How much for a property in Malaysia now?

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Everything you need to know before buying real estate is included in our Malaysia Property Pack

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BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, 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.

What is the average price per square meter for residential properties in Malaysia in 2025?

The average price per square meter for residential properties in Malaysia stands at RM2,995 (USD 630) as of 2025.

This national average masks significant regional variations, with urban centers commanding premium prices while smaller states offer more affordable options. The price range typically spans from RM2,900 to RM3,200 per square meter across different locations.

Kuala Lumpur leads the market with prices reaching RM11,000 per square meter in prime central areas, equivalent to approximately USD 2,420 per square meter. This positions the capital city as the most expensive property market in the country, reflecting its status as Malaysia's economic hub and international gateway.

Regional towns and smaller cities offer significantly lower per-square-meter prices, often ranging between RM1,500 to RM2,500 per square meter. These areas present attractive opportunities for budget-conscious buyers and investors seeking higher rental yields relative to purchase prices.

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

How do property prices vary across different states in Malaysia?

Property prices across Malaysian states show dramatic variations, with Kuala Lumpur commanding the highest average prices at RM794,467 for residential homes.

Selangor, the state surrounding Kuala Lumpur, maintains the second-highest average property prices at RM553,693, benefiting from its proximity to the capital and well-developed infrastructure. This state attracts both investors and residents seeking affordable alternatives to Kuala Lumpur while maintaining easy access to the city center.

Johor and Penang represent the middle tier with average prices of RM437,280 and RM475,037 respectively. Johor benefits from the upcoming Rapid Transit System (RTS) link to Singapore, driving investor interest and price appreciation expectations.

The most affordable states include Melaka at RM240,655 average and Perlis at RM245,031 average, offering entry-level investment opportunities for first-time buyers and investors seeking maximum rental yield potential.

What are the current average prices for different property types in Malaysia?

Residential property prices in Malaysia vary significantly by type, with semi-detached houses commanding the highest average prices at RM730,851.

Terrace houses represent the most popular property type among Malaysian buyers, averaging RM466,506 nationwide. These properties offer good balance between affordability and space, making them ideal for families and buy-to-let investors targeting the local rental market.

High-rise condominiums and apartments average RM378,414, representing the most accessible entry point for foreign investors and young professionals. In Kuala Lumpur specifically, new apartments command higher premiums at RM708,402, while subsale properties average RM801,557.

Detached bungalows, typically found in exclusive residential areas, average RM648,403. These properties appeal to high-net-worth individuals and expatriate families seeking premium living spaces with privacy and extensive grounds.

Serviced apartments and SOHO units have gained popularity, particularly in urban centers, with prices generally aligning with standard high-rise apartments but offering additional amenities and flexible ownership structures for investors.

What additional costs should property buyers expect when purchasing in Malaysia?

Property buyers in Malaysia should budget approximately 14-17% of the purchase price for additional costs beyond the property value itself.

Stamp duty represents the largest additional expense, with graduated rates up to 3% for Malaysian residents and a flat 4% for foreign buyers. First-time Malaysian buyers enjoy exemptions up to RM500,000 property value, significantly reducing their upfront costs.

1. Stamp Duty: 1-4% depending on property value and buyer status
2. Legal Fees: Typically 1% for the first RM500,000, then 0.8% for the next RM500,000
3. Loan Agreement Fees: Approximately 1% of the loan amount for legal documentation
4. Valuation Fees: RM300-RM1,500 depending on property value
5. Disbursement Costs: RM2,000-RM5,000 for searches, registration, and administrative fees

A practical example shows that purchasing a RM500,000 property typically requires RM71,500 in total upfront payments, including the 10% down payment, stamp duty, legal fees, and loan processing costs.

Insurance costs add another RM1,000-RM3,000 annually, with mortgage insurance becoming mandatory for loans exceeding 80% of property value. Property buyers should also budget for inspection costs, which range from RM800-RM2,500 for comprehensive structural and pest inspections.

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What are the current mortgage rates and monthly repayment examples in Malaysia?

Malaysian mortgage rates in 2025 range from 2.88% for government-backed HouzKEY schemes to 4.4% for conventional variable rate loans.

Standard home loans typically offer rates between 3.8% and 4.4%, with loan tenures extending up to 35 years for qualifying borrowers. These rates remain competitive compared to regional markets, making property acquisition accessible for both local and foreign buyers.

Foreign buyers typically face slightly higher interest rates and are limited to 80% loan-to-value ratios, requiring 20% down payments. However, established expatriates with Malaysian employment history can access rates similar to local buyers.

Fixed-rate options are available for 2-5 year initial periods, providing payment certainty during the early loan years. After the fixed period, loans typically revert to variable rates tied to the Base Rate set by Bank Negara Malaysia.

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

How have property prices evolved over the past five years in Malaysia?

Malaysian property prices have shown steady but moderate growth over the past five years, averaging 3-4.4% annual appreciation from 2019 to 2024.

The COVID-19 pandemic period (2020-2022) saw temporary market moderation, with some areas experiencing flat or minimal growth as economic uncertainty affected buyer confidence and foreign investment flows. However, the market demonstrated resilience with recovery accelerating through 2023 and 2024.

In 2024 specifically, average property prices increased by 1.4% year-over-year, indicating a return to stable growth patterns. This growth rate reflects balanced market conditions without the speculative bubbles seen in some regional markets.

Urban centers like Kuala Lumpur and Johor Bahru have consistently outperformed the national average, with some premium areas achieving 5-7% annual growth during strong years. Infrastructure development areas, particularly those benefiting from new rail links and highway connections, have seen accelerated appreciation.

Regional markets have shown more varied performance, with tourism-dependent areas like Penang experiencing volatility during the pandemic years but recovering strongly as international travel resumed in 2023-2024.

What are the projected property price trends for Malaysia's future?

Malaysia's property market is projected to achieve 2-5% annual price growth in 2025, with infrastructure hotspots like Johor Bahru and Penang expected to outperform the national average.

The medium-term outlook (5 years) suggests a compound annual growth rate (CAGR) of approximately 6.6%, driven primarily by major infrastructure developments including the East Coast Rail Link (ECRL) and Rapid Transit System (RTS) connections to Singapore.

• 2025 Forecast: 2-5% growth with regional variations
• 5-Year Outlook: 6.6% CAGR supported by infrastructure investment
• 10-Year Projection: Sustained growth averaging 5-7% annually
• Key Growth Drivers: Urbanization, population growth, foreign investment
• Risk Factors: Supply overhang in certain segments, affordability constraints

Infrastructure development remains the primary catalyst for price appreciation, with areas along new transportation corridors expected to see premium growth rates. The completion of major projects like the RTS link to Singapore could drive 10-15% appreciation in directly connected areas.

Long-term projections (10 years) maintain optimistic growth expectations, supported by Malaysia's position as a regional hub, favorable demographics, and continued urbanization trends. However, affordability concerns and potential oversupply in high-rise segments may moderate growth in certain market segments.

Government policies supporting affordable housing and first-time buyer incentives are expected to maintain market accessibility while preventing speculative overheating.

How do Malaysia's property prices compare to other Southeast Asian cities?

Malaysia's property prices remain significantly more affordable than Singapore while competing favorably with other major Southeast Asian markets.

Kuala Lumpur's average price of USD 2,420 per square meter positions it as a middle-tier option compared to regional peers, offering better value than Bangkok (USD 3,250) and Manila (USD 2,700) while remaining far below Singapore's premium pricing at USD 7,500 per square meter.

This positioning makes Malaysia particularly attractive for investors seeking exposure to Southeast Asian property markets without the premium entry costs associated with Singapore or the complexity challenges of some emerging markets.

Malaysia's stable political environment, established legal framework for foreign ownership, and English-language accessibility provide additional advantages over purely price-competitive markets in the region.

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.

Which property types offer the best investment returns in Malaysia?

Johor Bahru leads Malaysia's rental yield market with the highest returns at 6.2%, making it the most attractive location for property investors seeking immediate income generation.

Short-term rental yields generally range from 5-6% in secondary cities and city fringe areas, significantly outperforming the typical 4-5% achieved through long-term rental arrangements. This differential reflects the strong domestic and international tourism demand, particularly in areas with good connectivity and amenities.

High-rise residential units, including condominiums and serviced apartments, typically deliver superior rental yields compared to landed properties. These property types attract young professionals, expatriates, and short-term tenants willing to pay premium rents for convenience and amenities.

Terrace houses, while offering more modest rental yields (3-4%), provide better long-term capital appreciation potential. These properties appeal to families and serve Malaysia's growing middle-class rental market, offering stability and steady income streams.

Investment returns vary significantly by location, with properties near MRT stations, universities, and commercial centers commanding premium rents and achieving higher occupancy rates throughout the year.

What are the most promising investment areas in Malaysia for 2025?

Johor Bahru emerges as 2025's top investment hotspot, driven by the upcoming Rapid Transit System (RTS) link to Singapore and significant infrastructure development.

The RTS project, scheduled for completion in the coming years, is expected to transform Johor Bahru into a viable residential alternative for Singapore workers, potentially driving significant rental demand and capital appreciation.

1. Johor Bahru: RTS connectivity to Singapore, highest rental yields at 6.2%
2. Penang Island & Seberang Perai: Industrial growth, tourism recovery, seaside properties
3. Klang Valley Suburbs: Connected townships, new developments, affordable entry points
4. Alor Setar, Kedah: Emerging growth market, low entry costs, infrastructure improvements
5. Cyberjaya & Putrajaya Corridor: Technology hub expansion, government initiatives

Penang continues attracting investors through its combination of industrial development, tourism recovery, and unique seaside property offerings. The state benefits from both local and international demand, supporting stable rental markets and appreciation potential.

Klang Valley suburbs represent excellent opportunities for investors seeking affordable entry points while maintaining connectivity to Kuala Lumpur's employment centers. New township developments in these areas often offer modern amenities at competitive prices.

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

What key factors are currently influencing Malaysian property prices?

Infrastructure development stands as the primary driver of property price movements across Malaysia, with major projects like the East Coast Rail Link (ECRL) and various MRT extensions creating significant value uplift in connected areas.

Government economic policies, particularly stamp duty exemptions and affordable housing initiatives, directly impact market accessibility and demand patterns. The continued first-time buyer incentives help maintain market liquidity while supporting price stability.

Foreign investment policies influence the luxury and premium segments significantly, with minimum purchase thresholds for foreign buyers creating natural market segmentation. Recent policy adjustments aimed at attracting international buyers have supported demand in higher-value properties.

Supply-demand imbalances, particularly the noted oversupply in high-rise city properties, are moderating price growth in certain segments while creating opportunities in others. This oversupply primarily affects luxury condominiums in central Kuala Lumpur.

Economic factors including interest rate policies by Bank Negara Malaysia, employment growth, and wage inflation directly correlate with property affordability and buyer capacity across different market segments.

How does Malaysia's current property market compare regionally?

Malaysia's property market in 2025 offers superior affordability combined with stable growth prospects compared to most Southeast Asian markets, positioning it as an attractive middle-ground investment destination.

The country ranks highly for investment accessibility, with lower entry barriers for foreign investment compared to Thailand or Vietnam, and more stable political and economic conditions than many emerging markets in the region.

Malaysia's rental yield potential of 4-6.2% compares favorably with Singapore (2-3%) and many Bangkok locations (3-4%), while offering better legal protections and market transparency than some higher-yielding but riskier markets.

The ongoing challenges of urban oversupply and affordability constraints are balanced by strong infrastructure investment, stable governance, and diverse economic growth drivers that support long-term market fundamentals.

Regional competitiveness benefits from Malaysia's established expatriate communities, English-language business environment, and strategic location between major Asian economic centers, supporting both residential demand and investment appeal.

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. BambooRoutes - Average House Price Malaysia
2. Global Property Guide - Asia Square Meter Prices
3. BambooRoutes - Malaysia Price Forecasts
4. Brickz - Residential Transactions
5. Housing Prices Malaysia 2025 Dataset
6. Aparthotel - Malaysia Analysis
7. Global Property Guide - Malaysia Price History
8. BambooRoutes - Malaysia Property Market Outlook
9. LoanStreet - Malaysia Stamp Duty Guide
10. StashAway - Complete Home Buying Guide Malaysia