legal title, building permits, tax status, and environmental factors4. **Sign Sale Agreement**: Secure the property with a deposit and engage a notary (PPAT) for official documentation5. **Transfer Funds and Pay Taxes**: Comply with Indonesian currency transfer regulations and settle all applicable taxes6. **Obtain Deed and Register**: Complete the transaction at the Land Office, paying all required fees and registration costs7. **Consider Residency Options**: Explore Second Home Visa, Investor KITAS, or Golden Visa routes for extended stays8. **Final Handover**: Conduct property inspection, receive keys, and establish utility accounts

It's something we develop in our Indonesia property pack.

Where can someone realistically find properties for sale—are there reliable real estate agencies or online platforms?

Rumah123.com stands out as the most comprehensive online portal, offering extensive listings with detailed filters and virtual tour capabilities for Makassar properties.

Indonesia Housing Market provides access to multiple property types with valuable local market insights, while Indonesia-Real.Estate specializes in new builds, luxury properties, and villa developments throughout the city.

For professional guidance, LMI Consultancy and Exotiq offer specialized services for foreign buyers, including legal compliance, due diligence support, and translation services. Local realtors and specialist foreign property consultants can provide crucial assistance navigating Indonesian property law.

Bank auction properties appear regularly in listings and can offer significant discounts, though they require additional legal verification and often cash purchases.

Working with established agencies becomes particularly important for foreign buyers who need guidance on ownership structures, legal compliance, and local market conditions that may not be apparent from online listings alone.

For a given budget, what types of properties can you actually get?

Budget Range	Property Type	Location	Features
$50,000 - $100,000	Suburban house/apartment	Biringkanaya, outer areas	Basic amenities, good for first-time buyers
$100,000 - $200,000	Modern apartment/cluster house	Emerging areas, Daya, Sudiang	Contemporary design, community facilities
$200,000 - $400,000	City center apartment/villa	Rappocini, central districts	Prime location, modern amenities, high rental potential
$400,000 - $600,000	Luxury apartment/townhouse	Ujung Pandang, Tanjung Bunga	Premium finishes, excellent facilities, prestigious address
$600,000+	Luxury villa/penthouse	Citraland City, Sunset Cove	Top-tier amenities, exclusive locations, investment grade

For rental reference, you can expect to pay $150-300 monthly for a one-bedroom city center apartment, or $250-450 monthly for a three-bedroom city center unit. Purchase prices at $1,555/m² for city center apartments and $614/m² for suburban houses provide a baseline for budget calculations.

What are the biggest mistakes people make when buying property in Makassar and how can you avoid them?

The most critical mistake is attempting to purchase "Hak Milik" (freehold) ownership, which is legally impossible for foreigners.

Many buyers fail to use reputable local agents or skip comprehensive due diligence on property titles, leading to legal complications or invalid purchases. Always verify that your chosen ownership structure (leasehold, Hak Pakai, or PT PMA) aligns with your long-term plans.

Location evaluation errors are common, including overlooking factors like traffic congestion, remote locations with limited infrastructure, or areas lacking development potential. Some buyers underestimate ongoing costs including maintenance fees, property taxes, and infrastructure assessments.

Foreign buyers often fail to plan for resale constraints or understand the tax implications of their chosen ownership structure. Each ownership type has different transferability and tax consequences that should be considered upfront.

**Prevention strategies include:**- Always engage a trusted, licensed agent with foreign buyer experience- Verify ownership title meets your specific needs and citizenship status- Calculate total cost of ownership including all fees, taxes, and maintenance- Obtain independent legal advice from qualified Indonesian property lawyers- Conduct thorough location analysis including future development plans

What is the cost of living like in Makassar and how does it tie into property ownership?

Makassar offers extremely affordable living costs by international standards, with single persons requiring approximately $532 monthly and families of four needing around $1,224 monthly for comfortable living.

Local average salaries after tax hover around $239 monthly, which means expats with international incomes generally enjoy strong purchasing power and can afford higher-quality properties than most local residents.

Monthly utility costs typically range from $44-100, while property taxes remain significantly lower than most Western countries. This cost structure makes property ownership particularly attractive for foreign buyers seeking to minimize ongoing expenses.

Property ownership provides additional cost stability by eliminating rental payment fluctuations and offering potential rental income that can offset living expenses. Many expat property owners find their rental income covers most or all of their monthly living costs.

The low cost of living also means that property maintenance, domestic help, and home services remain very affordable, making property ownership less burdensome than in higher-cost countries.

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.

Which areas are considered the best to buy in—whether affordable, upcoming, or upscale—and what are the strengths and weaknesses of each?

Biringkanaya represents the best emerging opportunity, benefiting from new residential developments and proximity to airport infrastructure improvements, though the area still lacks some established amenities.

The City Center offers maximum amenities, commercial foot traffic, and established infrastructure, but comes with premium pricing, traffic congestion, and noise concerns. This area provides the highest liquidity for future resales.

Rappocini delivers consistent rental income from steady student demand and offers good value pricing, though it caters primarily to the student demographic rather than upscale residents.

Ujung Pandang commands premium prices due to its historic significance and high demand, but faces challenges with urban congestion and limited parking. This area suits high-end buyers seeking prestigious addresses.

Tanjung Bunga provides modern cluster developments with seaside access and shopping mall proximity, justifying price premiums but experiencing rapid changes that may affect long-term character.

It's something we develop in our Indonesia property pack.

What's life like there as an expat and how does that affect the decision to buy?

Makassar's growing expat community has been bolstered by recent visa reforms, increased affordability compared to Jakarta or Bali, and significant infrastructure improvements throughout the city.

The expat experience is generally positive, with rising numbers of international amenities, international schools, and stable safety conditions. Many expats choose to live in new developments that cater specifically to international residents with modern facilities and English-speaking management.

Language barriers continue to diminish in newer developments and expat-focused areas, though learning basic Indonesian remains beneficial for daily interactions and business dealings.

For expats planning long-term residence or bringing families, property ownership through proper legal channels offers stability, equity building, and integration into the local community. The ownership process, while requiring legal guidance, has become more accessible with recent regulatory changes.

Short-term expats or those on trial periods should rent initially to maintain flexibility, but many eventually transition to ownership once they confirm their long-term commitment to living in Makassar.

If you rent out long term, which areas should you target, what kind of tenants will you find, what do they look for, and what kind of rental income and yield can you expect?

Target areas near universities like Rappocini for student tenants, Biringkanaya for growing professional populations, and City Center locations for established professionals and small families.

Student tenants prioritize affordability, proximity to campus, reliable internet connectivity, and basic security features. They typically sign 12-month leases aligned with academic years and prefer shared accommodation options.

Professional tenants seek modern amenities, parking availability, proximity to business districts, strong WiFi infrastructure, and security features. Family tenants add requirements for nearby schools, markets, and recreational facilities.

Rental yields currently range from 6-10% annually in prime districts, though these may compress slightly as new supply enters the market. Rappocini consistently delivers stable occupancy rates due to predictable student demand cycles.

Successful long-term rental properties require minimal maintenance, professional property management for foreign owners, and competitive pricing within local market ranges to ensure consistent occupancy throughout the year.

If you rent out short term, which areas work best, what kind of tenants book, what regulations apply, and what are the income and yield expectations?

City Center and Tanjung Bunga locations perform best for short-term rentals, attracting business travelers, tourists, and visiting professionals who value convenience and modern amenities.

Business travelers typically book Monday through Thursday, seeking reliable WiFi, workspace areas, and proximity to commercial districts. Tourist bookings peak during holiday periods and weekends, prioritizing entertainment access and cultural attractions.

Professional hosts with multiple properties increasingly dominate the short-term market, suggesting economies of scale and professional management become important for success.

Regulatory compliance requires awareness of local short-term rental rules, tax obligations, and potential licensing requirements. Regulations continue evolving as the short-term rental market grows, making legal compliance monitoring essential.

Income expectations range from 8-12% annual yields for well-located, professionally managed properties, though success depends heavily on consistent marketing, professional hosting standards, and responsive guest service.

Given all this, is it really worth buying in Makassar in 2025—for living, for renting out, or for buying and reselling later?

**For Living**: Definitely worth it for long-term residents who plan to stay 3+ years, especially with legal support to navigate foreign ownership requirements.

Property ownership provides cost stability compared to rising rental markets, builds equity over time, and offers stability for families establishing roots in Makassar. The legal frameworks now support foreign ownership through multiple pathways.

**For Rental Income**: Strong growth potential exists, though yields may compress from current 6-10% levels as supply increases. Prime locations still offer excellent opportunities for consistent rental income.

**For Resale/Capital Appreciation**: Property prices are forecast to continue moderate growth, making it a sound medium to long-term investment, particularly in emerging areas like Biringkanaya or established premium locations.

Success requires understanding local market dynamics, working with reputable agencies and legal advisors, and taking a medium to long-term investment perspective rather than seeking quick profits.

The combination of affordable entry costs, growing expat community, infrastructure improvements, and supportive foreign investment policies makes 2025 an opportune time for well-informed buyers who prioritize proper legal compliance and local market expertise.

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.

Sources

1. Rumah123 - Makassar House Listings
2. Indonesia Real Estate - Makassar Properties
3. BambooRoutes - Makassar Real Estate Forecasts
4. BambooRoutes - Makassar Price Forecasts
5. Living Cost - Makassar Cost of Living
6. Global Property Guide - Indonesia Price History
7. BambooRoutes - Makassar Best Areas
8. Indonesian Property Market Outlook 2025
9. Own Property Abroad - Buying in Makassar Guide
10. Enso Connect - Short-term Rental Outlook 2025