Authored by the expert who managed and guided the team behind the Malaysia Property Pack
Everything you need to know before buying real estate is included in our Malaysia Property Pack
As of September 2025, Malaysia's property market offers compelling opportunities for both investors and homebuyers seeking value in Southeast Asia. The national average house price stands at RM484,000, with significant variations across cities and property types that create diverse entry points for different budgets and investment strategies.
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 average house price reached RM484,000 in 2025, with Kuala Lumpur leading at RM794,467 while rural states like Melaka offer properties below RM250,000.
The market shows steady 2-5% annual growth with strong rental yields up to 6.2% in Johor Bahru, making it attractive for both living and investment purposes compared to neighboring countries.
| City/Region | Average Price (RM) | Key Features |
|---|---|---|
| Kuala Lumpur | 794,467 | Prime urban market, luxury condos, business hub |
| Selangor | 553,693 | Suburban landed homes, good connectivity |
| Penang | 475,037 | Island premium, tourism, urban development |
| Johor Bahru | 437,280 | Singapore proximity, high rental yields |
| Melaka/Perlis | 240,000-245,000 | Most affordable, rural locations |
What's the current average house price in Malaysia?
The national average house price in Malaysia stands at RM484,000 as of September 2025.
This figure represents a moderate increase from previous years, with the market showing steady but controlled growth. Urban centers command significantly higher prices, while rural areas remain more affordable for entry-level buyers.
Kuala Lumpur leads the market with an average price of RM794,467, making it the most expensive city for property purchases. Selangor follows at RM553,693, reflecting its status as a key suburban and industrial hub surrounding the capital.
Regional variations are substantial, with the most affordable states being Melaka at RM240,655 and Perlis at RM245,031. Most rural and suburban areas across Malaysia remain below the RM300,000 threshold, creating opportunities for budget-conscious buyers.
The Malaysian property market continues to offer competitive pricing compared to neighboring countries like Singapore and Thailand, making it an attractive destination for both local and foreign investors seeking value in Southeast Asia.
How do prices differ between property types like condos, landed houses, and luxury residences?
Property types in Malaysia show distinct pricing patterns that reflect their target markets and construction costs.
| Property Type | Average Price (RM) | Market Characteristics |
|---|---|---|
| High-rise (Condo/Apt) | 378,414 | Most affordable urban option, some oversupply |
| Terrace (Landed House) | 466,506 | Most popular family choice, steady demand |
| Detached/Bungalow | 648,403 | Exclusive areas, largest living spaces |
| Semi-Detached | 730,851 | Premium segment, high-end locations |
| Luxury High-rise | Over 1,000,000 | City centers, premium amenities |
| Affordable Housing | Under 500,000 | Government-supported, consistent demand |
Terrace houses remain the most popular choice for Malaysian families, offering the best balance of space, privacy, and affordability. These landed properties provide long-term value appreciation and are particularly sought after in established suburban townships.
High-rise properties represent the most affordable entry point into urban markets, though certain areas face oversupply challenges that keep prices competitive. Luxury high-rise developments in prime locations like KLCC and Penang city center often exceed RM1 million for well-appointed units.
What are the average prices across major cities and regions, like Kuala Lumpur, Penang, and Johor Bahru?
Regional price variations in Malaysia reflect economic development, infrastructure quality, and proximity to major employment centers.
Kuala Lumpur dominates the market at RM794,467 average price, driven by its status as the financial and business capital. The city offers the highest concentration of luxury developments, international business districts, and premium amenities that justify the price premium.
Selangor at RM553,693 benefits from its strategic location surrounding Kuala Lumpur, offering suburban living with good connectivity to the capital. The state hosts major industrial areas, established townships, and new developments that attract both families and investors.
Penang averages RM475,037, reflecting its unique island location, tourism appeal, and growing tech industry presence. The state offers a mix of heritage charm and modern development, particularly attractive to both local and international buyers.
Johor Bahru sits at RM437,280, with its proximity to Singapore creating strong cross-border demand and investment opportunities. The city benefits from the Iskandar Malaysia development corridor and offers attractive rental yields for investors targeting Singaporean tenants.
How much does price vary depending on surface size and number of bedrooms?
Property pricing in Malaysia follows clear patterns based on built-up area and bedroom configuration, with price per square foot varying significantly by location.
Kuala Lumpur commands RM1,162-1,464 per square foot for prime apartments, representing the highest rate in the country. This premium reflects the city's central location, infrastructure quality, and proximity to business districts.
Penang prime areas average RM900-1,100 per square foot, while Johor Bahru city center ranges from RM600-900 per square foot. Suburban and rural areas typically fall between RM300-600 per square foot, offering significant value for space-conscious buyers.
Larger properties generally offer better value per square foot, particularly in landed house categories where economies of scale apply. A 1,200 square foot condo in KLCC might cost RM1.4-1.9 million, while a 2,000 square foot terrace house in Shah Alam averages RM550,000-700,000.
Bedroom count significantly impacts pricing, with 3-bedroom units representing the most popular configuration for families. Four-bedroom landed houses command premium prices due to their family-friendly layouts and longer-term appreciation potential.
It's something we develop in our Malaysia property pack.
What's the total cost of purchase once you add in fees, legal costs, and taxes?
Property purchase costs in Malaysia extend beyond the property price, with various fees and taxes adding 3-8% to the total investment.
| Cost Component | Rate/Amount | Details |
|---|---|---|
| Stamp Duty (First RM100,000) | 1% | Graduated scale based on property value |
| Stamp Duty (Next RM400,000) | 2% | Second tier pricing |
| Stamp Duty (Next RM500,000) | 3% | Third tier pricing |
| Stamp Duty (Above RM1,000,000) | 4% | Highest tier for luxury properties |
| Legal Fees | 1% on first RM500,000 | Decreasing scale for higher values |
| Loan Agreement Stamp | 0.5% | On financed amount |
| SST on Legal Fees | 6% | Additional tax on legal services |
First-time Malaysian buyers benefit from stamp duty exemption up to RM500,000 until December 2025, providing significant savings for entry-level purchases. This government incentive can save buyers up to RM5,000 on their first property purchase.
Legal fees follow a graduated scale starting at 1% for the first RM500,000, then 0.8% for the next RM500,000, continuing to decrease for higher-value properties. Additional costs include valuation fees, disbursements, and various administrative charges.
Foreign buyers face additional considerations including higher minimum purchase thresholds and potential state-specific approval requirements that may involve additional fees and processing time.
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What do typical mortgage rates and monthly payments look like right now?
Malaysian mortgage rates in September 2025 remain competitive, with the best available rates starting from 2.88% for qualified borrowers.
Most typical rates range from 3.8% to 4.4% for standard home loans, depending on the borrower's profile, loan amount, and chosen financial institution. The lowest rates often come with stricter approval criteria and may require higher income levels or larger down payments.
Standard loan tenures range from 30 to 35 years, allowing borrowers to manage monthly payments effectively. Malaysian citizens can access financing up to 90% of the property value, while foreigners face stricter requirements and higher minimum purchase amounts.
For practical reference, a RM300,000 loan at 3.9% interest over 30 years requires approximately RM1,278 monthly payment. A larger RM500,000 loan under the same terms would cost around RM2,130 per month, making property ownership accessible for middle-income earners.
Banks typically require borrowers to maintain debt service ratios below 60-70% of gross monthly income, ensuring sustainable repayment capacity. Pre-approval processes help buyers understand their purchasing power before engaging in property searches.
What are some concrete examples of recent purchase prices in different areas and property categories?
Recent property transactions in Malaysia show clear pricing patterns across different locations and property types as of 2025.
New luxury condominiums in Kuala Lumpur City Center range from RM1.2-1.6 million for 1,000-1,200 square foot units with premium amenities and prime locations. These developments target high-income professionals and foreign investors seeking urban lifestyle options.
Median terrace houses in Shah Alam sell for RM550,000-700,000, typically offering 4-bedroom configurations with 1,800 square feet of built-up area. These properties attract families seeking suburban living with good connectivity to Kuala Lumpur.
Modern high-rise developments in Penang present varied pricing, with seafront units reaching RM900,000 for 1,100 square feet, while mainland new builds start around RM550,000. The island premium clearly impacts pricing compared to mainland Penang options.
Affordable landed properties in emerging areas like Puncak Alam range from RM400,000-500,000 for 3-bedroom terrace houses with 1,400 square feet. These areas represent excellent value for first-time buyers and young families starting their property journey.
It's something we develop in our Malaysia property pack.
Which neighborhoods are the most expensive, which are up-and-coming, and which are more budget-friendly?
Malaysia's property market features distinct neighborhood tiers that cater to different income levels and investment strategies.
Most Expensive Neighborhoods:
- Bukit Bandaraya/Bangsar: Landed properties RM3.8-54 million, high-rise up to RM42 million
- Bukit Tunku (Kenny Hills): Exclusive bungalows starting from RM5 million
- Ampang Hilir/Embassy Row: Landed RM1.9-47 million, high-rise RM0.3-25 million
- Damansara Heights: Landed RM2.5-35 million, high-rise up to RM12 million
- TTDI: Landed RM1.75-22 million, high-rise RM0.4-6.2 million
Up-and-Coming Areas:
- Klang Valley: Puncak Alam, Semenyih, Rawang offering growth potential with new infrastructure
- Cheras South and Setia Alam edge areas with improving connectivity and amenities
- Penang: Seberang Perai, Butterworth mainland areas, Batu Kawan new townships
- Johor: Iskandar Puteri and Taman Mount Austin attracting young buyers with modern amenities
- Areas near new MRT/LRT lines showing appreciation potential
Budget-friendly options concentrate in outer Klang Valley areas, mainland Penang, and developing corridors in Johor. These areas offer excellent value for money while maintaining access to major employment centers and amenities.
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.
How have property prices changed compared to 5 years ago and compared to 1 year ago?
Malaysian property prices show a pattern of moderated growth over recent years, with 2024-2025 demonstrating controlled appreciation across most regions.
Year-over-year growth from 2024 to 2025 ranges from 1.4% to 3.3% nationwide, representing healthy but sustainable price increases. Most states experienced positive growth between 0.3% and 6.9%, though Kuala Lumpur, Sabah, and Sarawak saw slight dips of -2.4%.
The five-year trend reveals slower growth compared to the previous decade, with average annual increases of 1.5-4% depending on region. This moderated pace reflects market maturity and government policies aimed at maintaining affordability.
Q1 2025 marked a notable shift with real price change (inflation-adjusted) showing -0.68% year-over-year, representing the first quarterly dip after steady gains. This adjustment reflects market normalization rather than distress, creating opportunities for well-positioned buyers.
Regional variations persist, with infrastructure hotspots and areas near new transport links showing higher appreciation rates. The overall trend suggests a stable market with selective growth rather than broad-based speculation.
What's the forecast for average prices over the next 1 year, 5 years, and 10 years?
Malaysian property market forecasts indicate continued steady growth driven by urbanization, infrastructure development, and regional economic expansion.
Short-term projections for 2026 anticipate 2-5% annual price growth, with infrastructure hotspots and areas benefiting from new transport links likely to outperform the national average. Government spending on public transport and urban development should support selective price appreciation.
Mid-term outlook for 2027-2030 expects expansion driven by continued urbanization, population growth, and foreign investment attraction. Strategic areas connecting to Singapore, international airports, and major employment centers should see higher appreciation rates during this period.
Long-term forecasts through 2035 position Malaysia as an emerging regional property investment hub, with sustainable growth supported by economic diversification and infrastructure modernization. The country's competitive pricing compared to neighbors should maintain its attractiveness to international buyers.
Key growth drivers include the completion of major infrastructure projects like MRT extensions, high-speed rail connections, and smart city developments. These improvements should create new property hotspots and enhance existing area values significantly.
Market analysts expect Malaysia to maintain its value proposition relative to Singapore and other regional capitals, making it an attractive long-term investment destination for both regional and international property investors.
What are the smartest options today if you want to live in the property, rent it out short-term or long-term, or resell later for profit?
Strategic property choices in Malaysia vary significantly based on intended use and investment timeline, with each strategy requiring different location and property type considerations.
Best Options for Owner-Occupancy:
- Landed homes in established suburban townships like Shah Alam, Setia Alam, and Cheras for space and future value
- Well-connected condos near MRT/LRT lines for convenience and lifestyle
- Properties in mature neighborhoods with established schools, healthcare, and shopping facilities
- Areas with planned infrastructure improvements that enhance long-term livability
- Properties offering good build quality and low maintenance requirements
Optimal Short-Term Rental Properties:
- Central Kuala Lumpur high-rise with LRT/MRT access near business and tourist centers
- Fully furnished urban condos in KLCC, Bukit Bintang, and Mont Kiara areas
- Properties near international schools and expat-heavy neighborhoods
- Units in buildings with facilities like pools, gyms, and concierge services
- Tourist-friendly locations in Penang heritage areas and Johor near Singapore
Long-term rental investments perform best in Johor Bahru with 6.2% rental yields, established Klang Valley suburbs, and Penang areas with consistent tenant demand. Johor particularly benefits from Singaporean demand and improving infrastructure connections.
Properties targeting capital appreciation should focus on new launches near transport lines, high-growth corridors, and areas benefiting from government development plans. REITs focusing on mall and logistics properties also show solid yields for passive investors.
It's something we develop in our Malaysia property pack.
How do Malaysia's property prices compare with other big cities in the region or similar international markets?
Malaysia offers significantly more affordable property prices compared to other major Southeast Asian capitals, creating compelling value propositions for international buyers.
Kuala Lumpur property prices average approximately $4,000 per square meter, compared to Bangkok's $9,700 and Singapore's $23,000 based on recent comparative data. This means RM1 million (approximately US$220,000) secures a luxury 1,200 square foot apartment in KL, while the same budget provides half that space in Bangkok and a quarter in Singapore.
Living costs in Kuala Lumpur run 30-50% lower than Singapore or Bangkok, enhancing the overall value proposition for both residents and investors. This cost advantage extends beyond property prices to daily expenses, making Malaysia attractive for long-term relocation.
Rental yields in Malaysia reach up to 6% net in Johor Bahru, significantly outperforming Singapore's 2-4% yields and many Bangkok areas. This yield advantage makes Malaysian properties particularly attractive for income-focused investors seeking regular returns.
The Malaysian government's supportive policies for foreign investment, combined with stable political environment and established legal framework, provide additional advantages over some regional alternatives. English-language prevalence and established expat communities further enhance Malaysia's competitive position.
Infrastructure quality in major Malaysian cities rivals regional competitors while maintaining cost advantages, making the country an increasingly popular choice for both lifestyle migration and investment diversification strategies.
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 a compelling combination of affordability, growth potential, and strong fundamentals that position it favorably within the Southeast Asian region.
With average prices starting from RM240,000 in rural areas to RM794,467 in Kuala Lumpur, the market offers entry points for diverse budgets while maintaining competitive advantages over neighboring countries like Singapore and Thailand.
Sources
- Global Property Guide Malaysia Price History
- BambooRoutes Average House Price Malaysia
- BambooRoutes Malaysia Price Forecasts
- Terra Group Stamp Duty Guide
- Jenny Wong Stamp Duty Malaysia 2025
- Wenjie Legal Fees Calculator
- IQI Global House Loan Interest Rates
- Maybank Interest Rates
- StashAway First Time Home Buyer Guide
- CT Properties Affordable Areas Klang Valley