Can Foreigners Buy Property in Malaysia? Laws, Limits & Opportunities

Jun 18, 2025

Malaysia has seen an increasing number of foreign property buyers because Malaysia is strategically located, has favourable property prices, and good quality of life standards. However, the question that many expatriates and international investors must consider is whether foreigners are allowed to own property in Malaysia. The response is yes, but with a set of particular rules, restrictions, and chances. Let us take a look at what you need to understand before starting a business in the Malaysian real estate.

Legal Rights: Foreign Ownership Is Allowed

Malaysia is a rare country in Southeast Asia where a foreigner can own property legally. The law tends to favour foreign ownership, whether you want to purchase a condominium, a landed home, or even a commercial unit. The majority of the properties that are put on sale to foreigners have freehold or leasehold tenure, and this depends on the location and project. However, purchasers are to abide by certain rules that the federal and state governments established, which vary across Malaysian states.

Price Thresholds: What’s the Minimum You Can Spend?

To safeguard the interests of the local population and not to inflate the housing market, Malaysia applies a minimum purchase price for foreigners. These thresholds differ according to state.

General Guidelines (as of 2025):

Kuala Lumpur: RM 1 million minimum
Selangor: RM 1.5 million (landed); RM 1 million
Penang: RM 1 million (mainland); RM 2 million (island landed property)
Johor: RM 1 million, but stricter if near the Iskandar region

Types of Properties Foreigners Cannot Buy

Although the law is quite open, not every property can be purchased by a foreign consumer. There are restricted categories. Non-citizens cannot buy Malay Reserved Land, low and medium-cost housing or Bumiputera-quota properties. Also, farmlands are out of reach, unless allowed by the government as an exception. These restrictions are to prevent the drainage of some assets which belong to the citizens of Malaysia and to keep the properties affordable in the local market.

Popular Areas for Foreign Investment

Improved infrastructure, prospects of renting, and lifestyle often encourage foreigners to buy properties in the urban centres or those that have some significant strategic location:

Kuala Lumpur: High-rise condos, branded residences, and luxury apartments
Penang: Island living and cultural appeal
Johor Bahru: Proximity to Singapore and developments in Iskandar Malaysia
Malacca & Langkawi: Tourism-driven property demand

Government Initiatives for Foreign Investors

In promoting foreign investments, Malaysia has come up with several initiatives. The best known is the Malaysia My Second Home (MM2H) program under which citizens of other countries can live in the country on long-term visas as long as they satisfy financial and property ownership requirements. The program remains appealing to retirees and lifestyle seekers, despite a recent revision. Other large projects, such as Forest City in Johor, are geared up to welcome foreign buyers with in-built living, working, and recreational areas.

Conclusion

To conclude, the ownership of property in Malaysia by a foreigner is permitted, although one has to be aware of the laws governing this process, as well as the policies adopted by different states, and the market nuances. International buyers can make good use of the right knowledge and professional guidance to tap into the exciting potential of one of the most exciting real estate markets in Southeast Asia, either through an investment, vacation home or a whole new lifestyle adventure.