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Everything you need to know before buying real estate is included in our Malaysia Property Pack
Malaysia property is significantly cheaper than Singapore property, with average prices being at least 4 times lower for comparable urban residences.
As of September 2025, Malaysia's national average property price stands at MYR 484,000 (approximately USD 110,000), while Singapore's properties in core districts exceed SGD 3,000 per square foot, translating to over USD 2.2 million for a 2-bedroom condominium. Malaysia also offers higher rental yields averaging 4-6% compared to Singapore's 3.3-3.6%, making it an attractive option for property investors seeking better returns and affordability.
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 offers significantly lower property prices and higher rental yields compared to Singapore, making it more accessible for foreign investors.
Singapore maintains higher property values with stricter foreign ownership rules and additional taxes, but provides greater market stability and liquidity.
| Aspect | Malaysia (2025) | Singapore (2025) |
|---|---|---|
| Average Property Price (Urban) | MYR 484,000 (KL: MYR 794,000) | SGD 1,100-3,000/sqft (CCR: 3,000+) |
| Rental Yield (Average) | 4-6% (5% average) | 3.3-3.6% |
| Foreign Buyer Taxes/Fees | 6-8% upfront, 1-2% annually | 20% ABSD for foreigners, 1-4% BSD |
| Foreign Ownership Restrictions | Minimum RM 1 million threshold | Condos only; 20% ABSD; landed property requires approval |
| Cost of Living | Lower | Much higher |
| Financing Options | 4.2-4.4% mortgage rates | LTV restrictions, 40% minimum down payment for foreigners |
| 5-Year Outlook | Stable/moderate growth | Stable/modest growth |
What is the average property price in Malaysia compared to Singapore?
Malaysia's average property price in 2025 is MYR 484,000 (approximately USD 110,000) nationally, while Singapore's properties cost significantly more with core district condominiums exceeding SGD 3,000 per square foot.
In Kuala Lumpur, Malaysia's most expensive city, the average property price reaches MYR 794,000, which is still substantially lower than Singapore's entry-level properties. Singapore's core central region (CCR) properties typically cost over SGD 3,000 per square foot, translating to approximately USD 2.2 million for a standard 2-bedroom condominium.
Singapore's outside central region (OCR) properties, considered more affordable, still range from SGD 1,100 to SGD 1,350 per square foot, equivalent to USD 800,000 to USD 1 million for similar units. This makes Singapore properties at least 4 times more expensive per unit than comparable urban residences in Malaysia.
The price gap becomes even more pronounced when comparing Malaysia's most affordable states like Melaka and Perlis, where average property prices range from MYR 240,000 to MYR 245,000, against Singapore's consistently high pricing across all districts.
It's something we develop in our Malaysia property pack.
How much do property prices vary between different regions of Malaysia and Singapore?
Malaysia shows significant regional price variation, with Kuala Lumpur leading at MYR 794,000, while rural states remain under MYR 300,000.
Selangor, Malaysia's most developed state, commands property prices above MYR 554,000, followed by Penang at MYR 475,000 and Johor at MYR 437,000. The East Malaysian states of Sabah and Sarawak show prices exceeding MYR 500,000, reflecting their growing economic importance and infrastructure development.
Singapore's regional variation is less dramatic but still significant, with District 1 properties in prime areas like Orchard and Raffles Place commanding over SGD 3,000 per square foot. The outside central region (OCR) districts offer more moderate pricing at SGD 1,100 to SGD 1,350 per square foot, representing the most affordable options available to buyers.
Malaysia's regional price differences reflect economic development levels, with states like Melaka, Perlis, Kedah, and Kelantan offering the most affordable options for property buyers. This regional diversity provides investors with various entry points depending on their budget and investment strategy.
What is the cost of owning property in both countries, including taxes and fees?
Malaysia's property ownership costs include initial transaction fees of 6-8% of the purchase price, comprising stamp duty (1-4%), legal fees (0.5-1%), and agent fees.
| Cost Type | Malaysia | Singapore |
|---|---|---|
| Initial Transaction Costs | 6-8% of purchase price | 1-4% Buyer's Stamp Duty + 20% ABSD for foreigners |
| Annual Property Tax | Quit rent: RM0.03-0.05/sqft/year | 0-16% of annual value (owner-occupied) |
| Assessment Tax | 6% of annual rental value | 10-20% (non-owner-occupied) |
| Capital Gains Tax | RPGT: 10-30% for foreigners | Seller's stamp duty if sold within hold period |
| Rental Income Tax | Progressive rate up to 30% | Included in personal income tax |
| Additional Fees | Maintenance/strata fees for condos | 7% GST on commercial properties |
| Foreign Buyer Premium | Higher RPGT rates | 20% Additional Buyer's Stamp Duty |
Singapore imposes a 20% Additional Buyer's Stamp Duty (ABSD) specifically on foreign property purchases, making the initial cost significantly higher. Annual property taxes in Singapore range from 0-16% of the property's annual value for owner-occupied properties and 10-20% for non-owner-occupied properties.
Malaysia's ongoing costs include quit rent at RM0.03-0.05 per square foot annually and assessment tax at 6% of the annual rental value. The Real Property Gains Tax (RPGT) for foreigners ranges from 10-30% depending on the holding period, with longer ownership periods receiving more favorable rates.
What is the average rental yield in Malaysia versus Singapore?
Malaysia delivers higher rental yields averaging 4-6% nationally with a mean of 5.1%, while Singapore offers lower yields ranging from 3.3-3.6%.
Johor Bahru leads Malaysia's rental yield performance at 6.2%, followed by Penang at 5.7% and Subang Jaya at 6.0%. Kuala Lumpur, despite being the capital, offers moderate yields of 4.3-5%, reflecting its higher property prices relative to rental rates.
Singapore's rental yields vary by district, with outside central region (OCR) properties delivering the highest yields at 3.6%. The core central region (CCR) properties, while commanding premium prices, offer lower yields of 2.7-3% due to their expensive acquisition costs.
The yield difference primarily stems from Malaysia's lower property acquisition costs relative to rental income potential, making it particularly attractive for investors seeking cash flow positive investments. Singapore's higher property prices compress yields despite strong rental demand.
What is the level of demand for property in both countries?
Malaysia experiences rising rental demand particularly in Johor and Penang, with increased interest from Singaporean buyers seeking more affordable options.
Sales volumes in Malaysia have stabilized after previous market softness, with moderate unsold stock remaining in urban areas. The market shows particular strength in border regions like Johor Bahru, where proximity to Singapore creates consistent demand from cross-border workers and investors.
Singapore maintains high property demand in suburban and entry-level segments, supported by low unsold inventory and competitive price growth in fringe areas. The market benefits from Singapore's position as a regional financial hub, attracting both local upgraders and foreign professionals.
Malaysia's property demand is increasingly driven by affordability considerations, with buyers from higher-cost markets like Singapore finding value in Malaysian properties. Regional economic improvements in states like Johor, Penang, and Sabah are spurring new development and buyer interest.
Singapore's demand remains constrained by government cooling measures and high prices, but underlying fundamentals including population growth and economic strength continue supporting market activity.
What are the property trends in Malaysia and Singapore for the last five years?
Malaysia's property market has stabilized after pandemic volatility, showing moderate annual growth of approximately 2-5% total over the five-year period ending in 2025.
The Malaysian market experienced increased new supply in Kuala Lumpur and regional economic improvements spurring development in Johor, Penang, and Sabah. Property prices have found equilibrium after significant fluctuations during 2020-2022, with the market now showing steady, sustainable growth patterns.
Singapore's private home prices have increased 3-4% annually over the five-year period, with the strongest performance in city fringe and suburban launches. After sharp price surges between 2019-2022 driven by pandemic effects and multinational corporation relocations, prices settled into equilibrium during 2024-2025.
Singapore's luxury segment has remained relatively flat while suburban areas continue showing modest price appreciation. The government's active market intervention through cooling measures has successfully moderated price growth and prevented speculative bubbles.
Both markets have benefited from regional economic recovery and infrastructure development, with Malaysia showing more pronounced growth potential due to its lower baseline prices and ongoing urbanization trends.
How does the local economy affect property prices in both countries?
Malaysia's property market correlates closely with GDP performance, with recent 4-5% economic growth supporting market stability and building activity recovery.
Economic diversification efforts in Malaysia, including development of technology hubs and manufacturing centers, have created new employment clusters that drive property demand in specific regions. The country's position as a lower-cost alternative to Singapore has attracted businesses and residents, supporting property values in urban centers.
Singapore's property market tracks financial sector strength, employment trends, and regional economic stability. As a global financial hub, Singapore's property values benefit from its economic resilience and attractiveness to multinational corporations and high-net-worth individuals.
Global economic volatility impacts Singapore's property market through foreign investment flows and luxury segment pricing. The economy's dependence on international trade and finance creates both opportunities and vulnerabilities for property values during global economic shifts.
Malaysia's emerging market status means property prices remain more sensitive to domestic economic policies and regional growth patterns, while Singapore's developed economy provides greater price stability but also limits high-growth potential.
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What is the impact of government policies on property prices in Malaysia and Singapore?
Malaysia implements foreign ownership policies including minimum price thresholds of RM 1 million for foreign buyers in Kuala Lumpur, with similar requirements in top-tier states.
The Malaysian government uses Real Property Gains Tax (RPGT) and stamp duties as policy tools to curb speculation, with rates adjusted periodically based on market conditions. Regional governments may impose additional restrictions on certain developments or areas deemed sensitive for local housing needs.
Singapore employs more aggressive policy interventions, with foreign buyers facing a 20% Additional Buyer's Stamp Duty along with lending restrictions and quota limits on selected developments. The government actively uses fiscal policy through stamp duty adjustments and supply controls to deflate potential bubbles and stabilize pricing.
Singapore's government cooling measures have proven effective in moderating price growth and preventing speculative excess. These policies create a more predictable but slower-growth environment compared to markets with less intervention.
Both countries demonstrate active government involvement in property markets, with Singapore showing more sophisticated and frequent policy adjustments to maintain market stability.
How does the cost of living compare between Malaysia and Singapore?
Malaysia offers significantly lower cost of living across all categories including property, taxes, food, transportation, and healthcare compared to Singapore.
Singapore consistently ranks among the world's most expensive cities, with property representing the highest expense category for residents and investors. Daily living costs including dining, transportation, and services command premium prices that reflect Singapore's developed economy status and high purchasing power.
Malaysia's lower cost structure extends beyond property to include affordable healthcare, education, and consumer goods, making it attractive for retirees and expatriates seeking lifestyle value. The favorable exchange rate for foreign currency holders further enhances Malaysia's affordability advantage.
Housing costs in Malaysia typically represent a smaller percentage of income compared to Singapore, where property expenses can consume a significant portion of household budgets. This difference impacts both residents' quality of life and investment property economics.
The cost differential creates opportunities for cross-border arbitrage, with Singapore residents increasingly considering Malaysian property for retirement or investment purposes.
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.
Are there any restrictions for foreigners purchasing property in both countries?
Malaysia allows foreigners to purchase most titled properties above the minimum threshold of RM 1 million in Kuala Lumpur and similar amounts in other top-tier states.
Foreign buyers in Malaysia face restrictions on land purchases, Malay-reserve areas, and affordable housing schemes designated for local citizens. Some states impose additional requirements or higher minimum purchase prices for non-residents, particularly in areas with high local housing demand.
Singapore permits foreigners to buy condominium units but requires government approval for landed property purchases. The 20% Additional Buyer's Stamp Duty significantly increases the cost barrier for foreign property investment.
Malaysia's foreign ownership framework is generally more accessible, with clear minimum price thresholds and fewer categorical restrictions compared to Singapore's more selective approach. Both countries maintain these policies to balance foreign investment attraction with local housing affordability.
Compliance requirements in both countries include proper documentation, tax obligations, and adherence to foreign exchange regulations for property transactions and ongoing ownership.
What is the availability of financing options in Malaysia and Singapore?
Malaysia offers widely available mortgages with up to 90% loan-to-value ratios for residents and lower ratios for foreign buyers, with current interest rates at 4.2-4.4%.
Malaysian banks provide competitive financing packages for property purchases, with foreign buyers typically accessing 70-80% financing depending on their income profile and the property type. The application process is relatively straightforward for qualified borrowers with stable income documentation.
Singapore's private banks offer mortgage financing but with stricter loan-to-value restrictions and comprehensive stress tests for borrowers. Foreign buyers often face higher down payment requirements exceeding 40% in many cases, reflecting the government's policy to moderate foreign property investment.
Interest rates in both countries remain competitive, but Singapore's additional regulatory requirements and higher property prices mean foreign buyers need substantially more capital for initial purchases. Malaysia's more accessible financing makes property investment more achievable for a broader range of international buyers.
It's something we develop in our Malaysia property pack.
What is the long-term outlook for property prices in both countries?
Malaysia expects moderate property price growth of 2-5% annually with stable rental yields, making it attractive for value-seeking investors with medium to long-term investment horizons.
Malaysia's property outlook benefits from ongoing urbanization, infrastructure development including high-speed rail connections, and its position as a regional business hub. The government's economic diversification efforts and Malaysia My Second Home (MM2H) program continue supporting long-term property demand.
Singapore projects price stability with continued strong demand but limited supply in desirable districts. High government intervention protects against extreme market swings while maintaining Singapore's status as a safe haven for regional property investment.
Both markets offer different risk-return profiles, with Malaysia providing higher growth potential and yields but greater economic volatility, while Singapore offers stability and liquidity with more modest returns. Currency considerations may affect foreign investors' total returns in both markets.
Long-term demographic trends favor both countries, with Malaysia's younger population supporting sustained housing demand and Singapore's immigration policies maintaining population growth and property needs.
It's something we develop in our Malaysia property pack.
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 offers significantly better value for property investors compared to Singapore, with prices at least 4 times lower and rental yields 1-3 percentage points higher.
While Singapore provides greater market stability and liquidity, Malaysia's combination of affordability, higher yields, and growth potential makes it particularly attractive for foreign investors seeking property exposure in Southeast Asia.
Sources
- Malaysia Property Market Outlook
- Global Property Guide - Malaysia Price History
- Average House Price Malaysia
- Singapore Property Prices by Districts
- Global Property Guide - Malaysia Rental Yields
- Global Property Guide - Singapore Rental Yields
- Singapore Residential Property Market Analysis
- Malaysia Property Taxes
- Singapore Property Purchase Taxes
- Singapore Property Tax Rates
-Is Malaysia Property a Good Investment?
-Should You Buy Property in KL or Penang?
-Why Are So Many Condos Empty in Malaysia?
-Is Forest City Malaysia a Ghost Town?
-Should You Buy Property Near the Singapore Border?
-Can You Get Malaysian Residency by Buying Property?
-Is Penang Property Overpriced?