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Everything you need to know before buying real estate is included in our Indonesia Property Pack
Palembang is a city where most homes are landed houses, and prices remain far more affordable than Jakarta or Bali.
In this guide, we break down what houses actually cost in Palembang in 2026, from budget options to premium addresses.
We constantly update this blog post to reflect the latest data and market conditions.
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.
How much do houses cost in Palembang as of 2026?
What's the median and average house price in Palembang as of 2026?
As of early 2026, the median house price in Palembang is around Rp 900 million (approximately $54,000 USD or €50,000 EUR), while the average house price is closer to Rp 1.2 billion (roughly $71,000 USD or €66,000 EUR).
The typical price range covering roughly 80% of house sales in Palembang falls between Rp 450 million and Rp 2 billion (about $27,000 to $119,000 USD, or €25,000 to €110,000 EUR).
The gap between median and average prices in Palembang tells you that expensive homes in premium central areas pull the average up significantly, even though most buyers shop in the sub-Rp 1 billion range.
At the median price of Rp 900 million in Palembang, you can realistically expect a 2 to 3-bedroom landed house with basic amenities in a suburban district like Sukarami or Sako, often within a newer housing cluster.
What's the cheapest livable house budget in Palembang as of 2026?
As of early 2026, the minimum budget for a livable house in Palembang is around Rp 250 to 350 million (approximately $15,000 to $21,000 USD, or €14,000 to €19,000 EUR).
At this entry-level price point in Palembang, "livable" typically means a functional structure with 1 to 2 bedrooms, basic road access, running water, and electricity, though you may need to budget for minor repairs or cosmetic updates.
These cheapest livable houses in Palembang are usually found in outer districts like Gandus, Kertapati, Sematang Borang, and the farther edges of Sako, where land is more available and development is still catching up.
Wondering what you can get? We cover all the buying opportunities at different budget levels in Palembang here.
How much do 2 and 3-bedroom houses cost in Palembang as of 2026?
As of early 2026, 2-bedroom houses in Palembang typically cost around Rp 350 to 700 million ($21,000 to $42,000 USD, or €19,000 to €39,000 EUR), while 3-bedroom houses range from Rp 500 million to Rp 1.2 billion ($30,000 to $71,000 USD, or €28,000 to €66,000 EUR).
The realistic price range for a 2-bedroom house in Palembang starts at around Rp 350 million for older homes in outer districts and goes up to Rp 700 million for newer cluster housing closer to the city center.
For a 3-bedroom house in Palembang, you can expect to pay anywhere from Rp 500 million in suburban areas to Rp 1.2 billion in more central or gated communities with better infrastructure.
Moving from a 2-bedroom to a 3-bedroom house in Palembang typically adds a premium of around 40% to 70%, mainly because the extra room often comes with a larger plot and better location.
How much do 4-bedroom houses cost in Palembang as of 2026?
As of early 2026, 4-bedroom houses in Palembang typically cost between Rp 1.2 billion and Rp 3 billion (approximately $71,000 to $179,000 USD, or €66,000 to €165,000 EUR).
For 5-bedroom houses in Palembang, the realistic price range is Rp 2.5 billion to Rp 6 billion ($149,000 to $357,000 USD, or €138,000 to €330,000 EUR), as these homes usually come with significantly larger plots.
6-bedroom houses in Palembang are rare and typically fall in the Rp 4 billion to Rp 10 billion range ($238,000 to $595,000 USD, or €220,000 to €551,000 EUR), often representing prestige properties on premium streets.
Please note that we give much more detailed data in our pack about the property market in Palembang.
How much do new-build houses cost in Palembang as of 2026?
As of early 2026, new-build houses in Palembang typically cost between Rp 600 million and Rp 2.5 billion ($36,000 to $149,000 USD, or €33,000 to €138,000 EUR) for mainstream developer stock, with premium clusters priced higher.
New-build houses in Palembang generally carry a premium of around 10% to 20% compared to older resale houses, which reflects the move-in-ready condition, gated community amenities, and newer infrastructure these properties offer.
How much do houses with land cost in Palembang as of 2026?
As of early 2026, houses with larger land plots in Palembang typically cost between Rp 1.8 billion and Rp 6 billion ($107,000 to $357,000 USD, or €99,000 to €330,000 EUR), with prime central locations going even higher.
In Palembang, a "house with land" typically means a property with a plot size of 200 to 400 square meters or more, since most standard houses sit on smaller plots of around 100 to 150 square meters.
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Where are houses cheapest and most expensive in Palembang as of 2026?
Which neighborhoods have the lowest house prices in Palembang as of 2026?
As of early 2026, the neighborhoods with the lowest house prices in Palembang include Gandus, Kertapati, Sematang Borang, and the outer parts of Sako.
In these cheapest Palembang neighborhoods, typical house prices range from Rp 250 million to Rp 700 million (approximately $15,000 to $42,000 USD, or €14,000 to €39,000 EUR).
These areas have the lowest house prices in Palembang mainly because they sit farther from the commercial core, often near industrial corridors or river-side outskirts where infrastructure development is still catching up and daily commutes are longer.
Which neighborhoods have the highest house prices in Palembang as of 2026?
As of early 2026, the top three neighborhoods with the highest house prices in Palembang are Ilir Barat I, Bukit Kecil, and Bukit Besar.
In these most expensive Palembang neighborhoods, typical house prices range from Rp 2 billion to Rp 5 billion ($119,000 to $298,000 USD, or €110,000 to €275,000 EUR), with large-plot prestige homes going significantly higher.
These neighborhoods command the highest prices in Palembang because they offer a combination of central location, constrained land supply, established infrastructure, and proximity to key commercial and government centers along the historic city core.
Buyers in these premium Palembang neighborhoods are typically successful local business owners, senior government officials, or families who prioritize short commutes and prestigious addresses over maximizing space per rupiah.
How much do houses cost near the city center in Palembang as of 2026?
As of early 2026, houses near the Palembang city center (primarily Ilir Barat I, Bukit Kecil, and the surrounding Ilir-area core) typically cost between Rp 1.5 billion and Rp 4 billion ($89,000 to $238,000 USD, or €83,000 to €220,000 EUR), with premium large-plot homes reaching Rp 10 billion or more.
Houses near major transit corridors in Palembang, meaning properties close to main arterial roads and the Ampera Bridge connections, typically carry a premium of around 5% to 15% compared to similar homes farther from these routes.
Houses near well-known schools in Palembang, such as SMA Xaverius, schools near Universitas Bina Darma, or the Sriwijaya University (UNSRI) area, often trade at a 5% to 10% premium due to the convenience factor for families with children.
In expat-friendly areas of Palembang, which tend to be newer gated clusters in Sukarami or Alang-Alang Lebar, as well as central convenient locations in Ilir Barat, typical house prices range from Rp 1 billion to Rp 3 billion ($60,000 to $179,000 USD, or €55,000 to €165,000 EUR).
We actually have an updated expat guide for Palembang here.
How much do houses cost in the suburbs in Palembang as of 2026?
As of early 2026, houses in the suburbs of Palembang typically cost between Rp 450 million and Rp 1.5 billion ($27,000 to $89,000 USD, or €25,000 to €83,000 EUR), depending on the specific district and house size.
Suburban houses in Palembang are generally 30% to 50% cheaper than comparable houses in the city center, which means buyers can often get an extra bedroom or a larger plot for the same budget.
The most popular suburbs for house buyers in Palembang are Sukarami, Alang-Alang Lebar, Kalidoni, and Sako, which all offer a balance of newer housing stock, reasonable commute times, and family-friendly environments.
What areas in Palembang are improving and still affordable as of 2026?
As of early 2026, the top areas in Palembang that are improving and still affordable for house buyers include Sukarami, Alang-Alang Lebar, and the Jakabaring area on the Seberang Ulu side of the river.
In these improving yet affordable Palembang areas, current typical house prices range from Rp 500 million to Rp 1.2 billion ($30,000 to $71,000 USD, or €28,000 to €66,000 EUR).
The main sign of improvement driving buyer interest in these areas is the steady arrival of new developer clusters, road upgrades, and expanding commercial nodes like mini-markets and local services, all without the full central-area pricing yet.
By the way, we've written a blog article detailing what are the current best areas to invest in property 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 extra costs should I budget for a house in Palembang right now?
What are typical buyer closing costs for houses in Palembang right now?
Typical total closing costs for house buyers in Palembang run around 6% to 8% of the purchase price for cash buyers, and can reach 9% to 11% if you are using a mortgage.
The main closing cost categories in Palembang include BPHTB (buyer acquisition duty) at 5% of the price minus the Rp 80 million exemption, notary and PPAT deed fees at around 0.5% to 1.5%, and bank fees if you use a mortgage.
The single largest closing cost for house buyers in Palembang is almost always the BPHTB, which alone can account for 4% to 5% of your purchase price after the exemption is applied.
We cover all these costs and what are the strategies to minimize them in our property pack about Palembang.
How much are property taxes on houses in Palembang right now?
Typical annual property tax (PBB-P2) for a house in Palembang ranges from around Rp 500,000 to Rp 2 million per year ($30 to $119 USD, or €28 to €110 EUR) for most standard family homes, depending on the assessed value.
Property tax in Palembang is calculated based on the NJOP (government-assessed land and building value), with tiered rates starting at 0.085% for properties valued up to Rp 1 billion and rising to 0.275% for properties above Rp 33.5 billion.
If you want to go into more details, we also have a page with all the property taxes and fees in Palembang.
How much is home insurance for a house in Palembang right now?
Typical annual home insurance for a house in Palembang costs around Rp 600,000 to Rp 1.8 million per year ($36 to $107 USD, or €33 to €99 EUR) for basic property and fire coverage, based on insuring building values of around Rp 600 million.
The main factors affecting home insurance premiums for houses in Palembang include the building's construction type, the risk zone classification for floods or fire, your chosen coverage add-ons like earthquake protection, and the total insured value you declare.
What are typical utility costs for a house in Palembang right now?
Typical total monthly utility costs for a house in Palembang range from around Rp 750,000 to Rp 1.8 million ($45 to $107 USD, or €41 to €99 EUR), depending on your usage patterns and household size.
The main utility categories in Palembang break down as follows: electricity (PLN) typically costs Rp 400,000 to Rp 1.2 million per month ($24 to $71 USD), water (Tirta Musi) runs Rp 75,000 to Rp 250,000 per month ($4 to $15 USD), and internet (such as IndiHome) costs Rp 280,000 to Rp 400,000 per month ($17 to $24 USD).
What are common hidden costs when buying a house in Palembang right now?
Common hidden costs that house buyers in Palembang often overlook can total anywhere from Rp 5 million to Rp 20 million ($300 to $1,190 USD, or €275 to €1,100 EUR) or more, depending on the property's condition and paperwork status.
Typical inspection fees when purchasing a house in Palembang run around Rp 2 million to Rp 8 million ($119 to $476 USD, or €110 to €440 EUR) for a basic structural, roof, and plumbing check, with specialized inspections like termite or detailed electrical adding another Rp 1 million to Rp 5 million.
Other common hidden costs beyond inspections in Palembang include renovation or refresh work on older homes, drainage or flood-resilience upgrades in low-lying areas, and extra notary time if the title paperwork needs cleaning up.
The hidden cost that tends to surprise first-time house buyers the most in Palembang is usually the renovation budget, as many older homes need more paint, bathroom updates, or roof repairs than initially expected.
You will find here the list of classic mistakes people make when buying a property in Palembang.
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What do locals and expats say about the market in Palembang as of 2026?
Do people think houses are overpriced in Palembang as of 2026?
As of early 2026, most locals and expats consider Palembang house prices to be generally affordable compared to Jakarta or Bali, though they note that prime central areas like Ilir Barat can feel expensive due to limited land supply.
Well-priced houses in Palembang typically stay on the market for around 1 to 3 months before attracting serious buyers, while overpriced listings can sit for 6 months or longer and often go through multiple price reductions.
The main reason locals feel prices are fairly valued in Palembang is that you can still get a decent family home in a suburban district for under Rp 1 billion, which is simply not possible in major Indonesian metros anymore.
Compared to one or two years ago, sentiment on Palembang house prices has remained stable, with buyers still finding negotiation room in many segments rather than facing the bidding-war pressure seen in faster-growing cities.
You'll find our latest property market analysis about Palembang here.
Are prices still rising or cooling in Palembang as of 2026?
As of early 2026, house prices in Palembang are gently rising but feel essentially stable, with modest growth rather than any dramatic upward or downward movement.
The estimated year-over-year house price change in Palembang is in the low single digits, roughly 1% to 3%, which matches Bank Indonesia's national primary-market index showing steady but unspectacular increases.
Experts and locals expect Palembang house prices over the next 6 to 12 months to continue this pattern of gradual, modest growth, with no signs of either a boom or a significant correction on the horizon.
Finally, please note that we have covered property price trends and forecasts for Palembang here.
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.
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 Name | Why It's Authoritative | How We Used It |
|---|---|---|
| Bank Indonesia SHPR Report (Q3 2025) | Official central bank survey of residential property prices across Indonesian cities. | We used the Palembang IHPR index to anchor official price trends into early 2026. We adjusted our estimates around that low-growth baseline. |
| Bank Indonesia SHPR Press Release | Official public summary of latest survey results and market direction. | We used it to confirm national market was growing only slightly. We used that as a sanity check so estimates don't assume unrealistic jumps. |
| BPS Kota Palembang CPI Report | Official city inflation report from Indonesia's national statistics agency. | We used Palembang inflation to convert late-2025 snapshots into February 2026 framing. We also used it to discuss cost-of-living pressure on buyers. |
| Rumah123 Palembang Listings | One of Indonesia's largest property portals with transparent district-level pricing. | We used median asking prices by Palembang kecamatan to identify cheaper vs pricier zones. We built neighborhood examples with real place names. |
| 99.co Palembang Listings | Major Indonesian property portal publishing average price snapshots. | We used the stated average asking price to anchor typical buyer budget discussions. We cross-checked against Rumah123 to avoid single-portal dependency. |
| Palembang Local Tax Regulation (Perda 4/2023) | City's own binding regulation setting property tax and BPHTB rules. | We used it to state PBB-P2 property tax brackets and BPHTB exemptions. We used its exact thresholds to give realistic buyer closing-cost budgets. |
| PT PLN Electricity Tariffs | National electricity utility's official tariff reference page. | We used it to estimate monthly electricity costs for typical household usage. We explained why bills differ by power capacity and consumption. |
| Perumda Tirta Musi Water Tariffs | Municipal water company's official tariff publication for Palembang. | We used it to budget water costs based on residential tariff categories. We explained why water bills step up with higher usage blocks. |
| OJK Property Insurance Tariff Circular | National financial regulator's official guidance on insurance tariff ranges. | We used it to frame realistic premium ranges for property coverage. We translated those regulated ranges into simple annual-budget examples. |
| Kontan BI Exchange Rate Data | Major national business publisher attributing FX series to Bank Indonesia. | We used it to pick a realistic IDR/USD reference point for February 2026 conversions. We used it only for USD equivalents; all core pricing is in IDR. |
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