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
If you are a foreigner thinking about buying property in Malaysia, this blog post will help you understand what the market actually looks like right now.
We cover everything from how fast homes are selling, what types of properties you can realistically buy, and whether foreigners face extra hurdles when purchasing in Malaysia.
This article is constantly updated with fresh data so you always have the latest picture of the Malaysian real estate market in 2026.
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 Malaysia.
How's the real estate market going in Malaysia in 2026?
What's the average days-on-market in Malaysia in 2026?
As of early 2026, the estimated average days-on-market for residential properties in Malaysia ranges from about 60 days for well-located landed homes to around 90 days for high-rise condos in oversupplied areas.
The realistic range that covers most typical listings in Malaysia is between 45 and 120 days, with landed terrace houses in established suburbs selling faster than condos competing with many similar units nearby.
Compared to one or two years ago, days-on-market in Malaysia has stayed fairly stable, though high-rise apartments in oversupplied corridors are now taking slightly longer to sell as buyers have more negotiating power.
Are properties selling above or below asking in Malaysia in 2026?
As of early 2026, most residential properties in Malaysia sell at about 3% to 8% below asking price, with condos in oversupplied areas often seeing discounts closer to 8% to 12% below asking.
In Malaysia, roughly 70% to 80% of resale transactions close at or below asking price, and we are fairly confident in this estimate because official price indices show only modest growth rather than a frenzy that would push prices above asking.
The property types most likely to see bidding wars and above-asking sales in Malaysia are scarce landed homes in blue-chip neighborhoods like Damansara Heights, Bangsar, and select pockets of Petaling Jaya, where supply is naturally limited and family demand remains strong.
By the way, you will find much more detailed data in our property pack covering the real estate market in Malaysia.
What kinds of residential properties can I realistically buy in Malaysia?
What property types dominate in Malaysia right now?
In Malaysia, the residential market is roughly split between high-rise properties (condos, apartments, and serviced residences) making up about 40% to 50% of available listings in major cities, and landed homes (terrace houses, semi-detached, and bungalows) making up the rest.
The single property type representing the largest share of the Malaysia market is terrace houses, which are the backbone of "middle Malaysia" and dominate family housing demand across suburbs and townships.
Terrace houses became so prevalent in Malaysia because they offer a balance of affordability, land ownership, and family-friendly space that fits the local preference for landed living over high-rise apartments.
If you want to know more, you should read our dedicated analyses:
Are new builds widely available in Malaysia right now?
New-build properties account for a meaningful share of Malaysia's residential market, with high-rise new launches particularly abundant in Greater Kuala Lumpur and Johor, though take-up in some corridors remains soft, which means buyers often get rebates and incentives.
As of early 2026, the neighborhoods in Malaysia with the highest concentration of new-build developments include Setia Alam and Bandar Sunway in Selangor, Iskandar Puteri and Tebrau in Johor Bahru, and Bayan Lepas and Sungai Ara in Penang.
Which neighborhoods are improving fastest in Malaysia in 2026?
Which areas in Malaysia are gentrifying in 2026?
As of early 2026, the top neighborhoods in Malaysia showing the clearest signs of gentrification include Sentul and Old Klang Road in Kuala Lumpur, Jelutong in Penang, and parts of the Tebrau corridor in Johor Bahru.
In these gentrifying areas of Malaysia, you will notice new cafes and co-working spaces opening along previously quiet streets, older shophouses being converted into boutique hotels, and a visible shift toward younger professionals moving in as rents rise.
Over the past two to three years, these gentrifying neighborhoods in Malaysia have seen estimated price appreciation of around 5% to 15%, though the exact figure varies by micro-location and property type.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Malaysia.
Where are infrastructure projects boosting demand in Malaysia in 2026?
As of early 2026, the top areas in Malaysia where major infrastructure projects are boosting housing demand include the MRT3 Circle Line corridors in Kuala Lumpur, the RTS Link zone in Johor Bahru, and the Penang LRT alignment areas.
The specific infrastructure projects driving that demand in Malaysia include the MRT3 Circle Line (which received final approval in 2025), the Johor Bahru-Singapore Rapid Transit System Link expected to open by end of 2026, and the ongoing LRT3 Shah Alam Line commissioning in the western Klang Valley.
The MRT3 Circle Line in Malaysia is targeting substantial completion by 2030 to 2031, the RTS Link is expected to be operational by late 2026, and the LRT3 Shah Alam Line has faced delays but is targeting commissioning within 2026.
In Malaysia, properties near announced infrastructure projects typically see a 10% to 20% price bump at announcement, with another 15% to 30% uplift possible once the project is completed and operational, based on patterns from earlier MRT lines.
What do locals and insiders say the market feels like in Malaysia?
Do people think homes are overpriced in Malaysia in 2026?
As of early 2026, the general sentiment among locals and market insiders in Malaysia is that some segments feel overpriced (especially oversupplied high-rise condos), while good landed homes in school-friendly suburbs are seen as expensive but justified by limited supply.
When arguing homes are overpriced in Malaysia, locals typically point to high maintenance fees eating into value, too many competing condo listings in certain corridors, and the gap between asking prices and what units actually transact for.
Those who believe prices are fair in Malaysia often argue that landed homes remain undervalued compared to regional peers like Singapore, that borrowing costs dropped after the OPR cut to 2.75%, and that quality locations are genuinely scarce.
The price-to-income ratio in Malaysia sits around 4 to 5 times median household income nationally, which is more affordable than Hong Kong or Singapore but still stretched for younger first-time buyers in Kuala Lumpur and Penang.
What are common buyer mistakes people regret in Malaysia right now?
The most frequently cited buyer mistake in Malaysia is purchasing a condo in an oversupplied pocket (like certain corridors in Mont Kiara or Iskandar Puteri) where too many similar units compete for tenants, leading to weak rental yields and poor resale liquidity.
The second most common mistake people regret in Malaysia is underestimating total holding costs, especially monthly maintenance fees and sinking fund contributions for high-rise condos, which can quietly erase the "cheap price" advantage over time.
If you want to go deeper, you can check our list of risks and pitfalls people face when buying property in Malaysia.
It's because of these mistakes that we have decided to build our pack covering the property buying process in Malaysia.
How easy is it for foreigners to buy in Malaysia in 2026?
Do foreigners face extra challenges in Malaysia right now?
Foreigners face a moderately higher difficulty level when buying property in Malaysia compared to local buyers, mainly due to State Authority consent requirements, minimum price thresholds (typically RM1 million or higher), and the new 8% stamp duty rate that took effect in January 2026.
The specific legal restrictions for foreign buyers in Malaysia include mandatory State Authority approval for every purchase, exclusion from low-cost housing and Malay Reserved Land, and state-specific minimum price floors that range from RM500,000 in some areas to RM2 million or more in Selangor for landed property.
The practical challenges foreigners most commonly encounter in Malaysia include navigating state consent timelines that can stretch from 2 to 6 months, understanding which units in a development are actually available to non-citizens (some are reserved for Bumiputera buyers), and managing the purchase remotely when banking and legal processes require physical presence or Malaysian contacts.
We will tell you more in our blog article about foreigner property ownership in Malaysia.
Do banks lend to foreigners in Malaysia in 2026?
As of early 2026, mortgage financing is available to foreign buyers in Malaysia from most major banks, though approval is not guaranteed and depends heavily on your income documentation, residency status, and the property itself.
Foreign buyers in Malaysia can typically expect loan-to-value ratios of 60% to 70% (meaning a 30% to 40% down payment), with interest rates running about 0.5% to 1% higher than what Malaysian citizens pay, currently around 4.5% to 5.5% for foreigners.
Malaysian banks typically require foreign applicants to provide passport copies, proof of income (employment letter and payslips or business financials), bank statements from the past 6 months, and sometimes a reference letter from your home bank confirming your creditworthiness.
You can also read our latest update about mortgage and interest rates in Malaysia.
How risky is buying in Malaysia compared to other nearby markets?
Is Malaysia more volatile than nearby places in 2026?
As of early 2026, Malaysia's property market is generally less volatile than land-scarce markets like Singapore or Hong Kong, and more stable than emerging Southeast Asian markets like Vietnam or Cambodia, thanks to its ability to build out across multiple corridors and absorb demand gradually.
Over the past decade, Malaysia has experienced relatively mild price swings of around 2% to 5% annually, while Singapore saw sharper cycles of 10% to 15% in certain years, and Hong Kong experienced even more dramatic peaks and troughs tied to policy changes and capital flows.
If you want to go into more details, we also have a blog article detailing the updated housing prices in Malaysia.
Is Malaysia resilient during downturns historically?
Malaysia's residential property market has shown moderate resilience during past economic downturns, with national price indices typically experiencing only mild corrections rather than dramatic crashes, especially in the needs-based family housing segment.
During the 2020 pandemic downturn, Malaysia's house price index dipped only slightly (around 1% to 2%) before stabilizing, and recovery took roughly 12 to 18 months to return to pre-pandemic levels in most segments.
The property types and neighborhoods in Malaysia that have historically held value best during downturns include landed terrace houses in established suburbs like Petaling Jaya, Subang Jaya, and Damansara, where schools, jobs, and daily-life demand provide a floor under prices even when investor sentiment weakens.
How strong is rental demand behind the scenes in Malaysia in 2026?
Is long-term rental demand growing in Malaysia in 2026?
As of early 2026, long-term rental demand in Malaysia is growing steadily in major urban job markets, supported by young professionals delaying home purchases, expatriates returning post-pandemic, and affordability pressures pushing more households to rent longer.
The tenant demographics driving long-term rental demand in Malaysia include young professionals working in Kuala Lumpur's finance and tech sectors, expatriates from multinational companies, university students near major campuses, and cross-border workers commuting between Johor Bahru and Singapore.
The neighborhoods in Malaysia with the strongest long-term rental demand right now include Mont Kiara, Bangsar, and KLCC in Kuala Lumpur for expat tenants, Subang Jaya and Petaling Jaya for families and students, and Johor Bahru's Medini and Nusajaya areas for Singapore-linked demand.
You might want to check our latest analysis about rental yields in Malaysia.
Is short-term rental demand growing in Malaysia in 2026?
Short-term rentals in Malaysia operate in a regulatory gray zone where building management bodies can legally prohibit Airbnb-style stays through house rules, so you must check your specific condo's by-laws before assuming you can run a short-term rental.
As of early 2026, short-term rental demand in Malaysia is growing, supported by the strong tourism recovery that brought over 27 million visitors in 2024 and continued growth expected into 2026.
The current estimated average occupancy rate for short-term rentals in Kuala Lumpur is around 55% to 65%, with prime locations near KLCC, Bukit Bintang, and KL Sentral achieving higher rates closer to 70% during peak tourist seasons.
The guest demographics driving short-term rental demand in Malaysia include leisure tourists from China, Singapore, and Indonesia, business travelers attending conferences and meetings, and a growing number of digital nomads attracted by Malaysia's affordable cost of living and reliable internet.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Malaysia.
What are the realistic short-term and long-term projections for Malaysia in 2026?
What's the 12-month outlook for demand in Malaysia in 2026?
As of early 2026, the 12-month demand outlook for residential property in Malaysia is steady but segmented, with landed family homes in strong suburbs likely to see resilient demand while many high-rise submarkets will remain competitive with continued buyer leverage.
The key economic factors most likely to influence demand in Malaysia over the next 12 months include the Bank Negara Malaysia interest rate trajectory (currently at 2.75% OPR), GDP growth projected at 4% to 4.5%, and any changes to foreign buyer stamp duty or MM2H visa requirements.
Most analysts forecast property prices in Malaysia to grow between 2% and 5% over the next 12 months, with well-located landed homes and transit-adjacent developments at the higher end and oversupplied condo corridors possibly flat or slightly negative.
By the way, we also have an update regarding price forecasts in Malaysia.
What's the 3 to 5 year outlook for housing in Malaysia in 2026?
As of early 2026, the 3 to 5 year outlook for housing in Malaysia is cautiously positive, with cumulative price growth of around 12% to 25% expected depending on location, driven by infrastructure delivery, urban concentration, and steady GDP growth.
The major development projects expected to shape Malaysia over the next 3 to 5 years include the MRT3 Circle Line (targeting completion around 2030 to 2031), the Johor-Singapore Special Economic Zone buildout, continued data center investments in Johor and Selangor, and urban regeneration programs in central Kuala Lumpur.
The single biggest uncertainty that could alter the 3 to 5 year outlook for Malaysia is a significant tightening of credit conditions or a global economic slowdown that reduces foreign investment and dampens household purchasing power.
Are demographics or other trends pushing prices up in Malaysia in 2026?
As of early 2026, demographic trends in Malaysia are creating moderate upward pressure on housing prices, particularly in Selangor and Kuala Lumpur where urban migration and job concentration continue to drive household formation.
The specific demographic shifts most affecting prices in Malaysia include continued rural-to-urban migration into Greater Kuala Lumpur, a large Gen Z population (nearly 9 million) entering the housing market over the next 10 to 20 years, and growing demand from retirees seeking healthcare-accessible urban locations.
Beyond demographics, trends pushing prices in Malaysia include cross-border investment from Singapore into Johor (especially with the RTS Link), remote work flexibility allowing some buyers to choose lifestyle locations in Penang, and continued data center and manufacturing investments creating job clusters that attract housing demand.
These demographic and trend-driven price pressures are expected to continue in Malaysia for at least the next 5 to 10 years, though the intensity will vary by micro-location and will be strongest around infrastructure nodes and employment centers.
What scenario would cause a downturn in Malaysia in 2026?
As of early 2026, the most likely scenario that could trigger a housing downturn in Malaysia would be a combination of credit tightening (if Bank Negara raises rates sharply), a global recession reducing foreign investment, and continued oversupply in high-rise segments failing to clear.
The early warning signs that would indicate a downturn is beginning in Malaysia include a sharp rise in mortgage rejection rates, unsold completed inventory climbing significantly beyond current levels, and developers offering deeper discounts or halting new launches across multiple corridors.
Based on historical patterns, a potential downturn in Malaysia would likely be moderate rather than severe, with price declines of around 5% to 15% in the most affected segments (oversupplied condos) while landed homes in established suburbs would probably hold up better with only mild softness.
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 Malaysia, 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 (National Property Information Centre) | It's Malaysia's official government portal for property market statistics and publications from the Ministry of Finance. | We used it as the primary source for prices, transactions, supply, and overhang data. We cross-checked portal datasets against the underlying PDF reports to avoid relying on summaries. |
| Bank Negara Malaysia (BNM) | It's Malaysia's central bank providing system-level views of household debt, credit conditions, and financial stability risks. | We used it to assess mortgage availability and stress risk for foreign buyers. We combined it with NAPIC supply data to evaluate downside scenarios for 2026. |
| Department of Statistics Malaysia (DOSM) | It's Malaysia's national statistics agency providing baseline demographic and macroeconomic context. | We used it to ground demand drivers like population growth and household formation. We paired it with professional reports to connect demographics to housing segments. |
| JLL Greater Kuala Lumpur Residential | It's a major global consultancy that publishes consistent real estate research with on-the-ground market insights. | We used it to interpret demand drivers beyond raw numbers. We validated whether our momentum read from NAPIC was plausible with JLL's professional commentary. |
| Knight Frank Malaysia | It's a long-running professional research series from a top global real estate advisory firm. | We used it to triangulate which cities and submarkets are tightening versus oversupplied. We added on-the-ground sentiment to the official NAPIC numbers. |
| Malaysian Bar Council | It's a professional legal body publication that points directly to statutory requirements and updates under the National Land Code. | We used it to anchor the state consent reality for foreigners. We combined it with the AMCHAM guide to translate legal structure into practical buyer steps. |
| AMCHAM Malaysia | It's a structured, compliance-focused guide produced for an established American business chamber in Malaysia. | We used it to outline the foreign buyer process, restrictions, and practical friction points. We cross-checked its legal claims with Malaysian Bar circular references. |
| Tourism Malaysia | It's the official national tourism statistics platform used by the Ministry of Tourism, Arts and Culture. | We used it as the cleanest indicator for travel-led housing demand in serviced apartments and short-term rental hotspots. We triangulated it with AirDNA to avoid platform-only metrics. |
| AirDNA | It's a widely used short-term rental data provider with transparent, repeatable metrics on occupancy and average daily rates. | We used it to estimate short-term rental demand and occupancy in early 2026. We triangulated it with Tourism Malaysia arrivals to avoid platform-only tunnel vision. |
| BIS Residential Property Prices via FRED | It's a standardized international series from the Bank for International Settlements used for cross-country housing comparisons. | We used it to compare Malaysia's price volatility to nearby markets using the same yardstick. We paired it with NAPIC MHPI to keep the local lens accurate. |