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Makassar's property market in 2025 shows strong fundamentals with steady price growth and attractive rental yields.
The city's residential properties average $1,536 per square meter in the center and $614 in suburbs, while rental yields reach up to 5.7% for suburban properties. Infrastructure developments and urban migration continue driving demand, though new supply may moderate some growth rates.
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Makassar's property market offers solid investment potential with moderate price appreciation and decent rental yields, particularly in suburban areas.
Infrastructure improvements and steady urbanization support long-term growth, though investors should monitor new supply levels that could impact short-term returns.
| Market Indicator | Current Status (Sep 2025) | Outlook |
|---|---|---|
| Average Price (City Center) | $1,536/m² | Moderate growth expected |
| Average Price (Suburbs) | $614/m² | Steady appreciation likely |
| Rental Yield (City Center) | 2.9% | May soften due to new supply |
| Rental Yield (Suburbs) | 5.7% | Stable to improving |
| Sales Pace | Faster than 2024 | Sustained demand expected |
| New Developments | High activity | Could create oversupply |
| Foreign Investment | Restricted but possible | Steady interest expected |
What's the current average price per square meter for residential and commercial properties in Makassar?
As of September 2025, residential property prices in Makassar show a clear divide between central and suburban areas.
City center residential properties average around $1,536 per square meter (approximately IDR 24.5 million per square meter), while suburban residential properties are significantly more affordable at around $614 per square meter (approximately IDR 10 million per square meter).
For apartments specifically in the city center, prices average around IDR 16.7 million per square meter, which translates to approximately $1,019 per square meter. Commercial properties vary widely depending on location and type, with properties in central business districts ranging from $40,000 to $150,000 per property, though the price per square meter can fluctuate significantly based on specific location and building quality.
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How have property prices in Makassar changed over the past three years?
Makassar's property market has experienced steady and moderate price appreciation from 2022 through 2025.
The primary drivers behind this upward trend include expanding urbanization, ongoing infrastructure projects, and increasingly limited land supply in desirable areas. The property price index has shown consistent yearly increases each year since 2019, indicating a reliable growth pattern rather than volatile swings.
This price growth aligns with consistent urban migration patterns and reduced land availability in prime locations. The appreciation has been moderate rather than explosive, suggesting a healthy market progression that balances growth with affordability for local buyers.
The three-year trend indicates that Makassar's property values have maintained their upward trajectory without experiencing significant corrections or bubble-like conditions.
What are the rental yields right now for apartments, houses, and offices in Makassar?
Rental yields in Makassar vary significantly by location and property type, with suburban properties generally offering better returns than city center locations.
City center apartments currently deliver gross rental yields of approximately 2.87% to 2.9%, which is relatively modest but typical for prime urban locations. Suburban houses and apartments perform much better, offering rental yields between 4% and 6%, with properties on the outskirts typically achieving the higher end of this range.
Commercial properties, including shophouses and offices, can generate rental yields between 5% and 8%, depending on their specific location and the quality of the building. However, some office and retail spaces may face challenges from oversupply in certain areas, which could impact their rental performance.
It's worth noting that rental yields may have dropped slightly compared to previous years due to an influx of new developments creating additional supply in the market.
How quickly are properties selling in Makassar compared to last year?
Properties in Makassar are generally selling faster in 2025 compared to 2024, particularly in high-demand areas.
City center properties and well-located suburban homes are experiencing increased buyer interest, leading to shorter time on the market. This acceleration is largely attributed to new infrastructure developments that have enhanced connectivity and made certain areas more attractive to both local and international buyers.
However, the market isn't uniformly fast-moving across all segments. Some areas with multiple new projects may experience longer marketing times due to oversupply of similar properties, creating more competition among sellers.
The overall trend suggests that well-positioned properties in established or improving neighborhoods are moving more quickly than they did last year, while properties in oversupplied segments may take longer to sell.
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What types of properties are most in demand in Makassar at the moment?
City center apartments and mixed-use developments are currently the most sought-after property types in Makassar's market.
- City center apartments: High demand from young professionals, students, and investors seeking rental income
- Mixed-use developments: Properties combining residential and commercial spaces appeal to diverse buyer segments
- Suburban family houses: Growing popularity among local buyers seeking more space and value
- Properties with modern amenities: Units featuring home office space and high-speed internet infrastructure
- Properties near transportation hubs: Locations with easy access to new infrastructure developments
The post-pandemic shift toward remote work has particularly increased demand for properties with dedicated home office space and reliable internet connectivity. Additionally, the ongoing infrastructure improvements have made properties near transportation corridors especially attractive to buyers and renters alike.
How many new property developments are being launched in Makassar this year?
Makassar is experiencing a significant boost in new residential projects throughout 2025.
The city is seeing substantial activity in large-scale housing clusters, apartment complexes, and mixed-use developments. Notable projects include award-winning developments like CitraLand Tallasa City Makassar, which highlight the current high level of development activity in the market.
High-rise developments are particularly prominent, reflecting the city's vertical growth strategy to accommodate increasing urban population density. This construction boom is driven by strong demand from both local residents and investors, though it also raises questions about potential oversupply in certain segments.
The pace of new launches suggests developers remain confident in Makassar's growth prospects, though buyers and investors should carefully evaluate specific locations to avoid areas where supply might exceed demand in the near term.
What's the current occupancy rate for apartments, offices, and retail spaces in Makassar?
Occupancy rates in Makassar show mixed performance across different property sectors as of September 2025.
Apartment occupancy in city centers is rising due to ongoing urbanization trends and job growth in the area. The influx of young professionals and students continues to support residential occupancy rates, particularly for well-located and modern apartment buildings.
Office and retail spaces show more variable occupancy levels that depend heavily on specific sectors and locations. While some areas maintain strong occupancy, others may experience challenges if new supply outstrips demand growth.
The evidence indicates generally improving occupancy for residential properties, while commercial spaces face more uneven conditions depending on their specific market segment and location quality.
How do interest rates and mortgage availability affect buyers in Makassar today?
Current mortgage conditions in Makassar remain relatively favorable for property buyers, with typical mortgage rates around 6% annually.
Mortgage availability is generally good for local buyers, which continues to incentivize property purchases and support market activity. The current rate environment is moderate enough to encourage ownership while not being so low as to create unsustainable demand spikes.
However, any future increases in interest rates could prompt some buyers to accelerate their purchase decisions to lock in current rates. The 6% rate level strikes a balance between accessibility for qualified borrowers and responsible lending practices.
Foreign buyers may face additional requirements and potentially different rate structures, though financing options remain available for qualified international investors through various channels.
It's something we develop in our Indonesia property pack.
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.
What infrastructure or government projects are planned that could influence property values in Makassar?
Several major infrastructure projects are underway in Makassar that are expected to significantly impact property values across the city.
| Project Type | Details | Expected Impact |
|---|---|---|
| Elevated Toll Roads | Enhanced city-airport-port connectivity | Improved access to key areas |
| Urban Transport Upgrades | Modernized public transportation systems | Better mobility and property accessibility |
| Wastewater Treatment Expansion | Infrastructure to support new developments | Enables sustainable urban growth |
| Waste-to-Energy Projects | Collaboration with Japanese partners | Environmental improvement and city appeal |
| Green Initiatives | Sustainability-focused urban planning | Enhanced livability and investment appeal |
These infrastructure improvements are making Makassar a more attractive and sustainable city, which supports further property value growth and increases investment interest from both domestic and international buyers.
How do foreign buyers and investors participate in Makassar's property market, and what restrictions apply?
Foreign buyers can participate in Makassar's property market, but they face specific legal restrictions regarding ownership types.
Foreigners may buy property through leasehold arrangements (Hak Pakai), company ownership structures, or other legal mechanisms, but they cannot own freehold titles (Hak Milik) directly. This represents a fundamental limitation compared to domestic buyers who have full ownership rights.
Property purchases by foreigners typically require KITAS or KITAP residency status, leasehold contracts, or the establishment of a foreign-owned entity. Investment transactions must meet minimum value requirements and comply with local size criteria, and the restrictions tend to be tighter compared to some other Indonesian cities.
The bureaucratic process can be complex and time-consuming, requiring careful navigation of legal requirements and often necessitating local legal assistance to ensure compliance with all regulations.
What are the main risks or challenges that could slow down the property market in Makassar?
Several factors could potentially slow Makassar's property market growth in the near term.
Oversupply in new developments represents the primary immediate risk, as the current construction boom could reduce rental yields and slow price growth in certain submarkets. This is particularly concerning for areas with multiple competing projects launching simultaneously.
Interest rate increases pose another significant challenge, as higher borrowing costs may dampen buyer appetite and reduce the pool of qualified purchasers. Economic shocks and currency volatility could also impact international investor demand, which has been an important component of market activity.
Foreign ownership limitations and bureaucratic complexities can lengthen transaction times and discourage some international buyers who might otherwise participate in the market. These procedural challenges create friction that could slow overall market velocity.
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What's the expert consensus or forecast for Makassar's property prices and rental demand over the next two to three years?
The expert consensus for Makassar's property market from 2025 to 2027 is cautiously optimistic, with moderate but reliable growth expected.
Property prices are likely to continue their upward trajectory due to strong urban migration patterns and ongoing infrastructure developments that enhance the city's appeal. However, the pace of appreciation may be more moderate than in recent years as new supply enters the market.
Rental yields could soften slightly as additional developments increase supply, though long-term gains appear likely for properties in strategic locations with good infrastructure access. Both local and international investors are expected to remain active, particularly in city center and suburban growth corridors.
The short-term risks are mainly linked to supply-demand imbalances in specific submarkets and potential macroeconomic headwinds, but the underlying demand fundamentals appear robust given Makassar's role as a regional economic hub.
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 both investors and residents, with steady growth supported by infrastructure development and urbanization trends.
While challenges like new supply and regulatory complexity exist, the fundamentals remain solid for those who research carefully and choose strategic locations within the market.
Sources
- Makassar Property Market Analysis
- Makassar Price Forecasts
- Numbeo Property Investment Data
- Makassar Real Estate Forecasts
- Makassar Real Estate Trends
- Best Cities in Indonesia for Property Investment
- Government Infrastructure Progress Report
- Asian Development Bank Project Data
- Makassar Waste-to-Energy Project
- How to Buy Property in Makassar Guide