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
This article covers everything you need to know about current housing prices in Medan and whether January 2026 is a smart time to buy property there.
We constantly update this blog post to reflect the latest market data, so you always get fresh insights.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Medan.
So, is now a good time?
Rather yes, January 2026 looks like a reasonable time to buy property in Medan because prices are not overheated and you have negotiation leverage as a buyer.
The strongest signal is that Bank Indonesia's national property price index shows only 0.84% yearly growth, which means you are not buying into a bubble.
Another strong signal is that several Medan districts show flat or slightly falling asking prices (Medan Johor down 5%, Medan Sunggal down 3%), which gives buyers room to negotiate.
Other supporting signals include weak primary market sales nationally, a stable interest rate environment at 4.75%, and rental yields around 5 to 7% in some mid-market areas like Medan Selayang and Medan Kota apartments.
The best investment strategy in Medan in 2026 is to focus on mid-market landed houses in well-connected, flood-safe districts like Medan Selayang or Medan Johor for rental income, or apartments in Medan Kota if the building quality is solid.
This is not financial or investment advice because we do not know your personal situation, and you should always do your own research before making any property purchase.
Is it smart to buy now in Medan, or should I wait as of 2026?
Do real estate prices look too high in Medan as of 2026?
As of early 2026, Medan property prices do not look dramatically overpriced compared to fundamentals because national price growth is very mild at under 1% yearly, and several Medan districts actually show flat or declining asking prices.
One clear on-the-ground signal in Medan listings is that asking prices in districts like Medan Johor have dropped around 5% and Medan Sunggal around 3%, which suggests sellers are already adjusting expectations rather than pushing prices higher.
However, prime areas like Medan Polonia remain expensive with median asking prices around Rp 9.5 billion, so the Medan market is really two different worlds depending on which neighborhood you are looking at.
You can also read our latest update regarding the housing prices in Medan.
Does a property price drop look likely in Medan as of 2026?
As of early 2026, the likelihood of a meaningful property price drop in Medan over the next 12 months is low to medium because the market is already soft rather than overheated, so there is not much room for a crash.
A plausible price change range for Medan property over the next 12 months would be somewhere between minus 5% and plus 3%, meaning prices could drift slightly lower or stay mostly flat rather than surge or collapse.
The single most important factor that could increase the odds of a price drop in Medan is a sharp rise in unemployment or a major economic slowdown in North Sumatra, which would weaken buyer demand directly.
Fortunately, this scenario looks unlikely in the near term because Indonesia's economy remains stable and Bank Indonesia has signaled room for future rate cuts if needed, which would support rather than hurt the housing market.
Finally, please note that we cover the price trends for next year in our pack about the property market in Medan.
Could property prices jump again in Medan as of 2026?
As of early 2026, the likelihood of a renewed price surge in Medan within the next 12 months is low to medium because demand remains soft and there is no clear catalyst for a sudden boom.
A plausible upside price change for Medan property over the next 12 months would be around 3 to 5% in the best-connected districts, while weaker areas may see no gains at all.
The single biggest demand-side trigger that could drive Medan prices higher is further interest rate cuts by Bank Indonesia, which would make mortgages cheaper and bring more buyers into the market, especially for mass-market landed homes.
Please also note that we regularly publish and update real estate price forecasts for Medan here.
Are we in a buyer or a seller market in Medan as of 2026?
As of early 2026, the Medan property market leans slightly toward buyers because price growth is nearly flat, sales volumes are weak, and several districts show declining asking prices.
While Medan does not publish an official months-of-inventory figure, the combination of slow sales nationally (Bank Indonesia reports primary sales still contracting) and visible listing depth on portals like Rumah123 suggests buyers have plenty of choice and time to negotiate.
Looking at price reductions, several Medan districts like Medan Johor and Medan Petisah show negative asking-price movements (around 4 to 5% down), which signals that sellers are already adjusting expectations rather than holding firm.
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.
Are homes overpriced, or fairly priced in Medan as of 2026?
Are homes overpriced versus rents or versus incomes in Medan as of 2026?
As of early 2026, Medan homes look fairly priced in mid-market districts when comparing purchase costs to rents, but prime areas like Medan Polonia appear expensive relative to the rental income they generate.
The price-to-rent ratio in Medan varies widely by neighborhood: mid-market areas like Medan Selayang show gross rental yields around 6.5% (meaning you earn back the price in roughly 15 years of rent), while prime areas like Medan Polonia yield only around 2.2% (meaning over 45 years to earn back the price from rent alone).
Looking at price-to-income, Medan remains challenging for typical local wage earners because even a modest Rp 1 billion home requires many years of average North Sumatra income, though dual-income households and business owners can afford mid-market properties more comfortably.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Medan.
Are home prices above the long-term average in Medan as of 2026?
As of early 2026, Medan home prices do not appear significantly above their long-term trend because national price growth has been very slow (under 1% yearly) and several Medan districts show flat or declining asking prices.
The recent 12-month price change in Medan is mild at best, with Bank Indonesia's national index showing just 0.84% growth, which is actually below inflation and represents essentially flat real prices compared to pre-pandemic years.
Looking at inflation-adjusted positioning, Medan property prices appear close to or slightly below their prior cycle peak in real terms, meaning buyers in January 2026 are not paying a premium above historical norms.
Get fresh and reliable information about the market in Medan
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
What local changes could move prices in Medan as of 2026?
Are big infrastructure projects coming to Medan as of 2026?
As of early 2026, the biggest planned infrastructure project near Medan is the Tol Medan-Kualanamu-Lubuk Pakam-Tebing Tinggi toll road, which could boost property values in districts along the corridor by improving airport access and regional connectivity.
This toll road project is already listed as a National Strategic Project (PSN) by the government, with funding and construction underway, meaning it is not just a proposal but an active infrastructure improvement that should complete within the next few years.
For the latest updates on the local projects, you can read our property market analysis about Medan here.
Are zoning or building rules changing in Medan as of 2026?
The most important zoning framework already in place for Medan is the city's Spatial Plan (RTRW) for 2022 to 2042, which was enacted through Perda Kota Medan No. 1/2022 and sets the rules for where development can expand over the next two decades.
As of early 2026, this existing spatial plan means areas designated for more intensive development could see increased housing supply (which tends to keep prices flatter), while areas with tighter restrictions may become more scarce and support higher values over time.
The types of Medan areas most affected by these zoning rules are those along major corridors and near business nodes where the city has planned for growth, such as areas connecting to the ring road and airport access routes.
Are foreign-buyer or mortgage rules changing in Medan as of 2026?
As of early 2026, the biggest factor affecting Medan buyers is not foreign-buyer rule changes but rather mortgage affordability, because Bank Indonesia's benchmark rate at 4.75% directly influences how much house local buyers can afford.
There are no major foreign-buyer rule changes being actively discussed for Medan specifically, as Indonesia's existing regulations already limit foreign ownership to certain property types and price thresholds.
On the mortgage side, Bank Indonesia has signaled room for potential rate cuts in 2026 if the rupiah remains stable, which could make mortgages cheaper and support demand for mass-market landed homes in Medan.
You can also read our latest update about mortgage and interest rates in Indonesia.
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.
Will it be easy to find tenants in Medan as of 2026?
Is the renter pool growing faster than new supply in Medan as of 2026?
As of early 2026, renter demand in Medan appears steady and roughly in balance with new rental supply, meaning landlords can find tenants but should not expect a shortage that drives rents sharply higher.
The best signal for renter demand in Medan comes from the city's stable population base (over 2.4 million people) and ongoing employment in sectors like trade, education, and services, though North Sumatra's unemployment rate remains a factor to watch.
On the supply side, new apartment completions in Medan Kota and some developer cluster projects add units to the market, but the pace is not overwhelming, which helps keep the rental market reasonably balanced rather than flooded.
Are days-on-market for rentals falling in Medan as of 2026?
As of early 2026, we do not have official city-wide days-on-market statistics for Medan rentals, but based on portal activity and rent levels holding steady, the market appears neither frozen nor extremely hot.
The difference in time-to-let between Medan's best rental areas (like Medan Baru near universities and Medan Selayang with good access) and weaker areas can be significant, with well-located properties finding tenants faster than those in flood-prone or poorly connected streets.
One common reason rentals move quickly in Medan is proximity to universities (like USU), hospitals, or major employers, which creates consistent demand from students, medical staff, and professionals who need housing near work.
Are vacancies dropping in the best areas of Medan as of 2026?
As of early 2026, the best-performing rental areas in Medan like Medan Baru, Medan Selayang, and Medan Kota apartments appear to have stable to slightly tightening vacancies based on steady rent levels and active listing turnover.
While we cannot cite an official vacancy rate for these Medan districts, the fact that asking rents remain meaningful (Rp 39 million to Rp 105 million yearly depending on property type and location) suggests landlords are finding tenants rather than sitting empty.
One practical sign that Medan's best rental areas are tightening is when landlords in districts like Medan Baru or Medan Selayang start receiving multiple inquiries within days of listing, rather than waiting weeks for a single serious prospect.
By the way, we've written a blog article detailing what are the current rent levels in Medan.
Buying real estate in Medan can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Am I buying into a tightening market in Medan as of 2026?
Is for-sale inventory shrinking in Medan as of 2026?
As of early 2026, we do not see strong evidence that for-sale inventory is shrinking dramatically in Medan because major portals like Rumah123 show broad listing availability across multiple districts and property types.
While Medan does not publish an official months-of-supply figure, the combination of weak national sales (Bank Indonesia reports primary sales still contracting) and visible inventory on portals suggests the market has ample supply relative to current buyer activity, which is closer to a balanced or buyer-leaning situation.
Are homes selling faster in Medan as of 2026?
As of early 2026, homes in Medan are not selling dramatically faster than before because national primary market data from Bank Indonesia still shows weak sales volumes rather than a surge in transaction speed.
The year-over-year change in selling speed for Medan is hard to pin down precisely without official local data, but the national pattern of soft sales and mild price growth suggests properties are taking their time to find buyers rather than flying off the market.
Are new listings slowing down in Medan as of 2026?
As of early 2026, we are not confident in estimating a precise year-over-year change in new Medan listings because there is no official local series tracking this, but the visible inventory on portals suggests listings remain active rather than drying up.
Medan's seasonal pattern for new listings typically sees more activity around the dry season and school enrollment periods, but we have not observed an unusually low level of new listings that would signal a supply crunch.
Is new construction failing to keep up in Medan as of 2026?
As of early 2026, we are not confident there is a severe gap between new housing completions and household demand in Medan because supply appears adequate in most segments, though specific micro-locations may have mismatches.
The recent trend in Medan shows ongoing apartment and cluster development in core areas like Medan Kota, with permits and construction continuing at a moderate pace rather than grinding to a halt.
The biggest bottleneck limiting new construction in Medan is likely land availability in desirable, flood-safe locations combined with infrastructure readiness, rather than financing or labor shortages.
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.
Will it be easy to sell later in Medan as of 2026?
Is resale liquidity strong enough in Medan as of 2026?
As of early 2026, resale liquidity in Medan is good enough for mainstream districts and realistically priced properties, but can be weak for overpriced prime homes or poorly maintained apartments.
While we do not have an official median days-on-market figure for Medan resales, properties priced in line with neighborhood comparables (especially in districts like Medan Selayang, Medan Johor, or Medan Baru) typically find buyers within a reasonable timeframe of a few months rather than sitting for years.
The property characteristic that most improves resale liquidity in Medan is a flood-safe micro-location with clean legal certificates, because buyers are very cautious about drainage issues and title problems in this city.
Is selling time getting longer in Medan as of 2026?
As of early 2026, selling time in Medan appears to be stable or slightly longer than a year ago because the market is soft with weak sales volumes nationally, meaning sellers need patience unless they price competitively.
The current realistic range for days-on-market in Medan spans from a few weeks for well-priced, well-located properties to several months or longer for overpriced listings or properties in less desirable micro-locations.
One clear reason selling time can lengthen in Medan is affordability pressure, where local incomes have not kept pace with asking prices, forcing sellers to wait for the right buyer or eventually cut their price.
Is it realistic to exit with profit in Medan as of 2026?
As of early 2026, the likelihood of selling a Medan property with profit is medium, meaning it is possible but depends heavily on buying right (not overpaying) and holding for at least 5 to 7 years to let modest appreciation and rental income build value.
The minimum holding period that most often makes exiting with profit realistic in Medan is around 5 to 7 years, which gives time for gradual price appreciation to offset transaction costs and market fluctuations.
The total round-trip cost drag in Medan (buying plus selling costs including taxes, notary fees, and agent commissions) is roughly 10 to 15% of the property value, which equals around Rp 100 to 150 million on a Rp 1 billion home (approximately USD 6,000 to 9,000 or EUR 5,500 to 8,500).
The single factor that most increases profit odds in Medan is buying below market value in a flood-safe, well-connected district like Medan Selayang or Medan Johor, where demand is steady and resale liquidity is stronger.
Get the full checklist for your due diligence in Medan
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Medan, we always rely on the strongest methodology we can and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Bank Indonesia SHPR Q3 2025 | Official central bank survey of Indonesian residential property prices and sales. | We used it to anchor national price growth (IHPR +0.84% yearly) and sales volume trends. We also used its financing breakdown to understand how Indonesians buy homes. |
| Bank Indonesia Rate Decision | Official central bank communication on interest rate policy. | We used it to establish the 4.75% benchmark rate that affects mortgage affordability. We also used it to gauge future rate direction and buyer demand implications. |
| Reuters | Top-tier wire service that reliably reports central bank decisions and market context. | We used it to confirm the most recent rate stance and forward guidance. We treated this as the market narrative layer on top of official releases. |
| BPS Kota Medan Yearbook 2025 | Official city statistical yearbook from Indonesia's national statistics agency. | We used it for local fundamentals like population, households, and economic context. We grounded demand drivers beyond just property sentiment. |
| BPS Unemployment by Province | Official BPS statistical table with clear methodology and update dates. | We used it as a labor market check for North Sumatra. We treated weaker employment as a downside risk for housing prices and rents. |
| BPS Average Wages by Province | Official BPS wage data that is updated and comparable across provinces. | We used it to sanity-check affordability by comparing prices to incomes. We judged whether Medan properties are overpriced relative to what locals earn. |
| Rumah123 Medan Listings | One of Indonesia's largest property portals with consistent listing structure. | We used it to estimate real-time asking prices and directional changes across Medan districts. We treated it as a market thermometer for buyer-seller dynamics. |
| Rumah123 Medan Rentals | Same portal providing consistent rental listing data across Medan neighborhoods. | We used it to estimate gross rental yields by comparing asking rents to asking prices. We calculated whether properties are fairly priced versus rental income. |
| KPPIP Infrastructure Tracker | Government committee that officially tracks National Strategic Projects. | We used it to identify connectivity improvements near Medan. We treated credible transport upgrades as medium-term demand support for housing corridors. |
| Medan RTRW 2022-2042 | Official city zoning and spatial plan law from Medan's legal database. | We used it to explain where development is encouraged or restricted. We framed which areas may see more supply and therefore slower price growth. |
| Portal Medan UMK 2026 | Official city government portal reporting local minimum wage updates. | We used it as a Medan-specific affordability datapoint. We checked whether entry-level renters and first-time buyers can realistically afford local properties. |
| BPS Sumatera Utara Inflation | Official provincial statistics release that explicitly reports Medan's CPI. | We used it to capture cost-of-living pressure affecting affordability. We connected inflation to interest rate direction risk for the housing market. |
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.
Related blog posts