Guide To Invest Property In Malaysia



Base on property industry investigations in recent years, the hot counties of real estate property that foreign investors like the most are Tokyo, Kuala Lumpur and Sydney, Australia. Malaysia got the highest rate of return. The interest can be obtained within 2 years of 30-40%. Chang Fu Zheng Zhe, general manager of real estate rose that since Malaysia in recent years vigorously promote economic policies and sightseeing, the past five years house prices have double-digit growth every year.It is reflecting global investors have the confident on the economic policy that implemented by the Government of Malaysia.


Below are the property purchase process in Malaysia. Foreigners can purchase any kind of property with a minimum value of MYR 1 million (US$270,270) as of 2014. They are allowed to purchase up to two residential properties – two condominiums (max. 50% foreign ownership within a block) OR one condominium and one of the following:


  • Terrace or linked houses above two storeys, but limited to 10% of the total number of units built of this type


  • Lands/bungalows and semi-detached houses, but limited to 10% of units built of these types


Malaysia luxury townhouses

The first step to purchasing property in Malaysia is to hire a real estate lawyer to assist in the transaction. Once property is selected, a Letter of Offer/Acceptance is signed, and a 3% deposit is expected from the buyer.


Within 14 days, the Sale and Purchase Agreement is signed. The buyer must pay another 7% deposit. From the date of the signing, the buyer has a maximum of three months to accomplish full payment.


The Sale and Purchase Agreement must be stamped at the Stamp Office. After the examination on the property of the valuation department, Stamp Duty is paid to the Stamp Office. The transfer must be registered at the Land Office Registry.



Be cautious when buying new  Malaysia property in unfinished condominium projects. Buyers may not be fully protected against default, an issue vigorously raised by the Malaysian House Buyers’ Association, which has pointed to flaws in The Housing Development (Control & Licensing) Act 2002, and the Strata Titles Act. Those buying unfinished property from developers should ensure that the developer has a valid Developer’s License and a valid Sales & Advertising permit.