Foreign Buyer Property Rules by State in Malaysia 2026

By Louis Loo | Property Analyst & Advisor

Quick Answer

Foreigners can buy property in Malaysia, but there is no single nationwide minimum purchase price that applies in exactly the same way in every location.

Land matters are administered at state level. Minimum prices, permitted property categories, application procedures and approval conditions may therefore differ between Kuala Lumpur, Selangor, Johor, Penang and other states.

Under Section 433B of Malaysia’s National Land Code, a non-citizen or foreign company generally requires prior State Authority approval to acquire land or an interest in land. Approval may also be subject to conditions or a prescribed levy.

This guide provides a practical comparison, but buyers should verify the current rule for the specific property before paying a booking fee.

Why Foreign Buyer Rules Differ by State

Malaysia’s federal law establishes the broader legal framework, while the relevant State Authority controls many practical acquisition requirements.

As a result, foreign ownership can depend on:

• The state or Federal Territory
• Property price
• Residential, commercial or agricultural classification
• Strata or landed title
• New launch or subsale status
• Location within the state
• Restrictions written on the title
• Whether the buyer is an individual or foreign company
• Whether a special programme or exemption applies

A price that qualifies in one state may not qualify in another. Meeting the minimum price also does not guarantee approval.

Indicative State Comparison

The figures below are a starting point for research, not automatic approval thresholds. State policies can change, and different property categories may be treated differently.

Kuala Lumpur and Other Federal Territories

Foreign buyers commonly encounter an indicative minimum purchase price of RM1 million for residential property in Kuala Lumpur.

However, buyers should still confirm:

• Whether the unit is eligible for foreign ownership
• Whether the title has restrictions
• Whether State Authority consent is required
• Whether the property falls under an affordable-housing or reserved category
• Whether the developer has obtained any relevant approval for foreign sales

Kuala Lumpur should not be used as the default rule for Selangor, Johor, Penang or another state.

Selangor

Selangor applies its own foreign acquisition framework. Current official Selangor materials indicate that foreign interests must obtain State Authority permission, while minimum values may vary by district and policy programme. Some official circulars have referred to thresholds of RM2 million in selected districts and RM1 million in certain other districts, but buyers must confirm the latest applicable circular and property category directly with the Selangor Land and Mines Office.

Selangor buyers should be particularly careful about:

• District-specific limits
• Landed versus strata property
• Auction property
• Affordable housing
• Bumiputera-designated units
• Title restrictions

Johor

Johor is popular among Singapore-based buyers, but foreign acquisition rules should be checked against the latest Johor State Authority policy.

An indicative RM1 million threshold is frequently referenced for foreign residential purchases, but the applicable requirement may depend on property type, location and any current state programme.

Buyers considering Johor Bahru, Iskandar Malaysia or a designated economic zone should not assume that a special-zone MM2H property rule automatically replaces the ordinary Johor foreign ownership rule.

Both requirements may need to be checked separately.

Penang

Penang may apply different requirements according to:

• Penang Island or Seberang Perai
• Strata or landed property
• Residential category
• Property price
• Existing state policy or exemption

Published market guides commonly show different thresholds for landed and strata property, but the exact current requirement should be confirmed with the Penang Land and Mines Office or an appointed conveyancing lawyer before commitment.

A Penang Island rule should not automatically be applied to mainland Penang.

Properties Foreign Buyers Commonly Cannot Purchase

Although the detailed policy varies by state, foreign buyers are commonly restricted from purchasing:

• Malay Reserved Land
• Properties allocated to Bumiputera interests unless officially released
• Low-cost or designated affordable housing
• Certain agricultural land
• Properties below the applicable state minimum
• Properties carrying restrictions that prevent foreign acquisition
• Certain auction properties, depending on state rules

The title, land-use category and state policy should all be checked. Marketing descriptions such as “serviced apartment”, “residence” or “commercial title” are not enough to determine legal eligibility.

What Is State Authority Consent?

State Authority consent is the official approval required for certain transfers involving a foreign buyer.

Malaysia’s National Land Code states that acquisition by a non-citizen or foreign company generally requires prior written approval. A transfer completed in contravention of Section 433B may be treated as null and void.

The relevant lawyer usually prepares and submits the application. The process may involve:

1. Buyer and property eligibility checks
2. Signed transaction documents
3. Supporting identity and financial documents
4. Submission to the relevant land authority
5. Payment of application fees or levy, where applicable
6. Approval with conditions, rejection or a request for further documents

Processing time should not be assumed. It varies by state, property and application circumstances.

Does MM2H Remove State Property Rules?

No.

MM2H participation does not automatically grant unrestricted property ownership or State Authority approval.

An MM2H category may impose its own minimum property purchase requirement and holding conditions. The buyer may also need to comply with the state’s foreign ownership threshold and approval process.

Where the MM2H requirement and state requirement differ, buyers should obtain written legal confirmation about which conditions apply to the intended property.

Read the main Malaysia My Second Home Guide before comparing MM2H categories.

What Buyers Should Verify Before Paying a Deposit

Before signing a booking form or transferring money, ask a conveyancing lawyer to confirm:

1. The latest foreign buyer threshold for the state and district
2. Whether the property type is eligible
3. Whether the unit is a Bumiputera or affordable-housing unit
4. Whether the title contains restrictions in interest
5. Whether State Authority consent is required
6. The expected application documents and fees
7. What happens if consent is refused
8. Whether the booking payment is refundable
9. Whether MM2H conditions also apply
10. Whether the information is stated in the Sale and Purchase Agreement

Common Mistakes

The most common mistakes are assuming that Malaysia has one national minimum price, relying only on a sales representative’s verbal explanation, and paying a non-refundable booking fee before legal eligibility is checked.

Foreign buyers should also avoid assuming that:

• A higher-priced property is automatically eligible
• MM2H guarantees purchase approval
• New launches do not need state approval
• Commercial-titled residences are always unrestricted
• A rule found online still applies in 2026
• One state’s rule applies nationwide

Final Verdict

Foreigners can purchase property in Malaysia, but eligibility is property-specific and state-specific.

The safest approach is to verify the current state threshold, property category, title restrictions and consent procedure before committing funds. Buyers should use the national rules as the legal foundation and the relevant state authority’s current policy as the practical transaction guide.

For a broader overview, read the Foreign Buyer Guide Malaysia.

FAQ

Is there one minimum property price for foreigners in Malaysia?

No. Minimum prices and property restrictions may differ by state, district and property category.

Does meeting the minimum price guarantee approval?

No. The acquisition may still be subject to State Authority approval, title restrictions and other conditions.

Can foreigners buy landed property?

Possibly, but landed-property rules are often more restrictive and vary by state.

Can an MM2H participant buy below the state minimum?

Do not assume so. MM2H programme requirements and state foreign ownership rules should be checked separately.

Who should confirm the final rule?

The relevant state land authority and the buyer’s appointed conveyancing lawyer should confirm the applicable requirement.

Sources

1. National Land Code, Act 56 of 1965 — Part Thirty-Three (A) Organisation: Department of Director General of Lands and Mines Source type: Federal legislation Direct URL: https://www.jkptg.gov.my/images/pdf/perundangan-tanah/NLC1956DIGITAL-VER1.pdf

2. Restriction and Limitation to Transfer of Land Organisation: Department of Director General of Lands and Mines Source type: Government guidance Direct URL: https://www.jkptg.gov.my/en/pemilik-tanah

3. Consent Online Organisation: Department of Director General of Lands and Mines Source type: Government application platform Direct URL: https://www.jkptg.gov.my/en/consent-online

4. Foreign Property Acquisition Application Organisation: Selangor Land and Mines Office Source type: State government guidance Direct URL: https://ptg.selangor.gov.my/index.php/pages/view/268

5. Land Development and Advancement Division FAQ Organisation: Selangor Land and Mines Office Source type: State government guidance Updated: 23 September 2025 Direct URL: https://ptg.selangor.gov.my/index.php/pages/view/366

Disclaimer

This article provides general property education based on publicly available information. It is not legal, tax, immigration, financial or investment advice. Foreign ownership policies may change and may differ by state, district, title and property type. Buyers should obtain confirmation from the relevant state land authority and an appointed conveyancing lawyer before proceeding.

Disclaimer: This article provides general property-buying information and does not constitute legal, financial or loan advice. Laws and contractual arrangements may differ according to the property type, location and transaction. Buyers should obtain advice from qualified professionals based on the actual documents involved.