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What is happening in Makassar’s real estate market? Are prices on the rise or decline? Is Makassar still attracting foreign investors? How are local government policies and taxes shaping the real estate landscape in 2025?
These are the questions we hear every day from professionals, buyers, and sellers across Makassar and beyond. Maybe you’re curious about the same things.
We know this because we stay closely connected with local experts and people like you, exploring the Makassar real estate market daily. That’s why we crafted this article: to offer clear answers, insightful analysis, and a comprehensive view of market trends and dynamics.
Our aim is straightforward: to make sure you feel informed and confident about the market without needing to search elsewhere. If you think we missed something or could improve, we’d love to hear your feedback. Feel free to message us with your thoughts, and we’ll strive to enhance this content for you.
1) Makassar's property prices will rise due to limited land availability
Makassar's population has skyrocketed from 222,644 in 1950 to 1,704,930 in 2024.
This boom means land is becoming a rare commodity, pushing property prices up. The Indonesia Residential Property Price Index for Makassar hit an all-time high in June 2019, showing a steady climb in property values.
Government reports, like the Makassar Livable City Plan, stress the need for smart urban development. They highlight how land scarcity is a big challenge and directly impacts property prices.
Real estate market analyses reveal a 1.74% increase in property prices in 2023 and a 15.82% rise from 2016 to 2023. This growth is largely due to the limited land supply.
Media reports frequently point out the scarcity of available land in Makassar, which is a key factor in the rising property prices.
With the city's rapid urbanization, the demand for housing is only going up, making Makassar a hot spot for property investment.
Sources: World Population Review, CEIC Data, Development Asia, Global Property Guide
2) Government support will keep affordable housing rents stable
Makassar City is making big moves to keep housing affordable for its residents.
Thanks to increased government funding, more affordable housing projects are popping up. Programs like the Housing Financing Liquidity Facility (FLPP) are stepping in to help low-income families, making it easier for them to find a place to call home.
Another game-changer is the introduction of housing subsidies for those who need it most. The Self-Help Housing Stimulant Assistance (BSPS) program is a lifeline, offering financial aid for home renovations. This support is crucial in keeping housing costs within reach for many families.
The city isn't just stopping at subsidies; they're also building new affordable housing units. By constructing flats in key urban areas, they're providing rental options that start as low as IDR 75,000 per month. This boost in affordable housing supply is helping to keep rents stable.
These efforts are part of a broader strategy to meet the demand for low-cost living spaces. By focusing on strategic locations, the government is ensuring that more people have access to affordable housing options.
With these initiatives, Makassar is setting an example of how to tackle housing affordability head-on, making sure that everyone has a fair shot at finding a home they can afford.
Sources: TOJQI Journal, Ramboll
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.
3) Urbanization will boost demand for city-center properties
Urbanization in Makassar is driving up demand for city-center properties.
With the population expected to grow from 1.7 million in 2024 to over 2 million by 2035, more people are flocking to urban areas, naturally boosting the need for housing in the heart of the city. This trend is fueled by increased migration, as people seek better job opportunities and a higher quality of life in Makassar.
The government is also playing a role by focusing on urban development plans that aim to enhance residential areas and reduce slums, particularly in city centers. These improvements, along with better public transportation, make city living more attractive, drawing more residents and businesses to the area.
Job opportunities are another magnet. As employment prospects rise, more people are moving to the city, which in turn increases the demand for housing in central areas. The bustling commercial activities in these city centers are also a big draw, leading to more investment in real estate projects to cater to the growing need for both housing and commercial spaces.
Makassar's city center is becoming a hub of activity, with enhanced infrastructure and amenities making it a desirable place to live and work. This transformation is not just about numbers; it's about creating a vibrant urban environment that attracts people from all walks of life.
As more people choose city-center living, the real estate market is responding with new developments and projects, ensuring that Makassar's urban core remains a dynamic and sought-after location.
Sources: World Population Review, Journal of Accounting Point of View
4) Property values in Somba Opu will rise due to enhanced flood management systems
The Jenelata Dam project kicked off in 2023, marking a big step for Makassar's flood management.
With this dam, flood risks in Somba Opu are expected to drop, making the area more appealing for potential buyers. When flood risks go down, property values often go up because people feel safer and more comfortable living there.
Makassar's Livable City Plan (MLCP) is also in the mix, aiming for smart growth and better flood control. This plan is all about making the city more resilient, which can boost property values as the area becomes more attractive to live in.
Looking at other cities, places with strong flood control measures tend to see a rise in property prices. This trend is likely to hit Somba Opu too, as the reduced flood risk draws in more buyers and investors.
Real estate experts are already predicting that Somba Opu will see a bump in property values thanks to these improvements. The area is becoming a hot spot for those looking to invest in safer, more desirable locations.
Sources: Indonesia Business Post, Asian Development Bank, EUDL
5) Properties near international schools will attract foreign buyers
Foreign buyers are eyeing properties near international schools in Makassar for several compelling reasons.
Makassar is becoming an educational hub, with rising enrollment numbers in international schools attracting students and expatriates alike. This influx of people seeking quality education naturally boosts the demand for nearby housing.
Neighborhoods with reputable international schools often see property prices on the rise, making them attractive to foreign buyers looking for investment opportunities. Expatriates usually prefer living close to these schools, as it offers their children access to quality education and convenient amenities.
The growth of expatriate communities in Makassar further highlights the demand for housing near international schools. As more expatriates move to the city for educational opportunities, the appeal of properties in these areas continues to increase. Real estate agents report higher inquiries for such properties, showing strong interest from both locals and expatriates.
In Makassar, the presence of international schools is a key factor driving the real estate market. The convenience and quality of life offered by these neighborhoods make them a top choice for foreign buyers.
With the city's educational reputation growing, properties near international schools are becoming prime real estate for those looking to invest or settle in Makassar.
Sources: Makassar Consulate, USM Journal
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6) New tax incentives will boost investment in affordable housing
Makassar is seeing a boom in affordable housing investments, thanks to new government tax incentives.
In 2023, South Sulawesi surpassed its national investment target by 113%, hitting IDR 16.451 trillion. A big chunk of this went into housing and construction, showing a keen interest in Makassar's property market. The local government is also stepping up, working on slum improvements and housing for low-income families, which means more permits for affordable housing are in the pipeline.
The Housing Financing Liquidity Facility (FLPP) program is a hit in Makassar, offering subsidies that make housing projects more appealing to investors. Flats in the city are quite affordable, with rents starting from IDR 75,000 to IDR 150,000 per month, indicating a strong demand for budget-friendly homes. This demand is expected to rise as more affordable units become available, thanks to those tax breaks.
Investors are eyeing Makassar not just for its affordability but also for the government's proactive stance. The city is making strides in urban development, which is a green light for those looking to invest in affordable housing. These tax incentives are a game-changer, making it easier for developers to bring more affordable options to the market.
With the government's backing, Makassar is becoming a hotspot for affordable housing. The combination of tax incentives and local initiatives is creating a fertile ground for investment. Investors are finding Makassar's property market increasingly attractive, and the trend is likely to continue as more projects get underway.
For anyone considering a property investment in Makassar, now might be the perfect time. The city's focus on affordable housing, coupled with supportive policies, is setting the stage for a vibrant real estate market. Makassar is positioning itself as a leader in affordable housing, drawing attention from both local and international investors.
Sources: Invest in South Sulawesi, TOJQI
7) Stricter environmental rules will affect property development in flood-prone areas
Stricter environmental regulations are set to change how properties are developed in flood-prone areas like Makassar.
In 2023, Makassar faced severe flooding due to intense rainfall and rising sea levels, affecting many districts and prompting evacuations. This event underscored the urgent need for better flood management and infrastructure improvements.
The Indonesian government is actively tackling flood risks, especially in cities like Makassar. Reports from BPBD Makassar highlight the need for enhanced flood management systems to prevent future disasters. This shows a clear move towards stricter environmental rules.
Plans for a nationwide urban flood resilience program are underway, signaling increased investment in flood mitigation infrastructure. This includes efforts to improve permeability and infiltration surfaces, which help reduce stormwater runoff and flood risks.
These initiatives reflect a shift towards more stringent environmental regulations, aiming to protect vulnerable areas from future flooding. The focus is on creating a more resilient urban landscape, which is crucial for sustainable development.
For potential property buyers, understanding these changes is key, as they will influence where and how new developments can occur. The government's proactive stance suggests that future projects will need to align with these new environmental standards.
8) Foreign investment in Makassar's residential real estate market will increase
Foreign investment in Indonesia is on the rise, and Makassar is catching the eye of international property buyers.
Makassar is not just any city; it's quickly becoming a business hub with a growing appeal. Thanks to projects like the Makassar-Parepare Railway, the city is set to become even more attractive. This railway project is a game-changer, aiming to boost national connectivity and ease the movement of goods and people. Imagine less traffic and better logistics—it's a win-win for everyone.
But that's not all. The city is also working on mass transit routes like the Trans Mamminasata, which will link suburban areas to the bustling urban centers. This means easier commutes and better access to the heart of the city, making Makassar even more appealing to investors and new residents.
The Indonesian government is rolling out the red carpet for foreign investors with initiatives like the Golden Visa and Second Home Visa. These policies make it simpler for international buyers to invest in property, especially in high-rise apartments. More rights and easier qualifications are making Makassar a hotspot for foreign investment.
Makassar's strategic location and ongoing infrastructure development are setting the stage for continued economic growth. This creates a favorable environment for foreign investors looking to tap into the city's potential. With all these developments, it's no wonder Makassar is on the radar for property buyers worldwide.
As the city continues to evolve, the influx of foreign capital is expected to rise, further boosting Makassar's real estate market. The combination of government support, strategic location, and improved infrastructure makes it a prime destination for those looking to invest in Indonesia's future.
Sources: IIF, Indonesia Investments
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Indonesia. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
9) Foreign buyers will increasingly target Makassar's luxury properties
Foreign buyers are increasingly eyeing Makassar's luxury properties for several compelling reasons.
Makassar is buzzing with new luxury developments like The Morizen and Topaz Residence, offering modern living spaces packed with amenities. This makes the city a magnet for those seeking upscale real estate.
Getting around Makassar is now a breeze, thanks to improved infrastructure like the Makassar New Port Toll Access Road. This boosts logistics and economic growth, making it a prime spot for international buyers who value easy access and convenience.
Compared to other major Indonesian cities, Makassar's luxury properties are a steal. A two-story house in The Morizen goes for about $220,000 USD, a tempting offer for foreign investors hunting for value in a booming market.
Makassar's appeal isn't just about the properties; it's about the lifestyle. The city offers a unique blend of modernity and tradition, making it an exciting place to live and invest.
With these factors in play, it's no wonder that foreign interest in Makassar's luxury real estate is on the rise.
10) Affordable housing yields will stay stable with consistent demand
Makassar's affordable housing demand is set to stay strong thanks to its growing population.
With the city's population expected to hit 2 million in the next 20 years, urbanization is on the rise, driving the need for more homes. This growth means affordable housing will remain in demand, especially with government efforts like vertical rental flats (rusunawa) making homes more accessible.
Students and young professionals are a big part of this demand, always on the lookout for affordable, central places to live. Their consistent rental needs help keep the market steady. Plus, Makassar's economy is stable, much like how the U.S. economy has shown resilience despite inflation and mortgage rate challenges.
Employment rates in Makassar are expected to hold steady, which is good news for housing demand. As more people find jobs, the need for affordable housing options will continue to grow. This stability in employment supports the ongoing demand for homes.
Government initiatives are also playing a role in keeping housing yields stable. By focusing on affordable housing projects, the government is ensuring that the market remains balanced and accessible to more people.
Overall, the combination of population growth, urbanization, and economic stability means that affordable housing yields in Makassar are likely to remain stable for the foreseeable future.
Sources: World Population Review, Development Asia, TOJQI, Green Builder Media
11) Makassar’s luxury property prices will increase as it grows into a major business hub
Makassar is becoming a key business hub, and luxury property prices are on the rise.
One major reason for this is the influx of foreign direct investment into the region. In 2022, Central Sulawesi, where Makassar is located, saw a surge in FDI, largely due to the booming nickel processing industry. This has sparked interest in the area, leading to a higher demand for luxury properties.
The government is also playing a part by improving infrastructure and connectivity in Makassar. These enhancements make the city more appealing to businesses and expatriates, which in turn boosts the demand for high-end residential properties. The presence of multinational companies setting up offices in the city further fuels this demand.
Makassar's proximity to Nusantara, Indonesia’s planned new capital, is another draw. This location is attracting career expats and affluent locals, creating a demographic shift that drives up demand for luxury properties. Historical trends from cities like Jakarta and Bali show that business growth often leads to increased luxury property prices, hinting at a similar pattern in Makassar.
As more businesses and people flock to Makassar, the city is transforming into a vibrant place to live and work. This transformation is making luxury properties more desirable, as people seek to be part of this growing hub. The combination of investment, infrastructure, and strategic location is setting the stage for continued growth in luxury property prices.
For those considering buying property in Makassar, now might be the time to act. The city’s evolution into a business center is likely to keep pushing property values upward, making it an attractive option for investors and homebuyers alike.
Sources: CACAC, Flip, Wikipedia
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12) Luxury property yields will increase as high-income earners show more interest
Makassar is seeing a rise in high-income earners, thanks to Indonesia's economic growth.
With more money in their pockets, these individuals are looking to invest in luxury properties. Makassar, much like Jakarta, is becoming a hotspot for luxury real estate due to similar economic conditions and infrastructure improvements. This trend is catching the eye of foreign investors, which often leads to a boost in property values.
Indonesia's economy is expected to grow by about 6% to 7% annually, which means more disposable income for potential buyers. As people earn more, they can afford to live in high-end homes, increasing the demand for luxury properties. Makassar is keeping up with this demand by developing high-end amenities and services that appeal to wealthy individuals.
These developments are not just about fancy homes; they include everything from upscale shopping centers to exclusive dining experiences. Such amenities are a big draw for affluent buyers, making Makassar an attractive place for luxury real estate investment.
Foreign investment is another factor driving this trend. When international investors show interest in a market, it often leads to increased property values and demand. Makassar is no exception, as foreign money flows into its real estate sector.
All these elements combined suggest that luxury property yields in Makassar are set to rise, driven by the growing interest from high-income earners. This makes it a promising market for those looking to invest in luxury real estate.
Sources: Global Property Guide, The Jakarta Post, Buying Property in Makassar, Indonesia, Trends in the Luxury Real Estate Market
13) Central Makassar will see rising rental yields as demand for city living increases
Rental yields in central Makassar are set to rise as more people choose city living.
Makassar's population is on the upswing, with projections showing it could hit 2 million in the next 20 years. This urban growth is a clear sign of increasing demand for housing. The city's appeal is further boosted by the Makassar Livable City Plan (MLCP), which aims to diversify the economy and attract investments. As businesses and job opportunities flourish, the need for housing grows, potentially driving up rental yields.
The MLCP is not just about economic growth; it's also about making the city more accessible and livable. Government infrastructure projects are enhancing city life, making Makassar a more attractive place for both residents and businesses. This improved livability is a magnet for people looking to move to the city, further fueling the demand for rental properties.
Globally and nationally, there's a noticeable shift towards urban living, especially among younger people. This trend is expected to continue, which means more people will be looking for rental properties in Makassar. The city's growing appeal is also evident in the increased investment in residential developments, signaling a strong interest in the area.
As more residential projects pop up, occupancy rates are likely to climb, leading to higher rental yields. This is great news for property investors looking to capitalize on Makassar's growth. The city's transformation into a vibrant urban hub is attracting attention, and with it, the potential for lucrative rental returns.
Makassar is becoming a hotspot for those seeking the urban lifestyle, and with the city's ongoing development, the demand for housing is only set to increase. This makes it an exciting time for anyone considering investing in property here.
Sources: Development Asia, Asian Development Bank
14) Suburban property prices may fall as urban living gains appeal
In Makassar, urban living is becoming increasingly popular as more people flock to the city.
With the city's population expected to hit 1,704,930 by 2024, it's clear that urbanization is on the rise. People are drawn to cities like Makassar for better job opportunities and higher wages, which are more abundant in urban settings. This influx is also driven by the promise of higher rental yields, making city living attractive to both residents and investors.
Infrastructure development is another key factor. The Makassar City Government is actively working on projects to enhance urban living conditions. These initiatives aim to improve housing quality and expand options, making the city even more appealing. Government policies are also in place to support urban growth, focusing on upgrading slum areas and providing affordable housing.
As urban areas become more desirable, some suburban regions might see a dip in property prices. This shift is partly due to the concentration of social amenities in cities, which adds to their allure. The convenience and lifestyle offered by urban centers are hard to match, leading to a preference for city life over suburban living.
Investors are taking note of these trends, as urban areas promise better returns. The combination of economic growth and infrastructure improvements in cities like Makassar makes them a hotspot for property investment. This focus on urban development is reshaping the real estate landscape, with more people choosing the vibrancy of city life.
Sources: World Population Review, Journal of Accounting Point of View, Citadel Agency, TOJQI
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.
15) Suburban rental yields will drop as more people choose city center living
People are increasingly choosing to live in city centers like Makassar.
This shift is largely due to the Makassar Livable City Plan, which aims to make urban living more appealing by enhancing infrastructure and amenities. As Makassar transforms into a smart city, the demand for urban living spaces has surged, mirroring trends in other Indonesian cities such as Jakarta and Surabaya.
In these city centers, property prices are climbing, reflecting the growing demand. This isn't just a local phenomenon; it's a pattern seen across various urban areas where infrastructure development is a priority. People are drawn to the convenience and lifestyle that city centers offer.
Occupancy rates in city center apartments are also on the rise. The allure of modern amenities, efficient transportation, and a vibrant lifestyle makes living closer to the city center more attractive. This trend is supported by surveys indicating a global preference for shorter commutes, which is likely influencing choices in Makassar as well.
As more people opt for city living, suburban rental yields are expected to decline. The preference for urban areas is reshaping the real estate landscape, with city centers becoming the focal point for new developments and investments.
For potential property buyers, understanding these trends is crucial. Investing in city center properties could offer better returns as the demand continues to grow, driven by the ongoing urbanization and the benefits of living in a well-connected, amenity-rich environment.
Sources: Development Asia, Indonesia Real Estate, Minut Blog
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.