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Buyer's Guide · FOREIGNER

The Minimum Price a Foreigner Can Pay for Malaysian Property — All 13 States

The federal guideline says RM1 million. Selangor says RM2 million. Sarawak says RM500,000. All three are current, and they contradict each other. Here is every state's real threshold — and the four restrictions that stop deals even when the price is right.
By the PropertySifu Editorial · Updated August 2026 · 11 min read
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There is no single national minimum. The federal guideline bars foreigners from acquiring property below RM1 million per unit. But the states set their own floors: as high as RM2 million (Selangor Zones 1 and 2) and as low as RM500,000 (Perlis, Kelantan, Sarawak). Both sets of numbers are live at the same time. That contradiction is real — it is not us being vague.

So the useful question is never "what is the foreigner threshold in Malaysia". It is "what is the threshold in the state I am buying in, for this property type, buying from a developer or on subsale" — because each of those three variables changes the answer.

And price is only the first gate. Every state requires written State Authority consent for a foreign buyer. Without it the transaction is void. Some restrictions never come up in a show gallery: Selangor bars foreigners from landed property on individual titles, Perak bars freehold outright and allows residential subsale only on a leasehold title at a higher floor, and Melaka locks your property for five years after transfer.

First, separate the two gates — most articles merge them and get it wrong

Foreign residential purchases in Malaysia are governed from two different places.

Gate one: the federal guideline. The Garis Panduan Perolehan Hartanah (in force 13 July 2022, revoking the 2014 edition) bars foreign interests from acquiring four things — real estate valued below RM1 million per unit, residential units in the low and medium-low cost categories as determined by the State Authority, properties on Malay Reserve Land, and units allocated to Bumiputera interests in a development.

Gate two: State Authority consent. This is the gate that actually stops deals. The Bar Council circular puts it plainly: "State Authority's consent must be applied and obtained by each foreigner purchaser in all States in order to acquire properties." On top of that, each state sets its own minimum price, its own list of permitted property types, and in one case a cap on how many units you may own.

🔴 What to do when the two numbers disagree. The federal guideline says RM1 million; the state table lists RM500,000 for Perlis, Kelantan and Sarawak. That is a genuine conflict, not a typo. In practice what decides your transaction is the consent from that state's land office — so whether a sub-RM1m purchase clears is a question only that land office can answer. Anyone giving you a confident yes or no here, us included, would be guessing. Our approach with those cases is to go and ask, not to guess on your behalf.

Minimum residential purchase price by state (as at October 2024)

Minimum residential price
The line that matters most
Perlis
RM500,000
One threshold across all property types — but 🔴 the state charges 5% of the JPPH valuation as an acquisition fee, plus RM500 per title to apply (Perlis Land Rules 2024, in force 1 January 2025). About RM25,500 on a RM500,000 unit, and it is charged on the government's valuation, not your purchase price
Kedah
RM1,000,000
Single-storey terrace, low-cost, Bumiputra quota units and auction properties all barred; a levy applies on consent
Penang — Island (any route)
Strata RM1,000,000 · Landed RM3,000,000
The RM700,000 figure still circulating online was the 2024 overhang-unit price. It has expired. 🔵 The same official table sets lower floors for two groups: MM2H holders RM500,000 (residential only, maximum 2 units) and red-IC permanent residents RM250,000 — on the island and in Seberang Perai alike. The price floor also does not apply at all to inheritance orders, court orders or love-and-affection transfers
Penang — Seberang Perai (any route)
Strata RM500,000 · Landed RM1,000,000
Levy applies on consent; all auction properties barred
Perak
From developer: strata from RM300,000 · Subsale: strata from RM800,000 (Zone 3)
🔴 Freehold barred outright — leasehold only, max 99 years. Zone 1 Ipoh, Zone 2 major towns, Zone 3 rural districts; max 2 residential units, individuals only
Selangor — Zone 1 (Petaling, Gombak, Hulu Langat, Sepang, Klang)
RM2,000,000
🔴 Strata and landed-strata titles only. Landed property on an individual title is not permitted.
Selangor — Zone 2 (Kuala Selangor, Kuala Langat)
RM2,000,000
Same title rule; auction properties and agricultural land barred
Selangor — Zone 3 (Hulu Selangor, Sabak Bernam)
RM1,000,000
Same title rule
Kuala Lumpur · Putrajaya · Labuan
RM1,000,000
One threshold, no zones — but 🔴 Putrajaya permits stratified residential only (landed residential is barred), caps foreign ownership at 5% per scheme, and screens every buyer through PDRM and Immigration. Kuala Lumpur has no such restriction.
Negeri Sembilan
Strata RM600,000 · Landed (incl. landed strata) RM1,000,000
Freehold and leasehold alike; consent is required even when the title carries no restriction in interest
Melaka
Strata RM500,000 · Landed RM1,000,000
🔴 Maximum 2 residential units; cannot transfer or lease for 5 years after transfer is registered
Johor
RM1,000,000
Single-storey and 1½-storey terrace barred; foreign quota runs 20% (terrace, cluster) to 50% (condo) of the units left after Bumiputera lots. 🔴 Levy since 1 July 2025: 3% or RM30,000 minimum, whichever is higher; love-and-affection transfers 2% or RM20,000 minimum. 🔵 Medini (Iskandar Puteri) is exempt from the RM1m floor — confirm in writing with PTG
Pahang
RM1,000,000
Every foreign acquisition needs state EXCO approval; a levy is payable
Terengganu
RM1,000,000
Agricultural land barred. 🔴 Registering the transfer costs 5% of the valuation or the price, whichever is higher, and financing adds another 5% of the loan to register the charge (Terengganu Land Rules (Amendment) 2024, in force 1 January 2025). About RM85,000 on a RM1m purchase with a 70% loan — and the 5% applies again when you sell, because the rule reads "to or from" a non-citizen
Kelantan
RM500,000
One threshold across all property types
Sabah
RM1,000,000
🔴 The Sabah Land Ordinance (Cap. 68) replaces the National Land Code here — but it contains no foreign-ownership rule and no price at all. RM1,000,000 comes from the federal EPU guideline plus State Cabinet policy, applied by the Lands and Surveys Department (JTU) at registration. Because it is policy and not law, it moves without a gazette: on 13 January 2022 the State Government announced it had cut the floor to RM600,000 for high-rise (strata) residential, keeping RM1,000,000 for landed (Daily Express, Utusan Borneo, quoting the state Economic Advisory Council chairman). That concession was never gazetted and the Bar Council's October 2024 table still shows RM1,000,000 — so budget RM1,000,000 and get JTU to confirm the strata figure in writing before you sign
Sarawak
RM500,000
🔴 Sarawak Land Code (Cap. 81) s.13E(2), not the National Land Code. RM500,000 is the floor outside Kuching — inside Kuching Division it is RM600,000 (Land (Market Value of Property for Foreign Acquisition) (Amendment) Direction 2019, Swk L.N. 487/2019, in force 23 May 2019), and it is measured on the Land & Survey Department's valuation, not your SPA price. That floor applies to landed residential only — a strata parcel (condo/apartment) has no minimum price at all under s.13E(2)(b). Bigger than price: a foreigner may only hold Mixed Zone Land — Native Area, Native Customary and Interior Area Land are closed to non-natives at any price, and so are vacant land and agricultural land
🔴 Clearing the price does not mean you can buy — the four restrictions that kill deals

These are not footnotes. Each one can void a transaction outright, and none of them tends to come up voluntarily in a sales gallery.

  • Selangor: no landed property on an individual title. Foreigners in Selangor may buy strata and landed strata titles only. A RM3 million bungalow held on an individual title is simply not available to you — affordability has nothing to do with it.
  • Perak: no freehold at all. Non-citizens and foreign companies cannot acquire, own, hold or inherit freehold property in Perak — leasehold only, up to 99 years. Residential subsale was barred until Circular 01/2026 opened it on 4 March 2026, but only as full ownership of a leasehold title and at a higher floor than a developer purchase: Zone 3 strata RM800,000 against RM500,000 from a developer. Taking a lease of the land (Form 15A) on a residential title in a subsale is still Not Permitted.
  • Melaka: locked for five years. Residential and commercial property cannot be transferred or leased for five years from the date the Form 14A transfer is registered, with a 60-month registrar's caveat on the title. Residential ownership is also capped at two units.
  • Auction properties: barred in most states. Kedah, Penang, Selangor, Negeri Sembilan and Melaka all list auction properties as off-limits to foreigners. Section 433B(4) of the National Land Code separately bars non-citizens from bidding at court-ordered sales of agricultural, building or industrial land without state consent. Buying cheap at auction — a real strategy for local buyers, as we note in 12 red flags before buying a condo — is effectively closed to you.

Four states whose rules do not fit in one table row

The table compresses each state into a line. Four states are complicated enough that the line loses something important. If you are buying in one of them, read this section.

Penang — the island and the mainland are two markets, and one expired number is still circulating

Penang splits its thresholds four ways: island/mainland × strata/landed. The figures are the same whichever route you buy by — Penang's official table splits by area and property type only, not by developer versus subsale: island strata RM1,000,000, island landed RM3,000,000; Seberang Perai strata RM500,000, landed RM1,000,000.

🔴 You will see RM700,000 quoted for the island in many articles. That was the discounted threshold for overhang units bought directly from a developer, and the source states it applied only to sale and purchase agreements signed between 1 January and 31 December 2024 under Penang's Home Ownership Campaign. That window has closed. Budget off the expired number and you will be short.

Also, and this one catches residential buyers: a foreigner may only sell Penang property three years after the date of the SPA. The clause sits in the guideline's residential section (3.2) and is then applied to commercial and industrial by cross-reference, so it covers all three. If your plan is to resell inside three years, Penang closes it. A levy is also imposed on State Authority approval.

Perak — the lowest prices, the heaviest restrictions

Perak's numbers are still the most accessible in the country, and Pekeliling PTG Perak Bil. 01/2026 (in force 4 March 2026) redrew them. A residential floor now depends on three things at once: the zone, the property type, and whether you take a lease of the land (Form 15A) or full ownership of a leasehold title (Form 14A, maximum 99 years). From a developer: Form 15A lease from RM300,000 (Zone 3 strata or landed) up to RM1,000,000 (Zone 1 landed strata); full ownership from RM500,000 (Zone 3 strata) up to RM2,000,000 (Zone 1 landed). Subsale: full ownership only, from RM800,000 (Zone 3 strata) up to RM2,500,000 (Zone 1 landed) — a Form 15A lease of a residential title is Not Permitted in a subsale. Zone 1 is Ipoh; Zone 2 is Manjung, Taiping, Teluk Intan, Tanjung Malim, Kampar, Batu Gajah and Kuala Kangsar; Zone 3 is the remaining districts. Freehold stays barred, residential holdings are capped at two units and individuals only, and the levy on consent is 1.5% or RM15,000 on a first residential acquisition and 2% or RM20,000 on a second.

The pre-2026 circulars wrote the prices as ranges — "RM700,000 > RM2,000,000" — and did not pin down which figure applied to which case. Circular 01/2026 replaces the ranges with a single figure for every combination of zone, property type and route, as set out above.

Negeri Sembilan — a low strata floor, but consent still applies

Strata from RM600,000; landed, including landed strata, from RM1,000,000. Freehold and leasehold alike. Two exceptions are recognised: love-and-affection transfers between immediate family members, and small estates orders or court orders.

Note one sentence in the source: State Authority approval is required for a foreigner's acquisition even though the title does not have any restriction in interest. A clean title is not a shortcut past consent.

Melaka — a unit cap, and a five-year lock

Strata from RM500,000; landed including landed strata from RM1,000,000; a maximum of two residential units. Master-title property (no separate strata title issued yet) is permitted subject to state approval.

The heaviest term is the five-year lock: residential and commercial property cannot be transferred or leased within five years of the Form 14A transfer being registered, and a registrar's caveat runs on the title for 60 months. If you are buying in Melaka to rent it out, that clause ends the plan. Property inside Melaka's Heritage Zone is also off-limits.

Seven things an agent will not necessarily volunteer

  • A price pushed up to clear the threshold — what counts is the valuation, not the price on the SPA
    Some developers and subsale owners will lift the price to land exactly on a threshold (RM1 million in Kuala Lumpur, say). The problem is that the state and the bank look at valuation. If the property does not value up, consent is refused anyway — and your loan margin is calculated on the valuation, so you fund the gap in cash. Worse, from 2026 the 8% stamp duty is charged on the consideration or the market value, whichever is higher, so you pay 8% on the inflated portion too. Before you negotiate, have your solicitor or agent pull recent transacted prices in that building.
  • Tie your deposit to "no consent, full refund"
    Your booking form and SPA must state that the transaction is conditional on obtaining State Authority consent (Kebenaran Pindah Milik), failing which the deposit is refunded in full. The law only makes the dealing void where there is no consent (NLC s.433C) — it does not guarantee you get your money back. That is purely a matter of drafting. Leave the clause out and your deposit is exposed.
  • If you are not in Malaysia, do not plan to sign by power of attorney
    Section 433F of the National Land Code is blunt: an instrument executed by a non-citizen under a power of attorney over alienated land is void and incapable of registration. Plenty of overseas buyers assume they can sign a POA at home and let a relative or agent run the process — that route is closed to foreigners. Plan for your own signature, or ask your solicitor what compliant alternatives exist.
  • The bank's charge needs no consent — your transfer does
    Section 433B(3) states that a non-citizen taking a charge or lien does not need State Authority approval. So the bottleneck is never the financing leg; it is the transfer. When someone reassures you with "the bank has already approved", that is a different gate entirely.
  • The levy is real money, and it has a deadline
    Penang charges 3% of acquisition value (only island strata between RM1m and RM1.5m is 1.5%), and Kedah and Pahang levy as well. Johor raised its levy on 1 July 2025 to 3% of the price or a RM30,000 minimum, whichever is higher (love-and-affection transfers 2% or RM20,000; industrial 4%), the first rise since 2014 — so any Johor figure quoted from an October 2024 source is out of date. Melaka charges too, under a different name — its policy document says "levy: none", then charges an approval-notice fee of 3% of the sale price or RM30,000, whichever is higher, plus RM5,000 processing per unit, both non-refundable (effective 1 October 2022). On a RM500,000 strata unit that is RM35,000. Penang's rules are the most explicit: the levy is payable within 30 days of the approval letter, a late payment needs an extension application at RM500 per title, and after one year the approval lapses. Put both the money and the deadline into your budget and timeline.
  • In Penang, only a solicitor can file the application
    The Penang land office guideline states that a foreign acquisition application may be submitted to PTG only through a solicitor. If someone offers to "handle the approval" for you in Penang, that offer is not what it sounds like.
  • A Bumiputera quota unit cannot be bought at any price
    Units allocated to Bumiputera interests in a development are excluded at federal level. That is a category problem, not a price problem. Johor is the one state that expressly contemplates release (exemption from the State Secretary's office, Housing Department). Before you sign anything, ask the agent to show you the unit's quota status.

Check in this order and you will waste less time

  1. Pick the state before you fix the budget
    The same money clears the threshold in Kuala Lumpur and falls short in Selangor Zone 1. Lock the state first — do it the other way round and most of what you shortlist will be ineligible.
  2. Confirm the title type is one you may buy
    Strata? Landed on an individual title? Landed strata? Selangor allows only strata and landed strata; Perak allows only leasehold. Fail this and no amount of budget helps.
  3. Ask whether it is a developer purchase or a subsale
    In Perak the thresholds differ completely between the two routes, and in Perak the subsale floors run RM800,000 to RM2,500,000 against RM300,000 to RM2,000,000 from a developer. When a salesperson says "foreigners can buy", ask which route they mean.
  4. Check whether the unit is Bumiputera quota or low-cost
    Bumiputera-allocated units and low / medium-low cost housing are excluded at federal level. That is a category question, not a price question — paying more does not fix it.
  5. Put State Authority consent in your timeline
    Every state requires it. It sits between signing the SPA and completing the transfer, and it genuinely lengthens the transaction. Ask your solicitor before you sign roughly how long that state is currently taking.
  6. Budget the 8% stamp duty that starts in 2026
    From 1 January 2026 the transfer stamp duty on residential property bought by a non-citizen who is not a permanent resident is a flat 8%. Do not budget the purchase price alone.
Where these numbers come from, and when they go stale

The table is transcribed cell by cell from Malaysian Bar Conveyancing Practice Committee Circular No 444/2024 (issued 23 December 2024; the table itself is stated as at October 2024). The four federal prohibitions come from the Ministry of Economy's Garis Panduan Perolehan Hartanah, in force 13 July 2022.

Two things have to be said plainly:

  • The Bar Council attaches its own disclaimer — the circular states the table "should not be considered accurate, comprehensive or authoritative" and advises consulting the relevant state authority. We reproduce that because it is true.
  • State thresholds change, and they change without announcement. This table's baseline is October 2024. We found no nationwide revision published up to August 2026, but individual states may have moved. Before you sign, the operative source is the land office (Pejabat Tanah dan Galian) of the state you are buying in.

We are not going to write "please verify independently" and leave you there. Send us the state and the project and we will make that check for you.

MM2H terms change — check the current policy before you commit

MM2H has been revised more than once, and the states have moved their own rules alongside it. Every MM2H figure on this page is the position in force as at September 2026, with its source named. Where the latest official policy differs from anything here, the official policy governs.

Before you pick a tier or put money down, WhatsApp us and we will check the current requirement against your situation. That is what we are here for.

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Frequently asked questions

What is the minimum property price for foreigners in Malaysia?

It depends on the state. The federal guideline bars foreigners from property below RM1 million per unit, while state floors run from RM500,000 (Perlis, Kelantan, Sarawak) to RM2 million (Selangor Zones 1 and 2). Kuala Lumpur, Putrajaya and Labuan are RM1 million. Penang subdivides by island/mainland and property type; Perak subdivides by zone, property type and developer purchase versus subsale. There is no single figure — you need the state, the property type and the purchase route together.

Can foreigners buy landed property in Malaysia?

It depends on the state. Not in Selangor — only strata and landed-strata titles are permitted, so landed property on an individual title is out. Perak allows landed property only on a leasehold title and bars freehold outright. Kedah, Johor and Melaka exclude single-storey and 1½-storey terrace houses. Kuala Lumpur, Negeri Sembilan and Johor do allow landed purchases above their minimum prices. Property on Malay Reserve Land is barred nationwide.

Do I need MM2H to buy property in Malaysia?

No. The federal guideline merely lists MM2H purchases as one category exempt from Ministry of Economy approval; it does not make MM2H a precondition for buying. The causation actually runs the other way: MM2H requires you to buy (Silver from RM600,000, Gold from RM1 million, Platinum from RM2 million). With or without MM2H, State Authority consent still applies. See MM2H tiers and the property requirement.

Why do some articles say RM700,000 is enough in Penang?

Because that number has expired. RM700,000 was the discounted island-strata threshold for overhang units bought directly from a developer, and the source states it applied only to sale and purchase agreements signed between 1 January and 31 December 2024 under Penang's Home Ownership Campaign. The current island thresholds — the same whichever route you buy by — are RM1 million strata and RM3 million landed.

Can foreigners buy auction properties in Malaysia?

In most states, no. Kedah, Penang, Selangor, Negeri Sembilan and Melaka expressly list auction properties as off-limits to foreigners. Section 433B(4) of the National Land Code separately provides that a non-citizen or foreign company may not bid at a court-ordered sale of land under the agriculture, building or industry category without State Authority approval.

What happens if State Authority consent is refused?

Section 433C of the National Land Code is blunt: any dealing in contravention of section 433B is null and void. Consent is not a formality — it is what makes the transaction exist. But note what the section does not do: it voids the dealing, not the contract terms about your deposit. Getting your money back is purely a matter of drafting. So your booking form and SPA must state that the transaction is conditional on State Authority consent, failing which the deposit is refunded in full. Without that clause, a refusal can cost you the deposit as well as the deal.