Malaysia has a well-established legal system for private property, and freehold ownership is common, making it an attractive destination for foreign buyers investing in property. As in other Southeast Asian countries, Malaysia also places clear restrictions on foreign investment in property. This article looks at what restrictions apply to foreign property investment in Malaysia, and what the minimum purchase price is in each state.
Malaysia is a federation, and its states have a degree of autonomy. As a result, standards for foreign property ownership and investment thresholds differ from state to state.
In Selangor, the minimum purchase price for foreign buyers is RM2 million in Zone 1 and Zone 2 (the Klang Valley corridor), dropping to RM1 million in Zone 3 (Hulu Selangor and Sabak Bernam). Purchases are restricted to strata and landed-strata titles; foreign buyers cannot buy at auction or own agricultural land. (Check the current zone map and figures with the Selangor state authority.)
In Kuala Lumpur, Perak, Kelantan, Putrajaya, Labuan, Pahang and Terengganu, the minimum investment requirement is RM1 million, while in Perlis and Sarawak it is only RM500,000. Other states have their own restrictions on foreign investors, as shown in the table below.
In the 2020 budget, the government announced it would lower the foreign investor property threshold in some cities from RM1 million to RM600,000. This applied only to existing, already-completed but unsold properties, and following a change of governing party at the time, the new rules in some areas were not fully carried through in practice. Foreign investors’ state-by-state property purchase restrictions are set out in the table below:
Foreign Property Ownership Restrictions by State
| State | Minimum Price |
|---|---|
| Johor | RM1,000,000 general threshold; higher threshold and Medini Iskandar exemption still apply in designated international zones. Note: Johor’s state consent levy on foreign purchases rose from 2% (min RM20,000) to 3% (min RM30,000) from 1 July 2025, and non-citizen stamp duty rose from a flat 4% to a flat 8% from 1 January 2026. |
| Kedah | Kedah state: RM600,000; Langkawi: RM1 million |
| Malacca | RM1 million for landed property; RM500,000 for high-rise/strata property |
| Negeri Sembilan | RM1,000,000 for landed property; RM650,000 for strata property |
| Penang | Island: RM1,000,000 for strata, RM3,000,000 for landed. Mainland (Seberang Perai): RM500,000 for strata, RM1,000,000 for landed |
| Kuala Lumpur, Perak, Pahang, Terengganu, Putrajaya, Labuan, Kelantan | RM1 million |
| Perlis | RM500,000 |
| Sarawak (Kuching Division) | RM600,000 (strata and landed) |
| Sarawak (other divisions) | RM500,000, subject to LCDA approval |
| Sabah | RM600,000 for strata property; RM1,000,000 for landed property |
| Selangor | RM2 million. Additional condition: foreign buyers are limited to landed property. Foreigners cannot buy property at auction, and cannot own agricultural land |
Have a question about this guide? Leave a comment below, or ask Zagdim directly.
Your first stop for international property and global living.
Research and insights. Know what’s changing. Understand what matters.
