What are the rental yields for apartments in Palembang? (2026)

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What rental yields can I realistically get from an apartment in Palembang?

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

As of early 2026, the average gross rental yield for apartments in Palembang sits around 7% to 9%, which is noticeably higher than what you would see in Jakarta or other major Indonesian cities.

The realistic range of gross rental yields for most apartment investments in Palembang stretches from about 6% for larger family units up to 10% for well-located compact units in buildings like Samesta Jakabaring.

The main factor that causes yields to vary significantly in Palembang is whether the apartment is in a building with strong tenant demand (such as projects near Jakabaring sports complex or the Ampera corridor) versus older or less accessible buildings where vacancy can drag down returns.

Compared to Jakarta, where gross yields for apartments often hover around 4% to 5% according to Colliers data, Palembang offers a meaningful premium because purchase prices are much lower relative to rents, which makes it attractive for yield-focused investors.

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

As of early 2026, the average net rental yield for apartments in Palembang typically falls between 4.5% and 7%, depending on how you structure your lease and who pays the building charges.

The realistic range of net yields that most apartment investors can expect in Palembang goes from about 4.5% (if you absorb all costs and face occasional vacancy) up to 7% for well-managed units where tenants cover service charges separately.

The single biggest expense category that reduces gross yield to net yield in Palembang is the IPL (building service charge), which can eat up 10% to 28% of your monthly rent if you pay it instead of the tenant, making the lease structure a critical decision for your bottom line.

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

What's the typical rent-to-price ratio for apartments in Palembang in 2026?

As of early 2026, the typical rent-to-price ratio for apartments in Palembang works out to roughly 0.6% to 0.8% per month, which translates to about 7% to 10% annually (the same as gross yield, just expressed differently).

The realistic range of rent-to-price ratios that covers most apartment transactions in Palembang spans from about 0.5% monthly for larger or less optimally located units up to 0.85% monthly for compact, well-positioned units in high-demand buildings.

In Palembang, the apartment categories that tend to have the highest rent-to-price ratios are small 2-bedroom units (around 30 to 40 square meters) in newer buildings near Jakabaring or the Kemuning area, because these hit the sweet spot of local tenant budgets while still being affordable to purchase.

How much rent can I charge for an apartment in Palembang?

What's the typical tenant budget range for apartments in Palembang right now?

The typical tenant budget for renting an apartment in Palembang in 2026 falls between Rp1.5 million and Rp3.5 million per month (around $90 to $210 USD or €85 to €195 EUR), which reflects the income levels of most formal-sector workers in the city.

Tenants targeting mid-range apartments in Palembang, such as furnished 2-bedroom units in decent buildings, typically budget around Rp2 million to Rp3 million per month ($120 to $180 USD or €110 to €165 EUR).

For high-end or luxury apartments in Palembang, which are rare but do exist near the CBD or in premium buildings, tenant budgets can stretch to Rp4 million to Rp6 million per month ($240 to $360 USD or €220 to €335 EUR), though this pool of renters is much smaller than in Jakarta.

We have a blog article where we update the latest data about rents in Palembang here.

What's the average monthly rent for a 1-bed apartment in Palembang as of 2026?

As of early 2026, the average monthly rent for a 1-bedroom apartment in Palembang is around Rp2.2 million per month (approximately $130 USD or €120 EUR), though this varies significantly by location and furnishing level.

At the entry level, a decent 1-bedroom apartment in Palembang rents for around Rp1.5 million to Rp1.8 million per month ($90 to $110 USD or €85 to €100 EUR), which typically means a basic unit in an older building or a less central location like parts of Seberang Ulu.

In the mid-range, a typical 1-bedroom apartment in Palembang goes for Rp1.8 million to Rp2.5 million per month ($110 to $150 USD or €100 to €140 EUR), usually featuring air conditioning, basic furnishing, and a location in areas like Kemuning or Sukarami with reasonable access to amenities.

At the high end, a luxury 1-bedroom apartment in Palembang can fetch Rp2.5 million to Rp3 million per month ($150 to $180 USD or €140 to €165 EUR), typically in a newer building with good security, full furnishing, and proximity to the CBD or Jakabaring area.

What's the average monthly rent for a 2-bed apartment in Palembang as of 2026?

As of early 2026, the average monthly rent for a 2-bedroom apartment in Palembang is around Rp2.8 million per month (approximately $165 USD or €155 EUR), with our cleanest data point being Rp2.4 million for a 33-square-meter unit in Samesta Jakabaring.

At the entry level, a decent 2-bedroom apartment in Palembang rents for around Rp2 million to Rp2.3 million per month ($120 to $135 USD or €110 to €130 EUR), which typically means a compact layout in a standard building without premium amenities.

In the mid-range, a typical 2-bedroom apartment in Palembang goes for Rp2.3 million to Rp3 million per month ($135 to $180 USD or €130 to €165 EUR), usually offering air conditioning in both bedrooms, reasonable furnishing, and a location in demand areas like Ilir Barat or near the Ampera corridor.

At the high end, a luxury 2-bedroom apartment in Palembang can fetch Rp3 million to Rp3.6 million per month ($180 to $215 USD or €165 to €200 EUR), typically featuring full modern furnishing, strong building management, and a prime micro-location near business centers or Jakabaring.

What's the average monthly rent for a 3-bed apartment in Palembang as of 2026?

As of early 2026, the average monthly rent for a 3-bedroom apartment in Palembang is around Rp4.5 million per month (approximately $270 USD or €250 EUR), though true 3-bedroom apartments are much less common in Palembang than in larger Indonesian cities.

At the entry level, a decent 3-bedroom apartment in Palembang rents for around Rp3.2 million to Rp3.8 million per month ($190 to $225 USD or €180 to €210 EUR), which typically means a larger unit in a standard building, often older, without premium features.

In the mid-range, a typical 3-bedroom apartment in Palembang goes for Rp3.8 million to Rp4.8 million per month ($225 to $285 USD or €210 to €265 EUR), usually serving families who need more space and are willing to pay for decent building quality and location.

At the high end, a luxury 3-bedroom apartment in Palembang can fetch Rp4.8 million to Rp5.5 million per month ($285 to $330 USD or €265 to €305 EUR), typically targeting corporate tenants or expat families who want full furnishing, security, and access to international schools or hospitals.

How fast do well-priced apartments get rented in Palembang?

The estimated average time-to-rent for a well-priced apartment in Palembang is roughly 2 to 6 weeks, assuming the unit is correctly priced, clean, and located in a building with decent demand.

The typical vacancy rate for apartments in Palembang hovers around 5% to 10% for well-managed buildings in good locations, though this can spike higher for overpriced units or buildings with weak management.

The main factors that cause some apartments to rent faster than others in Palembang are proximity to flood-free access routes (Palembang has flood-prone pockets that tenants avoid), building security and water reliability, and whether the unit is in a recognized project like Samesta Jakabaring rather than a no-name building.

And if you want to know what should be the right price, check our latest update on how much an apartment should cost in Palembang.

Which apartment type gives the best yield in Palembang?

Which is better for yield between studios, 1-bed, 2-bed and 3-bed apartments in Palembang as of 2026?

As of early 2026, small 2-bedroom and compact 1-bedroom apartments typically offer the best rental yield in Palembang because they hit the sweet spot of what local tenants can afford while still commanding reasonable rents.

The typical gross rental yield range in Palembang breaks down roughly as follows: studios and micro-units around 8% to 10% (if available in good buildings), small 1-bedroom and 2-bedroom units around 7% to 10%, and larger 3-bedroom units around 6% to 8%.

The main reason smaller units outperform in Palembang is that the tenant pool is heavily anchored to formal-sector workers earning around the UMK (Rp4.2 million per month in 2026), which means budgets cluster in the Rp2 million to Rp3 million rent range, favoring compact units over family-sized apartments.

Which features are best if you want a good yield for your apartment in Palembang?

The top features that most positively impact rental yield for apartments in Palembang are reliable air conditioning (the city is hot and humid year-round), flood-free access routes, secure parking, and strong building water pressure, because tenants will leave fast when these basics fail.

In Palembang, middle floors (around floors 3 to 8 in typical buildings) tend to be easiest to rent because they avoid ground-floor flood anxiety and top-floor heat buildup, both real concerns given the city's river-delta geography and tropical climate.

Apartments with balconies or outdoor space do rent faster in Palembang, but the rent premium is modest (maybe 5% to 10%) because local tenants prioritize AC, water, and security over outdoor amenities, unlike in tourist-driven markets like Bali.

Building features like elevators and 24-hour security do justify slightly higher rents in Palembang (perhaps 10% to 15% premium), but the IPL (service charge) for these amenities can eat into your net yield if you pay it rather than the tenant.

Which neighborhoods give the best rental demand for apartments in Palembang?

Which neighborhoods have the highest rental demand for apartments in Palembang as of 2026?

As of early 2026, the neighborhoods with the highest rental demand for apartments in Palembang are Ilir Barat I and II (central-west urban core), Bukit Kecil (near city landmarks), Kemuning (busy and well-connected), and Jakabaring (sports city area with newer development energy).

The main demand driver that makes these neighborhoods attractive to apartment tenants in Palembang is their position along the Ampera-CBD-Jakabaring connectivity axis, which minimizes commute friction across the Musi River, a major consideration since traffic over the river bridges can be painful.

The typical vacancy rate and time-to-rent in these high-demand Palembang neighborhoods is lower than the city average, with well-priced units renting in 2 to 4 weeks compared to 6 to 12 weeks in less desirable locations.

One emerging neighborhood gaining rental demand momentum in Palembang is Sukarami and Alang-Alang Lebar (toward the airport side), where infrastructure improvements and new residential development are pulling middle-income tenants who want affordable housing with reasonable city access.

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

Which neighborhoods have the highest yields for apartments in Palembang as of 2026?

As of early 2026, the neighborhoods with the highest rental yields for apartments in Palembang are Jakabaring (and nearby Seberang Ulu pockets), Sukarami and Alang-Alang Lebar (in select pockets), and Kemuning (non-prime micro-locations), because these areas offer moderate purchase prices paired with steady rental demand.

The typical gross rental yield range in these top-yielding Palembang neighborhoods is around 8% to 10%, compared to 6% to 8% in more established central areas where purchase prices have risen faster than rents.

The main reason these neighborhoods offer higher yields than others in Palembang is that they are still "value" areas where apartment prices remain affordable (often Rp250 million to Rp350 million for small units) while rents are supported by proximity to jobs at Jakabaring, the airport corridor, or major retail centers.

Should I do long-term rental or short-term rental in Palembang?

Is short-term rental legal for apartments in Palembang as of 2026?

As of early 2026, short-term rental is not illegal by default in Palembang, but if you rent nightly or weekly like a hotel, you may fall under "short-term accommodation" business classifications that require proper licensing through the OSS system.

The main legal restrictions for operating a short-term rental apartment in Palembang include potential registration under PP 5/2021 (risk-based business licensing), compliance with tourism ministry standards, and critically, checking whether your building's strata rules allow hotel-style stays at all.

For Airbnb-style rentals in Palembang, you should assume you may need to register via the OSS portal under KBLI category 551 (short-term accommodation), pay applicable local taxes under Perda No. 4/2023, and comply with any building-specific restrictions that many apartment complexes enforce.

By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Palembang.

What's the gross yield difference short-term vs long-term in Palembang in 2026?

As of early 2026, the gross yield difference between short-term and long-term rental in Palembang is roughly 2 to 5 percentage points higher for STR in the best-case scenario, with long-term yielding around 7% to 10% gross and short-term potentially reaching 9% to 14% gross before costs.

The typical gross yield range for short-term rentals in Palembang is around 9% to 14% (if occupancy is strong), while long-term rentals reliably deliver 7% to 10% gross, making short-term look attractive on paper but much harder to execute.

The main additional costs that reduce the net yield advantage of short-term rentals in Palembang include platform fees (Airbnb takes around 15%), higher cleaning and turnover costs, more intensive property management (often 15% to 25% of revenue versus 6% to 10% for long-term), and higher vacancy volatility.

To outperform a long-term rental in Palembang, a short-term rental typically needs to achieve at least 55% to 65% occupancy at competitive nightly rates, which is achievable near Jakabaring during events or near hospitals for medical visitors, but unreliable in quieter neighborhoods.

What costs will eat into my net yield for an apartment in Palembang?

What are building service charges as a % of rent in Palembang as of 2026?

As of early 2026, the typical building service charge (IPL) for apartments in Palembang runs around 10% to 20% of monthly rent for standard buildings, or roughly Rp230,000 to Rp500,000 per month ($14 to $30 USD or €13 to €28 EUR) for a typical 33-square-meter unit.

The realistic range of building service charges in Palembang spans from about 10% of rent (for basic buildings with minimal amenities) up to 28% of rent (for buildings with pools, gyms, or premium security), making lease structure critical for your net yield.

Services and building features that typically justify higher-than-average IPL in Palembang include 24-hour security with multiple posts, swimming pool maintenance, gym facilities, reliable backup generators (important given occasional power issues), and consistent water pumping, which is a bigger deal in Palembang than in cities with better municipal water pressure.

What annual maintenance budget should I assume for an apartment in Palembang right now?

The typical annual maintenance budget that apartment owners should assume in Palembang is around Rp1.5 million to Rp3.5 million per year ($90 to $210 USD or €85 to €195 EUR), or roughly 0.5% to 1% of the property value.

The realistic range of annual maintenance costs in Palembang varies from about Rp1 million per year ($60 USD or €55 EUR) for newer units in good condition up to Rp5 million per year ($300 USD or €280 EUR) for older apartments or those with heavy tenant turnover.

The most common maintenance expenses apartment owners face annually in Palembang are AC servicing and occasional replacement (the humid climate works AC units hard), repainting every few years due to humidity-driven mold and wear, and plumbing fixes because Palembang's water quality can be tough on pipes and fixtures.

What property taxes should I expect for an apartment in Palembang as of 2026?

As of early 2026, the typical annual property tax (PBB-P2) for an apartment in Palembang is relatively modest, often between Rp500,000 and Rp2 million per year ($30 to $120 USD or €28 to €110 EUR) for standard apartments, depending on the NJOP (tax assessed value).

The realistic range of property taxes in Palembang varies from under Rp500,000 per year ($30 USD or €28 EUR) for lower-value units or those with favorable NJOP assessments, up to Rp3 million per year ($180 USD or €165 EUR) for higher-value apartments in prime locations.

Property taxes for apartments in Palembang are calculated based on the NJOP (government-assessed land and building value), multiplied by the local PBB-P2 rate set by Palembang under Perda No. 4/2023, with the national ceiling capped at 0.5% under UU No. 1/2022.

There are some property tax exemptions available in Palembang, including a standard NJOP deduction threshold below which no tax is owed, but these exemptions are relatively small and most apartment owners should expect to pay something annually.

If you want to go into more details, we also have a blog article detailing all the property taxes and fees in Palembang.

How much does landlord insurance cost for an apartment in Palembang in 2026?

As of early 2026, the typical annual landlord insurance cost for an apartment in Palembang is around Rp450,000 to Rp1.2 million per year ($27 to $70 USD or €25 to €65 EUR), covering basic building and contents protection.

The realistic range of annual landlord insurance costs in Palembang spans from about Rp400,000 per year ($24 USD or €22 EUR) for basic fire and disaster coverage up to Rp1.5 million per year ($90 USD or €85 EUR) for more comprehensive policies that include tenant damage or rental loss protection.

What's the typical property management fee for apartments in Palembang as of 2026?

As of early 2026, the typical property management fee for apartments in Palembang is around 6% to 10% of collected rent for long-term rentals, or roughly Rp145,000 to Rp280,000 per month ($9 to $17 USD or €8 to €16 EUR) on a Rp2.4 million monthly rent.

The realistic range of property management fees in Palembang goes from about 6% of rent (for basic tenant finding and rent collection) up to 25% or more of revenue for short-term rental management that includes guest turnover, cleaning coordination, and daily operations.

Services typically included in standard property management fees in Palembang cover tenant finding and screening, rent collection and deposit handling, basic maintenance coordination, and periodic property inspections, though overseas owners often pay at the higher end of the range for more hands-on service.

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.