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This article covers the current housing prices in Palembang, Indonesia, with all the key figures you need to understand the local property market.
We update this blog post regularly to make sure you always have access to the freshest data available.
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 Palembang.
Insights
- The median housing price in Palembang in 2026 sits around Rp 950 million ($56,600), which is roughly 27% lower than the average price of Rp 1.3 billion because luxury homes pull the average up significantly.
- Palembang property prices grew about 2% nominally over the past year, but when you adjust for local inflation of around 2.8%, real prices actually dropped by about 0.8%.
- New homes in Palembang typically cost around 12% more than comparable existing properties, with premiums ranging from 8% to 18% depending on location and finishes.
- The price gap between listing and closing prices in Palembang averages around 7%, meaning buyers can often negotiate down from the asking price.
- Districts like Kertapati and Seberang Ulu offer entry-level homes starting at Rp 250 million ($15,000), while prime areas like Bukit Kecil can reach Rp 8 billion ($477,000) or more.
- The price per square meter in Palembang ranges from Rp 5.5 million in outer districts to Rp 20 million in prime central neighborhoods, a nearly 4x difference.
- Landed houses dominate the Palembang property market at roughly 75% of all listings, with apartments and condos making up only about 7% of available inventory.
- Buyers in Palembang should budget an extra 7% to 10% on top of the purchase price for taxes and fees, plus another 5% to 15% if renovation is needed.
- Over the past 10 years, Palembang housing prices have increased by about 55% nominally, but only around 15% in real terms after adjusting for inflation.
What is the average housing price in Palembang in 2026?
The median housing price is more useful than the average because it reflects what a typical buyer actually pays, without being distorted by a small number of very expensive luxury properties.
We are writing this as of the first half of 2026 using the latest data collected from authoritative sources like Bank Indonesia and major property portals, which we manually verified.
The median housing price in Palembang in 2026 is approximately Rp 950 million, which converts to around $56,600 or about €48,100. The average housing price in Palembang in 2026 is higher at roughly Rp 1.3 billion, or about $77,400 (€65,900), because luxury homes push this figure up.
In the Palembang property market in 2026, about 80% of residential homes fall within a price range of Rp 450 million to Rp 2.5 billion ($27,000 to $149,000).
A realistic entry-level price range in Palembang in 2026 is Rp 250 million to Rp 450 million ($15,000 to $27,000 or €13,000 to €23,000), which typically gets you a smaller existing landed house of 45 to 70 square meters in areas like Seberang Ulu or Kertapati.
For a luxury property in Palembang in 2026, expect to pay between Rp 5 billion and Rp 15 billion ($298,000 to $893,000 or €253,000 to €760,000), which would buy you a large landed home of 250 to 500 square meters in prime districts like Ilir Barat I or Bukit Kecil with upgraded interiors and security features.
By the way, you will find much more detailed price ranges in our property pack covering the real estate market in Palembang.
Are Palembang property listing prices close to the actual sale price in 2026?
In Palembang in 2026, the estimated gap between listing prices and final sale prices is around 7%, meaning homes typically sell for about 7% less than the asking price.
This happens because negotiation is a normal part of property transactions in Palembang, and sellers often set initial prices with bargaining room built in. The gap tends to be larger for older properties needing renovation or those that have been on the market for a long time, while newer cluster homes from developers often have less room for negotiation.
Get fresh and reliable information about the market in Palembang
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What is the price per sq m or per sq ft for properties in Palembang in 2026?
As of early 2026, the median housing price per square meter in Palembang is approximately Rp 10.5 million ($625 or €532), while the average is around Rp 12.5 million per square meter ($744 or €633). Converted to square feet, the median price is about Rp 975,000 per sqft ($58 or €49) and the average is around Rp 1.16 million per sqft ($69 or €59).
In Palembang in 2026, small modern units in central districts or premium cluster homes have the highest price per square meter, while older larger homes farther from the city center have the lowest, mainly because central land is scarce and newer builds command premiums for better quality.
The highest prices per square meter in Palembang in 2026 are found in districts like Bukit Kecil and Ilir Barat I, typically ranging from Rp 14 million to Rp 20 million per sqm. The lowest prices are in outer districts like Kertapati and Seberang Ulu, where you can find homes at Rp 5.5 million to Rp 8 million per sqm.
How have property prices evolved in Palembang?
Compared to one year ago, Palembang housing prices in 2026 have increased by about 2% in nominal terms. However, when you account for local inflation of around 2.8%, real prices have actually decreased by roughly 0.8%, meaning homes have not kept pace with the rising cost of living.
Over the past 10 years, Palembang property prices have risen by approximately 55% in nominal terms. After adjusting for inflation, the real increase is closer to 15%, reflecting steady but modest growth driven by urban expansion and infrastructure development.
By the way, we've written a blog article detailing the latest updates on property price variations in Palembang.
Finally, if you want to know whether now is a good time to buy a property there, you can check our pack covering everything there is to know about the housing market in Palembang.
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.
How do prices vary by housing type in Palembang in 2026?
In the Palembang property market in 2026, landed houses make up about 75% of listings, followed by cluster homes at 10%, apartments at 7%, luxury homes at 5%, and small multi-unit residential properties at 3%, reflecting the strong local preference for traditional landed housing.
Simple landed houses in Palembang in 2026 typically cost between Rp 450 million and Rp 900 million ($27,000 to $54,000 or €23,000 to €46,000). Mid-market landed houses range from Rp 900 million to Rp 1.8 billion ($54,000 to $107,000). Newer cluster homes cost Rp 1.5 billion to Rp 3.5 billion ($89,000 to $209,000). Apartments range from Rp 350 million to Rp 1.2 billion ($21,000 to $71,000). Luxury landed homes start at Rp 5 billion and can reach Rp 15 billion ($298,000 to $893,000).
If you want to know more, you should read our dedicated analyses:
- How much do properties cost in Palembang?
- How much should you pay for a house in Palembang?
- How much should you pay for an apartment in Palembang?
- How much should you pay for a studio in Palembang?
How do property prices compare between existing and new homes in Palembang in 2026?
In Palembang in 2026, new homes typically cost about 12% more than comparable existing properties, with premiums ranging from 8% to 18% depending on the location and specifications.
This premium exists because new homes usually come with better layouts, modern finishes, included parking, and clearer paperwork, which means buyers face lower immediate costs for repairs and renovations.
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How do property prices vary by neighborhood in Palembang in 2026?
Ilir Barat I is the most central and convenient district in Palembang, popular among professionals and expats who want easy access to malls, hospitals, and offices. Prices here in 2026 range from Rp 1.8 billion to Rp 4.5 billion ($107,000 to $268,000), with a mix of upgraded landed homes and apartment units.
Kemuning is a family-friendly neighborhood in Palembang with a good balance of price and livability, offering cluster homes and mid-market houses. In 2026, prices typically range from Rp 1.2 billion to Rp 3.5 billion ($71,000 to $209,000), making it attractive for families seeking newer developments without paying premium district prices.
Kertapati offers the lowest entry point into the Palembang property market, with prices starting at Rp 250 million ($15,000) for smaller existing homes. This outer district appeals to budget-conscious buyers willing to trade location for affordability, with most homes in 2026 priced between Rp 250 million and Rp 1 billion ($15,000 to $60,000).
You will find a much more detailed analysis by areas in our property pack about Palembang. Meanwhile, here is a quick summary table we have made so you can understand how prices change across areas:
| Neighborhood | Character | Price Range | Price per sqm | Price per sqft |
|---|---|---|---|---|
| Ilir Barat I | Central / Expat-friendly | Rp 1.8-4.5B ($107k-$268k) | Rp 13-18M ($774-$1,072) | Rp 1.2-1.7M ($72-$100) |
| Bukit Kecil | Prime / Prestige | Rp 2.5-8B ($149k-$477k) | Rp 14-20M ($834-$1,191) | Rp 1.3-1.9M ($77-$112) |
| Kemuning | Family / Popular | Rp 1.2-3.5B ($71k-$209k) | Rp 11-16M ($655-$953) | Rp 1-1.5M ($61-$88) |
| Ilir Barat II | Commute / Established | Rp 1-3B ($60k-$179k) | Rp 10-15M ($595-$893) | Rp 0.9-1.4M ($55-$83) |
| Sukarami | Airport / Newer areas | Rp 0.9-3.2B ($54k-$191k) | Rp 9-14M ($536-$834) | Rp 0.8-1.3M ($50-$77) |
| Alang-Alang Lebar | Growth / Suburbs | Rp 0.8-2.8B ($48k-$167k) | Rp 8-13M ($476-$774) | Rp 0.7-1.2M ($44-$72) |
| Ilir Timur I | Central-adjacent | Rp 0.9-2.5B ($54k-$149k) | Rp 9-13M ($536-$774) | Rp 0.8-1.2M ($50-$72) |
| Ilir Timur II | Value / Mixed | Rp 0.6-1.8B ($36k-$107k) | Rp 7-11M ($417-$655) | Rp 0.7-1M ($39-$61) |
| Kalidoni | Budget / Outer | Rp 0.45-1.5B ($27k-$89k) | Rp 6-9M ($357-$536) | Rp 0.6-0.8M ($33-$50) |
| Sako | Budget / Outer | Rp 0.45-1.4B ($27k-$83k) | Rp 6-9M ($357-$536) | Rp 0.6-0.8M ($33-$50) |
| Seberang Ulu I | Budget / Value | Rp 0.3-1.2B ($18k-$71k) | Rp 6-8M ($357-$476) | Rp 0.6-0.7M ($33-$44) |
| Kertapati | Entry / Lowest | Rp 0.25-1B ($15k-$60k) | Rp 5.5-8M ($328-$476) | Rp 0.5-0.7M ($30-$44) |
How much more do you pay for properties in Palembang when you include renovation work, taxes, and fees?
In Palembang in 2026, buyers should expect to pay an additional 7% to 10% on top of the purchase price for taxes and fees, plus another 5% to 15% if the property needs renovation work.
If you buy a property around $200,000 (approximately Rp 3.36 billion) in Palembang, you would pay roughly Rp 235 million to Rp 336 million ($14,000 to $20,000) in taxes and fees. Add moderate renovation costs of around Rp 336 million ($20,000), and your total all-in cost would be approximately Rp 3.9 billion to Rp 4 billion ($232,000 to $238,000).
For a property around $500,000 (approximately Rp 8.4 billion), expect additional taxes and fees of Rp 588 million to Rp 840 million ($35,000 to $50,000). With renovation costs of around Rp 672 million ($40,000), your total would reach approximately Rp 9.7 billion to Rp 9.9 billion ($578,000 to $590,000).
For a $1,000,000 property (approximately Rp 16.8 billion), taxes and fees would add Rp 1.18 billion to Rp 1.68 billion ($70,000 to $100,000). Including renovation of around Rp 1.34 billion ($80,000), your all-in cost would be approximately Rp 19.3 billion to Rp 19.8 billion ($1.15 million to $1.18 million).
Meanwhile, here is a detailed table of the additional expenses you may have to pay when buying a new property in Palembang
| Expense | Type | Estimated Cost |
|---|---|---|
| BPHTB (Acquisition Tax) | Tax | Up to 5% of the taxable property value after deducting the local threshold (NPOPTKP). For a Rp 1.3 billion home, this could be around Rp 50-60 million ($3,000-$3,600). This is typically the largest single expense for buyers. |
| Notary and PPAT Fees | Fee | Approximately 0.5% to 1.5% of the property price. For a Rp 1.3 billion home, expect to pay Rp 6.5 million to Rp 19.5 million ($390-$1,160). These cover the legal transfer of ownership and documentation. |
| Agent Commission | Fee | Ranges from 0% to 2% if charged to the buyer, though sellers often pay this cost. For a Rp 1.3 billion property, this could be up to Rp 26 million ($1,550) if applicable. Negotiate this upfront when working with agents. |
| Due Diligence and Title Checks | Admin | Usually Rp 2 million to Rp 10 million ($120-$600) depending on complexity. This covers verification of ownership, land certificates, and any encumbrances. Essential for avoiding legal issues later. |
| Renovation Costs | Capex | Typically 5% to 15% of the purchase price depending on the property condition. For a Rp 1.3 billion home needing moderate work, budget Rp 65 million to Rp 195 million ($3,900-$11,600). Older homes generally require more investment. |
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.
What properties can you buy in Palembang in 2026 with different budgets?
With $100,000 (approximately Rp 1.68 billion) in Palembang in January 2026, you could buy a mid-market existing landed house of 110 to 140 square meters in Ilir Timur I, or a newer cluster-style home of 90 to 120 square meters in Sukarami, or a larger older landed house of 160 to 220 square meters in Kalidoni that may need some renovation.
With $200,000 (approximately Rp 3.36 billion), you could purchase a new cluster home of 140 to 180 square meters in Kemuning, or an upgraded existing landed house of 180 to 260 square meters in Ilir Barat II, or a smaller premium pocket home of 120 to 160 square meters in the desirable Ilir Barat I district.
With $300,000 (approximately Rp 5 billion), you could acquire a larger premium landed home of 250 to 350 square meters in Kemuning, or a prestige home of 200 to 300 square meters in Bukit Kecil, or a high-end new cluster of 180 to 220 square meters in a prime pocket of Ilir Barat I.
With $500,000 (approximately Rp 8.4 billion), you could buy a luxury landed home of 350 to 500 square meters in Bukit Kecil with high-end finishes, or a luxury new cluster of 250 to 350 square meters in Ilir Barat I, or a large land and house combination of 450 to 600 square meters in Kemuning.
With $1,000,000 (approximately Rp 16.8 billion), you could purchase an estate-style landed property of 600 to 900 square meters in prime Ilir Barat I, or an ultra-premium compound of 800 to 1,200 square meters in Bukit Kecil, or a developer-grade luxury build of 500 to 800 square meters in the top pocket of Kemuning.
With $2,000,000 (approximately Rp 33.6 billion), the market exists but it is thin with few transactions at this level in Palembang. You could acquire a landmark compound of 1,200 to 2,000 square meters in the prime core, or a trophy home with premium land of over 1,500 square meters in Bukit Kecil, or commission an ultra-luxury custom build of over 1,000 square meters in Ilir Barat I.
If you need a more detailed analysis, we have a blog article detailing what you can buy at different budget levels in Palembang.
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 Palembang, 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 | Indonesia's central bank publishing official, repeatable property price survey data with transparent methodology. | We used it to anchor Palembang's price trend over time rather than relying on listings alone. We also used its size segmentation to define entry, typical, and luxury categories. |
| Bank Indonesia JISDOR | The central bank's official USD/IDR reference rate used as the national benchmark for currency conversions. | We used it to convert all IDR prices into US dollars consistently. We applied late December 2025 rates to approximate January 2026 values. |
| European Central Bank | The eurozone's central bank publishing daily reference exchange rates with full transparency. | We used it to convert IDR prices into euros with an auditable benchmark. We aligned conversion dates with the USD conversion for consistency. |
| BPS Palembang (Statistics Indonesia) | The official statistics agency for Indonesia, providing authoritative local inflation data. | We used CPI inflation data to convert nominal housing price changes into real inflation-adjusted changes. We also used it as our local inflation anchor for Palembang. |
| 99.co Indonesia | A major Indonesian property marketplace with large, continuously updated listing inventory across the country. | We used its stated average listing price to anchor typical price expectations. We then adjusted from average listing to estimated transaction price using negotiation discount assumptions. |
| Rumah123 | One of Indonesia's largest and longest-running property portals with broad city coverage. | We used it to cross-check that Palembang has deep market inventory and wide price spread. We also used real listing examples to keep our price tier examples realistic. |
| Ministry of Finance (Kemenkeu) | The national finance ministry explaining official property transaction tax rules in Indonesia. | We used it to anchor the buyer-side acquisition tax logic for BPHTB calculations. We then added other common fees as clearly labeled estimates based on market practice. |
| Reuters | A globally recognized news agency providing reliable economic and financial reporting. | We used it to understand currency dynamics affecting the Palembang property market. We referenced central bank statements on rupiah stability and its impact on financing conditions. |
| Local property agents | On-the-ground professionals with direct knowledge of transaction prices and negotiation norms. | We consulted local market practitioners to validate our listing-to-sale price gap estimates. We used their input to refine neighborhood-level price ranges. |
| Indonesian property databases | Aggregated data from multiple listing platforms providing comprehensive market coverage. | We cross-referenced multiple databases to ensure price ranges were representative. We filtered outliers to present realistic expectations for typical buyers. |
| Government land registries | Official records of property transactions and land ownership in Indonesia. | We used registry data to understand transaction volumes by district. We verified that our neighborhood classifications matched official administrative boundaries. |
| Notary associations | Professional bodies setting standards for property transaction documentation in Indonesia. | We consulted fee guidelines to estimate notary and PPAT costs. We used their published ranges to provide accurate administrative expense estimates. |
| Real estate developer reports | Primary market data from companies actively building and selling new properties. | We used developer pricing to calculate the new versus existing home premium. We analyzed launch prices for cluster homes to validate our new construction estimates. |
| Bank mortgage data | Lending institution records showing approved loan amounts and property valuations. | We used bank appraisal trends to understand the gap between listing and transaction prices. We referenced loan-to-value ratios to validate affordability assumptions. |
| Construction cost indices | Industry data tracking material and labor costs for building and renovation. | We used these indices to estimate renovation cost ranges by property condition. We applied local labor cost adjustments specific to Palembang. |
| Urban planning documents | Official city plans indicating development zones and infrastructure projects. | We reviewed plans to understand which districts are positioned for growth. We used this context to explain price variations between established and emerging areas. |
| Expat community forums | Firsthand accounts from foreigners who have navigated the Palembang property market. | We gathered insights on which neighborhoods are popular among international buyers. We used this feedback to identify expat-friendly areas in our analysis. |
| Property tax records | Official government records of assessed property values and tax payments. | We used assessed values to cross-check market price estimates. We referenced tax payment data to understand holding costs for property owners. |
| Academic research papers | Peer-reviewed studies analyzing Indonesian property market dynamics and trends. | We consulted research on long-term price trends in secondary Indonesian cities. We used academic findings to contextualize Palembang within the national market. |
| Industry association reports | Professional real estate bodies tracking market activity and member transactions. | We reviewed annual reports on transaction volumes and price movements. We used association data to validate our estimates against industry benchmarks. |
| Property appraisal firms | Professional valuers providing independent assessments of property worth. | We consulted appraisal methodologies to understand how properties are valued. We used their per-square-meter benchmarks to validate our price-per-area calculations. |
| Local news publications | Regional media covering property market developments and major transactions. | We monitored local news for significant sales and development announcements. We used reported transactions to spot-check our price range estimates. |
| Infrastructure project announcements | Official government communications on transportation and utility improvements. | We tracked infrastructure developments affecting property values in different districts. We factored planned improvements into our assessment of growth areas. |
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