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
Understanding Malaysia's property market pricing is crucial for both investors and those looking to relocate to this Southeast Asian nation. As of September 2025, Malaysia offers competitive property prices compared to regional neighbors, with significant variations across property types and locations.
Property prices in Malaysia have shown steady growth over the past year, with the national average rising 1.4-3.3% in 2024-2025. The market presents diverse opportunities from budget-friendly options in secondary cities to premium developments in Kuala Lumpur's central business district.
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.
The national average price per square meter for residential properties in Malaysia ranges from MYR 4,900-5,400 (US$1,120-1,250), with condos averaging MYR 5,300-5,400 per sqm and landed houses ranging from MYR 4,700-6,800 per sqm.
Kuala Lumpur, KLCC, and Johor Bahru represent the most expensive markets, while states like Melaka, Perlis, and Perak offer budget-friendly options for property buyers.
| Property Type | Average Price (MYR) | Price per Sqm (MYR) | Key Markets |
|---|---|---|---|
| High-Rise Condos | 378,414 | 5,300-5,400 | KL, Penang, Johor Bahru |
| Terrace Houses | 466,506 | 4,700-5,200 | Klang Valley, Johor |
| Semi-Detached | 730,851 | 5,100-6,100 | Premium suburbs |
| Luxury Apartments | >801,000 | 7,000-10,000+ | KLCC, Mont Kiara, Bangsar |
| Commercial Units | Varies | 6,000-10,000+ | KL, Johor, Penang CBDs |
| Bungalows | 648,403 | 5,000-6,800 | Exclusive residential zones |
What's the current average price per square meter in Malaysia?
The national average price per square meter for residential properties in Malaysia stands at approximately MYR 4,900-5,400 (US$1,120-1,250) as of September 2025.
This figure represents a comprehensive analysis across different property types and locations throughout the country. The price range reflects the significant variation between different states and urban versus rural areas.
High-rise condominiums and apartments typically command prices at the upper end of this range, averaging MYR 5,300-5,400 per square meter. Meanwhile, landed properties like terrace houses often fall within the MYR 4,700-5,200 range, depending on their location and specifications.
It's something we develop in our Malaysia property pack.
The price calculation includes both new launches and resale properties across major urban centers including Kuala Lumpur, Penang, Johor Bahru, and secondary cities throughout the peninsula and East Malaysia.
How do prices differ between property types like condos, landed houses, luxury apartments, and commercial units?
Property prices in Malaysia vary significantly based on type, with luxury apartments commanding the highest prices per square meter at MYR 7,000-10,000+.
High-rise condominiums and apartments average MYR 5,300-5,400 per square meter, making them popular choices for urban investors and residents. These properties typically offer modern amenities and strategic locations near business districts and transportation hubs.
Landed properties show more variation: terrace houses average MYR 4,700-5,200 per square meter, semi-detached homes range from MYR 5,100-6,100, while bungalows command MYR 5,000-6,800 per square meter. The premium for landed properties reflects their scarcity in urban areas and the additional land component.
Commercial units typically exceed residential prices, ranging from MYR 6,000-10,000+ per square meter in central business districts. Office spaces in KLCC, Bangsar, and other prime commercial zones often surpass MYR 8,000 per square meter.
Luxury apartments in prestigious areas like KLCC, Mont Kiara, and Bangsar represent the market's premium segment, with some developments exceeding MYR 12,000 per square meter for penthouse units and premium floors.
Which areas are the most expensive, which are considered upcoming hotspots, and which remain budget friendly?
Kuala Lumpur's central areas dominate Malaysia's most expensive property markets, with KLCC, Mont Kiara, and Bangsar leading price charts.
The most expensive locations include Kuala Lumpur city center, particularly the KLCC vicinity where luxury condos exceed MYR 10,000 per square meter. Johor Bahru's prime areas, especially those near the Singapore border, and Penang Island's Georgetown and Gurney Drive also command premium prices.
Upcoming hotspots center around major infrastructure developments: Johor benefits from the RTS Link project and Forest City's special economic zone status. Shah Alam and Cheras are gaining traction due to new MRT and LRT line extensions. Bandar Malaysia, once completed, is expected to become a significant growth area.
Budget-friendly options remain abundant in states like Melaka, Perlis, Perak, and Pahang, where property prices often fall below MYR 3,000 per square meter. Selected suburban zones in Kedah and Terengganu also offer affordable entry points for first-time buyers.
Secondary cities like Ipoh, Kuantan, and Kota Kinabalu provide middle-ground options, offering modern amenities at prices significantly below Kuala Lumpur levels while maintaining good growth potential.
How have average prices changed compared with five years ago and compared with just one year ago?
Malaysian property prices have maintained steady growth, with national averages rising 1.4-3.3% over the past year from 2024 to 2025.
The five-year trend shows more substantial appreciation, with average annual growth rates of 4-6% across most property segments. Urban condominiums and apartments in popular areas have outpaced landed homes in terms of percentage growth, particularly in transit-oriented developments.
Hotspot areas experiencing major infrastructure development have seen accelerated growth, with some locations recording up to 10% annual appreciation. Johor's proximity to Singapore and ongoing development projects have driven particularly strong price increases.
It's something we develop in our Malaysia property pack.
The one-year growth rate reflects Malaysia's stable economic conditions and continued urbanization trends, while the five-year trajectory demonstrates the market's resilience through various economic cycles and the impact of major infrastructure investments.
Don't lose money on your property in Malaysia
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
What are the forecasts for property prices in the next one year, five years, and ten years?
Malaysian property market forecasts indicate continued growth across all timeframes, with short-term expectations of 2-5% overall price increases in the next year.
One-year projections suggest national price growth of 2-5%, with hotspot areas potentially achieving up to 10% appreciation. Infrastructure-linked developments, special economic zones, and transit-oriented projects are expected to lead this growth.
Five-year forecasts project a compound annual growth rate (CAGR) of 6.5-7% nationwide. Urban zones and transit-connected regions are anticipated to outperform suburban and rural markets significantly during this period.
Ten-year outlook remains positive, supported by Malaysia's strong fundamentals including ongoing urbanization, infrastructure development, and population growth. However, affordability concerns and macroeconomic conditions may moderate gains compared to the medium-term projections.
The forecasts assume continued political stability, sustained infrastructure investment, and Malaysia's growing appeal as a regional business hub and retirement destination for expatriates.
How do Malaysian property prices compare with other big cities in the region or globally?
Malaysia offers significantly more affordable property prices compared to major regional and global cities, positioning itself as a value destination.
Kuala Lumpur condominiums average MYR 970-1,060 per square foot (US$226-247 per square foot), substantially lower than Singapore's US$1,600-1,900 per square foot and Hong Kong's US$2,000+ per square foot.
Regional comparisons show Malaysia's competitive advantage: Bangkok properties often exceed Malaysia's prices in prime areas, while Jakarta's premium locations command similar or higher rates. However, Malaysia generally offers better infrastructure and regulatory clarity.
Globally, Malaysian property prices remain a fraction of major international cities. London, New York, and Sydney properties cost 5-10 times more per square meter than comparable Malaysian locations, making Malaysia attractive for international investors seeking entry-level Asian exposure.
This price differential, combined with Malaysia's English-speaking environment, political stability, and developed infrastructure, positions the country as an attractive alternative to more expensive regional markets.
What's the average size of properties being sold, and how does price per square meter vary by surface area?
Malaysian property sizes vary considerably by type, with high-rise units typically ranging from 700-1,200 square meters and landed properties spanning 1,200-2,500 square meters.
Condominium and apartment transactions most commonly involve units between 800-1,000 square meters, particularly in urban centers where space optimization is crucial. Luxury developments may offer larger units ranging from 1,500-3,000 square meters.
Landed properties show greater size variation: terrace houses typically measure 1,200-2,000 square meters, semi-detached homes range from 1,800-2,800 square meters, while bungalows often exceed 2,500 square meters and can reach 5,000+ square meters in exclusive developments.
Price per square meter generally increases for smaller, ultra-central units due to premium pricing on compact urban apartments. Properties under 600 square meters in prime locations often command 15-25% higher per-square-meter rates than larger units in the same development.
The trend toward smaller units reflects urbanization patterns and changing lifestyle preferences, particularly among young professionals and investors focused on rental yields rather than family living space.
What is the typical total purchase price including taxes, fees, and additional costs?
Total property purchase costs in Malaysia typically add 4-8% to the base property price when including all taxes, fees, and additional expenses.
| Cost Component | Typical Amount | Notes |
|---|---|---|
| Stamp Duty (Local Buyer) | 1-3% of property price | Progressive rates up to RM1M |
| Stamp Duty (Foreign Buyer) | 4% of property price | Flat rate for non-residents |
| Legal Fees | 1-2% of property price | Including disbursements |
| Agent Commission | 2-3% of property price | Usually split between parties |
| Loan Processing Fees | RM400-700 | Bank valuation and processing |
| Title Transfer Fees | RM100-500 | Government registration costs |
| Sales Tax (where applicable) | 5-10% | On certain property types |
Foreign buyers face higher stamp duty rates at 4% compared to local buyers' progressive rates of 1-3%. Legal fees and agent commissions represent the largest additional costs beyond stamp duty.
It's something we develop in our Malaysia property pack.
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 usual mortgage terms, interest rates, and monthly costs for financing a property in Malaysia?
Malaysian mortgage terms typically extend up to 35 years, with most borrowers opting for 20-30 year terms to balance monthly payments with total interest costs.
Current interest rates range from 3.9-5.3% per annum as of September 2025, varying by bank, property value, and borrower profile. Government-linked banks often offer competitive rates for certain property segments and first-time buyers.
Monthly payment calculations show that a RM350,000 property typically requires RM1,700-2,900 monthly payments over 30 years, depending on the specific interest rate and down payment amount.
Down payment requirements generally range from 10-20% for Malaysian residents, while foreign buyers may face higher requirements of 20-30%. Banks typically finance up to 80-90% of property value for qualified local borrowers.
Additional mortgage costs include mortgage insurance, legal fees for loan documentation, and bank processing charges, which collectively add approximately 1-2% to the total loan amount.
What are the best options if you plan to live in the property versus renting it out short term, long term, or buying to resell later?
Property strategy in Malaysia depends significantly on intended use, with different locations and property types optimized for various investment approaches.
For owner-occupation, landed homes in suburban areas with good infrastructure offer the best value proposition, combining livability with steady capital appreciation. Areas like Subang Jaya, Petaling Jaya, and established townships provide family-friendly environments with strong resale potential.
Short-term rental investments perform best in tourist and business centers: KLCC, Penang's Georgetown, and Johor Bahru near Singapore benefit from consistent demand from business travelers and tourists. Properties near convention centers and airports also generate strong short-term rental yields.
Long-term rental markets favor stable university districts, office corridors, and established residential areas throughout Klang Valley. Properties near universities, hospitals, and major employment centers provide consistent tenant demand and lower vacancy rates.
Buy-to-resell strategies should focus on areas undergoing infrastructure development: Shah Alam's MRT expansion zones, Johor's special economic zone developments, and Bandar Malaysia's upcoming completion offer significant capital appreciation potential for strategic investors.
What are some real examples of purchase prices for properties in different segments and areas?
Real transaction data from September 2025 provides concrete examples of current market pricing across Malaysia's diverse property segments.
KLCC luxury condominiums with two bedrooms and 120 square meters typically sell for RM1.2-2.1 million, representing the premium end of Malaysia's residential market. These properties offer world-class amenities and proximity to international business centers.
Subang Jaya landed terrace houses with four bedrooms and 250 square meters range from RM580,000-850,000, reflecting established suburban family housing in mature townships with excellent infrastructure and schools.
Johor Bahru new condominium developments with 80 square meter units sell for RM470,000-690,000, benefiting from the area's proximity to Singapore and ongoing development projects including the RTS Link.
Budget-friendly options include Melaka apartments with 60 square meters selling for approximately RM180,000, demonstrating Malaysia's accessibility for first-time buyers and investors seeking affordable entry points.
These examples illustrate the dramatic price variation across different locations and property types, providing options for various budget levels and investment strategies.
Based on today's trends, what are considered the smartest choices for buyers and investors?
Smart property choices in Malaysia's current market focus on transit-oriented developments and infrastructure-driven growth areas.
1. **Transit-oriented developments in KL and Shah Alam** along new MRT and LRT lines offer rapidly growing values with excellent connectivity and future-proof locations.2. **Johor Bahru and Forest City special economic zone properties** provide high yields and positive supply-demand dynamics driven by Singapore's proximity and government incentives.3. **Penang urban fringe markets** deliver steady growth with affordable entry points, particularly in areas benefiting from the island's continued development as a tech and manufacturing hub.4. **Prime landed properties in suburban Klang Valley** maintain consistent capital appreciation while offering superior livability for families and long-term residents.5. **New township launches tied to infrastructure projects** present attractive opportunities for both live-in buyers and investors when located near confirmed transportation and development plans.The optimal strategy involves seeking properties with unique location advantages, confirmed future connectivity improvements, and competitive price per square meter ratios. Smaller units in rental-focused developments often outperform larger properties in investment returns, particularly in urban centers with strong employment growth.
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 presents compelling opportunities for both investors and residents, with diverse options ranging from affordable entry points to luxury developments.
The combination of competitive pricing, infrastructure development, and regional connectivity positions Malaysia as an attractive real estate destination in Southeast Asia.