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
Malaysia's property market in 2026 is a buyer's market with flat prices and plenty of unsold inventory, which means you have real negotiating power if you know where to look.
We constantly update this blog post to give you the freshest data on which neighborhoods in Malaysia offer the best yields, which areas are gaining momentum, and which ones you should avoid.
This guide is built on official government statistics, major property portal data, and our own on-the-ground research across Kuala Lumpur, Penang, and Johor Bahru.
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.
What's the Current Real Estate Market Situation by Area in Malaysia?
Which areas in Malaysia have the highest property prices per square meter in 2026?
As of early 2026, the three areas in Malaysia with the highest property prices per square meter are the KLCC core in Kuala Lumpur, the Bukit Bintang district surrounding Pavilion KL, and the premium waterfront areas of Penang Island including Gurney Drive and Tanjung Tokong.
In these most expensive Malaysia neighborhoods, you can expect to pay between RM 10,000 and RM 20,000 per square meter for condominiums, with trophy properties in KLCC occasionally exceeding RM 22,000 per square meter.
Several factors explain why these Malaysia areas command the highest prices, and each neighborhood has its own specific drivers:
- KLCC core: Petronas Twin Towers proximity, five-star hotels, and multinational corporate headquarters create irreplaceable prestige.
- Bukit Bintang: Malaysia's premier shopping and entertainment district with Pavilion KL and direct MRT connectivity.
- Gurney Drive (Penang): Seafront scarcity on an island with limited land, plus heritage lifestyle appeal for retirees.
- Damansara Heights: Low-density landed homes with mature trees and proximity to embassies and international schools.
- Kenny Hills (Bukit Tunku): Colonial-era bungalow lots that cannot be replicated, serving old-money Malaysian families.
Which areas in Malaysia have the most affordable property prices in 2026?
As of early 2026, the most affordable property prices in Malaysia are found in the Greater KL outer ring suburbs like Semenyih, Rawang, and Klang, as well as in Johor Bahru's non-waterfront family suburbs such as Taman Mount Austin and Tebrau, plus Penang's mainland areas including Bukit Mertajam and Seberang Jaya.
In these affordable Malaysia neighborhoods, typical prices range from RM 2,500 to RM 5,500 per square meter for condominiums and terraced houses, with some older apartments dipping below RM 2,500 per square meter.
The main trade-off when buying in these lower-priced Malaysia areas is longer commute times to central employment hubs, with Semenyih and Rawang requiring 45 to 90 minutes to reach KL city center during rush hour, while Johor suburbs like Tebrau can face traffic congestion toward the Singapore border, and Penang mainland properties lack the island's lifestyle appeal and rental premium.
You can also read our latest analysis regarding housing prices in Malaysia.
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.
Which Areas in Malaysia Offer the Best Rental Yields?
Which neighborhoods in Malaysia have the highest gross rental yields in 2026?
As of early 2026, the neighborhoods in Malaysia with the highest gross rental yields are Mont Kiara in Kuala Lumpur at around 5% to 6%, Bangsar South at approximately 4.5% to 5.5%, Bayan Lepas in Penang at roughly 5% to 5.8%, and Cheras near MRT stations at about 5% to 6.5%.
The typical gross rental yield range for investment properties across Malaysia as a whole sits between 4% and 5.5%, with the national average around 5.19% according to Q3 2025 data.
These top-yielding Malaysia neighborhoods deliver higher returns than other areas for specific structural reasons:
- Mont Kiara: Constant expat demand from nearby international schools and multinational offices keeps vacancy low.
- Bangsar South: Proximity to major office towers and The Sphere creates a captive tenant pool of young professionals.
- Bayan Lepas (Penang): Industrial park workers and tech sector employees from Intel and Dell need nearby housing.
- Cheras MRT corridor: Affordable rents attract students and young workers who prioritize transit access over space.
- Kepong Metro Prima: Value-conscious families rent here for good schools and lower costs than central KL.
Finally, please note that we cover the rental yields in Malaysia here.
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Which Areas in Malaysia Are Best for Short-Term Vacation Rentals?
Which neighborhoods in Malaysia perform best on Airbnb in 2026?
As of early 2026, the neighborhoods in Malaysia that perform best on Airbnb are the KLCC core in Kuala Lumpur with occupancy around 51% and average daily rates of RM 250 to RM 350, George Town's UNESCO heritage zone in Penang with approximately 53% occupancy and rates of RM 280 to RM 380, and Bukit Bintang's shopping district with strong tourist foot traffic year-round.
The typical monthly revenue range for top-performing Airbnb properties in these Malaysia neighborhoods is RM 5,000 to RM 9,000 for well-managed units, with George Town heritage properties occasionally exceeding RM 10,000 monthly during peak tourist seasons.
Each of these Malaysia Airbnb hotspots outperforms others for distinct reasons:
- KLCC: Petronas Twin Towers views command premium nightly rates from international business travelers and tourists.
- George Town heritage zone: UNESCO World Heritage status attracts culture-focused travelers willing to pay for authentic shophouse stays.
- Bukit Bintang: Walkable access to Pavilion KL, Lot 10, and nightlife creates demand from leisure tourists.
- Batu Ferringhi (Penang): Beach resort atmosphere appeals to family vacationers seeking affordable seaside accommodation.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Malaysia.
Which tourist areas in Malaysia are becoming oversaturated with short-term rentals?
The top three tourist areas in Malaysia becoming oversaturated with short-term rentals are the dense high-rise clusters surrounding KLCC where thousands of investor units compete for the same guests, parts of the Bukit Bintang corridor where new serviced apartment towers add supply faster than demand grows, and some Batu Ferringhi beachfront properties in Penang where seasonal tourism creates long vacancy periods.
In these oversaturated Malaysia STR zones, there are approximately 35,000 active short-term rental listings in Kuala Lumpur alone, with some individual buildings having over 200 units competing on platforms like Airbnb and Booking.com.
The main indicator that these Malaysia areas have reached STR oversaturation is when hosts begin competing primarily on price rather than location, offering deep discounts, free airport transfers, and extended stay deals just to maintain occupancy above 40%.
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.
Which Areas in Malaysia Are Best for Long-Term Rentals?
Which neighborhoods in Malaysia have the strongest demand for long-term tenants?
The neighborhoods in Malaysia with the strongest demand for long-term tenants are Mont Kiara and Bangsar in Kuala Lumpur, Bayan Lepas and Sungai Ara in Penang, and Taman Mount Austin in Johor Bahru.
The typical vacancy rate in these high-demand Malaysia neighborhoods ranges from 3% to 7%, with well-priced units in Mont Kiara and Bangsar often finding tenants within 15 to 30 days of listing.
Different tenant profiles drive demand in each of these Malaysia rental hotspots:
- Mont Kiara: Expatriate families with children attending nearby Garden International School or Mont Kiara International School.
- Bangsar: Young professionals and creative industry workers attracted to cafes, galleries, and nightlife.
- Bayan Lepas: Engineers and technicians working at Intel, Dell, and other multinational manufacturing plants.
- Sungai Ara (Penang): Middle-income families seeking affordable housing near good schools and amenities.
- Taman Mount Austin (JB): Local professionals and young families preferring suburban space over city congestion.
The key amenity that makes these Malaysia neighborhoods especially attractive to long-term tenants is proximity to a reliable "tenant engine" such as international schools in Mont Kiara, tech parks in Bayan Lepas, or multinational offices in Bangsar South, which creates consistent demand regardless of economic cycles.
Finally, please note that we provide a very granular rental analysis in our property pack about Malaysia.
What are the average long-term monthly rents by neighborhood in Malaysia in 2026?
As of early 2026, average long-term monthly rents in Malaysia's main neighborhoods range from RM 1,400 in affordable Johor suburbs like Tebrau to RM 7,000 or more in prime KLCC condominiums, with most popular expat areas falling between RM 2,500 and RM 5,000 per month.
For entry-level apartments in Malaysia's most affordable neighborhoods like Kajang, Rawang, or Bukit Mertajam, typical monthly rents range from RM 800 to RM 1,500 for basic two-bedroom units with minimal furnishing.
In average-priced Malaysia neighborhoods like Cheras, Kepong, or Sungai Ara, mid-range apartment rents typically fall between RM 1,800 and RM 3,200 per month for furnished two to three bedroom units with decent amenities.
For high-end apartments in Malaysia's most expensive neighborhoods like KLCC, Bangsar, and Mont Kiara, monthly rents range from RM 3,500 to RM 8,000 for well-furnished units, with luxury penthouses and larger family units exceeding RM 10,000.
You may want to check our latest analysis about the rents in Malaysia here.
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Which Are the Up-and-Coming Areas to Invest in Malaysia?
Which neighborhoods in Malaysia are gentrifying and attracting new investors in 2026?
As of early 2026, the neighborhoods in Malaysia that are gentrifying and attracting new investors include the TRX (Tun Razak Exchange) fringe areas in Kuala Lumpur, Bangsar South and the Kerinchi corridor, the Sentul-Jalan Ipoh belt, Jelutong in Penang, and select nodes within Iskandar Puteri in Johor.
These gentrifying Malaysia neighborhoods have experienced annual price appreciation of approximately 4% to 7% for TRX-adjacent areas, 4% to 6% for Bangsar South, and 3% to 5% for the Sentul corridor, outpacing the flat national average significantly.
Which areas in Malaysia have major infrastructure projects planned that will boost prices?
The top areas in Malaysia with major infrastructure projects expected to boost property prices are the MRT3 Circle Line corridor in Kuala Lumpur (affecting Mont Kiara, Sentul, Kepong, and Pantai Dalam), the RTS Link catchment in Johor Bahru centered on Bukit Chagar, and the Penang LRT Mutiara Line route connecting Komtar to Bayan Lepas.
The specific infrastructure projects underway include the MRT3 Circle Line which received final approval in July 2025 with land acquisition targeted for end-2026, the Johor-Singapore RTS Link on track for December 2026 completion with January 2027 operations, and the Penang LRT with completion targeted around 2030.
Historically, properties within 500 to 800 meters of completed MRT stations in Malaysia have seen price increases of 15% to 25% in the years following station opening, with some well-positioned buildings experiencing gains of up to 30%.
You'll find our latest property market analysis about Malaysia here.
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 Areas in Malaysia Should I Avoid as a Property Investor?
Which neighborhoods in Malaysia with lots of problems I should avoid and why?
The neighborhoods in Malaysia with significant problems that investors should generally avoid include oversupplied high-rise corridors in certain parts of Johor Bahru, some investor-dense serviced apartment clusters in central Kuala Lumpur, and specific buildings with management issues in otherwise decent areas.
Here are the main problems affecting each of these Malaysia neighborhoods:
- Medini (Iskandar Puteri): Massive oversupply of investor units with vacancy rates exceeding 20% and weak rental demand.
- Some KLCC fringe towers: STR-dependent buildings where management crackdowns can eliminate your rental strategy overnight.
- Certain Johor high-rise projects: Johor consistently appears in NAPIC overhang reports with thousands of unsold completed units.
- Buildings with high maintenance fees and poor upkeep: Net yields collapse when monthly fees exceed RM 500 on small units.
For these Malaysia neighborhoods to become viable investment options, they would need to see significant absorption of existing oversupply through population growth or infrastructure improvements, combined with stronger rental demand from nearby job creation or transit connectivity.
Buying a property in the wrong neighborhood is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Malaysia.
Which areas in Malaysia have stagnant or declining property prices as of 2026?
As of early 2026, the areas in Malaysia with stagnant or declining property prices include several investor-heavy high-rise clusters in Johor Bahru, some older serviced apartments in central Kuala Lumpur, and oversupplied condominium projects in fringe locations across the Klang Valley.
These stagnating Malaysia areas have experienced price declines or flat growth of negative 2% to positive 1% over the past two to three years, significantly underperforming the national average even in a flat market.
The main underlying causes of price stagnation in these Malaysia areas differ by location:
- Johor investor corridors: Cross-border demand from Singapore never materialized at projected levels, leaving massive oversupply.
- KL city-core serviced apartments: Commercial utility rates and management fees erode yields, making units unattractive to hold.
- Klang Valley outer fringe condos: Distance from job centers means rental demand is weak and resale liquidity is poor.
- Older high-rises without MRT access: Competition from newer transit-connected developments pulls tenants and buyers away.
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Which Areas in Malaysia Have the Best Long-Term Appreciation Potential?
Which areas in Malaysia have historically appreciated the most recently?
The areas in Malaysia that have historically appreciated the most over the past five to ten years are Bangsar and Damansara Heights in Kuala Lumpur, Tanjung Bungah and Pulau Tikus on Penang Island, and select landed home neighborhoods in Desa ParkCity and TTDI.
Here is the approximate appreciation these top-performing Malaysia areas have achieved:
- Bangsar: Cumulative appreciation of 30% to 45% over the past decade, or roughly 3% to 4.5% annually.
- Damansara Heights: Landed homes appreciated 35% to 50% over ten years due to irreplaceable scarcity.
- Tanjung Bungah (Penang): Seafront condos gained 25% to 40% over five years, accelerating in 2024.
- Desa ParkCity: Family-focused township grew 40% to 55% over the decade on school quality and walkability.
The main driver of above-average appreciation in these Malaysia areas is genuine scarcity combined with strong end-user demand, whether from established wealthy families in Damansara Heights, expat professionals in Bangsar, or retirees seeking Penang's lifestyle.
By the way, you will find much more detailed trends and forecasts in our pack covering there is to know about buying a property in Malaysia.
Which neighborhoods in Malaysia are expected to see price growth in coming years?
The neighborhoods in Malaysia expected to see the strongest price growth in the coming years are TTDI (Taman Tun Dr Ismail), Bangsar, Desa ParkCity, and Kota Damansara near the Surian MRT catchment in Greater KL, plus Bayan Lepas in Penang and select Iskandar Puteri nodes in Johor.
Here are the projected annual price growth percentages for these high-potential Malaysia neighborhoods:
- TTDI: Expected growth of 3% to 5% annually driven by family demand and limited new supply.
- Bangsar: Projected appreciation of 4% to 6% based on lifestyle appeal and scarcity.
- Desa ParkCity: Anticipated growth of 3% to 5% supported by international school clustering.
- Bayan Lepas (Penang): Likely gains of 4% to 6% as Silicon Island employment expands.
- Kota Damansara: Expected 3% to 5% growth from MRT accessibility and commuter demand.
The single most important catalyst expected to drive future price growth in these Malaysia neighborhoods is the combination of improving transit connectivity through MRT3 and Penang LRT, plus sustained employment growth from technology sector expansion in both KL and Penang.
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.
What Do Locals and Expats Really Think About Different Areas in Malaysia?
Which areas in Malaysia do local residents consider the most desirable to live?
The areas in Malaysia that local residents consider the most desirable to live are Bangsar, TTDI, Damansara Heights, and Desa ParkCity in Kuala Lumpur, plus Tanjung Bungah and Pulau Tikus on Penang Island.
Here is the main quality that makes each of these Malaysia areas most desirable to locals:
- Bangsar: Walkable lifestyle with independent cafes, galleries, and village atmosphere despite urban location.
- TTDI: Established community feel with mature trees, good local schools, and family-friendly safety.
- Damansara Heights: Prestige address with large landed plots, privacy, and proximity to elite schools.
- Desa ParkCity: Modern township design with central park, international schools, and car-lite living.
- Tanjung Bungah (Penang): Beachside lifestyle with sea views and escape from George Town congestion.
The demographic that typically lives in these locally-preferred Malaysia areas consists of established Malaysian professionals, successful business owners, and multi-generational families who prioritize quality of life, good schools, and community stability over investment returns.
Local preferences in Malaysia often align with foreign investor targets in premium areas like Bangsar and Mont Kiara, but locals tend to favor landed homes in TTDI and Damansara Heights while foreigners often focus on high-rise investments with easier entry and exit.
Which neighborhoods in Malaysia have the best reputation among expat communities?
The neighborhoods in Malaysia with the best reputation among expat communities are Mont Kiara, Bangsar, Ampang Hilir (Embassy Row), and Desa ParkCity in Kuala Lumpur.
Here is the main reason expats prefer these Malaysia neighborhoods over others:
- Mont Kiara: Concentration of international schools including Garden International and Mont Kiara International.
- Bangsar: Vibrant cafe culture, English-speaking environment, and walkable lifestyle amenities.
- Ampang Hilir: Embassy proximity creates an established diplomatic community with security.
- Desa ParkCity: Family-friendly township with The International School at ParkCity nearby.
The expat profile most commonly found in these popular Malaysia neighborhoods includes corporate executives on multinational assignments, embassy staff and diplomats, entrepreneurs running regional businesses, and families prioritizing English-language education for their children.
Which areas in Malaysia do locals say are overhyped by foreign buyers?
The top three areas in Malaysia that locals commonly say are overhyped by foreign buyers are ultra-premium KLCC condominiums, certain Iskandar Puteri developments marketed heavily overseas, and some new launch projects in secondary locations sold primarily on "Malaysia My Second Home" appeal.
Here is the main reason locals believe these Malaysia areas are overvalued or overhyped:
- Trophy KLCC condos: Gross yields often sit below 4%, meaning rental income barely covers costs after fees and taxes.
- Iskandar Puteri investor projects: Marketing promised Singapore spillover demand that largely failed to materialize.
- MM2H-targeted developments: Foreigners pay premiums for "investment" units that locals would never buy at those prices.
What foreign buyers typically see in these Malaysia areas that locals do not value as highly is the prestige of owning property near iconic landmarks or the promise of cross-border appreciation, while locals focus more practically on rental yield, resale liquidity, and whether the location genuinely serves daily life needs.
By the way, we've written a blog article detailing the experience of buying a property as a foreigner in Malaysia.
Which areas in Malaysia are considered boring or undesirable by residents?
The areas in Malaysia that residents commonly consider boring or undesirable include far-outer suburbs like Semenyih and Rawang in Selangor, car-dependent townships with limited walkability, and some older industrial-adjacent neighborhoods with few lifestyle amenities.
Here is the main reason residents find these Malaysia areas boring or undesirable:
- Semenyih and Rawang: Long commutes of 60 to 90 minutes to KL center make daily life exhausting.
- Some Kajang outer zones: Limited public transport means you need a car for everything, including groceries.
- Industrial-adjacent Seberang Perai areas: Lack of cafes, malls, and entertainment options that urban dwellers expect.
- Certain older Johor suburbs: Infrastructure has not kept pace with development, creating traffic and flooding issues.
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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) | Malaysia's official property statistics portal under the Ministry of Finance. | We used NAPIC as our ground truth for national and state market conditions including prices, volumes, and overhang data. We also used their quarterly market releases to anchor our early 2026 narrative. |
| EdgeProp Malaysia | Major Malaysian property media platform with transparent building-level median prices and yields. | We used EdgeProp's project insights pages to extract median sale prices, median rents, and calculated yields for specific buildings. We relied on their methodology-explicit data to build neighborhood yield ranges. |
| Global Property Guide | International property research firm with consistent methodology across countries. | We used their Malaysia rental yield reports and house price analysis to benchmark yields and verify price trends. We cross-checked their Q3 2025 data against NAPIC figures for consistency. |
| AirDNA | Widely recognized short-term rental data provider with consistent occupancy and revenue metrics. | We used AirDNA's Kuala Lumpur and George Town market overview pages to quantify STR performance including occupancy rates, average daily rates, and monthly revenue figures. |
| MRT Corporation (MRT Corp) | Official developer of Malaysia's MRT network with authoritative project timelines. | We used MRT Corp's official updates on MRT3 Circle Line approval and RTS Link progress to inform our infrastructure impact analysis. We referenced their station catchment plans for location recommendations. |
| iProperty Malaysia | One of Malaysia's largest property portals with transaction price data linked to Brickz. | We used iProperty's transaction price pages as a cross-check layer to verify whether neighborhood transacted prices align with other datasets. We treated it as market corroboration rather than sole source. |
| IQI Global | Major Malaysian real estate firm publishing regular market research and rental indices. | We used IQI's NAPIC Q3 2025 analysis and Malaysia 2026 outlook reports to understand market context and buyer sentiment. We referenced their rental index for demand-supply balance insights. |
| Bank Negara Malaysia (BNM) | Malaysia's central bank and authoritative source for interest rates and economic context. | We used BNM as our reference for the Overnight Policy Rate which influences mortgage affordability. We referenced their monetary policy statements for macro-financial context affecting buyer behavior. |
| LHDN (Inland Revenue Board) | Malaysia's official tax authority explaining resident versus non-resident tax treatment. | We used LHDN's published guidance on rental income taxation to frame the net yield reality for foreign buyers. We reference their materials when discussing non-resident tax implications. |
| PropertyGuru Malaysia | Major property portal with active listings and rental market data across all Malaysian states. | We used PropertyGuru's listing inventory and rental asking prices to validate rent ranges across neighborhoods. We analyzed their search patterns to understand buyer and renter demand distribution. |
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