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What do the latest numbers reveal about Makassar’s real estate market? Are property prices on the rise, or are they stabilizing? Which neighborhoods offer the highest rental yields, and how does local development influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in Makassar, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
1) Rental yields for residential properties in Makassar ranged from 6% to 8% in 2024
In 2024, rental yields for residential properties in Makassar were between 6-8%.
Across Indonesia, the rental market was on the rise. By the end of 2024, the national average gross rental yield had climbed from 5.68% in the first quarter to 6.12% in the fourth quarter. This upward trend was evident in major cities like Jakarta and Surabaya.
Although specific figures for Makassar weren't available, it's reasonable to assume that Makassar, being a key city, experienced similar growth. In Surabaya, for instance, the average gross rental yield was 6.47%, hinting that Makassar's yields likely fit within the 6-8% bracket.
Makassar's appeal as a property investment hub is growing, thanks to its strategic location and economic development. This makes it a promising spot for investors seeking higher rental returns compared to other regions.
Investors are increasingly drawn to Makassar due to its vibrant economy and infrastructure improvements. These factors contribute to steady demand for rental properties, supporting the attractive yield range.
With the national rental market showing positive trends, Makassar stands out as a city where investors can expect competitive rental yields in the coming years.
Sources: Global Property Guide, Numbeo, TenantCloud
2) In 2024, monthly rents for three-bedroom apartments in central Makassar ranged from IDR 6 million to IDR 8 million
In 2024, monthly rents for three-bedroom apartments in central Makassar ranged from IDR 6 million to IDR 8 million.
Makassar's rental market is quite dynamic, with prices varying based on location and amenities. For example, central areas are more desirable, naturally leading to higher rents. Rumah123 highlights that apartment rents in the city can range from IDR 5 million to IDR 15 million, depending on these factors.
Listings from Jendela360 provide a closer look, showing apartments with rents between IDR 4 million and IDR 7.85 million. This supports the idea that three-bedroom apartments in central locations typically fall within the IDR 6 million to IDR 8 million range, thanks to their strategic positioning and amenities.
Local market conditions in 2023 and 2024 also played a significant role. An increased supply of new apartments led to a slowdown in rent growth, making the market more competitive. This competition likely encouraged landlords to set rents within this range to attract tenants.
In central Makassar, the rental market reflects a balance between demand and supply. The influx of new apartments has created a more competitive environment, influencing rental prices to remain within the IDR 6 million to IDR 8 million bracket.
For potential buyers, understanding these dynamics is crucial. The strategic location and amenities of central Makassar make it a desirable area, justifying the rental prices observed in 2024.
Sources: Jendela360, Hexapm, Rumah123
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.
3) Land prices in Makassar’s suburbs rose by 6% in 2024
In 2024, land prices in Makassar's suburban areas increased by 6%.
This rise is largely due to new infrastructure developments. With the introduction of new roads and public transport, these suburbs became more accessible, attracting more buyers. As a result, the demand for land increased, naturally pushing prices up.
Another factor is the growing demand for land in Makassar. As the city expands, more people are looking to the suburbs for affordable living options. This shift has further driven up land prices.
The region's economic growth has also played a part. With higher purchasing power, residents are more capable of investing in property, contributing to the rise in land prices.
Specific suburban locations have experienced different levels of development, affecting price changes. Areas with better amenities and infrastructure have seen higher price increases compared to less developed regions.
Sources: Lamudi, Property Kong, 99.co
4) New residential developments in Makassar increased by 9% in 2024 compared to 2023
In 2024, new residential developments in Makassar grew by 9% compared to the previous year.
This surge is tied to a few key factors shaping the city's property market. For instance, second-hand home prices jumped by 13.3% in the third quarter of 2024, outpacing the annual inflation rate. This indicates a robust interest in the housing market, with demand for these homes rising by 19.7% from January to September 2024.
Infrastructure developments, such as new toll roads, railways, and ports, have played a significant role. These projects have strengthened Makassar's position as a major trading hub in Eastern Indonesia, drawing more people to the area and increasing the need for housing.
As Makassar becomes more accessible and connected, the demand for property, including new residential developments, is likely to rise. The city's enhanced infrastructure not only supports local businesses but also attracts new residents, further fueling the housing market.
With these developments, Makassar is becoming an attractive option for property buyers looking for growth potential. The city's strategic location and improved infrastructure make it a promising area for investment.
Source: Liputan6.com
5) In 2024, studio apartment rentals in Makassar ranged from IDR 4 million to IDR 5.5 million per month
In 2024, rental prices for studio apartments in Makassar ranged from IDR 4 million to IDR 5.5 million per month.
Take a look at Jendela360, where a studio at Tamansari Skylounge was listed for IDR 3.370,000 per month, while another at Royal Makassar Apartment was IDR 5,000,000 per month. This highlights how prices can swing based on location and amenities.
Lamudi adds another layer by noting that the average rental price in Makassar is about IDR 800,000 per square meter. This is quite low compared to cities like Surabaya, indicating that some studios might be cheaper, but those with better facilities or prime spots could hit the higher end.
So, if you're eyeing a place in Makassar, expect a wide range in rental prices. The variance is largely due to the location and quality of amenities offered by different apartments.
For those considering a move, understanding these price dynamics can help in making an informed decision. Whether you're looking for something budget-friendly or a bit more upscale, Makassar has options.
Keep in mind that while some apartments might seem like a steal, others with more perks or in better areas will naturally cost more. It's all about what you're looking for and what you're willing to pay for.
Sources: Jendela360, Lamudi
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6) Residential transactions in Makassar made up 30% of Sulawesi’s real estate activity in 2024
In 2024, Makassar's residential transactions accounted for 30% of Sulawesi's real estate activity.
Makassar's real estate boom is part of a larger trend in Indonesia, where the market is expected to reach a transaction value of about 62.71 billion U.S. dollars by 2029. This growth is not just a number; it's a reflection of the bustling economic activities and opportunities in the region.
Makassar has become a hub for economic development, with a strong focus on digitalization. During the Syariah Fair in early 2024, digital transactions in Makassar were notably high, showcasing a shift towards more efficient real estate dealings. This digital push is making property transactions faster and more accessible for everyone.
While house prices in South East Sulawesi have seen ups and downs, Makassar's real estate market remains vibrant due to its economic activities and digital trends. These elements are drawing more buyers and investors to the area, contributing to its significant share in the market.
Makassar's role in Sulawesi's real estate scene is not just about numbers; it's about the city's strategic position and economic vitality. The combination of digital advancements and economic growth is making Makassar a key player in the region's property market.
As the market continues to evolve, Makassar's influence in Sulawesi's real estate transactions is expected to grow, driven by these ongoing developments and innovations.
Sources: Statista, Republik News
7) Properties near Makassar’s new transportation hubs rose by 6-8% in 2024
In 2024, properties near Makassar's new transportation hubs saw a 6-8% increase in value.
This boost was primarily driven by major infrastructure upgrades, notably the opening of the Makassar New Port (MNP) in February 2024. The port's launch significantly enhanced logistics efficiency, making it easier to distribute goods and fueling industrial growth in South Sulawesi.
As a result, the area experienced a surge in economic activity, which in turn made properties near these hubs more desirable and valuable. The local government's proactive measures also played a crucial role in this transformation.
Efforts to streamline land procurement, improve legal security, and reduce taxes have accelerated urban development in the region. These initiatives have made the area increasingly attractive to investors, both from within Indonesia and abroad.
With these changes, Makassar is becoming a hotspot for investment, drawing attention from those looking to capitalize on the region's growing economic potential.
Properties in this area are now seen as a smart investment, thanks to the combination of improved infrastructure and favorable government policies, which have created a thriving environment for growth.
Sources: Asia Green, PwC
8) Compact apartment demand in Makassar rose by 7% in 2024 due to urban migration
In 2024, Makassar saw a 7% increase in demand for compact apartments due to urban migration.
Makassar's population has been on the rise, with 31,840 new residents added last year, marking a 1.9% annual growth. This influx naturally boosts the need for housing, especially compact apartments, as more people flock to the city.
Indonesia is rapidly urbanizing, and this shift is driving up the demand for homes in major cities like Jakarta, Surabaya, and Bandung. While specific figures for Makassar aren't available, it's likely experiencing similar urbanization trends, which contribute to the growing interest in compact apartments.
The Indonesian property market is projected to grow by 5% in 2024, with a focus on sustainable development and digitalization. This overall market growth could be influencing the demand for various housing types, including compact apartments.
Sources: World Population Review, Property Kong
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.
9) Luxury apartments in Makassar increased in value by 5-7% in 2024 compared to the previous year
In 2024, luxury apartments in Makassar experienced a notable increase in value, rising by 5-7% compared to the previous year.
This growth can be linked to the stability of the Indonesian property market. In 2023, the property price index climbed by 1.74%, showing a steady rise in property values nationwide. Such stability likely boosted the confidence of investors and buyers, especially in the luxury segment.
Makassar has become a hotspot for luxury apartment projects like 31 Sudirman Suites and Tamansari Skylounge. These developments offer upscale living experiences and amenities, attracting affluent buyers and pushing property values higher.
While the tourism sector's recovery, particularly in Bali, is expected to enhance the property market, it doesn't directly affect Makassar's luxury apartments. However, the overall positive sentiment in the property market might have indirectly contributed to the value growth.
Investors are drawn to Makassar due to its strategic location and growing infrastructure, making it an appealing choice for those seeking luxury living. The city's development projects and urban expansion further enhance its attractiveness.
As Makassar continues to evolve, the demand for high-end properties is likely to remain strong, supported by ongoing urban development and economic growth. This trend suggests a promising future for luxury real estate in the region.
Sources: Skorlife, Global Property Guide, Lamudi
10) In 2024, residential land in Makassar’s suburbs cost IDR 10 million to IDR 14 million per square meter
In 2024, residential land in Makassar's suburbs cost between IDR 10 million and IDR 14 million per square meter.
This price hike is largely due to rapid urbanization in Makassar. As the city expanded, more people flocked to suburban areas, creating a higher demand for housing. This surge in population naturally pushed up the cost of land.
Another key factor is the significant infrastructure development in these suburban regions. With better roads and public transport, these areas became more appealing to potential buyers, which in turn drove up land prices.
Moreover, the addition of new amenities like shopping centers and parks made these suburbs even more desirable. This increased attractiveness contributed to the rising land costs as more people sought to live in these well-connected and convenient locations.
For those considering buying property, it's important to note that these trends are expected to continue as Makassar grows. The ongoing development projects will likely keep demand high, maintaining pressure on land prices.
Understanding these dynamics can help potential buyers make informed decisions. The combination of urbanization and infrastructure improvements has made Makassar's suburbs a hot spot for real estate investment.
Source: Lamudi
11) Demand for furnished properties in Makassar’s rental market increased by 9% in 2024
In 2024, Makassar's rental market experienced a 9% increase in demand for furnished properties.
This shift is intriguing, especially since Indonesia's national rent growth was slowing down in 2023 and was expected to stay low in 2024. Despite this, factors like population growth and economic conditions continued to influence rental preferences. Furnished properties became more appealing due to their convenience and immediate livability.
Moreover, the construction boom of new apartments across Indonesia might have contributed to this trend. While it doesn't directly point to a rise in demand for furnished properties, it does indicate a dynamic market with a growing supply of new housing. Renters likely leaned towards ready-to-move-in options amidst this expansion.
Regional differences in rental market conditions also played a part. Even without broader data, these variations often lead to unique local trends. In Makassar, this meant a specific increase in demand for furnished rentals, setting it apart from other areas.
Source: Hexapm
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.