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Everything you need to know before buying real estate is included in our Malaysia Property Pack
Malaysia's property market offers diverse options across different price ranges and locations.
As of June 2025, the average house price in Malaysia stands at MYR 483,879, with significant variations depending on property type, location, and built-up area. Kuala Lumpur commands the highest prices at MYR 794,467 average, while states like Melaka and Perlis offer more affordable options around MYR 240,000-245,000.
If you want to go deeper, you can check our pack of documents related to the real estate market in Malaysia, based on reliable facts and data, not opinions or rumors.
Malaysia's property market in 2025 shows stable growth with moderate price increases, offering attractive investment opportunities across various property types and locations.
The market provides excellent value compared to regional peers like Bangkok and Manila, with competitive mortgage rates and clear acquisition cost structures.
| Property Type | Average Price (MYR) | Key Markets |
|---|---|---|
| Terrace House | 466,506 | Suburban Klang Valley, Johor |
| High-Rise (Condo/Apt) | 378,414 | KL, Penang, Johor Bahru |
| Semi-Detached | 730,851 | Premium suburban areas |
| Detached (Bungalow) | 648,403 | Exclusive residential zones |
| Kuala Lumpur Average | 794,467 | Most expensive market |
| Melaka Average | 240,655 | Most affordable market |
| Mortgage Rate Range | 4.2%-4.4% p.a. | Up to 35 years tenure |
What's the current average house price in Malaysia by property type?
Malaysia's residential property market shows distinct pricing patterns across different property types as of June 2025.
Terrace houses command an average price of MYR 466,506, making them the most popular choice for Malaysian families. High-rise properties including condominiums and apartments average MYR 378,414, offering more affordable urban living options.
Semi-detached houses represent the premium segment at MYR 730,851 average, while detached bungalows average MYR 648,403. The overall national average across all property types stands at MYR 483,879, reflecting the diverse range of housing options available.
These prices reflect completed transactions in Q4 2024 and represent current market conditions entering the second half of 2025.
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How do average prices vary across major Malaysian cities and states?
Regional price variations in Malaysia create significant opportunities for different budget ranges and investment strategies.
Kuala Lumpur leads the market at MYR 794,467 average, followed by Selangor at MYR 553,693 and Sarawak at MYR 545,503. Penang (Pulau Pinang) averages MYR 475,037, while Johor maintains a competitive MYR 437,280 average.
The most affordable markets include Melaka at MYR 240,655 and Perlis at MYR 245,031, offering excellent entry points for first-time buyers. Sabah averages MYR 517,922, reflecting its strategic location and growing economy.
Johor Bahru specifically benefits from its proximity to Singapore, with prime areas commanding premiums above the state average. Penang Island properties typically cost more than mainland Penang developments.
These variations create clear investment and relocation strategies based on budget and lifestyle preferences.
What are the price differences between urban centers and suburban areas?
The urban-suburban price gap in Malaysia provides clear value propositions for different buyer profiles.
Central urban areas like KL city center and Penang Island command premium prices exceeding MYR 1,000,000 for prime properties. Per-square-foot rates in KL range from MYR 1,162 to MYR 1,464 for apartments in prime locations.
Suburban and rural zones in states like Melaka, Perlis, Perak, and Pahang offer average house prices between MYR 240,000 and MYR 273,000. Per-square-foot rates in these areas typically fall below MYR 500, creating significant savings opportunities.
Urban properties generally cost 2-3 times more than suburban equivalents, but offer superior access to employment, amenities, and public transportation. Suburban properties provide larger spaces and family-friendly environments at substantially lower costs.
This price differential makes suburban areas particularly attractive for families and investors seeking rental properties.
How much does property price fluctuate based on built-up area?
Built-up area significantly impacts both total property prices and per-square-foot valuations across Malaysia.
| Location | Price per sq ft (MYR) | Typical Property Types |
|---|---|---|
| Kuala Lumpur | 1,162 - 1,464 | Premium apartments, condos |
| Penang (Prime Areas) | 900 - 1,100 | Island condos, seafront units |
| Johor Bahru | 600 - 900 | City center apartments |
| Selangor Suburbs | 500 - 800 | Terrace houses, townhouses |
| Rural/Suburban Areas | 300 - 600 | Landed houses, basic condos |
| Budget Markets | 250 - 400 | Older properties, remote areas |
| Premium Landed | 400 - 700 | Large bungalows, semi-D |
What are the total acquisition costs for buying property in Malaysia?
Understanding total acquisition costs helps buyers budget accurately for Malaysian property purchases.
Stamp duty follows a progressive structure: 1% for the first MYR 100,000, 2% for the next MYR 400,000, 3% for the next MYR 500,000, and 4% above MYR 1 million. Foreign buyers pay a flat 4% stamp duty rate regardless of property value.
Legal fees typically range from 1% to 1.5% of the purchase price on a sliding scale, while valuation fees add 0.25% to 0.5%. Real estate agent fees can reach up to 3% of the transaction price.
Additional costs include loan agreement stamp duty at 0.5% of the loan amount, disbursements for searches and documentation, and potential maintenance deposits for strata properties. Government taxes and processing fees add further costs.
Total acquisition costs typically range from 7% to 12% of the property purchase price, depending on the value and financing structure.
What mortgage options are available and what are typical monthly payments?
Malaysia's mortgage market offers competitive rates and flexible terms for both local and foreign buyers.
Current interest rates range from 4.2% to 4.4% per annum as of mid-2025, with loan tenures extending up to 35 years or until the borrower reaches age 70. Banks typically offer loan-to-value ratios up to 90% for first-time homebuyers and 70-80% for subsequent purchases.
For a typical MYR 500,000 loan over 20 years at 4.3% interest, monthly repayments approximate MYR 2,800 to MYR 2,810. This calculation assumes standard principal and interest repayment structure without additional fees.
Foreign buyers face more restrictive lending criteria but can still access financing through established banks. Income requirements, debt service ratios, and documentation standards apply to all borrowers.
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How have Malaysian property prices evolved recently?
Malaysia's property market has demonstrated resilience with steady growth patterns over the past five years.
Annual price growth showed consistent positive trends: 1.2% in 2020, 1.9% in 2021, 3.9% in 2022, and 3.8% in 2023. The 2024 growth rate moderated to 1.4%, indicating market stabilization after the post-pandemic recovery period.
Over the past 12 months leading to June 2025, prices increased approximately 1.4% year-over-year, though Q4 2024 showed a slight quarter-over-quarter decline reflecting natural market corrections. This slowdown represents healthy market adjustment rather than concerning decline.
The growth pattern indicates sustainable market development without speculative bubbles, creating favorable conditions for both buyers and long-term investors.
Regional variations show KL and Penang maintaining stronger growth rates while secondary cities experience more moderate appreciation.
What are the forecasts for Malaysian property prices?
Property price forecasts for Malaysia show optimistic long-term prospects with measured near-term growth.
For 2025-2026, analysts expect steady prices with moderate growth concentrated in affordable housing segments and strategically located developments. The market shows strong fundamentals supporting continued appreciation.
The 2027-2030 period anticipates expansion, particularly in urban areas with strong connectivity and infrastructure development. High-demand zones near MRT lines, economic corridors, and major employment centers should see notable price appreciation.
Looking toward 2031-2035, sustained growth appears likely driven by technology adoption, green development initiatives, and Malaysia's emergence as a regional investment hub. Infrastructure projects and economic diversification support long-term value appreciation.
Smart money focuses on transit-oriented developments, affordable housing schemes, and areas benefiting from government infrastructure investments.
Which areas offer the best value and investment potential?
Malaysia's property market presents clear segmentation between premium, budget-friendly, and strategic investment zones.
| Category | Locations | Investment Rationale |
|---|---|---|
| Most Expensive | KL city center, Mont Kiara, Bangsar, Penang Island | Premium lifestyle, established demand |
| Budget-Friendly | Melaka, Perlis, Perak, Pahang suburbs | Affordability, first-time buyer markets |
| Smart Investments | Klang Valley suburbs, TOD areas | Infrastructure growth, connectivity |
| Emerging Markets | Sepang, Klang, Hulu Langat | Development pipeline, value appreciation |
| Cross-Border Play | Johor Bahru (RTS areas) | Singapore connectivity, economic integration |
| Tourism-Linked | Penang mainland, Iskandar Puteri | Rental demand, lifestyle appeal |
| Government Focus | Affordable housing schemes nationwide | Policy support, subsidies |
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Malaysia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
What are the best strategies for different investment goals?
Property investment strategies in Malaysia should align with specific objectives and market positioning.
For owner-occupiers, suburban landed homes provide excellent space and value, particularly in Klang Valley suburbs, Johor residential areas, and Penang mainland developments. Urban condominiums suit lifestyle-focused buyers prioritizing convenience and amenities.
Short-term rental investors should target high-traffic areas including KLCC, Bukit Bintang, Penang tourist zones, and Iskandar Puteri in Johor. These locations benefit from business travel, tourism, and cross-border visitors.
Long-term rental strategies work best in family-friendly suburbs across Klang Valley, established Johor Bahru neighborhoods, and accessible Penang mainland areas. Consistent rental demand supports stable cash flow.
Capital gains investors should focus on infrastructure-growth areas near new MRT/RTS lines, special economic zones, and government development corridors where appreciation potential exceeds market averages.
What are current real-world purchase examples across Malaysia?
Current market examples demonstrate the diverse pricing landscape across Malaysian property segments.
| Location | Property Type | Typical Price Range (MYR) |
|---|---|---|
| KLCC, Kuala Lumpur | Premium Condominium | 1,200,000 - 3,000,000 |
| Subang Jaya, Selangor | Terrace House | 700,000 - 1,200,000 |
| Penang Island | Condominium | 600,000 - 1,800,000 |
| Johor Bahru City | Condominium | 400,000 - 900,000 |
| Melaka | Terrace House | 250,000 - 450,000 |
| Sepang, Selangor | Semi-Detached | 650,000 - 1,100,000 |
| Klang, Selangor | Terrace House | 400,000 - 800,000 |
How does Malaysia compare to regional property markets?
Malaysia's property market offers compelling value propositions compared to regional competitors.
Price comparisons show Malaysia's advantages clearly: Kuala Lumpur averages $250-350 per square foot, significantly below Bangkok's $350-500 range and Manila's $300-400 bracket. Jakarta offers similar affordability at $200-300 per square foot.
Market performance in 2024-2025 shows Malaysia maintaining stable, slow growth while Bangkok rebounds with strong condominium demand and Manila experiences high demand driving rising prices. Malaysia's measured growth creates sustainable investment conditions.
Malaysia particularly excels in landed property value, offering larger built-up areas and family-friendly layouts at competitive prices. The country's infrastructure development, political stability, and economic diversification support long-term market confidence.
Foreign investment regulations, while present, remain more accessible than many regional markets, and English-language business environment facilitates international transactions.
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Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Malaysia's property market in 2025 presents attractive opportunities across multiple segments, from affordable first-time buyer options to premium investment properties.
With competitive pricing compared to regional markets, stable growth patterns, and diverse location options, Malaysia offers excellent value for both owner-occupiers and investors seeking sustainable returns.
Sources
- Global Property Guide - Malaysia Price History
- DPI Media - Affordable Homes in Malaysia 2025
- Properstar - Malaysia House Prices
- Global Property Guide - Malaysia Square Meter Prices
- iProperty - Foreigners Buying Property Malaysia Guide
- RinggitPlus - Home Loan Interest Rates
- iMoney - Malaysia Home Loans
- CEIC Data - Malaysia House Price Growth
- Hartamas - Malaysia Property Market Forecasts
- iProperty - Property Buying Trends Malaysia 2025