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Can Foreigners Buy Property Below RM1 Million in Malaysia?
Many foreign buyers assume that RM1 million is the minimum price they must pay for property in Malaysia. While that is generally true in many states, there are key exceptions that allow foreign investors to buy properties for less. Understanding these rules can open doors to better deals and smarter investments.
Malaysia remains one of the most attractive destinations for foreign property investment due to its relatively low cost compared to neighboring countries, a stable legal framework, and strong rental demand in key cities. However, navigating the various state regulations can be challenging, as different regions impose different price thresholds for foreign ownership.
Why Does Malaysia Have Minimum Price Limits for Foreign Buyers?
The government sets minimum purchase price limits for foreign buyers to prevent speculation and ensure affordability for local citizens. This policy helps regulate property prices and ensures that Malaysians are not priced out of their own housing market. While the general minimum is RM1 million, some states have imposed stricter limits, while others have made exceptions to attract foreign investment.
Minimum Price Requirements for Foreign Buyers in 2025
How Can Foreigners Buy Below RM1 Million?
The key lies in knowing the exceptions. Some areas, like Medini (a special economic zone in Johor), allow foreign buyers to purchase property at any price set by the developer—without the usual RM1 million restriction.
Types of Properties Foreigners CANNOT Buy
Foreign buyers are not permitted to purchase:
- Malay Reserved Land – Land designated exclusively for ethnic Malays.
- Low- and Medium-Cost Affordable Housing – Reserved for lower-income Malaysians.
- Bumiputera-Allocated Properties – Certain residential projects set aside for Bumiputera buyers.
Best Locations for Foreign Buyers
While Kuala Lumpur remains the top choice for most foreign investors, other cities offer excellent opportunities at a lower entry cost:
- Johor Bahru – Proximity to Singapore makes it a prime location for rental and investment.
- Penang – A favorite among expats, with strong tourism demand and lifestyle appeal.
- Medini, Iskandar Malaysia – Special economic zone with no minimum price restrictions.
- Kuala Lumpur – The capital city offers high rental demand, prime locations, and strong capital appreciation
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This guide covers everything you need to know about buying property in Malaysia, including legal requirements, financing options, and hidden opportunities to save money.
Whether you’re a first-time investor or looking for a second home, knowing the right strategies can save you thousands and help you secure the best property in Malaysia at the right price.
