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As of September 2025, Makassar's property market presents mixed investment opportunities with city center apartments commanding premium prices while suburban areas offer better rental yields.
The Makassar residential market has experienced steady growth over the past five years, driven by urbanization and major infrastructure projects like the Center Point of Indonesia development. Property prices in central Makassar continue rising, while some outlying areas face softer demand as new developments concentrate on the city core.
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Makassar's property market offers distinct opportunities depending on location and investment strategy, with city center apartments priced at IDR 16.7 million per square meter but yielding only 2.87%, while suburban properties provide higher yields of 5.71%.
The market is currently driven by major infrastructure developments and urbanization trends, creating investment opportunities in specific neighborhoods like Biringkanaya and Rappocini.
| Property Focus | Best Location | Expected Return |
|---|---|---|
| High rental yield | Suburban apartments | 5.71% gross yield |
| Capital appreciation | City center | Steady price growth |
| Student rentals | Rappocini | Stable demand |
| Infrastructure growth | Biringkanaya | Rising prices |
| Commercial investment | Makassar City Center | High foot traffic |
| Budget investment | Outskirts | Lower entry costs |
| Long-term hold | Development corridors | Future urbanization |
What's the current average price per square meter in Makassar across different property types?
As of September 2025, apartment prices in Makassar average IDR 16.7 million per square meter (approximately $1,019) in the city center.
City center locations command significantly higher prices than suburban areas, with some premium developments exceeding IDR 20 million per square meter. The price differential between central and peripheral areas can be substantial, often ranging from 40-60% lower in suburban locations.
Suburban apartments typically price between IDR 8-12 million per square meter, making them more accessible for first-time investors. Houses in residential areas outside the center generally range from IDR 6-10 million per square meter depending on the specific neighborhood and amenities available.
Commercial properties in prime business districts command premium prices, often 20-30% higher than residential apartments in similar locations. Land prices vary significantly based on zoning and development potential, with commercial zoned land in the city center reaching IDR 25-35 million per square meter.
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How have property prices in Makassar changed over the past 5 years, and what's the short-term trend versus the long-term outlook?
Property prices in Makassar have shown a steady upward trend since 2019, with central locations experiencing the most significant appreciation driven by urbanization and limited land availability.
Long-term price growth has averaged 8-12% annually in prime central locations, significantly outpacing inflation. This growth stems from population expansion, increased urbanization, and major infrastructure investments that have enhanced the city's attractiveness to both residents and businesses.
Short-term trends as of September 2025 indicate continued strength in central areas, while suburban markets are experiencing more moderate growth. Ongoing development projects like the Center Point of Indonesia are maintaining upward pressure on prices in core districts.
The outlook for 2025-2027 suggests continued price appreciation in central Makassar, though at a more measured pace than the rapid growth of 2020-2023. Suburban areas may see some price stabilization as new supply enters the market, potentially creating better entry opportunities for investors.
Infrastructure completion and improved connectivity are expected to drive long-term value creation, particularly in areas like Biringkanaya that benefit from airport proximity and development plans.
Which neighborhoods in Makassar are considered the most attractive right now, and how do their prices compare?
Three neighborhoods stand out as the most attractive investment locations in Makassar's current market landscape.
Biringkanaya emerges as a top choice due to its strategic airport proximity and ongoing infrastructure improvements. Property prices here are rising rapidly, with new residential developments commanding premium rates. The area benefits from excellent connectivity and future development potential.
Makassar City Center remains the premier location for commercial real estate and high-end residential properties. Prices here are the highest in the city, but the area offers unmatched foot traffic, accessibility, and rental demand from businesses and professionals.
Rappocini has gained popularity among investors targeting the student rental market. Its proximity to major universities ensures consistent rental demand, making it attractive for buy-to-rent strategies. Property prices here are more moderate than the city center while offering stable returns.
Panakkukang represents an established residential area with good infrastructure and amenities, offering a balance between price appreciation potential and current affordability. The neighborhood attracts both owner-occupiers and investors seeking medium-term stability.
What are the rental yields like in Makassar, and how do they differ by property type and location?
| Location | Property Type | Gross Rental Yield |
|---|---|---|
| City Center | Apartments | 2.87% |
| Suburban Areas | Apartments | 5.71% |
| Rappocini | Student Housing | 4.5-6.2% |
| Biringkanaya | New Developments | 3.8-4.5% |
| City Center | Commercial Units | 3.2-4.1% |
| Outskirts | Houses | 6.1-7.3% |
| University Areas | Shared Housing | 5.8-7.1% |
How quickly are properties selling on average, and does this vary depending on area or property type?
Property selling times in Makassar vary significantly based on location, with central and rapidly developing areas experiencing much faster sales cycles.
Central Makassar and Biringkanaya properties typically sell within 2-4 months due to high demand and limited supply. These areas benefit from strong buyer interest from both investors and end-users seeking modern amenities and good connectivity.
Suburban and outskirt properties generally take 4-8 months to sell, as buyers often focus on newer developments closer to infrastructure improvements. Older properties in these areas may require longer marketing periods unless priced competitively.
New construction and recently renovated properties sell faster across all areas, often within 1-3 months in prime locations. Student housing in university areas like Rappocini maintains steady demand, with typical sales periods of 3-5 months.
Commercial properties require longer sales cycles, typically 6-12 months, as buyers conduct more extensive due diligence and financing processes. However, well-located commercial units in high-traffic areas can sell more quickly to experienced investors.
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What are the projected infrastructure or development plans in Makassar that could impact property values in the medium to long term?
The Center Point of Indonesia (CPI) project represents the most significant infrastructure development reshaping Makassar's urban landscape and property values.
This massive development focuses on creating enhanced business districts and improved public spaces in the city center, directly boosting both property prices and rental demand in affected areas. The project includes modern commercial complexes, upgraded transportation hubs, and recreational facilities.
The Makassar Livable City Plan complements the CPI project by improving urban planning, green spaces, and public infrastructure throughout the metropolitan area. These improvements are expected to increase property values city-wide while making certain neighborhoods more attractive to residents and businesses.
Airport connectivity improvements and road infrastructure upgrades particularly benefit Biringkanaya, making it increasingly attractive for both residential and commercial development. Enhanced public transport connections are planned to better link suburban areas with the city center.
Port modernization projects aim to strengthen Makassar's position as a regional commercial hub, potentially increasing demand for commercial real estate and nearby residential properties. These developments should support long-term property value appreciation across the metropolitan area.
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How does the cost of owning a property (taxes, maintenance, legal fees) compare with rental income potential in Makassar?
Property ownership costs in Makassar include several key components that significantly impact net rental yields for investors.
Property taxes, maintenance expenses, and legal fees can reduce gross rental yields by 1.5-2.5 percentage points annually. These costs vary by property type and location, with newer properties typically requiring lower maintenance but potentially higher insurance costs.
Mortgage rates average around 6% for local buyers, while foreigners may face higher rates and additional legal complexities. Legal fees for foreign buyers can be substantially higher, often 2-3% of purchase price compared to 1-1.5% for locals.
Price-to-rent ratios reveal significant differences between locations: city center properties average 34.85 years to break even through rental income alone, while suburban properties average just 17.51 years. This indicates suburban properties are better suited for pure rental income strategies.
Annual maintenance costs typically range from 2-4% of property value, depending on age and type. Newer apartments in managed complexes may have lower individual maintenance costs but higher service fees, while older properties require more hands-on management and repairs.
What budget ranges make sense for different goals—living, renting out, or reselling—in Makassar today?
Budget requirements in Makassar vary significantly depending on your primary investment or lifestyle objectives.
For personal residence, city center apartments require budgets starting from IDR 800 million-1.2 billion for a comfortable 50-60 square meter unit. Suburban houses offer more space and value, with quality properties available from IDR 600 million-1 billion depending on location and amenities.
Rental investment properties work best with different budget approaches: student housing in Rappocini can generate strong returns with investments starting from IDR 400-700 million. Airport-accessible areas like Biringkanaya offer good rental potential with entry points from IDR 600 million-1 billion.
For resale speculation, focus budgets on areas near major infrastructure projects. City center properties requiring IDR 1.2-2 billion offer greatest appreciation potential, while Biringkanaya developments in the IDR 800 million-1.5 billion range benefit from ongoing infrastructure improvements.
Commercial investments typically require higher capital, with viable opportunities starting from IDR 1.5-3 billion for small commercial units in good locations. Land purchases for future development require substantial capital but offer significant long-term potential in development corridors.
Which property types (apartments, houses, commercial units, land) are in highest demand now, and which are oversupplied?
Current demand patterns in Makassar show clear preferences for specific property types and locations.
Apartments and houses close to universities maintain the highest demand, driven by consistent student populations and young professional renters. New residential developments near infrastructure improvements also attract strong buyer interest from both investors and end-users.
Commercial units in the city center remain popular for business use, benefiting from high foot traffic and excellent accessibility. Small commercial spaces suitable for retail and service businesses experience particularly strong demand from local entrepreneurs.
Student housing represents a consistently undersupplied market segment, with university areas like Rappocini unable to meet growing demand. This creates ongoing opportunities for investors willing to develop or convert properties for student use.
Some residential projects in less central neighborhoods face potential oversupply as development focus shifts toward the core areas. Older apartment complexes without modern amenities may struggle to compete with new developments offering better facilities and locations.
Land in strategic development corridors remains in high demand among developers and long-term investors, while rural land far from infrastructure improvements shows limited interest. The key is proximity to current or planned development projects.
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How does the return on investment differ if you buy to live in versus buy to rent out versus buy to resell?
Investment returns in Makassar vary dramatically depending on your chosen strategy and time horizon.
Buy-to-live strategies offer stability and potential value appreciation, especially in central areas and emerging districts like Biringkanaya. While you don't generate rental income, you avoid rental payments and benefit from any property appreciation over time. Central locations provide lifestyle benefits but lower financial returns compared to investment properties.
Buy-to-rent strategies deliver higher yields in affordable, high-demand areas like Rappocini and suburban locations. Gross yields of 5.71% in suburban apartments significantly exceed the 2.87% available in city center properties. Student housing can generate even higher returns due to consistent demand and multiple tenant arrangements.
Buy-to-resell strategies work best in areas with current or upcoming development projects. City center properties and Biringkanaya developments offer the strongest appreciation potential, though they require higher initial capital and longer holding periods to maximize returns.
Mixed strategies combining rental income with appreciation potential work well in transitional neighborhoods experiencing infrastructure improvements. These areas offer moderate rental yields while building long-term value through development and gentrification.
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Are there financing options or restrictions that affect foreigners or locals differently when buying property in Makassar?
Financing and ownership regulations create distinct challenges and opportunities for foreign versus local buyers in Makassar.
Foreign buyers face tighter purchasing regulations and typically cannot own freehold property directly. Instead, they must use long-term leasehold arrangements or complex corporate structures, which increase legal costs and complexity. Foreign ownership through leasehold arrangements typically spans 25-30 years with renewal options.
Local buyers enjoy more flexible financing options with access to competitive mortgage rates around 6% from Indonesian banks. They can obtain freehold ownership and typically face lower transaction costs and fewer regulatory hurdles throughout the purchase process.
Legal and tax costs for foreign buyers often reach 3-5% of purchase price, compared to 1.5-2.5% for locals. Foreign buyers also face additional requirements such as minimum purchase values and restrictions on certain property types or locations.
Mortgage availability for foreigners is limited, with most requiring substantial down payments of 50-70% compared to 20-30% for local buyers. This financing constraint significantly impacts foreign buyers' purchasing power and investment strategies.
Despite restrictions, foreign investment remains welcome in many sectors, and experienced legal counsel can help navigate the requirements effectively while ensuring compliance with Indonesian property laws.
Given today's market, where and what should a buyer focus on if the goal is short-term gain, medium-term security, or long-term growth?
Strategic property selection in Makassar depends heavily on your investment timeline and risk tolerance.
Short-term gain opportunities exist in speculative purchases within fast-developing central projects and Biringkanaya. These areas benefit from immediate infrastructure improvements and development momentum, though they require higher capital and carry greater risk. Focus on pre-completion purchases in prime developments for maximum appreciation potential.
Medium-term security strategies work best in established neighborhoods like Rappocini and Panakkukang. Student housing and residential properties in these areas provide steady rental income and moderate appreciation over 3-7 year holding periods. These investments offer more predictable returns with lower volatility.
Long-term growth opportunities involve holding premium city center assets or acquiring land in sustainable development corridors. These strategies leverage ongoing urbanization and infrastructure upgrades over 10+ year periods. Consider properties that benefit from the Center Point of Indonesia project and planned transportation improvements.
Diversified approaches combining multiple strategies can optimize risk-adjusted returns. Consider allocating capital across different neighborhoods and property types to balance immediate income, medium-term stability, and long-term appreciation potential.
Airport proximity, university access, and infrastructure development should guide location selection across all time horizons, as these factors drive both current demand and future value creation in Makassar's evolving property market.
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 offers compelling opportunities for informed investors, with clear distinctions between high-yield suburban investments and capital appreciation potential in central developments.
Success requires matching investment strategy to location characteristics, whether targeting student rental yields in Rappocini, infrastructure growth in Biringkanaya, or long-term appreciation in city center developments.
Sources
- Makassar Price Forecasts - BambooRoutes
- Makassar Real Estate Forecasts - BambooRoutes
- Property Investment in Makassar - Numbeo
- Best Areas in Makassar - BambooRoutes
- Buy Property in Indonesia - Wise
- Indonesia Property Price History - Global Property Guide
- Indonesian Real Estate Research - Universitas Airlangga
- Makassar Property Comparison - Versus