Foreign Ownership in Malaysia: The Rules in Kedah, Penang and Johor

Foreign Ownership in Malaysia: The Rules in Kedah, Penang and Johor

In 2025, MM2H participants alone bought RM 1.51 billion of residential property in Malaysia, about USD 371 million, according to the Ministry of Tourism, Arts and Culture. Many of those buyers began with the same question: can foreigners buy property in Malaysia, and on what terms?

The answer is yes. A foreign individual can own a home in Malaysia directly, in their own name, on freehold or leasehold title. Three rules shape what you can buy: a minimum purchase price set by each state, a short list of categories reserved for Malaysians, and written consent from the state authority before the title passes. This guide explains each one for Kedah, Penang and Johor as at October 2026.

Freehold and leasehold title

Malaysian land is held either in perpetuity, known as freehold, or on a lease from the state, usually 99 years. Foreign buyers can hold both, on an individual title for a landed home or a strata title for a unit in a condominium or serviced residence.

Freehold gives the longest horizon and suits buyers who think in generations. All of the developments we cover in Langkawi and Penang are freehold, from Clarissa Serviced Suites at Pantai Cenang to Marriott Residences Penang, The Westin Residences, Lumina Residence, Green City Residence, Waterstone and City of Dreams.

State minimum purchase prices

Land is a state matter in Malaysia, so each state sets its own minimum price for foreign buyers within a national framework.

States revise these figures from time to time by circular. Ask your lawyer for the threshold in force on the day you sign, in writing, before you pay a deposit.

The MM2H figure and the state figure

The 2024 MM2H rules set minimum home values of RM 600,000 for Silver, RM 1 million for Gold and RM 2 million for Platinum. These sit alongside the state rule, and the higher figure normally applies, although some states set lower figures for MM2H participants. MM2H also carries a resale condition: a participant keeps the qualifying home for 10 years, with an exception for upgrading to a home of higher value. Our MM2H 2026 requirements guide covers the tiers in full.

Reserved categories

Some property is set aside for Malaysians. Malay reserve land, units allocated to Bumiputera buyers in new developments, and low and medium cost homes stay outside the foreign market. Many developments also set a foreign quota; at Tropicana Cenang, for example, up to 50% of units are open to foreign buyers.

State consent, step by step

Every foreign purchase needs written approval from the state authority under section 433B of the National Land Code. Your lawyer files the application with your passport details, the sale and purchase agreement and a title search, and pays a consent fee set by the state. Some states charge a flat fee and others a levy linked to value; at Tropicana Cenang the developer quotes 5% of the official JPPH valuation.

Approval usually takes at least two months. For off plan homes, consent is often applied for once the strata title is issued. Once consent arrives, the transfer is stamped, the balance is paid and the title is registered in your name.

Choosing where to buy

So, can foreigners buy property in Malaysia with confidence? The framework is clear and well tested. With it understood, the choice comes down to how you want to live: beach life on Langkawi at Clarissa Serviced Suites, seafront or family living on Penang Island, explored in our guide to where to live in Penang, or a city home beside the RTS Link at R&F Princess Cove in Johor Bahru. Asia Lifestyle Magazine’s Malaysia coverage continues with guides to buying costs, titles and visas.

Ringgit converted at RM 4.07 to the US dollar, September 2026. Rules stated as at October 2026.