Malaysia Property Market News and Guides


15 Jul 2015

Malaysia still remains as one of the most favourable countries for real estate investment, drawing attention and influx of foreign investors due to the liberal regulations and attractive yields of returns. However, as time passed, the government has amended the rules, time and again, for foreigners’ purchase of properties in Malaysia.

Here’s a simple guide to understanding the minimum pricing for foreigners to purchase properties in Malaysia. Foreigners here may include all expatriates, non-citizens, foreign companies and even PRs.

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The federal government in Malaysia holds the right to set rules and regulations for the selling and buying of properties but at the end of the day, state governments reserve the utmost authority in deciding the minimum prices hence the different ruling in certain states.

Malaysia as a whole

Starting from 1st January 2014, the minimum purchase price for foreigners is RM1 million for all residential, commercial or land purchases including participants under the Malaysia My Second Home (MM2H).


Selangor’s state government overruled the policy by setting the minimum purchase price to be RM2 million for districts under Zone 1 and 2 and RM1 million for districts under Zone 3.

Zone 1 – Petaling, Gombak, Hulu Langat, Sepang & Klang

Zone 2 – Kuala Selangor, Kuala Langat

Zone 3 – Hulu Selangor, Sabak Bernam

And foreigners can only get hold of properties with strata or landed strata (gated developments) titles only.


Penang’s government also implemented an increased minimum purchase policy for foreigners. For all property types, the minimum price is set at RM2 million for properties on the island and RM1 million on the mainland.

Apart from that, there is a 3% levy on non-citizens on top of the application fees of RM10,000 for individuals and RM20,000 for companies.


Johor’s state government abides with the federal government’s policy of the minimum threshold of RM1 million for all properties.

However, they have made it mandatory for foreign buyers to pay a consent fee of 2% of the purchase price or RM20,000, whichever is higher.

Selling Your Properties

To sell your property, you will need to take note of the Real Property Gains Tax (RPGT) as taxes will be imposed, depending on the number of years you have been holding the property.

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This guide is written by jodielee. Send message to this author for further discussion on this article.
Jodie is the Editor of CloudHax Malaysia and a key member of CloudHax’s marketing team.

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