Thinking of buying a home or property in Johor? Good move!
With its strategic location and growing development potential, Johor continues to be a strong choice for property investment.
However, starting 1 September 2025, the Johor Land Office will implement new changes to the Memorandum of Transfer (MOT) process and Levy Rates, affecting both local and foreign buyers.
This move is part of the state’s efforts to streamline property registration, increase revenue, and ensure better compliance. Here’s what you need to know:
Johor NEW Property Fees 2025:
What is Memorandum of Transfer?
The Memorandum of Transfer also known as MOT is a legal document that officially transfers ownership of a property from a seller (or developer) to a buyer.
It’s one of the final, and most important, steps in the property purchase process.
Once the MOT is stamped and registered at the land office, you legally become the owner of the property.
New Fixed MOT Fees in Johor 2025
Previously, MOT registration fees were calculated based on a percentage of the property value.
Under the new Johor ruling, a new MOT fee structure will be implemented.
Here’s how it will look:
| Property Value (RM) | New Fixed MOT Fee |
|---|---|
| 500,000 – 600,000 | RM2,500 |
| 600,000 – 700,000 | RM3,000 |
| 700,000 – 800,000 | RM3,500 |
| 800,000 – 900,000 | RM4,000 |
| 900,000 – 1,000,000 | RM4,500 |
| Above 1,000,000 | RM4,500 + RM250 for every RM50,000 thereafter |
This means that buyers now have greater cost clarity upfront especially for those purchasing homes near the RM1 million mark.
Please take note as for industrial land transferred under love and affection, a levy of 2% based on the JPPH valuation, or a minimum of RM20,000 applies, whichever is higher.
Levy Rates for Foreign Buyers in Johor 2025
Foreigners looking to own property in Johor will face higher costs under the new ruling.
The new Levy Rates registration fees for non-Malaysians are set to increase significantly across all categories:
| Property Type | Old Rate | New Rate (From September 2025) |
|---|---|---|
| Residential | 2% (min RM20k) | 3% (min RM30k) |
| Serviced Apartments (<RM1mil) | 2% | 3% (min RM50k) |
| Commercial | 2% | 3% |
| Industrial | 2% | 4% |
Are There Any Exemptions?
Yes. These include:
- Spouse-to-spouse: 100% stamp duty exemption
- Parent-child / Grandparent-grandchild: First RM1 million exempt, 50% off the rest
- Siblings or distant relatives: No exemption
- Inheritance or will-based transfer: Exempted from MOT fees
Just keep in mind: MOT documents still need to be stamped, even if stamp duty is waived.
**Important Note: With the new deadline in place, buyers should work closely with their lawyers and agents to submit all documents by 29 August 2025 to avoid new charges.
Will These Changes Affect Johor Market?
With the introduction of the new MOT fee structure and updated levy rates for foreign buyers in Johor in 2025, the market is likely to experience a subtle shift.
While we don’t anticipate significant changes, the increased costs may slightly dampen foreign investment. However, Johor’s strategic location and ongoing development projects are expected to keep overall demand steady.
In short, growth among overseas buyers may slow, but the domestic market is likely to remain robust.
Final Advice
Whether you’re a first-time buyer or a seasoned investor, it’s best to speak with your lawyer and banker now to understand how these new charges could affect your budget or timeline.
If you’re purchasing before September, it may be worth speeding up the MOT registration to avoid the new fees.
Interested in Johor’s property market? We’d love to guide you! Come chat with our friendly team today.
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