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
Palembang is still a landed-house city, which means apartments exist but the market is much thinner and less transparent than in Jakarta or Surabaya.
This guide breaks down exactly how much you should expect to pay for an apartment in Palembang in 2026, from studio units to three-bedroom apartments, plus all the hidden costs foreigners often miss.
We constantly update this blog post with the latest data and regulations to keep it accurate and useful.
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 minimum apartment price for foreigners in Palembang is IDR 1 billion (about $60,000), which means most studios and one-bedrooms are legally off-limits to non-Indonesian buyers.
- Palembang apartment prices per square meter range from IDR 6 million in Seberang Ulu to IDR 18 million in Bukit Kecil, showing a threefold difference across neighborhoods.
- New-build apartments in Palembang command about a 12% premium over resale units, a smaller gap than Jakarta due to thinner market liquidity.
- The all-in buyer closing costs in Palembang typically add 6 to 10% on top of the purchase price, with BPHTB transfer tax being the largest single expense.
- Monthly HOA fees (called IPL) in Palembang apartments run between IDR 500,000 and IDR 1,000,000 for a typical 50 square meter unit, depending on building amenities.
- Bank Indonesia's LTV rules technically allow 0% down payment through 2026, but most Palembang buyers still put down 10 to 20% in practice.
- Jakabaring, Sukarame, and Alang-Alang Lebar are the fastest-appreciating neighborhoods in Palembang, driven by new infrastructure and development clusters.
- Electricity is the most expensive utility for Palembang apartment owners, ranging from IDR 300,000 to IDR 900,000 monthly depending on air conditioning usage.
How much do apartments really cost in Palembang in 2026?
What's the average and median apartment price in Palembang in 2026?
As of January 2026, the median asking price for an apartment in Palembang is around IDR 450 million (about $27,000 or €23,000), while the average asking price sits higher at roughly IDR 700 million (about $42,000 or €36,000) because a few large luxury units pull the average up.
When it comes to price per square meter, apartments in Palembang typically sell for a median of about IDR 10 million per square meter ($600 or €510 per m², which works out to roughly $56 or €48 per square foot), and the average price per square meter is around IDR 11 million ($660 or €565 per m²).
Most standard apartments in Palembang fall within a price range of IDR 300 million to IDR 1.2 billion ($18,000 to $72,000, or €15,000 to €62,000), which covers everything from basic older units to well-located mid-market apartments with decent amenities.
How much is a studio apartment in Palembang in 2026?
As of January 2026, a typical studio apartment in Palembang costs between IDR 200 million and IDR 400 million ($12,000 to $24,000, or €10,000 to €20,500), depending on location and building quality.
Entry-level and older studio apartments in Palembang start from around IDR 150 million ($9,000 or €7,700), while nicer studio units with better facilities and more central locations can reach IDR 500 million to IDR 600 million ($30,000 to $36,000, or €26,000 to €31,000).
Studio apartments in Palembang are typically sized between 24 and 35 square meters, which is standard for Indonesian secondary cities and smaller than what you might find in Jakarta developments.
How much is a one-bedroom apartment in Palembang in 2026?
As of January 2026, a typical one-bedroom apartment in Palembang costs between IDR 350 million and IDR 550 million ($21,000 to $33,000, or €18,000 to €28,000), making it a step up from studio pricing.
Entry-level one-bedroom apartments in Palembang start around IDR 300 million ($18,000 or €15,000), while mid-market and better-located one-bedroom units can range from IDR 550 million up to IDR 800 million ($33,000 to $48,000, or €28,000 to €41,000).
One-bedroom apartments in Palembang typically measure between 35 and 50 square meters, offering more living space than studios while remaining compact by international standards.
How much is a two-bedroom apartment in Palembang in 2026?
As of January 2026, a typical two-bedroom apartment in Palembang costs between IDR 550 million and IDR 850 million ($33,000 to $51,000, or €28,000 to €44,000), which represents the most common family-sized unit in the city.
Entry-level two-bedroom apartments in Palembang start around IDR 500 million ($30,000 or €26,000), while better projects in more central locations can range from IDR 850 million up to IDR 1.2 billion ($51,000 to $72,000, or €44,000 to €62,000).
By the way, you will find much more detailed price ranges for apartments in our property pack covering the property market in Palembang.
How much is a three-bedroom apartment in Palembang in 2026?
As of January 2026, a typical three-bedroom apartment in Palembang costs between IDR 850 million and IDR 1.3 billion ($51,000 to $78,000, or €44,000 to €67,000), though this segment is smaller because most Palembang families prefer landed houses.
Entry-level three-bedroom apartments in Palembang start around IDR 800 million ($48,000 or €41,000), while premium and larger layouts can range from IDR 1.3 billion up to IDR 2.5 billion or more ($78,000 to $150,000, or €67,000 to €128,000).
Three-bedroom apartments in Palembang typically measure between 80 and 110 square meters, providing enough space for families who prefer apartment living over traditional landed houses.
What's the price gap between new and resale apartments in Palembang in 2026?
As of January 2026, new-build apartments in Palembang typically ask about 10 to 15% more than comparable resale units, with our best estimate being around a 12% premium for new construction.
New-build apartments in Palembang average around IDR 11.5 to 12.5 million per square meter ($690 to $750 or €590 to €640 per m²), reflecting the value of fresh interiors, cleaner documentation, and newer amenities like pools and gyms.
Resale apartments in Palembang average around IDR 9.5 to 10.5 million per square meter ($570 to $630 or €490 to €540 per m²), with sellers often competing more directly on price in Palembang's thinner secondary market.
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Can I afford to buy in Palembang in 2026?
What's the typical total budget (all-in) to buy an apartment in Palembang in 2026?
As of January 2026, the typical all-in budget to buy a standard apartment in Palembang ranges from IDR 320 million to IDR 1.3 billion ($19,000 to $78,000, or €16,000 to €67,000), depending on the size and location of the unit you choose.
Beyond the purchase price, the all-in budget in Palembang includes BPHTB transfer tax, notary and PPAT fees, land office administrative charges, and if you're financing, mortgage-related costs like appraisal and bank administration fees.
We go deeper and try to understand what costs can be avoided or minimized (and how) in our Palembang property pack.
You can also read our dedicated blog article to understand what you can at different budget levels in Palembang.
What down payment is typical to buy in Palembang in 2026?
As of January 2026, the typical down payment to buy an apartment in Palembang is around 10 to 20% of the purchase price, which for a mid-range IDR 700 million apartment means roughly IDR 70 to 140 million ($4,200 to $8,400, or €3,600 to €7,200).
Bank Indonesia's current LTV rules (PADG No. 30/2025) technically allow banks to finance up to 100% of property value through December 2026, meaning 0% down payment is possible in principle for qualified borrowers.
However, to secure favorable mortgage terms in Palembang, most banks prefer borrowers who put down at least 15 to 20%, and foreigners often face stricter requirements or simply buy with cash because mortgage eligibility can be limited.
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.
Which neighborhoods are cheapest or priciest in Palembang in 2026?
How much does the price per m² for apartments vary by neighborhood in Palembang in 2026?
As of January 2026, apartment prices per square meter in Palembang range from about IDR 6 million in the most affordable areas to IDR 18 million in the priciest neighborhoods ($360 to $1,080 per m², or €310 to €920 per m²), showing significant variation across the city.
The most affordable neighborhoods in Palembang for apartments include Seberang Ulu I, Seberang Ulu II, Kertapati, parts of Plaju, and parts of Kalidoni, where prices typically run IDR 6 to 9 million per square meter ($360 to $540 or €310 to €460 per m²).
The most expensive neighborhoods in Palembang for apartments are Bukit Kecil, Ilir Barat I, and newer nodes in Sukarame, where prices typically run IDR 12 to 18 million per square meter ($720 to $1,080 or €615 to €920 per m²).
By the way, we've written a blog article detailing what are the current best areas to invest in property in Palembang.
What neighborhoods are best for first-time buyers on a budget in Palembang in 2026?
As of January 2026, the top three neighborhoods best suited for first-time buyers on a budget in Palembang are Seberang Ulu I, Seberang Ulu II, and Kertapati, where you can find apartments at the lower end of Palembang's price range.
In these budget-friendly Palembang neighborhoods, typical apartment prices range from IDR 200 million to IDR 500 million ($12,000 to $30,000, or €10,000 to €26,000), offering entry points that are more accessible for first-time buyers.
These neighborhoods offer practical advantages including lower price points, established local communities, and access to basic amenities, making them reasonable choices for buyers prioritizing value over premium locations.
The main trade-off in these budget-friendly Palembang neighborhoods is that commute times to central business areas can be longer, and some micro-locations may have flood risk or less developed infrastructure compared to pricier districts.
Which neighborhoods have the fastest-rising apartment prices in Palembang in 2026?
As of January 2026, the top three neighborhoods with the fastest-rising apartment prices in Palembang are Jakabaring, Sukarame, and Alang-Alang Lebar, all of which are benefiting from new development and infrastructure improvements.
These fast-appreciating Palembang neighborhoods have seen estimated year-over-year price increases of around 3 to 6%, which is notably higher than the city average of 1 to 2% annual growth, though still modest by Jakarta standards.
The main driver behind rapid price growth in these Palembang neighborhoods is new infrastructure, including toll road expansion, proximity to the airport corridor (Sukarame), and the sports city development cluster (Jakabaring), which are attracting newer projects and buyer interest.
You can also read our latest update about property price forecasts in Palembang.
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What extra costs will I pay on top of the apartment price in Palembang in 2026?
What are all the buyer closing costs when you buy an apartment in Palembang?
The estimated total buyer closing costs for a typical apartment purchase in Palembang range from IDR 30 million to IDR 80 million ($1,800 to $4,800, or €1,500 to €4,100) for a mid-range apartment, depending on purchase price and whether you use a mortgage.
The main categories of closing costs buyers must pay in Palembang include BPHTB (acquisition/transfer tax), notary and PPAT fees for deed preparation and registration, land office administrative fees, and if financing, mortgage-related charges like appraisal and bank administration.
The largest closing cost expense for buyers in Palembang is typically BPHTB, the property acquisition tax, which alone can account for 5% of the transaction value after deducting the non-taxable threshold.
Some closing costs in Palembang are negotiable or can vary, particularly notary and PPAT fees which depend on the complexity of the transaction, and some administrative costs which may be bundled differently by different service providers.
On average, how much are buyer closing costs as a percentage of the purchase price for an apartment in Palembang?
Buyers in Palembang should budget around 6 to 8% of the purchase price for closing costs when buying with cash, and 7 to 10% when using a mortgage due to additional lender-related fees.
The realistic low-to-high percentage range that covers most standard Palembang apartment transactions is 6% to 10%, with the exact amount depending on the property value, financing method, and whether any costs are negotiated or bundled by the seller.
We actually cover all these costs and strategies to minimize them in our pack about the real estate 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.
What are the ongoing monthly and yearly costs of an apartment in Palembang in 2026?
What are typical HOA fees in Palembang right now?
HOA fees (called IPL or Iuran Pengelolaan Lingkungan in Indonesia) are common in Palembang apartments, and typical monthly fees range from IDR 500,000 to IDR 1,000,000 ($30 to $60, or €26 to €51) for a standard 50 square meter unit.
The realistic range of HOA fees in Palembang runs from about IDR 10,000 to IDR 20,000 per square meter per month, meaning basic buildings without many amenities sit at the lower end while buildings with pools, gyms, and 24/7 security sit at the higher end.
What utilities should I budget monthly in Palembang right now?
The estimated total monthly utility cost for a typical apartment in Palembang ranges from IDR 750,000 to IDR 1,800,000 ($45 to $108, or €38 to €92), depending on your usage patterns and apartment size.
The realistic range of monthly utility costs in Palembang spans from about IDR 600,000 for a small studio with minimal air conditioning use to over IDR 2,000,000 ($120 or €103) for a larger apartment with heavy electricity consumption.
Specific utilities included in the typical Palembang monthly budget are electricity (PLN), water (Perumda Tirta Musi), and internet/mobile data, with electricity being the largest variable depending on air conditioning habits.
Electricity is by far the most expensive utility for apartment owners in Palembang, typically ranging from IDR 300,000 to IDR 900,000 monthly ($18 to $54, or €15 to €46), because air conditioning is essential in Palembang's tropical climate.
How much is property tax on apartments in Palembang?
The estimated typical annual property tax (PBB-P2) for an apartment in Palembang ranges from IDR 500,000 to IDR 3,000,000 ($30 to $180, or €26 to €154), depending on the assessed value of your unit.
Property tax in Palembang is calculated based on NJOP (the government-assessed value of your land and building), with locally-set rates and brackets that can result in effective tax burdens of roughly 0.05% to 0.30% of assessed value per year.
The realistic range of annual property tax in Palembang varies significantly based on property value, with lower-priced apartments paying closer to IDR 500,000 annually and higher-value units in premium locations potentially paying IDR 3,000,000 or more.
If you want to go into more details, we also have a blog article detailing all the property taxes and fees in Palembang.
What's the yearly building maintenance cost in Palembang?
The estimated typical yearly building maintenance cost for apartment owners in Palembang, beyond what's covered by IPL, is around IDR 4 million to IDR 10 million ($240 to $600, or €205 to €513), depending on your unit's value and condition.
The realistic range of yearly maintenance costs in Palembang runs from about IDR 3 million for newer buildings in good condition to IDR 15 million or more ($900 or €770) for older buildings that need more frequent repairs and upkeep.
Typical expenses included in building maintenance costs in Palembang are interior painting, air conditioning servicing, small repairs, appliance replacements, and humidity-related wear which is common in Palembang's tropical climate.
In Palembang apartments, basic building maintenance for common areas is typically included in your monthly IPL fees, but unit-interior maintenance and your personal reserve for repairs are separate costs you should budget for yourself.
How much does home insurance cost in Palembang?
The estimated typical annual home insurance cost for an apartment in Palembang ranges from IDR 800,000 to IDR 2,400,000 ($48 to $144, or €41 to €123), depending on the sum insured and coverage level you choose.
The realistic range of annual home insurance costs in Palembang spans from about 0.10% to 0.30% of the sum insured, so for an IDR 800 million property value, expect to pay somewhere between IDR 800,000 and IDR 2,400,000 per year.
Home insurance is generally optional for apartment owners in Palembang, though it may be required by your mortgage lender if you finance the purchase, and it's a smart protection given potential risks like fire and water damage.
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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 - Residential Property Price Survey (SHPR) Q3 2025 | Indonesia's central bank publishing an official, recurring property survey. | We used it to anchor where the broader property market sits around Palembang. We used the Palembang row in the city index table as the trend check for our 2026 pricing assumptions. |
| Bank Indonesia - PADG No. 30/2025 (LTV/FTV Rules) | The official implementing regulation from BI on mortgage loan-to-value ratios. | We used it to estimate typical down payments for apartment mortgages in early 2026. We used its validity window (extended to 31 Dec 2026) to write "as-of Jan 2026" accurately. |
| ATR/BPN - Ministerial Regulation No. 18/2021 | Official Indonesian legal text covering land rights and strata title handling. | We used it to explain what form of apartment ownership a foreign buyer can hold. We used the specific articles on foreign ownership of strata units as the legal base. |
| ATR/BPN - Ministerial Decree No. 1241/2022 | A published decree text that specifies the price floor by province grouping. | We used it to state the minimum apartment price a foreigner can buy in South Sumatra/Palembang. We used it to flag that many typical Palembang units may sit below the foreigner threshold. |
| Palembang City Government - Local Tax Regulation (PBB-P2 and BPHTB) | The city's own regulation and rulebook for local property taxes and transfer tax. | We used it to list buyer-side closing costs you actually pay in Palembang. We used it to estimate buyer closing costs as a percentage of price under Palembang rules. |
| Perumda Tirta Musi Palembang - Official Tariff Page | The municipal water utility publishing its own tariff schedule for Palembang. | We used it as the starting point for monthly water utility estimates. We used the apartment/condominium tariff category and translated it into a monthly budget. |
| OJK - Circular Letter 6/SEOJK.05/2017 | The Indonesian financial regulator setting the tariff corridor for property insurance. | We used it to anchor a realistic annual insurance premium range. We used its attachments as the regulatory ceiling/floor reference point for insurance costs. |
| PT PLN - Official Electricity Tariff Explainer | PLN (state electricity company) describing tariff categories and updates. | We used it to anchor the fact that tariffs vary by customer class and are reviewed quarterly. We used it as the reference frame for an apartment electricity budget. |
| Ministry of Energy (ESDM) - Early 2026 Tariff Announcement | The ministry that governs electricity tariffs and publishes the official decision. | We used it to write "as-of early 2026" correctly regarding tariff policy. We used it to avoid relying on newspaper tariff lists alone. |
| BPS Palembang - CPI Release (Dec 2025) | Indonesia's official statistics agency at the city level for Palembang. | We used it as a local inflation sanity-check for early-2026 cost assumptions. We used it to avoid Jakarta-centric cost levels for utilities and fees. |
| Rumah123 | One of Indonesia's leading real estate listing platforms with extensive Palembang data. | We used it to gather current asking prices and listing data for apartments across Palembang neighborhoods. We validated our price estimates against their median price reports. |
| Exchange-rates.org | A trusted provider of currency exchange rate history and conversions. | We used it to convert IDR prices to USD and EUR using January 2026 exchange rates. We used the average 2026 USD/IDR rate of approximately 16,700 for all conversions. |
| Emerhub - Indonesia Property Laws Guide | A professional services firm specializing in Indonesian business and property regulations. | We used it to cross-reference foreign ownership rules and Hak Pakai requirements. We validated minimum price thresholds and legal structure information. |
| Global Property Guide - Indonesia | An international property research firm with Indonesia-specific investment data. | We used it to benchmark Indonesian rental yields and ownership structures. We cross-referenced their foreign buyer guidance with local regulations. |
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.
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