What rental yield can you expect in Palembang? (2026)

Thinking about investing in Palembang's rental market but unsure what returns to expect?

This guide breaks down actual rental yields, vacancy rates, and neighborhood performance across Palembang's residential market in 2026.

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.

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Palembang. If you’d like to learn more about us, you can check our presentation page.

What are the rental yields in Palembang as of 2026?

What's the average gross rental yield in Palembang as of 2026?

As of early 2026, the average gross rental yield in Palembang sits around 4.8%, a solid middle ground for Indonesian secondary cities.

Most residential properties fall within a realistic range of 4.0% to 6.5%, depending on neighborhood, property type, and pricing relative to achievable rents.

Palembang's yields outperform compressed markets like Jakarta (3 to 4%) but remain consistent with other growing Sumatran cities balancing affordability with steady tenant demand.

The key factor influencing yields is the relationship between purchase prices and local rent ceilings, since tenants prioritize practical, affordable housing over luxury finishes.

What's the average net rental yield in Palembang as of 2026?

As of early 2026, the average net rental yield in Palembang is approximately 3.3%, after accounting for typical landlord expenses.

The gap between gross and net yields typically ranges from 1.2 to 1.8 percentage points, reflecting vacancy buffers, maintenance, property taxes, and income tax.

The expense that most significantly reduces yield is vacancy and turnover, since landlords commonly experience one month empty per year, accounting for roughly 8% of potential income.

Most investment properties deliver net yields between 2.6% and 4.6%, depending on maintenance approach, management style, and whether it's a landed house or apartment.

By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in Palembang.

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 yield is considered "good" in Palembang in 2026?

Local investors in Palembang consider a gross rental yield of 6.0% or higher to be a "good" deal, or a net yield of 4.0%+ if professional management or apartment fees apply.

The threshold separating average from high-performing properties is around 5.5% gross, suggesting the property can comfortably carry itself through vacancies and repairs.

How much do yields vary by neighborhood in Palembang as of 2026?

As of early 2026, yields between highest and lowest neighborhoods in Palembang spread by roughly 2 to 3 percentage points, making neighborhood selection highly impactful.

Highest-yield neighborhoods are growth-edge areas where rents are supported by jobs and access but prices remain moderate: Sukarami, Alang-Alang Lebar, Sako, Kalidoni, and Jakabaring.

Lowest-yield neighborhoods are "prime" central pockets with high prices relative to rents: Talang Semut, the Kambang Iwak corridor, and premium parts of Ilir Barat I and Bukit Kecil.

Yields vary because central prestige areas hit price ceilings faster than rent ceilings, while outer growth areas offer moderate prices despite solid tenant demand.

By the way, we've written a blog article detailing what are the current best areas to invest in property in Palembang.

How much do yields vary by property type in Palembang as of 2026?

As of early 2026, gross yields across property types in Palembang range from around 3.5% for large premium houses up to 6%+ for well-priced compact apartments or entry-level landed homes.

The highest-yielding type is small, functional apartments in select locations, provided purchase price is reasonable and IPL service charges stay manageable.

The lowest-yielding type is large premium landed houses in prime central pockets, because high purchase prices climb faster than achievable rents.

Yields differ because tenants pay for location and livability (access, flood risk, parking) rather than luxury finishes, so practical mid-sized units consistently outperform.

By the way, you might want to read the following:

• What rental yields can you expect for an apartment in Palembang?

What's the typical vacancy rate in Palembang as of 2026?

As of early 2026, the typical residential vacancy rate in Palembang translates to 6% to 10% of annual rental time, meaning 0.7 to 1.2 months empty per year on average.

Vacancy ranges from 4% to 7% in practical districts like Sukarami and Sako, up to 10% to 15% for high-end homes or niche apartments with thinner tenant pools.

The main factor driving vacancy is property positioning: mid-priced, functional rentals near jobs and schools fill quickly, while units with drawbacks or premium pricing sit longer.

Palembang's vacancy is typical for Indonesian secondary cities, neither as tight as high-demand Jakarta nor as loose as oversupplied resort markets.

Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Palembang.

What's the rent-to-price ratio in Palembang as of 2026?

As of early 2026, the average rent-to-price ratio in Palembang is approximately 0.40% per month, meaning Rp 4 million monthly rent for every Rp 1 billion in property value.

A ratio of 0.45%+ per month is considered favorable, translating to gross yield above 5.4% annually and providing a comfortable buffer for expenses.

Compared to Jakarta or Surabaya, Palembang's ratio is slightly more favorable because purchase prices haven't inflated as dramatically, allowing better cash flow relative to investment.

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.

Which neighborhoods and micro-areas in Palembang give the best yields as of 2026?

Where are the highest-yield areas in Palembang as of 2026?

As of early 2026, the top highest-yield neighborhoods in Palembang are Sukarami (near the airport), Sako, and Alang-Alang Lebar, benefiting from steady demand while maintaining moderate prices.

These areas typically deliver gross yields of 5% to 7%, with Sukarami and Sako often reaching the higher end thanks to access-driven family demand.

They share solid everyday infrastructure (schools, markets, commuting access) without the prestige premium that inflates central neighborhood prices.

You'll find a much more detailed analysis of the areas with high profitability potential in our property pack covering the real estate market in Palembang.

Where are the lowest-yield areas in Palembang as of 2026?

As of early 2026, the lowest-yield neighborhoods are Talang Semut, the Kambang Iwak and Demang Lebar Daun corridor, and premium parts of Ilir Barat I, where prestige pricing compresses returns.

These areas typically deliver gross yields of 3% to 4.5%, which feels thin once you account for vacancies, taxes, and maintenance.

Yields are compressed because buyers pay a premium for legacy prestige and centrality, but tenants have rent ceilings that don't scale with those elevated prices.

Buying a property in a low-yield area is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Palembang.

Which areas have the lowest vacancy in Palembang as of 2026?

As of early 2026, neighborhoods with the lowest vacancy are Kemuning, Sukarami, and Sako, where practical mid-market housing meets broad everyday demand.

These areas see vacancy rates around 4% to 6%, meaning only 2 to 3 weeks of turnover per year when priced appropriately.

Low vacancy is driven by central-ish convenience (Kemuning) or strong access to jobs, schools, and transport (Sukarami, Sako), appealing to working families.

The trade-off is that purchase prices have started rising as buyers recognize their stability, slightly compressing yields compared to less-discovered pockets.

Which areas have the most renter demand in Palembang right now?

The neighborhoods with strongest renter demand are Sukarami (airport catchment), Ilir Barat I (central access), and Jakabaring (sports complex and transit effects).

The dominant renter profile is working families and professionals seeking practical, well-connected housing with reasonable monthly costs.

Rental listings in these neighborhoods typically fill within 2 to 4 weeks at market rates, compared to 6 to 8 weeks in weaker-demand areas.

If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Palembang.

Which upcoming projects could boost rents and rental yields in Palembang as of 2026?

As of early 2026, the key infrastructure projects expected to boost rents are the Palembang-Betung toll road (Section I functional for Lebaran 2026), the Musi V bridge (completion targeted 2026), and urban corridor improvements.

Neighborhoods likely to benefit include Sukarami and Alang-Alang Lebar (toll road), Kertapati and Gandus (Musi V bridge), and growth corridors near new interchanges.

Investors might realistically expect rent increases of 5% to 15% in directly affected neighborhoods once projects complete, depending on how quickly tenants recognize improved accessibility.

You'll find our latest property market analysis about Palembang here.

What property type should I buy for renting in Palembang as of 2026?

Between studios and larger units in Palembang, which performs best in 2026?

As of early 2026, larger units (2 to 3 bedroom landed houses) outperform studios in Palembang for both yield and occupancy, since the tenant base is heavily family-driven.

Studios typically yield 4% to 5% gross (Rp 15 to 25 million/year, $950 to $1,600 or EUR 870 to 1,450), while family units achieve 5% to 6.5% gross (Rp 30 to 60 million/year, $1,900 to $3,800 or EUR 1,750 to 3,500) with more consistent occupancy.

Larger units outperform because families seeking practical housing on annual leases dominate, while the studio-renter pool is comparatively small.

However, studios can work if you find a low purchase price in a demand node like Jakabaring, where younger renters create enough turnover.

What property types are in most demand in Palembang as of 2026?

As of early 2026, the most in-demand property type in Palembang is mid-priced landed houses, including cluster homes with practical features like parking and good water pressure.

The top three by demand are: mid-priced 2 to 3 bedroom landed houses, townhouse-style clusters in gated communities, and compact apartments in high-access locations like Jakabaring.

The family-centric lifestyle of local renters drives this pattern, as they prioritize space, safety, and commuting convenience over vertical living.

Large premium landed houses in prestige neighborhoods are underperforming because the tenant pool willing to pay high rents is thin in Palembang.

What unit size has the best yield per m² in Palembang as of 2026?

As of early 2026, the best yield per square meter comes from 60 to 120 m² landed houses and 30 to 45 m² apartments, hitting the sweet spot of affordability and functionality.

For optimal sizes, landlords achieve gross yields of Rp 400,000 to 600,000 per m² annually ($25 to $38 or EUR 23 to 35), compared to lower returns on oversized units.

Smaller or larger units have lower yield per m² because rents don't scale proportionally with size: a 200 m² house doesn't command double the rent of 100 m².

By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable 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 costs cut my net yield in Palembang as of 2026?

What are typical property taxes and recurring local fees in Palembang as of 2026?

As of early 2026, annual property tax (PBB-P2) for a typical rental in Palembang ranges from Rp 500,000 to Rp 3 million ($30 to $190 or EUR 28 to 175), depending on NJOP value tier.

Other recurring fees include neighborhood security contributions (Rp 50,000 to 200,000 monthly, $3 to $13 / EUR 3 to 12) plus RT/RW community fees.

Combined, taxes and fees represent around 2% to 4% of gross rental income, modest compared to other Indonesian cities but meaningful for net yield.

By the way, we cover all the hidden fees and taxes in our property pack covering the real estate market in Palembang.

What insurance, maintenance, and annual repair costs should landlords budget in Palembang right now?

Annual landlord insurance in Palembang typically costs Rp 1 to 3 million ($65 to $190 or EUR 60 to 175), though many smaller landlords skip formal insurance.

Recommended maintenance budget is 0.8% to 1.5% of property value, or 10% to 15% of annual rental income.

The expense most commonly catching landlords off guard is AC servicing and replacement due to heat and humidity, followed by plumbing and water pump issues.

Total budget for insurance, maintenance, and repairs: Rp 8 to 20 million annually ($500 to $1,250 or EUR 460 to 1,150) for a mid-range property.

Which utilities do landlords typically pay, and what do they cost in Palembang right now?

In Palembang, electricity and water are typically tenant-paid for landed rentals (using prepaid PLN tokens), while internet is almost always tenant-paid, leaving landlords with minimal direct utility costs.

When landlords cover utilities (for furnished apartments or short stays), monthly cost runs Rp 500,000 to 1.5 million ($30 to $95 or EUR 28 to 87) combined.

What does full-service property management cost, including leasing, in Palembang as of 2026?

As of early 2026, full-service property management costs 8% to 12% of monthly rent (Rp 200,000 to 600,000/month, $13 to $38 / EUR 12 to 35), covering tenant communication and rent collection.

Leasing fees add 0.5 to 1 month of rent one-time (Rp 2 to 5 million, $125 to $315 / EUR 115 to 290) when the manager handles marketing, viewings, and contracts.

What's a realistic vacancy buffer in Palembang as of 2026?

As of early 2026, landlords should set aside 8% to 12% of annual rental income as a vacancy buffer for turnover and gaps between tenants.

This translates to 4 to 6 weeks of vacancy per year, though well-located mid-market properties experience less downtime while niche units may sit longer.

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.

Source	Why it's authoritative	How we used it
BPS Kota Palembang Dalam Angka 2025	Official city-level statistical yearbook from Indonesia's national statistics agency.	We use it to ground demographics and verify which districts are "core" versus "outer" when discussing yield patterns.
Bank Indonesia SHPR Q3 2025	Central bank's flagship survey for residential prices in the primary market.	We use it to anchor macro price direction and avoid unrealistic assumptions when translating yields into a 2026 snapshot.
BPS Residential Property Price Index 2025	Official index publication with transparent statistical framework.	We use it as a cross-check versus Bank Indonesia to keep estimates consistent with the broader Indonesian cycle.
Rumah123 Palembang House Rentals	One of Indonesia's largest property portals with explicit median price methodology.	We use it to extract typical asking rent ranges and triangulate yields by pairing with sale medians.
Rumah123 Palembang Houses for Sale	Same portal with explicit median sample sizes for sale prices.	We use it for asking price anchors and district-level medians to translate rent-to-price into yield bands.
Pinhome Palembang Apartments	Major Indonesian proptech marketplace with searchable listing ranges.	We use it to confirm apartment supply is thin and bound plausible price points for vertical stock.
Lamudi Palembang Apartments	Long-running regional portal validating market depth across platforms.	We use it to cross-check apartment segment size and avoid over-weighting them in yield averages.
Perda Kota Palembang No. 4/2023 (DDTC)	Readable legal-text source reproducing local regulation articles and percentages.	We use it to state actual PBB-P2 rates by NJOP tier and convert them into landlord tax cost ranges.
DJP Indonesia PPh Pasal 4(2)	Official tax authority explaining final income tax treatment.	We use it to confirm rental income treatment and reflect tax drag in net yield calculations.
JDIH Kemenkeu PP 34/2017	Finance Ministry's official legal documentation portal.	We use it to anchor tax treatment discussion for rental income under PP 34/2017.
PLN Tariff Adjustment Page	Official electricity provider's published tariff adjustments.	We use it for utility cost discussions and monthly budgeting ranges for typical rentals.
Detik PDAM Tirta Musi Coverage	Top-tier Indonesian news outlet reporting specific local tariff changes.	We use it to support that Palembang water tariffs moved and translate into budget line items.
Kementerian PU Tol Palembang-Betung Update	Government ministry site with official infrastructure timelines.	We use it to identify infrastructure shifting renter preferences and link to benefiting districts.
Hutama Karya Tol Progress Release	State-owned builder providing direct project progress updates.	We use it to cross-check government timelines with contractor progress figures.
DetikFinance Tol Palembang-Betung	Widely-read outlet attributing claims to ministry sources.	We use it as corroboration on Q1 2026 functionality timing and progress percentage.
Antara Musi V Bridge Coverage	Indonesia's state news agency, careful about official statements.	We use it for Musi V timeline and map rent pressure to Kertapati-Gandus corridors.
Detik Properti IPL Explainer	Mainstream outlet with practical consumer explanation of apartment fees.	We use it to explain IPL in plain language and add it as recurring owner-side cost.
OCBC NISP IPL Range Guide	Published by regulated bank, more careful than random blogs.	We use it to cite typical IPL per m² and convert into monthly cost examples for net yields.