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
Makassar's property market is experiencing steady moderate growth as of September 2025, with entry-level houses starting from $16,000 and luxury properties reaching $200,000+. The city's urbanization drive, infrastructure upgrades, and growing population of nearly 2 million residents are creating solid opportunities for both investors and homebuyers looking for affordable Southeast Asian real estate.
Property prices have appreciated consistently over the past 12-24 months, particularly in central areas and well-connected suburbs like Biringkanaya and Manggala. Rental yields range from 2.9% in the city center to 5.7% in suburban areas, making Makassar an attractive option for buy-to-let investors seeking higher returns than many regional capitals.
If you want to go deeper, you can check our pack of documents related to the real estate market in Indonesia, based on reliable facts and data, not opinions or rumors.
Makassar offers excellent value for property investment in September 2025, with moderate price growth, attractive rental yields, and strong infrastructure development driving long-term appreciation potential.
The best opportunities exist in expanding suburban districts and commercial shophouses, while foreign buyers should focus on Hak Pakai or leasehold arrangements for optimal flexibility and returns.
| Investment Type | Best Price Range | Expected Returns | Risk Level |
|---|---|---|---|
| Buy-to-Let Suburban Houses | $50,000-$100,000 | 3-5% rental yield + appreciation | Low-Medium |
| Commercial Shophouses | $75,000-$150,000 | 5-8% rental yield | Medium |
| City Center Apartments | $60,000-$120,000 | 2.9% yield + high appreciation | Medium |
| Entry-Level Houses | $16,000-$50,000 | 4-6% yield | Medium-High |
| Luxury Properties | $150,000-$200,000+ | 2-4% yield + prestige | Low |
| Property Flipping | $30,000-$80,000 | 7-15% gross margin | High |
| Coastal/Premium Zones | $100,000-$300,000 | 3-5% yield + lifestyle | Medium |
What are property prices doing right now in Makassar, and how have they changed over the past 12 to 24 months?
Property prices in Makassar are experiencing steady moderate growth as of September 2025, with consistent appreciation across most market segments over the past 12-24 months.
Entry-level houses now start from around $16,000, representing a gradual increase from previous years as urbanization drives demand even in outer suburban areas. Mid-sized family homes are averaging $90,000-$100,000, while luxury properties command $150,000-$200,000+ depending on location and amenities.
The strongest price appreciation has occurred in central areas and well-connected suburban districts, particularly where infrastructure improvements have enhanced accessibility. Areas like Biringkanaya and Manggala have seen consistent price growth due to their proximity to new developments and improved transportation links.
Central Makassar properties are commanding premium prices, with city center real estate averaging $1,536 per square meter compared to $614 per square meter in suburban locations. This price differential reflects the limited land supply in prime locations and growing demand from urban professionals.
It's something we develop in our Indonesia property pack.
How do short-term price trends compare with medium-term (3–5 years) and long-term (10 years) projections?
Short-term trends show continued moderate appreciation, while medium and long-term projections indicate stronger growth potential driven by fundamental economic factors.
Over the next 12-24 months, expect moderate price increases to continue, particularly in central and infrastructure-connected areas. Rental yields in central locations may face slight compression as new developments come online, but overall price stability should persist due to strong underlying demand.
The medium-term outlook (3-5 years) points to continued moderate price increases, with central areas likely to outperform suburban locations. Projects like the Center Point of Indonesia (CPI) development are expected to concentrate demand in premium areas, while some outer suburban areas may experience price stagnation or mild corrections as supply increases.
Long-term projections (10 years) are strongly positive, supported by fundamental drivers including population growth toward 2 million residents by 2035, economic expansion, and constrained land supply in desirable locations. However, expect cyclical corrections, particularly in newly built districts where oversupply could temporarily impact prices.
The key differentiator will be location - properties in established areas with proven infrastructure and transport links will likely see the strongest long-term appreciation.
Which neighborhoods in Makassar are growing fastest in terms of infrastructure, population, and demand?
Several distinct neighborhoods are experiencing rapid growth, each offering different advantages for property investors and residents.
Biringkanaya, Manggala, and Tamalanrea represent the fastest-growing suburban expansion areas, attracting families and investors with improved infrastructure and more affordable pricing. These districts benefit from new road networks, shopping centers, and residential developments that make them increasingly attractive alternatives to central locations.
Tanjung Bunga and the Center Point of Indonesia (CPI) area are experiencing high-end coastal and mixed-use development, with premium amenities and luxury properties driving demand among affluent buyers. These areas command the highest prices but offer unique lifestyle benefits and strong appreciation potential.
Central Makassar continues to see significant infrastructure upgrades and mixed-use projects, making it increasingly appealing to urban professionals seeking high-density living with access to business districts, entertainment, and cultural facilities.
Population growth and major infrastructure investments are concentrated in these districts, creating a reinforcing cycle of development, migration, and increasing property values that should continue over the medium term.
Are there big differences in property values between central Makassar, suburban areas, and coastal zones?
Property values vary significantly across Makassar's different zones, creating distinct opportunities for different types of buyers and investors.
| Zone | Average Price per m² | Typical Property Types | Target Buyers |
|---|---|---|---|
| Central Makassar (CBD, CPI) | $1,536 | Apartments, mixed-use, commercial | Urban professionals, investors |
| Suburban Areas (Manggala, Biringkanaya) | $614 | Landed houses, townhouses | Families, first-time buyers |
| Coastal Zones (Tanjung Bunga) | $1,200-$2,000 | Luxury condos, villas | Affluent buyers, lifestyle investors |
| Outer Suburban/Rural | $300-$500 | Basic houses, land plots | Entry-level buyers, speculators |
| Commercial Districts | $1,800-$2,500 | Shophouses, office spaces | Business owners, commercial investors |
Central Makassar commands the highest prices due to land scarcity and premium demand from businesses and urban professionals. The CBD and CPI areas represent the most expensive segments, reflecting their strategic importance and limited supply.
Suburban areas offer the best value proposition for families and entry-level investors, with significantly lower per-square-meter costs while still providing access to city amenities and infrastructure improvements.
Coastal zones command luxury pricing due to lifestyle amenities and major development projects, but offer unique benefits in terms of tourism potential and prestige value that may drive stronger long-term appreciation.
What are the average rental yields for apartments, houses, and commercial spaces in different parts of Makassar?
Rental yields in Makassar vary significantly by location and property type, with suburban areas generally offering higher returns than central locations.
City center apartments deliver 2.9% gross yield on average, with one-bedroom units renting for approximately $179 per month and three-bedroom units commanding $369 monthly. While yields are lower, these properties benefit from strong tenant demand and potential for capital appreciation.
Suburban apartments and houses offer more attractive yields of up to 5.7%, with one-bedroom units renting for $145 monthly and three-bedroom properties achieving $288 per month. The lower purchase prices in these areas create better cash flow opportunities for buy-to-let investors.
Entry-level houses in outer areas can achieve 4-6% yields, mid-range houses typically deliver 3-5% returns, while luxury homes generally produce 2-4% yields due to their higher purchase prices and more limited tenant pool.
Commercial properties, particularly shophouses in business districts, offer the highest yields at 5-8%, making them attractive for investors seeking strong cash flow returns, though they require more active management than residential properties.
How do purchase prices compare with rental income potential for each property type?
The price-to-rent ratios across Makassar reveal significant differences in investment potential between locations and property types.
City center properties show a price-to-rent ratio of 34.85, indicating that buying only makes financial sense for long-term holding strategies rather than immediate cash flow generation. These properties are better suited for appreciation plays and prestige investments.
Suburban areas offer a much more favorable price-to-rent ratio of 17.51, making them significantly more attractive for buy-to-let investors seeking positive cash flow and reasonable payback periods.
Suburban landed houses and commercial shophouses provide the best rental income potential relative to purchase price. These property types combine reasonable acquisition costs with strong tenant demand, particularly from growing families and small businesses.
Central apartments are less attractive from a pure yield perspective unless urban rental demand surges significantly, but they offer the potential for stronger capital appreciation over time due to land scarcity and continuing urbanization trends.
It's something we develop in our Indonesia property pack.
Don't lose money on your property in Makassar
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
What's the typical resale timeline and profit margin for buyers who flip property in Makassar?
Property flipping in Makassar requires careful timing and location selection, with typical resale periods ranging from 12-24 months across most submarkets.
New and highly desirable developments in premium areas like Biringkanaya and Tanjung Bunga may transact faster, particularly if they feature unique amenities or strategic locations near infrastructure projects. However, oversupplied segments can take significantly longer to sell and may require price concessions.
Profit margins for successful flippers typically range from 7-15% gross margin in fast-growth areas, assuming market sentiment remains positive and planned infrastructure projects complete on schedule. These margins are most achievable in areas experiencing rapid population growth or major development projects.
Margins compress significantly if new supply floods the market or if speculator competition intensifies, which can happen quickly in markets experiencing rapid development like Makassar's suburban expansion areas.
The most successful flippers focus on properties priced between $30,000-$80,000 in areas with confirmed infrastructure improvements, avoiding oversupplied new developments and markets with uncertain completion timelines.
How do foreign and local buyers differ in terms of rules, taxes, and financing options available?
Foreign and local buyers face significantly different legal frameworks and financial requirements when purchasing property in Makassar.
Local Indonesian buyers can obtain freehold title (Hak Milik), providing complete ownership rights and easier access to local bank financing. They also face lower transaction costs and fewer regulatory hurdles throughout the purchase process.
Foreign buyers cannot obtain Hak Milik and must use alternative ownership structures. The three main options are Hak Pakai (usufruct/long-term use title requiring KITAS or KITAP resident permit), Hak Guna Bangunan (build-use title often through PT PMA company ownership), or leasehold arrangements (typically 25 years with renewal options).
Foreign buyers face additional due diligence obligations, potentially higher transaction taxes, and more complex bank financing requirements. Local banks may require specialist branches or offshore funding arrangements, making the financing process more time-consuming and expensive.
Recent regulatory reforms have moderately eased some restrictions on foreign property ownership, but the additional complexity and costs mean foreign buyers should budget extra time and money for legal and administrative processes.
What budget ranges currently offer the best value for living, renting out, or reselling?
Different budget ranges serve distinct investment strategies and lifestyle needs in Makassar's current market.
1. **Living or Buy-to-Let ($50,000-$100,000):** This range provides access to mid-range suburban landed houses with decent rental yields and strong resale prospects, making it ideal for first-time buyers and steady investors.2. **Entry-Level Investment ($16,000-$50,000):** Best suited for experienced investors comfortable with higher risk, offering entry-level houses or new-build apartments in up-and-coming districts with speculative potential.3. **Commercial Investment ($75,000-$150,000):** Allows purchase of shophouses or commercial units in growing business districts, providing higher yields (5-8%) for investors seeking active income generation.4. **Luxury/Diversification ($150,000+):** Premium condos or landed homes in CPI, Tanjung Bunga, or CBD areas, suitable for diversification, prestige, or lifestyle purposes despite lower yields.5. **Property Flipping ($30,000-$80,000):** Optimal range for renovation and resale strategies in areas with confirmed infrastructure improvements and growing populations.The $50,000-$100,000 range currently offers the best balance of yield, appreciation potential, and resale liquidity for most investors.
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.
Which property types—apartments, landed houses, or commercial units—make the most sense depending on your investment goal?
The optimal property type depends entirely on your specific investment objectives, risk tolerance, and required cash flow.
Apartments and condos work best for first-time buyers, investors seeking low entry costs, or those targeting the urban rental market of students and professionals. They offer easier management, better liquidity, and lower maintenance requirements, but typically provide moderate yields and appreciation potential.
Landed houses suit investors seeking stable family rental markets, higher appreciation potential in suburban clusters, and easier exit strategies to local families when needed. They provide better long-term value but require more maintenance and higher initial investment.
Commercial units, particularly shophouses (ruko), deliver the highest rental yields at 5-8% and work well in fast-growing mixed-use and business districts. They're ideal for active investors or long-term income portfolios but require more hands-on management and market knowledge.
Mixed-use properties combining residential and commercial elements offer diversification benefits but require more sophisticated management and higher capital requirements.
Your choice should reflect your available capital, desired involvement level, risk tolerance, and required cash flow timeline.
What are the risks in the short term, like oversupply or price corrections, versus the long-term opportunities?
Makassar's property market faces distinct short-term risks but offers compelling long-term opportunities driven by fundamental growth factors.
Short-term risks include potential oversupply in new suburban developments, which could compress rental yields and slow resale processes. National or global economic shocks could also affect demand, particularly in the luxury and speculative segments of the market.
Regulatory changes affecting foreign investor eligibility represent another near-term risk, as policy shifts could impact both demand and ownership structures for international buyers. Currency fluctuations and changes in lending policies could also affect affordability and financing access.
Long-term opportunities are substantial and include large-scale urbanization projects, major infrastructure upgrades through the Livable City Plan and CPI development, and consistent population growth projected to exceed 2 million residents by 2035.
Persistent central land scarcity will likely fuel price appreciation over time, while economic diversification and growing middle-class demand should support both residential and commercial property markets throughout the next decade.
Successful investors focus on locations with confirmed infrastructure development, avoid overleveraged positions in newly launched projects, and prioritize properties with multiple exit strategies.
If you were to buy now, which areas, property types, and price ranges position you best for growth and flexibility?
The optimal investment strategy for September 2025 combines expanding suburban markets with proven commercial opportunities and strategic positioning for long-term growth.
Target expanding suburban districts including Biringkanaya, Manggala, and Tamalanrea for their infrastructure development, population growth, and reasonable pricing. Premium seafront areas and CPI developments offer higher-end opportunities, while established city center locations provide resilience and liquidity.
Focus on low- to mid-range landed houses ($50,000-$100,000) for the best combination of yield and appreciation potential. Shophouses provide excellent income generation, while select new-build apartments offer liquidity and portfolio diversification benefits.
The $50,000-$100,000 price range offers core value with proven demand and resale liquidity. Properties under $50,000 should only be considered by experienced investors capable of managing liquidity and tenant risks effectively.
Prioritize high-demand, infrastructure-linked developments in neighborhoods with clear population and income growth trajectories. Use ownership structures like Hak Pakai or leasehold with conversion options to maximize flexibility for foreign buyers.
It's something we develop in our Indonesia property pack.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Makassar's property market in September 2025 presents compelling opportunities for both investors and homebuyers, with steady price growth, attractive rental yields, and strong infrastructure development driving long-term value creation.
The combination of affordable entry prices, growing urbanization, and strategic location within Indonesia's expanding economy positions Makassar as an excellent choice for those seeking Southeast Asian real estate exposure with reasonable risk and solid return potential.