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Some Facts on Property Purchase in Malaysia
1. Constitutionally Malaysia is a federation of 13 States and State Governments have jurisdiction over land and land-related matters (properties). That means property or housing policies may vary from State to State in Malaysia.
 
2. Federal Government of Malaysian has imposed guideline on the Acquisition of Properties by foreigners at the minimum threshold of RM1,000,000. However, State Authorities have the ability to overrule this guildeline by impossing their own restrictions as table below:-
 

State

Minimum Threshold in Property Purchase

Foreign Resident

MM2H participants

Perak (Ipoh)

RM1,000,000-00

USD100,000

Selangor

RM2,000,000-00 (for Zone 1 & 2)

RM2,000,000-00 (for Zone 1 & 2)

RM1,000,000-00 (for Zone 3)

RM1,000,000-00 (for Zone 3)

Kedah, Perlis
Kuala Lumpur, Labuan,
Negeri Sembilan, Pahang, Putrajaya, Terengganu

RM1,000,000-00

Kelantan, Sabah

RM1,000,000-00

RM500,000-00

Melaka

RM500,000-00 (strata title)

RM1,000,000-00 (landed property)

Penang

Landed Terrace or Bungalow
RM3,000,000-00 (island)
RM1,000,000-00 (main land)

RM500,000-00 (2 units)

Strata Title Apartment
RM1,000,000-00 (island)
RM500,000-00 (main land)

Sarawak

RM350,000-00

Johor RM2,000,000-00 (international zones)
RM1,000,000-00 (non-international)
RM1,000,000-00

*Zones in Selangor
Zone 1
- Districts of Petaling, Gombak, Hulu Langat, Sepang and Klang
Zone 2 - Districts of Kuala Selangor & Kuala Langat,
Zone 3 - Districts of Hulu Selangor and Sabak Bernam

3. The ownership titles of properties in Malaysia can be either:
(a) Freehold    – The owner holds the title of the property perpetually.
(b) Leasehold  – The most common leasehold is for 99 years. Renewal of lease for further equivalent term is fairly easy with payment of premium to the State Government.
 
4. The Malaysia Government has standardised the Sales & Purchase Agreements of residential properties under construction throughout the country.Typically a purchaser has to pay 10% down payment on signing the Sales & Purchase Agreement. The balance of the purchase price shall be paid in accordance with the Payment Schedule in the Sales & Purchase Agreement. 
 
5. The standard delivery period for residential properties under construction in Malaysia is 24 months for landed properties (terrace houses, semi-detached and detached houses or bungalows) and 36 months for strata-titled housing units (apartments, condominiums). 
 
6. Purchase of properties above RM20 million by foreigner must first obtain approval from the Economic Planning Unit of the Malaysian Government.
 
7. Foreigners or MM2H Visa Holders may apply to Malaysian banks for house or mortgage financing. Approval will be subject to applicant’s creditability and prevailing banking guidelines. 

 

   Costs Involved in Purchasing Property in Malaysia

1. Stamp duty (transfer of land deed): According to the total price of property and levied in proportion

Below RM100,000

1%

RM100,001–RM500,000

2%

RM500,001 - RM1,000,000

3%

RM1,000,000 and above

4%


2. Stamp Duty for Loan Contract: