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
Makassar's residential property market in 2025 shows steady growth with prices averaging $1,536 per m² in central areas and $614 per m² in suburbs.
The market offers solid rental yields of 2.9% in city center and up to 5.7% in suburban areas, driven by ongoing urbanization, population growth reaching 1.5-2% annually, and significant infrastructure development projects throughout the city.
If you want to go deeper, you can check our pack of documents related to the real estate market in Indonesia, based on reliable facts and data, not opinions or rumors.
Makassar's property market in 2025 demonstrates moderate growth with competitive rental yields and strong fundamentals supported by infrastructure projects.
The city offers attractive entry points compared to other major Indonesian cities while maintaining steady appreciation potential through 2028.
| Market Metric | Current Value (2025) | Trend/Comparison |
|---|---|---|
| Average Price (City Center) | $1,536 per m² | +3-6% vs 2024 |
| Average Price (Suburbs) | $614 per m² | +3-5% vs 2024 |
| Rental Yield (Center) | 2.9% | Competitive with national avg |
| Rental Yield (Suburbs) | 5.7% | Above national average |
| Mortgage Interest Rates | 5.75-6.5% | In line with national rates |
| Population Growth | 1.5-2% annually | Among Indonesia's highest |
| Price Growth Forecast | 3-6% annually (2025-2028) | Moderate, steady appreciation |
What's the current average price per square meter for residential properties in Makassar, and how does it compare to last year?
As of September 2025, residential properties in central Makassar cost around $1,536 per square meter, while suburban locations average $614 per square meter.
Apartments specifically average IDR 16.7 million (approximately $1,019) per square meter across the city. These prices reflect the ongoing urbanization and land scarcity that characterizes Makassar's growing property market.
Compared to 2024, property prices in Makassar have increased moderately with a year-on-year appreciation of 3-6% in central areas and 3-5% in suburban locations. This steady growth continues the consistent upward trend driven by urban development and limited land supply in prime locations.
The price differential between central and suburban areas remains significant, offering investors different entry points depending on their budget and investment strategy. Central locations command premium prices due to proximity to business districts and established infrastructure.
It's something we develop in our Indonesia property pack.
How have property prices in Makassar changed over the past five years—what's the percentage increase or decrease?
Property prices in Makassar have climbed consistently over the past five years from 2019 to 2024, with an overall increase of 15-25% across the city.
This translates to an average annual price appreciation of approximately 3-5%, which represents steady and sustainable growth. Central locations have experienced higher increases compared to suburban areas, reflecting the concentration of development and investment in prime areas.
The key drivers behind this five-year growth include sustained urban expansion, major infrastructure projects, and limited land supply in desirable locations. Unlike some Indonesian cities that experienced volatile price swings, Makassar has maintained relatively stable appreciation rates.
The growth pattern shows that investors who purchased properties in 2019 have seen solid returns, particularly those who invested in central locations or areas that benefited from infrastructure development. This historical performance indicates a mature and stable market with predictable appreciation patterns.
What's the current rental yield in Makassar for apartments and houses, and how does it compare to Indonesia's national average?
Gross rental yields in Makassar vary significantly by location, with city center properties generating around 2.9% and suburban areas offering up to 5.7% yields as of September 2025.
Houses in entry-level and mid-range segments located in the outskirts typically achieve rental yields of 4-6%, making them particularly attractive for investors seeking income generation. The higher yields in suburban areas reflect lower purchase prices combined with steady rental demand from growing populations.
These yields are competitive and align with Indonesia's national average for secondary cities, where typical yields range from 3-6%. Makassar's suburban yields actually exceed many national averages, positioning the city as an attractive rental investment destination.
The yield differential between center and suburbs presents investors with clear choices: central properties offer lower yields but potentially higher capital appreciation, while suburban properties provide better immediate income returns with solid growth prospects.
How many new housing units or apartment projects are under construction in Makassar right now, and what's their expected completion timeline?
Makassar is experiencing a significant construction boom with numerous residential projects currently under development throughout the city.
Major projects include high-rise apartments such as Ciputra Waterfront City and large-scale mixed-use developments like Center Point of Indonesia, which represents substantial new supply coming to market. These developments reflect both local and international developer confidence in Makassar's growth prospects.
The majority of residential projects currently under construction are scheduled for completion between late 2025 and 2027. This timeline suggests that new supply will be gradually introduced to the market over the next 2-3 years, which could temporarily impact rental yields as additional units become available.
The substantial pipeline of new developments indicates strong developer confidence in Makassar's fundamentals, including population growth, economic expansion, and infrastructure improvements. However, investors should monitor this supply carefully as it could create temporary oversupply in certain segments or locations.
Don't lose money on your property in Makassar
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
What's the current vacancy rate in Makassar's residential and commercial property markets?
As of September 2025, Makassar's residential vacancy rate remains relatively stable at 5-8% despite the surge in new construction activity.
This vacancy rate reflects a healthy balance between supply and demand, with new residents and businesses continuing to absorb available space. The rate has remained stable even with increased construction, indicating strong underlying demand from population growth and economic expansion.
Commercial property vacancy rates fluctuate similarly to residential, with central office and retail space maintaining good absorption rates. The continued demand for commercial space reflects Makassar's role as a major economic hub in eastern Indonesia.
The relatively low vacancy rates suggest that the market is not experiencing oversupply issues, despite the significant pipeline of new projects. This indicates that population and economic growth are keeping pace with new construction, supporting both rental income and property values.
How many property transactions took place in Makassar last quarter, and how does that number compare with the same quarter last year?
In Q2 2025, Makassar's property market experienced approximately 6-8% fewer transactions compared to Q2 2024, reflecting broader macroeconomic volatility affecting Indonesia and global markets.
Despite this decline in overall transaction volume, private sector residential deals remained robust, indicating that while some segments slowed, core residential demand stayed strong. The reduction primarily affected commercial and higher-end residential segments rather than mainstream housing.
The transaction decline reflects global economic uncertainties rather than fundamental weakness in Makassar's property market. Local demand drivers including population growth, urbanization, and infrastructure development continue to support underlying transaction activity.
This temporary reduction in transactions may actually present opportunities for buyers, as reduced competition could lead to better negotiation positions and more selective pricing from developers eager to maintain sales momentum.
What are the average mortgage interest rates being offered by local banks in Makassar, and how do they affect affordability?
As of August 2025, most local banks in Makassar offer fixed or floating mortgage interest rates ranging from 5.75% to 6.5% per annum.
These rates represent a slight increase from previous years, making long-term affordability more challenging for some buyers. However, the rates remain attractive compared to rental costs over time, particularly for buyers planning to hold properties for extended periods.
The rising rates reflect Indonesia's monetary policy adjustments and global interest rate trends. While this impacts affordability calculations, the rates remain competitive within the Southeast Asian region and support sustainable lending practices.
For property investors, these mortgage rates still allow for positive leverage in many cases, especially when purchasing properties with higher rental yields in suburban areas. The key is ensuring rental income can comfortably service debt obligations while providing positive cash flow.
It's something we develop in our Indonesia property pack.
What's the projected population growth in Makassar over the next five to ten years, and how is that likely to impact housing demand?
Makassar's population is projected to grow from approximately 1.6 million in 2021 to 1.8-2.0 million by 2035, representing substantial demographic expansion over the next decade.
The city maintains one of Indonesia's highest annual population growth rates at 1.5-2% per year, driven by continued urbanization, migration from rural areas, and expanding job opportunities in the regional economic hub.
This population growth directly translates into sustained housing demand, as new residents require both rental and purchase accommodation. The demographic expansion supports both immediate rental income for investors and long-term capital appreciation through increased demand pressure.
The combination of natural population growth and internal migration creates a predictable pipeline of housing demand, which underpins the stability of Makassar's property market and supports developer confidence in new projects. This demographic trend is one of the strongest fundamentals supporting property investment in the city.
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.
How much foreign investment is flowing into Makassar's real estate sector, and is it trending upward or downward?
Foreign investment into Makassar's real estate sector remains stable with moderate upward momentum, particularly in urban residential and commercial developments.
Despite Indonesia experiencing a national FDI slowdown of 12% year-on-year in early 2025, Makassar continues to attract international developers, especially for larger suburban and mixed-use projects. The city benefits from its strategic position as a gateway to eastern Indonesia.
International developers are particularly focused on mixed-use developments that combine residential, commercial, and retail components, reflecting confidence in Makassar's continued urbanization and economic growth. These projects typically involve significant capital commitments spanning multiple years.
The steady foreign investment indicates international recognition of Makassar's growth potential and stable political environment. This continued interest from foreign investors provides additional validation for local property investors considering the market.
What are the current government policies or incentives that directly affect property buying or development in Makassar?
The Indonesian government has extended significant VAT incentives for property purchases that directly benefit buyers in Makassar through the end of 2025.
These incentives include 100% VAT exemption for landed houses and apartments purchased up to IDR 2 billion, and partial exemptions for properties up to IDR 5 billion. This policy significantly reduces the effective purchase price for most residential properties in Makassar.
For foreign buyers, Indonesia allows property ownership in Makassar through leasehold arrangements, Hak Pakai titles, or direct purchases using passports, subject to specific requirements and investment thresholds. These policies make the market accessible to international investors.
The government's infrastructure investment programs, including road upgrades, port improvements, and public transport expansion, directly support property values by improving connectivity and accessibility throughout Makassar. These policies create positive externalities that benefit all property owners in the city.
How do infrastructure projects—like new roads, ports, or public transport expansions—impact expected property values in Makassar?
Major infrastructure projects currently underway in Makassar are significantly improving connectivity and boosting property demand, particularly in development corridors near new facilities.
Key projects include road upgrades, port improvements, wastewater management systems, and public transport expansions such as the Center Point of Indonesia reclamation and infrastructure project. These developments improve both the quality of life and economic accessibility throughout the city.
Properties located near new infrastructure, especially business districts and transport hubs, are experiencing higher-than-average appreciation rates. The improved connectivity makes previously less accessible areas more attractive to residents and businesses.
Infrastructure development creates multiplier effects, with initial projects attracting additional investment and development that further enhances property values. This creates positive feedback loops that benefit property owners in affected areas for years after project completion.
It's something we develop in our Indonesia property pack.
What's the forecasted property price growth rate in Makassar for the next three years, and how does it compare to other major Indonesian cities?
Makassar residential property prices are expected to grow at a moderate rate of 3-6% annually over the next three years from 2025 to 2028.
This forecast reflects the city's strong fundamentals including population growth, infrastructure development, and economic expansion, while accounting for potential headwinds from increased supply and macroeconomic factors. The growth rate represents sustainable appreciation that aligns with underlying economic conditions.
Compared to other major Indonesian cities, this growth rate is competitive and potentially outpaces slower-growing secondary urban centers. However, it remains below the rapid appreciation seen in Jakarta's prime areas, reflecting Makassar's position as an emerging rather than established premium market.
The forecasted growth rate positions Makassar as offering balanced risk-return characteristics for property investors. The moderate appreciation combined with solid rental yields creates attractive total return prospects while avoiding the volatility associated with more speculative markets.
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 property market in 2025 presents a compelling opportunity for investors seeking steady growth with reasonable entry points compared to other major Indonesian cities.
The combination of demographic tailwinds, infrastructure development, and government incentives creates a supportive environment for both capital appreciation and rental income generation over the medium term.
Sources
- Makassar Property Market Analysis
- Makassar Price Forecasts
- Makassar Real Estate Forecasts
- Numbeo Property Investment Data Makassar
- Center Point of Indonesia Development Project
- Ciputra Waterfront City Development
- Industrial Investment Q2 2025 Report
- Colliers Indonesia Market Report
- BCA Bank Mortgage Rates
- Makassar Population Growth Study