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For Foreigners Buying Property

Posted by on 22/05/2019

It was increased from RM 500,000, partially in an effort to curb speculation from foreign investors.

Whilst there is a Federal minimum of RM1,000,000 States have the ability to overrule this by imposing their own buying restrictions – so you’ll find that the limits differ quite a lot!

Minimum purchase prices are across Malaysia.

State / Area Minimum Purchase Price
(Individual Title)
Minimum Purchase Price
(Strata Title)
Johor RM 1,000,000 RM 1,000,000
Kuala Lumpur RM 1,000,000 RM 1,000,000
Kelantan RM 500,000 RM 500,000
Kedah RM 1,000,000 RM 1,000,000
Labuan RM 1,000,000 RM 1,000,000
Melaka RM 1,000,000 RM 500,000
Negeri Sembilan RM 1,000,000 RM 1,000,000
Perlis RM 1,000,000 RM 1,000,000
Perak RM 1,000,000 RM 1,000,000
Pahang RM 1,000,000 RM 1,000,000

Penang Island

Penang Mainland

RM 2,000,000​

RM 1,000,000​

RM 1,000,000

RM 1,000,000​

Putrajaya RM 1,000,000 RM 1,000,000
Sabah RM 500,000 RM 500,000
Sarawak RM 400,000 RM 400,000

Zone 1

Zone 2

Zone 3

Not permitted – only landed properties with strata titles

RM 2,000,000

RM 2,000,000

RM 1,000,000​

Terengganu RM 1,000,000 RM 1,000,000

*Zones in Selangor
Zone 1 
– Districts of Petaling, Gombak, Hulu Langat, Sepang and Klang
Zone 2 – Districts of Kuala Selangor & Kuala Langat,
Zone 3 – Districts of Hulu Selangor and Sabak Bernam

As you can see, Penang, Selangor and Melaka are stricter on minimum purchase prices for landedproperties in particular (or at least those on individual titles) whilst offering more leniency for those on strata titles.

You should know that Penang, Melaka and Johor also impose a ‘state levy’. Penang imposes a state levy of 3% whilst Melaka and Johor charge a state levy of 2% – which can significantly bump up your buying costs.

Whilst it doesn’t impose a state levy, Selangor is probably the strictest of all states – they only allow foreigners to buy landed properties if they have strata titles – which usually limits foreigners to buying in gated developments.

For new developments in Selangor, foreigners are not allowed to purchase more than 10% of the total number of properties set aside for non-Bumiputras (each new development has a quota set aside for Bumiputras, or the indigenous Malay people, called “Bumi Lot”).

Lastly, in Selangor foreigners are not able to buy property at auction or buy agricultural land.

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