Malaysia has long been a popular destination for expatriates and investors looking for affordable real estate, stable economic growth, and a vibrant lifestyle. The good news? Foreigners can buy property in Malaysia — and it’s relatively straightforward compared to many other countries in Asia.
Below is everything you need to know about how foreigners can own property in Malaysia in 2025.
Yes. Foreigners are allowed to buy property in Malaysia under the Malaysian Land Code (Act 828), subject to certain restrictions. However, there are minimum price thresholds and types of property that foreigners can and cannot purchase, depending on the state where the property is located.
Each Malaysian state sets its own minimum property price threshold for foreign buyers.
Typically, this starts from RM 1 million, but it varies as follows:
State Minimum Price (Residential)
Kuala Lumpur RM 1 million
Selangor RM 2 million (landed), RM 1.5 million (strata)
Penang RM 1 million (strata), RM 3 million (landed on island), RM 1.8 million (landed on mainland)
Johor RM 1 million
Negeri Sembilan RM 1 million
Sabah & Sarawak RM 1 million (special rules apply)
Foreigners can buy:
• Freehold or leasehold properties above the minimum price threshold
• Condominiums and serviced apartments
• Landed properties (bungalows, semi-Ds, terraces) — if approved by the State Authority
• Commercial properties and industrial lots (in some cases, no price limits)
Foreigners cannot buy:
• Low- and medium-cost housing
• Properties built on Malay Reserved Land
• Properties allocated for Bumiputera (indigenous Malay) quota
Here’s a step-by-step breakdown of how foreigners can buy property in Malaysia:
Step 1: Choose the property
Select a property above the minimum threshold and check eligibility.
Step 2: Sign the Letter of Offer (LO)
Pay a 2–3% earnest deposit to secure the property.
Step 3: Hire a lawyer
A real estate lawyer will conduct due diligence, prepare the Sale and Purchase Agreement (SPA), and apply for State Authority Consent.
Step 4: Sign the SPA and pay the deposit
Usually 10% total deposit (including the earnest deposit).
Step 5: Obtain State Authority Approval
This is mandatory for foreign buyers and usually takes 1–3 months.
Step 6: Final settlement and title transfer
Once approved, the balance payment is made, and the property title is transferred to your name.
Foreigners can apply for mortgage loans from Malaysian banks, though approval depends on your income and credit profile. Typically, banks finance up to 70% of the property value for foreign buyers.
Popular banks offering foreign buyer mortgages include:
• Maybank
• CIMB
• RHB
• HSBC Malaysia
• OCBC
Foreigners planning long-term stays can benefit from the Malaysia My Second Home (MM2H) program, which offers a renewable 5–10 year visa and other incentives, including easier property ownership conditions.
• 100% foreign ownership allowed (with approval)
• No restrictions on repatriating profits or rental income
• Low property prices compared to Singapore, Hong Kong, and Australia
• English is widely spoken
• Favorable tax regime and stable political environment
• Buying below the state’s minimum threshold
• Not checking developer credentials or project approvals
• Skipping legal representation
• Ignoring leasehold expiry dates
• Overlooking maintenance and management fees
Buying property in Malaysia as a foreigner is a straightforward and secure process — as long as you comply with local laws and state regulations. With attractive real estate prices, good rental yields, and a welcoming investment climate, Malaysia continues to be one of the best countries in Asia for foreign property buyers.
Ready to buy property in Malaysia? Browse exclusive listings on MalaysiaHomeListings.com — your trusted guide to homes, condos, and investment opportunities across Malaysia.