Authored by the expert who managed and guided the team behind the Malaysia Property Pack
Yes, the analysis of Johor's property market is included in our pack
Buying property in Johor as a foreigner in 2026 is legal, but the process is full of traps that catch people who do not know the local rules.
The Johor property market is booming right now, with foreign buyers accounting for over 40% of transactions in Johor Bahru, but this also means scammers are very active and targeting inexperienced buyers.
We constantly update this blog post to reflect the latest regulations and market conditions in Johor.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Johor.
How risky is buying property in Johor as a foreigner in 2026?
Can foreigners legally own properties in Johor in 2026?
As of early 2026, foreigners can legally buy residential property in Johor, but every purchase requires State Authority consent from the Johor Land and Mines Office (PTG Johor) before the transfer can be completed.
The main restriction in Johor is that foreigners must purchase properties valued at a minimum of RM1 million (about USD 220,000 or EUR 200,000), except in Medini Iskandar where there is no minimum price threshold for new strata units from developers.
Foreigners in Johor can own property directly in their own name without needing a local nominee or company structure, since Malaysia allows 100% freehold or leasehold ownership by non-citizens for eligible property types.
However, foreigners cannot buy Malay Reserved Land, Bumiputera lots, or low-cost housing in Johor, and the PTG Johor website lists specific categories and restrictions that apply to each property type.
What buyer rights do foreigners actually have in Johor in 2026?
As of early 2026, foreigners who purchase property in Johor with proper State Authority consent have the same core ownership rights as locals, including the right to sell, rent, and enforce their Sale and Purchase Agreement in Malaysian courts.
If a seller breaches a contract in Johor, foreign buyers can pursue legal remedies through the Malaysian civil court system, and for new builds from licensed developers, the Housing Ministry's Tribunal for Homebuyer Claims (KPKT Tribunal) offers a faster dispute resolution channel.
The most common right that foreigners mistakenly assume they have in Johor is the ability to resell quickly to any buyer, but in practice, many units have restriction categories (like Bumiputera allocations) or limited resale pools that can delay or block your exit.
How strong is contract enforcement in Johor right now?
Contract enforcement for real estate transactions in Johor is reliable by regional standards, with the World Justice Project Rule of Law Index 2025 ranking Malaysia 56th out of 143 countries overall and 34th for Civil Justice, which is stronger than Thailand (82nd) but weaker than Singapore (3rd).
The main weakness in Johor that foreigners should know about is time: even when you have a strong legal case, court proceedings can take 12 to 24 months, and the real winning strategy is preventing disputes through clean documentation rather than planning to sue later.
By the way, we detail all the documents you need and what they mean in our property pack covering Johor.
Buying real estate in Johor can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Which scams target foreign buyers in Johor right now?
Are scams against foreigners common in Johor right now?
Real estate scams targeting foreigners in Johor are common enough that you should assume scam attempts will happen, especially through online channels like WhatsApp, Facebook, and property listing sites where scammers can easily reach cross-border buyers.
The type of property transaction most frequently targeted by scammers in Johor is the urgent "special deal" on new launches or subsales, where the scammer creates time pressure and requests fast deposits before proper verification can happen.
The profile of foreign buyer most commonly targeted in Johor is the Singaporean making short weekend trips to view properties, because these buyers have limited time in Malaysia, often rely on introductions, and may not recognize warning signs that locals would spot immediately.
The single biggest warning sign that a deal may be a scam in Johor is a payment request to a personal bank account or a "company account" that is not the registered estate agency or law firm's client account.
What are the top three scams foreigners face in Johor right now?
The top three scams that foreigners most commonly face when buying property in Johor in 2026 are: fake agent or fake REN (Real Estate Negotiator) impersonation with payment diversion, title or ownership misrepresentation using forged documents, and fake government subsidy schemes like the "JBSG Housing Subsidy Program" that stole over RM3 million from victims in late 2025.
The fake agent scam typically unfolds when someone posing as a licensed agent shows you properties, builds trust over a few viewings, creates urgency by saying another buyer is interested, then asks you to transfer a "booking fee" to their personal account or a fake company account before your lawyer can verify anything.
The single most effective way to protect yourself from each of these three scams in Johor is: for fake agents, verify the agency and agent registration on the LPEPH portal before paying anything; for title fraud, insist your lawyer orders an official title search and never accept photocopies as proof; and for fake government schemes, remember that no real Johor-Singapore housing subsidy program exists and verify any scheme through official government websites before transferring money.
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 do I verify the seller and ownership in Johor without getting fooled?
How do I confirm the seller is the real owner in Johor?
The standard verification process to confirm the seller is the real owner in Johor requires your lawyer to conduct an official title search at the Johor Land Office, which shows the registered owner's name, identity card or passport number, and any encumbrances on the property.
The official document foreigners should check to verify ownership in Johor is the land title (Geran Tanah or Hakmilik Strata for condos), which your lawyer obtains directly from the land registry system rather than from the seller.
The most common trick fake sellers use to appear legitimate in Johor is presenting convincing photocopies of title documents and identity cards while claiming to be the owner or an "authorized representative," and this is common enough that you should never accept any document that did not come through your lawyer's official verification channels.
Where do I check liens or mortgages on a property in Johor?
The official registry where you check liens or mortgages on a property in Johor is the Johor Land and Mines Office (PTG Johor), where your lawyer can conduct a title search that reveals any registered charges, bank mortgages, or caveats lodged against the property.
When checking for liens in Johor, you should request a full encumbrance search that shows all registered charges, private caveats, and restriction categories, as well as confirmation of whether the property is under any redemption process with a bank.
The type of lien or encumbrance most commonly missed by foreign buyers in Johor is restriction categories tied to Bumiputera quotas or low-cost housing classifications, which do not always appear as obvious "charges" but can completely block your ability to complete the purchase or resell later.
It's one of the aspects we cover in our our pack about the real estate market in Johor.
How do I spot forged documents in Johor right now?
The most common type of forged document used in property scams in Johor is a fake or altered land title document, and while professional-quality forgeries are rare, crude forgeries using photocopies and altered details happen sometimes, especially when targeting rushed foreign buyers.
Specific red flags that indicate a document may be forged in Johor include: the seller insisting you work only with photocopies, refusing to allow your lawyer to conduct an official search, payment instructions that change at the last minute, or pressure to sign "simple agreements" outside the standard SPA process.
The official verification method you should use to authenticate documents in Johor is having your lawyer conduct a title search directly through the land office system and cross-reference the seller's identity documents with the registered owner details, rather than trusting any document provided by the seller or agent.
Get the full checklist for your due diligence in Johor
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
What "grey-area" practices should I watch for in Johor?
What hidden costs surprise foreigners when buying a property in Johor?
The three most common hidden costs that foreigners overlook when buying property in Johor in 2026 are: the Johor state consent levy for foreign buyers at 3% of purchase price or minimum RM30,000 (about USD 6,600 or EUR 6,000), the new 8% stamp duty for foreigners effective January 2026, and strata management arrears or sinking fund shortfalls that the seller may not disclose upfront.
The hidden cost most often deliberately concealed by sellers or agents in Johor is outstanding management fees or special levies on strata properties, and this happens commonly because sellers want to close quickly without revealing that the condo has financial problems or pending litigation with the management corporation.
If you want to go into more details, we also have a blog article detailing all the property taxes and fees in Johor.
Are "cash under the table" requests common in Johor right now?
Cash under the table requests in Johor property transactions are less common than in some other markets, but the bigger modern risk is "cash-like" pressure in the form of payments to personal accounts, advance fees, or rebate structures that effectively hide the real purchase price.
The typical reason sellers give for requesting undeclared cash payments in Johor is to reduce stamp duty by under-declaring the official purchase price, or to speed up the transaction by avoiding the "slow" official banking channels.
The legal risks foreigners face in Johor if they agree to an undeclared cash payment include: being complicit in tax evasion under Malaysian law, having no legal recourse if the deal goes wrong because the side agreement is unenforceable, and potential problems with State Authority consent if the declared price looks suspicious to the land office.
Are side agreements used to bypass rules in Johor right now?
Side agreements to bypass official rules in Johor property transactions are sometimes used, typically to hide price discounts, mask defects, or create informal guarantees that would not be allowed in the official Sale and Purchase Agreement.
The most common type of side agreement used to circumvent regulations in Johor is an informal letter promising renovation completion, defect repairs, or rebate payments that are not reflected in the stamped SPA, leaving the buyer with no enforceable claim if the seller does not deliver.
The legal consequences foreigners face in Johor if a side agreement is discovered by authorities include: the side agreement being declared void and unenforceable, potential rejection of State Authority consent if the land office suspects price manipulation, and in serious cases, investigation for tax fraud or false declaration.
We made this infographic to show you how property prices in Malaysia compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
Can I trust real estate agents in Johor in 2026?
Are real estate agents regulated in Johor in 2026?
As of early 2026, real estate agents in Johor are regulated under Malaysia's Valuers, Appraisers, Estate Agents and Property Managers Act 1981 (Act 242), with the statutory board LPEPH (also known as BOVAEP) responsible for licensing, discipline, and fee oversight.
A legitimate real estate agent in Johor should have a license issued by LPEPH, and individual negotiators (called REAs or RENs) must be registered under a licensed estate agency firm rather than operating independently.
Foreigners can verify whether an agent is properly licensed in Johor by checking the LPEPH portal at lpeph.gov.my, where you can search for the agency name and confirm that the individual negotiator is registered under that firm.
Please note that we have a list of contacts for you in our property pack about Johor.
What agent fee percentage is normal in Johor in 2026?
As of early 2026, the normal agent fee percentage for residential property sales in Johor is around 2% to 3% of the purchase price, with the LPEPH regulator setting a maximum cap of 3% for agency commissions.
The typical range of agent fee percentages that covers most residential transactions in Johor is 2% to 3%, with variation depending on whether one agency represents both buyer and seller (co-agency) and the complexity of the transaction.
In Johor, the seller typically pays the agent fee for subsale transactions, though some developers may offer buyer incentives that effectively shift part of the commission; always confirm in writing who pays what before you commit.
Get the full checklist for your due diligence in Johor
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
What due diligence actually prevents disasters in Johor?
What structural inspection is standard in Johor right now?
The standard structural inspection process for property purchases in Johor is less formalized than in Western markets, and most buyers rely on a visual walkthrough rather than a professional inspection report, which means proactive foreign buyers should hire their own independent inspector.
A qualified inspector in Johor should check specific structural elements including foundation cracks, water ingress and waterproofing condition, ceiling stains indicating leaks, electrical and plumbing systems, and for landed properties, roof structure, drainage, and termite risk indicators.
The type of professional qualified to perform structural inspections in Johor is a licensed building inspector or a civil/structural engineer, and you should choose someone who is not introduced by the seller or agent to ensure independence.
The most common structural issues that inspections reveal in Johor properties are waterproofing failures and water ingress (especially in high-rise condos), followed by unapproved renovations or extensions that create legal liability, and poor maintenance of older buildings' mechanical and electrical systems.
How do I confirm exact boundaries in Johor?
The standard process for confirming exact property boundaries in Johor is to have your lawyer obtain the title document which contains survey lot references, and for landed properties, you may need to engage a licensed land surveyor to physically mark boundaries on the ground.
The official document that shows the legal boundaries of a property in Johor is the land title (Geran Tanah) which references the certified survey plan held by the land office, not the fences, walls, or hedges you see on site.
The most common boundary dispute that affects foreign buyers in Johor involves landed properties where the physical fence or neighbor's structure encroaches on the title boundary, which only becomes apparent when you try to build, renovate, or sell.
The professional you should hire to physically verify boundaries on the ground in Johor is a licensed land surveyor (Jurukur Tanah Berlesen), who can conduct a survey and provide a report comparing the title plan to actual site conditions.
What defects are commonly hidden in Johor right now?
The top three defects that sellers frequently conceal from buyers in Johor are: waterproofing failures and recurring leaks (common, especially in high-rise units), unapproved renovations or extensions that have no permits (common in landed homes), and strata management problems like low sinking funds, unpaid levies, or pending litigation against the management corporation (sometimes hidden).
The inspection technique that helps uncover hidden defects in Johor is a combination of a professional building inspection for physical issues, a management office visit to review strata financials and meeting minutes, and asking neighbors directly about recurring problems in the building.
We have made this infographic to give you a quick and clear snapshot of the property market in Malaysia. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
What insider lessons do foreigners share after buying in Johor?
What do foreigners say they did wrong in Johor right now?
The most common mistake foreigners say they made when buying property in Johor is optimizing for the "best deal" on purchase price instead of thinking about exit strategy and resale liquidity, which left them stuck with properties that are hard to sell later.
The top three regrets foreigners most frequently mention after buying in Johor are: not checking the restriction category early enough (which blocked or delayed their purchase), trusting a friendly agent or introducer instead of verifying through official channels, and underestimating how much total closing costs would add to their budget (especially after the 2026 stamp duty increase).
The single piece of advice experienced foreign buyers most often give to newcomers in Johor is to treat State Authority consent and restriction category checks as your very first task, not something you deal with during closing paperwork.
The mistake foreigners say cost them the most money or caused the most stress in Johor is buying in an oversupplied condo building with poor management, where they face low rental yields, high vacancy, and a shrinking buyer pool when they try to exit.
What do locals do differently when buying in Johor right now?
The key difference in how locals approach buying property in Johor compared to foreigners is that locals ask about restriction categories (Bumiputera lots, low-cost allocations, special conditions) before they emotionally commit to a unit, while foreigners often discover these restrictions only after signing a booking form.
The verification step locals routinely take in Johor that foreigners often skip is checking the developer's track record through KPKT channels and asking around about management quality, sinking fund health, and strata disputes before buying into a condo, rather than relying on marketing brochures.
The local knowledge advantage that helps Johoreans get better deals is understanding which micro-locations near RTS Link stations and JS-SEZ zones will appreciate versus which areas are oversupplied, and knowing which management corporations have good reputations versus which buildings have chronic problems that never get fixed.
Don't buy the wrong property, in the wrong area of Johor
Buying real estate is a significant investment. Don't rely solely on your intuition. Gather the right information to make the best decision.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Johor, we always rely on the strongest methodology we can and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| NAPIC (JPPH) | Malaysia's official property data arm under the government. | We used NAPIC to anchor the market vibe with official transaction data. We also cross-checked private commentary against these official releases. |
| PTG Johor (Foreign Acquisition) | Johor's Land and Mines Office for state consent practice. | We used this page to confirm Johor-specific consent, approval, and fee requirements. We tailored advice specifically to Johor rather than generic Malaysia. |
| National Land Code (Act 56 of 1965) | The core statute governing land matters in Malaysia. | We used the National Land Code to explain the State Authority consent requirement. We highlighted why title restrictions are legal gating items, not just paperwork. |
| LPEPH (BOVAEP) | The statutory regulator for estate agents in Malaysia. | We used LPEPH to explain how to verify whether an agent is regulated. We built practical verification workflows based on their portal. |
| LHDN (Inland Revenue Board) | Malaysia's tax authority for official stamp duty guidance. | We used LHDN to estimate unavoidable transaction costs. We also flagged scam patterns involving price under-declaration. |
| World Justice Project Rule of Law Index 2025 | A recognized global benchmark for legal system strength. | We used WJP rankings to ground contract enforcement expectations in data. We translated this into practical risk expectations for buyers. |
| KPKT Homebuyer Tribunal | The Housing Ministry's official consumer remedy channel. | We used KPKT information to show what recourse exists for developer disputes. We kept advice realistic about the time and paperwork involved. |
| Act 242 (Estate Agents Act) | Official law text from Malaysia's Attorney General Chambers. | We used Act 242 to explain what it means for agents to be regulated. We justified why unlicensed middlemen are a structural scam risk. |
| The Star (Johor Levy Coverage) | A major national newspaper reporting on policy proposals. | We used The Star to explain why Johor foreign-buyer costs can shift. We treated it as policy direction context rather than a legal source. |
| Singapore Police Force Scam Advisory | Official police warning about cross-border property scams. | We used SPF advisories to document specific scam patterns targeting Johor buyers. We integrated this into practical red-flag guidance. |
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Malaysia. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
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