Can foreigners buy property in Johor Bahru?

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

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Malaysia, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Malaysia. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At BambooRoutes, we explore the Malaysian real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Kuala Lumpur, Johor Bahru, and Penang. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

What types of properties can foreigners legally purchase in Johor Bahru, and are there any restrictions compared to locals?

Foreigners can legally purchase high-rise residential units like condominiums and apartments throughout Johor Bahru.

Landed properties including bungalows, semi-detached homes, and terrace houses are available to foreigners but only in designated international zones. Commercial properties are also open to foreign ownership with proper approvals.

However, significant restrictions exist compared to local buyers. Foreigners cannot purchase properties on Malay Reserved Land, Bumiputera lots, or any low-cost and medium-cost housing specifically designated for Malaysian citizens. Agricultural land purchases are prohibited unless the land has been officially gazetted for development and receives state authority approval.

These restrictions ensure that certain property categories remain accessible to local Malaysians while still allowing foreigners substantial investment opportunities in the Johor Bahru market.

It's something we develop in our Malaysia property pack.

Are there specific minimum price thresholds or zones where foreigners are allowed or not allowed to buy property in Johor Bahru?

Yes, Johor Bahru has specific minimum price thresholds that vary by property type and location.

For landed properties in designated international zones, foreigners must pay at least RM2 million. High-rise properties and landed properties in non-international zones require a minimum of RM1 million, with the notable exception of the Medini area.

Medini Iskandar stands out as a special economic zone with no minimum price threshold for foreign buyers, making it one of the most accessible entry points for international property investment in Johor Bahru. This zone was specifically designed to attract foreign investment and offers various incentives.

Some individual projects or specific zones may impose their own additional rules beyond these general thresholds. Always verify the exact requirements for your target property before making any commitments, as developers sometimes set higher internal minimums.

Do foreigners need to hold a particular visa or residency status to buy property in Johor Bahru?

No specific visa or residency status is required for foreigners to purchase property in Johor Bahru.

You can buy property as a tourist, on a business visa, or without any Malaysian visa at all. The property purchase process is separate from immigration status, making it accessible to international buyers regardless of their current relationship with Malaysia.

However, participating in programs like Malaysia My Second Home (MM2H) or the Premium Visa Programme (PVIP) can provide significant advantages. These programs offer long-term residency benefits and sometimes access to lower minimum price thresholds or easier financing options from local banks.

MM2H participants often find it easier to secure mortgages from Malaysian banks and may receive preferential treatment in the approval process for both property purchases and financing applications.

Can I buy property in Johor Bahru as a non-resident without being physically present in Malaysia?

Yes, you can complete a property purchase in Johor Bahru without being physically present in Malaysia throughout the entire process.

The transaction can be handled remotely through a local lawyer or real estate agent using proper documentation and power of attorney arrangements. Many international buyers successfully complete purchases from their home countries.

You'll need to provide certified copies of required documents, arrange for fund transfers through proper banking channels, and grant power of attorney to your local representative for signing documents on your behalf. Digital communication and document sharing make the remote process increasingly streamlined.

However, visiting the property in person before purchase is highly recommended for due diligence purposes, even if not legally required for completing the transaction.

What documents and steps are required for a foreigner to buy a property in Johor Bahru from start to finish?

The property buying process in Johor Bahru follows a structured sequence requiring specific documentation at each stage.

Step	Required Documents	Timeline
Initial Booking	Passport copy, booking form	1-2 days
Sales & Purchase Agreement	Income tax details, correspondence address	1-2 weeks
State Consent Application	Certified SPA copy, financial proof	2-6 months
Loan Application (if needed)	Income proof, bank statements	1-2 months
Final Payment	Transfer documentation	1-2 weeks
Property Transfer	All previous documents	1-2 weeks
Key Collection	Transfer completion proof	Same day

Essential documents include photocopies of your passport, correspondence address and contact details, income tax number and submission location for subsale properties, and certified copies of the Sale & Purchase Agreement. Proof of funds demonstrating your ability to complete the purchase is also required.

The process begins with signing a booking form and paying a booking fee of 2-3% of the property price, followed by signing the SPA and paying the remaining 7-8% to complete the 10% deposit. State authority consent is mandatory for all foreign buyers and typically takes 2-6 months to obtain.

Is it mandatory to hire a local lawyer or agent when buying property in Johor Bahru as a foreigner, and what do they typically handle?

While not legally mandatory in all cases, hiring a local lawyer is highly recommended and often required by banks and for state consent applications.

Local lawyers handle critical aspects including due diligence on property titles, contract drafting and review, state consent applications, and ensuring full compliance with Malaysian property laws. They also coordinate with banks, developers, and government agencies throughout the transaction.

Real estate agents assist with property searches, price negotiations, and initial paperwork coordination. They provide market insights and help navigate the local property landscape, but cannot replace the legal expertise required for document verification and regulatory compliance.

The combination of both professionals typically ensures the smoothest transaction process, with lawyers handling legal compliance and agents managing the commercial aspects of the property search and negotiation phases.

It's something we develop in our Malaysia property pack.

Can foreigners get a mortgage from Malaysian banks for property in Johor Bahru, and what are the interest rates, conditions, and tips to improve approval chances?

Malaysian banks do provide mortgages to foreigners for Johor Bahru properties, but with stricter approval criteria than for local buyers.

As of June 2025, typical loan-to-value ratios for foreigners range from 60-80%, with some banks offering up to 90% for Singaporean and Bruneian buyers due to their proximity and economic ties. Interest rates generally start from 4.1% per annum with loan tenures extending up to 30 years.

Approval depends heavily on your financial standing, residency status, and the specific property type. MM2H participants typically find the approval process more favorable due to their established relationship with Malaysia. Banks prefer borrowers with stable income, strong credit histories, and substantial down payment capabilities.

To improve approval chances, maintain excellent credit records, provide comprehensive proof of income and assets, consider using established local banks with experience in foreign lending, and ensure your debt-to-income ratio remains below 60%. Having an existing relationship with the bank through other financial products can also be beneficial.

What taxes, fees, and ongoing costs do foreigners face when buying, owning, and reselling a property in Johor Bahru?

Property transactions in Johor Bahru involve several mandatory taxes and fees that foreigners must budget for beyond the purchase price.

Cost Type	Rate/Amount	When Paid
Stamp Duty (Transfer)	Progressive up to 4% of property value	During purchase
Legal Fees	1-1.25% of purchase price	During purchase
State Consent Levy (Johor)	2% of price or RM20,000 (whichever higher)	During purchase
Real Estate Agent Fee	~3% of purchase price	During purchase
Real Property Gains Tax	10% on gains for foreigners	Upon resale
Assessment Tax	Varies by property value	Annual
Quit Rent	Varies by land size/location	Annual

The State Consent Levy is particularly significant for Johor, representing either 2% of the purchase price or RM20,000, whichever amount is higher. This fee is unique to foreign buyers and represents a substantial additional cost.

Ongoing ownership costs include annual assessment taxes calculated based on property value, quit rent fees based on land size and location, and maintenance fees for condominiums or gated communities. These recurring costs can range from RM2,000-10,000 annually depending on property type and location.

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 areas in Johor Bahru for foreigners to live, invest, or rent out property, based on rental yields, liveability, and capital appreciation?

Medini Iskandar emerges as the top choice for foreign property investment in Johor Bahru due to its unique advantages.

Medini offers no minimum price threshold for foreigners, strong rental demand from professionals working in Singapore, and excellent connectivity to Singapore via multiple border crossings. The area shows consistent capital appreciation potential due to ongoing infrastructure development and government support for the special economic zone.

Nusajaya (Iskandar Puteri) provides excellent liveability with modern infrastructure, international schools, shopping centers, and expat-friendly amenities. This area attracts families and professionals seeking quality residential environments with strong rental yields from the expatriate community.

Johor Bahru City Centre offers urban conveniences and good rental yields but with higher property prices and more traffic congestion. Forest City, while designed for international buyers, requires careful evaluation of current regulatory environments and project viability due to changing government policies.

Overall, Medini and Nusajaya provide the best combination of investment returns, liveability, and regulatory stability for foreign property buyers as of mid-2025.

What's the current price breakdown of properties in different neighborhoods of Johor Bahru, and how does it compare to other cities in Malaysia?

Property prices in Johor Bahru vary significantly by location and property type, with clear distinctions between different neighborhoods.

In Johor Bahru generally, high-rise units typically start from RM500,000-RM1.5 million, while landed homes in international zones begin at RM2 million. Medini properties offer the most affordable entry point with units available below RM1 million due to no minimum price restrictions.

Compared to other Malaysian cities, Johor Bahru offers competitive pricing. Kuala Lumpur high-rise units start from RM1 million with landed properties commanding higher premiums. Penang imposes stricter minimums for landed properties, reaching up to RM3 million in certain areas.

The proximity to Singapore creates unique pricing dynamics in Johor Bahru, with properties closer to the border commanding premium prices due to commuter demand. Areas like Medini and central Johor Bahru benefit from this Singapore spillover effect while maintaining lower overall costs than Malaysia's capital city.

As we reach mid-2025, Johor Bahru continues to offer some of Malaysia's most attractive property investment opportunities for foreigners seeking affordable entry points with strong growth potential.

What are the common pitfalls and classic mistakes foreigners make when buying property in Johor Bahru, and how can they avoid them?

The most frequent mistake foreign buyers make is not verifying property eligibility for foreign purchase, particularly regarding Malay Reserved Land or Bumiputera lots.

1. **Inadequate due diligence on property titles and developer credentials**2. **Underestimating the time required for state consent approval (2-6 months)**3. **Insufficient budgeting for all taxes, fees, and ongoing costs**4. **Skipping professional legal representation during the transaction**5. **Overlooking resale restrictions and market liquidity concerns**6. **Failing to understand building management rules for rental properties**7. **Not researching the specific development's completion timeline and reputation**

To avoid these pitfalls, always engage qualified local lawyers for due diligence, verify all property eligibilities before making offers, budget at least 10-15% above the purchase price for additional costs, and thoroughly research developers' track records and project completion histories.

Understanding the local market conditions, rental regulations, and resale prospects before purchasing can prevent costly mistakes and ensure successful property investment outcomes in Johor Bahru.

It's something we develop in our Malaysia property pack.

How do short-term rental laws and tourism trends in Johor Bahru affect the profitability of owning investment property there?

Short-term rental regulations in Johor Bahru vary significantly by individual developments and local council jurisdictions, creating a complex landscape for property investors.

Many condominium developments have specific management rules that prohibit or restrict Airbnb-style short-term rentals, limiting investment property income potential. Always verify building management bylaws before purchasing properties intended for short-term rental income.

However, areas like Medini and central Johor Bahru experience strong tourism-driven rental demand due to proximity to Singapore and growing business travel. The upcoming Johor-Singapore Special Economic Zone (JS-SEZ) is expected to significantly boost both tourism and rental demand, potentially enhancing profitability for well-located investment properties.

Tourism trends show increasing numbers of Singaporean weekend visitors and business travelers, creating consistent demand for both short-term and medium-term rentals. Properties near entertainment districts, shopping centers, and border crossings typically achieve higher occupancy rates and rental yields.

As of June 2025, the regulatory environment continues evolving, making it essential to stay updated on local council policies and building management rules when planning rental property investments in Johor Bahru.

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.

Sources

1. iProperty Malaysia - Complete Guide for Foreigners
2. HousingWatch Malaysia - 2025 Foreigner Guide
3. Emerhub - Buying Property in Malaysia
4. FAR Academy - Minimum Property Prices 2025
5. Official MM2H - Property Buying Guide
6. Law Office Malaysia - Property Purchase Guide
7. PropertyGuru Malaysia - Foreigners Buying Guide
8. OrangeTee - Malaysian Property Buying Guide
9. RinggitPlus - Home Loan Guide
10. Chambers Practice Guides - Real Estate Malaysia 2025