Thinking about investing in Malaysian property?
You’re not alone! Malaysia’s vibrant cities, strong property rights, and transparent buying process make it an
attractive destination for foreign property investors.
Let’s break down everything you need to know about buying property in Malaysia.
Quick Overview: Can Foreigners Buy Property in Malaysia?
✅ Yes, foreigners can buy property in Malaysia
✅ Minimum purchase prices apply (varies by state)
✅ Most property types are available
✅ Bank loans are accessible up to 75%
❌ Some restrictions apply (like Malay Reserve Land)
Minimum Property Purchase Prices by State
What Types of Property Can You Buy?
Available Properties:
- Condominiums and apartments
- Landed properties in gated communities
- Commercial properties
- Industrial properties
- Residential houses (with state approval)
Restricted Properties:
- Malay Reserve Land
- Low-cost and medium-cost housing
- Properties below the state minimum price
- Most agricultural land
The Buying Process: A Step-by-Step Guide
1. Property Search (1-2 months)
- Work with licensed agents
- View properties
- Research neighborhoods
- Compare prices
2. Making an Offer
- Submit Letter of Intent/Offer
- Negotiate price
- Pay booking fee (typically 2-3%)
3. Legal Process (2-3 months)
- Appoint Malaysian lawyer
- Due diligence checks
- Sale & Purchase Agreement (SPA)
- State Authority approval
4. Financing (1-2 months)
- Apply for bank loan
- Property valuation
- Loan documentation
- Legal charges
Costs You Need to Know About
One-Time Costs
Annual Costs
Financing Options for Foreign Buyers
Good news! Malaysian banks do offer loans to foreign buyers. Here’s what you need to know:
- Maximum loan amount: Up to 75% of property value
- Typical interest rates: 4.5-5.5%
- Loan tenure: Up to 35 years
- Age limit at end of loan: 70 years
Required Documents for Loan Application:
- Passport copy
- Latest 6 months bank statements
- Proof of income
- Tax returns
- Employment verification
- Source of funds declaration
Popular Areas for Foreign Investment
Kuala Lumpur
- KLCC Area
- Heart of the city
- Luxury condominiums
- Close to shopping and entertainment
- Mont Kiara
- International community
- Family-friendly
- International schools nearby
Penang
- Gurney Drive
- Seafront properties
- Tourist hotspot
- High-end condominiums
Johor
- Iskandar Puteri
- Close to Singapore
- New developments
- Modern amenities
Pro Tips for Foreign Buyers
Do Your Homework
- Research the area thoroughly
- Check developer track record
- Verify all property documents
2. Get Professional Help
- Use a licensed agent
- Hire a qualified lawyer
- Work with established banks
3. Think Long Term
- Consider future developments
- Check infrastructure plans
- Research rental demand
Common Questions
How long does the buying process take?
Typically 3-6 months from offer to completion.
Can I rent out my property?
Yes, foreign owners can rent out their properties.
Do I need to be in Malaysia throughout the process?
No, but you’ll need to be present for key document signings.
Ready to start your property search in Malaysia?
Important Note
While this guide provides a comprehensive overview, property regulations can change. Always verify current
requirements with relevant authorities or through our professional team.
References:
- Ministry of Housing and Local Government
- National Land Code
- Bank Negara Malaysia Guidelines
- State Authority Guidelines
