Yes, foreigners can buy a home in Malaysia, and own it outright in their own name. In most states you need to spend at least RM1 million, get state consent, and pay 8% stamp duty on the transfer. In return, you get one of the most open property markets in Asia.

No Singapore-style 60% surcharge. No 49% building quota like Thailand. No requirement to hold a visa before you buy.

This guide covers what foreigners can and cannot buy, the 2026 minimum prices by state, what the purchase really costs, the steps from offer to keys, and where MM2H fits in.

TL;DR

• Foreigners can buy residential property in Malaysia, freehold or leasehold, registered in their own name. Every purchase needs state authority consent.
• Minimum prices are set by each state. Kuala Lumpur is RM1,000,000. Selangor is RM2,000,000. Penang Island is RM1,000,000 for condos and RM3,000,000 for landed homes. Some states start at RM500,000.
• Foreigners cannot buy low-cost or medium-cost housing, Bumiputera quota units, or Malay Reserved Land.
• From 1 January 2026, foreign buyers pay a flat 8% stamp duty on the transfer of residential property. On a RM1,000,000 home that is RM80,000, against RM24,000 for a Malaysian.
• Malaysian banks typically lend foreigners 60% to 70% of the property value.
• Selling within five years attracts 30% Real Property Gains Tax for foreigners, falling to 10% from year six.
• MM2H is not required to buy, but it gives a renewable long-stay pass. Silver starts at a USD150,000 fixed deposit and a RM600,000 home, subject to the state’s own minimum price.

Can Foreigners Buy Property in Malaysia?

Yes. A foreigner can buy a condo, a serviced apartment or, in many states, a landed house, and hold the title in their own name. Freehold is available too.

Foreign buyers have certainty of ownership as their names are registered as the owners of the properties.

Datuk Peter S K Yap, partner, Amin, Yap & Co, speaking to EdgeProp, 28 July 2026

What foreigners cannot buy

• Low-cost and medium-cost housing, as defined by each state
• Units allocated under the Bumiputera quota in a development
• Malay Reserved Land
• Properties below the state’s minimum price for foreigners
• Agricultural land, and in some states, auctioned property or individual landed titles

Buying land rather than a home has its own rules. See our guide on whether foreigners can buy land in Malaysia.

How Malaysia compares with its neighbours

Of the three, Malaysia is the most open to foreigners owning a landed home, with published price thresholds by state. Considering Thailand too? Our guide to buying in Thailand covers its rules.

How Much Do Foreigners Need to Spend? Minimum Prices by State

Each state sets its own minimum purchase price for foreigners. It is the first number to check, because it decides which homes you can even look at.

Source: iProperty foreign buyer guide, 2026. Thresholds change and some apply only to certain zones or title types. Meeting the minimum does not guarantee state consent. Confirm with your lawyer before you commit.

The spread is wide. A foreigner can buy a condo in Melaka or mainland Penang for half of what Kuala Lumpur requires, and a quarter of Selangor’s entry point.

Not every buyer realises this. Datuk Ho Hon Sang, the former president of the Real Estate and Housing Developers’ Association (Rehda), put it simply to EdgeProp in July 2026: “There are still certain states with lower minimum thresholds.”

Already over RM1 million in KL?

Browse completed homes that meet the foreign buyer threshold, ready to view.

How to Buy a Home in Malaysia as a Foreigner: 7 Steps

The process mirrors what Malaysians follow, with one extra gate: state consent. A subsale purchase usually takes three to six months from signing to completion.

Step 1: Confirm the state minimum and restrictions

Before viewing anything, check the threshold for that state and property type, and confirm the unit is not a Bumiputera lot or low or medium-cost housing. Your agent and lawyer can verify this against the title.

Step 2: Appoint a Malaysian lawyer

Your lawyer runs the title search, drafts the Sale and Purchase Agreement (SPA), applies for state consent and handles stamp duty. Choose one before you pay a deposit.

Most are not aware of the detailed costing and timelines.

Jeremiah R Gurusamy, partner, Ramesh Dipendra Jeremiah Law, on foreign buyers, EdgeProp, 28 July 2026

Step 3: Arrange financing, if you need it

Malaysian banks do lend to foreigners, typically 60% to 70% of the property value. Expect to show overseas income documents, tax returns and bank statements. Some banks lend more for strong profiles or MM2H participants.

Many foreign buyers secure an approval in principle before making an offer. Estimate your instalment below.

Estimates for guidance only. Rates and margins for foreign borrowers vary by bank.

Step 4: Make an offer and pay the earnest deposit

For a subsale, you sign a letter of offer and pay an earnest deposit of usually 2% to 3%, held by the agent or lawyer as stakeholder. For a new launch, the developer collects 10% when the SPA is signed.

Step 5: Sign the SPA and pay the balance deposit

You sign the SPA and top up the deposit to 10% of the price. The SPA should be made conditional on state consent, so your deposit is protected if consent is refused.

Step 6: Obtain state authority consent

Your lawyer submits the application to the state land office. Approval can take one to two months or longer, depending on the state, and some states charge a fee or levy. This is the step that most often stretches the timeline.

Step 7: Pay stamp duty and the balance, then complete

Once consent is granted, the 8% stamp duty on the transfer is paid, your bank releases the loan, and the balance goes to the seller. The title is then registered in your name at the land office.

How Much Does It Really Cost a Foreigner to Buy?

The price is only the start. Here is what a foreigner pays on a RM1,000,000 KL condo in 2026, compared with a Malaysian buyer.

Legal fees follow the Solicitors’ Remuneration Order 2023 scale (1.25% on the first RM500,000, 1% on the next), before disbursements. Malaysian figure assumes no first-time buyer exemption. Calculated by IQI, not a quote.

With state charges and disbursements, lawyers put the all-in acquisition cost for a foreign cash buyer at about 10% to 11% of the price.

Borrowing adds more. With a 70% loan of RM700,000, add about RM8,910 in legal fees and service tax on the loan agreement and RM3,500 in loan stamp duty. Your cash outlay before keys becomes roughly RM404,560, including the RM300,000 down payment.

The 8% rate drew concern when it was announced. Rehda’s then president, Datuk Ho Hon Sang, told The Sun in October 2025 that it “may be seen as a deterrent for investors seeking to establish a base in Malaysia”.

What you pay when you sell

A foreign owner never reaches 0%, however long the home is held. If you plan to rent it out meanwhile, our rental income tax guide explains how foreign landlords are taxed.

Should You Buy Through MM2H?

You do not need MM2H to buy a home in Malaysia. But buying a home does not give you the right to live here. Malaysia My Second Home (MM2H) does, with a renewable long-stay pass for you and your dependants.

Under MM2H, you must buy a home after approval and hold it for 10 years, unless you upgrade to a more valuable one. The state’s foreign buyer minimum still applies, so a Silver participant buying in KL still needs to spend RM1,000,000.

Source: Ministry of Tourism, Arts and Culture (MOTAC), via IQI’s MM2H series. Up to 50% of the fixed deposit can be withdrawn after approval for property, education or medical costs. Participants under 50 must spend 90 days a year in Malaysia. Check mm2h.gov.my for the latest terms.

MM2H has never offered citizenship or permanent residency. It is a long-stay pass, and it is booming. Juwai IQI’s Kashif Ansari told Malay Mail in September 2026: “Some think that MM2H is losing its appeal, but the reality is quite the opposite.”

He noted that only 1,900 applicants were approved across 2021, 2022 and 2023 combined, while “in 2025, more than 3,000 visas and 9,000 participants obtained approval.”

Where you come from shapes the decision. Read our market-by-market guides:

• MM2H Europe: is living in Malaysia worth it for Europeans in 2026?
• MM2H UAE: is living in Malaysia better than Dubai?
• MM2H China: are Chinese buyers taking over Malaysian property?

Why Foreigners Choose Malaysia: Experts and Our Take

Foreigners account for only about 1% of residential transactions by volume, according to NAPIC’s Property Market Report 2025. But the buyers who do come are changing.

Chinese citizens were the most active group in the first half of 2025, investing RM835 million in residential property, about 51% of the foreign total. More of them are buying to live, not to flip.

Malaysia offers good schools, an attractive lifestyle, an admirable culture, and a predictable path to residency through MM2H.

Kashif Ansari, Co-Founder and Group CEO, Juwai IQI, Malay Mail, 1 September 2026

Ansari has also described Malaysia as offering the comfort and quality wealthy buyers want “without the visa headaches, capital controls or high price tags they face elsewhere” (Malay Mail, 15 April 2025).

The 8% stamp duty has made demand more selective, not made it vanish.

Foreign demand is not disappearing, it is becoming more disciplined.

Adrian Yeoh, executive director, Knight Frank Property Hub, EdgeProp, 28 July 2026

FAQ

Buying from overseas? Make every step count.

From finding the right property to getting the keys, an IQI agent can guide you through the process.

Leave your details and speak with a local IQI agent today.

Liked what you read? Read related articles here:

• MM2H Europe: Is Living in Malaysia Worth It for Europeans in 2026?
• First-Time Home Buyer Guide Malaysia 2026: From Savings to Keys
• 5 Simple Steps To Buy Land in Malaysia
• Can Foreigners Buy Land in Malaysia?
• Buying Property in Malaysia: A Step-by-Step Guide (2026)
  

Sources

• EdgeProp, Malaysia remains one of Asia’s most accessible property markets for foreign buyers in 2026, 28 July 2026
• Malay Mail, Juwai IQI: Malaysia among top destinations for Chinese property buyers, 1 September 2026
• Malay Mail, Malaysia said to be fourth top choice for China’s ultra-rich homebuyers, 15 April 2025
• The Sun, Rehda welcomes housing initiatives, cautious on higher stamp duty for foreigners, 11 October 2025
• Skrine, Proposed amendments to the Stamp Act, 24 November 2025
• iProperty, Foreigners buying property in Malaysia: complete guide, 2026
• Global Law Experts, A 2025 to 2026 guide to buying residential property in Malaysia for foreigners, updated 17 April 2026
• MOTAC, MM2H guidelines, updated 10 February 2026
• Conventus Law, The Solicitors’ Remuneration Order 2023

The post Foreigner’s Guide To Buying Property In Malaysia appeared first on IQI Blog.

Version: BM

Most Malaysian landlords get rental income tax wrong in one of two directions.

Some do not declare it at all, assuming LHDN will never notice. Others declare every ringgit of rent they collected and forget that the law taxes profit, not rent.

The first group risks a back-assessment. The second group quietly overpays, sometimes by thousands of ringgit a year.

This guide walks through what is taxable, what you can deduct, and what the tax actually costs on a real Klang Valley condo. With the numbers filled in.

Hosting on Airbnb instead? There is a dedicated section on the short-term rental market, the rules, and how hosting income is taxed.

TL;DR

• Rental income tax applies to all rent from Malaysian property under the Income Tax Act 1967. There is no minimum threshold, and no exemption for small landlords.
• You are taxed on net rent, not gross. Gross rent minus allowable expenses.
• Resident individuals pay progressive rates of 0% to 30%. Non-residents pay a flat 30%. Residency is decided by 182 days of physical presence, not by citizenship, so a foreigner living in Malaysia is generally taxed like a Malaysian.
• The 50% residential rental exemption has expired. It applied to YA 2018 only. Any article still promoting it is out of date.
• Loan interest is deductible. Loan principal is not. Neither are the costs of getting your very first tenant.
• Short-term rental and Airbnb income is taxable. Most hosts fall under Section 4(d) rental income, while hosts providing comprehensive services may be taxed under Section 4(a) business income, which affects filing requirements and capital allowance claims.
• Service tax on rental and leasing fell from 8% to 6% on 1 January 2026, and the MSME tenant exemption threshold rose to RM1.5 million. Residential lettings are generally outside it.
• Form BE is due 30 April, with e-Filing grace to 15 May. Form B is due 30 June, with grace to 15 July.

The Short-Term Rental Tax Landscape in Malaysia (2026)

Short-term rental is no longer a side corner of the Malaysian rental market. It is a market of its own, with its own numbers, its own rules, and its own tax questions.

Before the tax, it helps to see the size of what you are stepping into.

How big is the short-term rental market in Malaysia?

Big, and still growing. Airbtics’ Malaysia market review for 2025 put national averages at 45.07% occupancy, an average daily rate (ADR) of RM239 and RM40,686 in annual revenue per listing, across 15 markets. Supply grew 24.83% year on year, while revenue rose only 2.05%.

Read that gap carefully. More listings are chasing a slower-growing pool of bookings. Hosts who win are the ones in the right city, with the right unit, priced well.

Here is how the four most-watched cities compare.

Source: Airbtics. City figures cover February 2025 to January 2026 (updated 12 March 2026). National figures from the Airbtics Malaysia Short-Term Rental Market Review 2025. Revenue figures are gross, before fees, cleaning, utilities and tax.

A few patterns stand out.

• Kuala Lumpur is the volume market. It holds more active listings than the other three cities combined, and added 4,676 listings in 2025 alone.
• George Town earns the most per listing, on the highest occupancy, with a fraction of KL’s supply. It is also the city with the newest and strictest rules (more below).
• Johor Bahru charges the most per night but books less often, which tracks with weekend-heavy Singapore demand.
• Kota Kinabalu is the quiet performer, with listings up 19.2% year on year and occupancy close to KL.

Demand is real. Malaysia recorded 42,196,892 international visitors in 2025, up 11.2% on 2024 and 20.4% above 2019, according to Tourism, Arts and Culture Minister Datuk Seri Tiong King Sing. Singapore alone sent more than 21 million. Visit Malaysia Year 2026 adds a further push.

Want to compare short-stay numbers against long-term rent in a specific area? Our Damansara rental yield guide shows how to read yield properly.

What rules apply to short-term rentals in Malaysia?

This is where many first-time hosts get caught. There is no single national short-term rental law yet. Instead, several layers stack on top of each other.

Rules on whether you can host at all differ by state and by building. For the state-by-state legal picture, read our explainer on whether running an Airbnb is legal in Malaysia, then confirm with your local council.

Short-term vs long-term rental: what changes for you?

The short version: record-keeping decides a host’s tax bill. Section 2 settles the 4(a) or 4(d) question, and Section 4 runs the host maths.

Short stay or long let: which earns more after costs?

Cleaning, furnishing and vacancy eat into short-stay income faster than most hosts expect. See the hidden costs of a rental →

1. Do you have to pay rental income tax in Malaysia?

Yes. Rental income tax applies to rent from any Malaysian property under the Income Tax Act 1967, and it is added to your other income for the year.

There is no minimum threshold and no small-landlord exemption. One spare room counts. An inherited terrace house counts. A single condo you rent out while living with your parents counts.

The common assumption is that LHDN has no way of knowing. That has not been true for some time.

Your tenancy agreement gets stamped, which creates a record in LHDN’s own system. Rent almost always lands in a bank account rather than in cash. Property ownership sits in the land registry. The trail exists whether or not you declare.

What is genuinely useful to understand is that rental income tax applies to your rental profit, not your rent. Get the deductions right and the bill is usually far smaller than landlords fear.

Not sure what a rental property really costs to hold? Read our breakdown of the hidden costs of owning a rental property.

2. Is your rental taxed under Section 4(a) or Section 4(d)?

This is the first fork in the road, and it decides how your rental income tax is calculated and what you can claim.

LHDN Public Ruling No. 12/2018 sets the test. Letting is treated as a business source under Section 4(a) when maintenance and support services are provided comprehensively and actively. Otherwise it is a non-business source under Section 4(d).

Think of it this way. If you hand over the keys and collect rent, that is 4(d). If you are running something closer to a hotel, with cleaning, linen, front desk and meals, that starts to look like 4(a).

The overwhelming majority of Malaysian individual landlords fall under 4(d). The rest of this guide assumes that unless stated.

Short-stay and Airbnb hosting: 4(a) or 4(d)?

It depends on what you actually do, not on which platform you list with.

Public Ruling No. 12/2018, Income from Letting of Real Property, issued on 19 December 2018 and replacing PR 4/2011, defines both halves of the test.

• “Comprehensively” (paragraph 4.2.1) means doing generally everything needed to maintain and manage the property. That covers the structure, stairways, lobbies, corridors, lifts, drains, pipes and fittings, plus the exterior: car parks, landscaping, recreational areas, walls and lighting.
• “Actively” (paragraph 4.2.2) means you either provide those services yourself, or hire another person or firm to provide them.
• Providing only security, or only some facilities, is not comprehensive. The ruling’s Example 4 lands in 4(d) for exactly that reason.

Notice what the ruling’s 4(a) examples look like. A company owning three condominium blocks of 324 units. An owner of a whole 32-unit building who hires a contractor for structure, lifts and cleaning. The test is about maintaining the property, not about how short the stays are.

That matters for the typical host. If your unit sits in a strata condo, the management body maintains the lifts, lobbies and car park, not you. Cleaning and changing linen inside one unit does not, on its own, match the ruling’s description of comprehensive maintenance.

The ruling does not address homestays or serviced apartments by name, so treat the table below as a guide to where each setup usually lands, not a ruling.

Why it is worth getting right: 4(a) lets you claim capital allowances on furniture and fittings and carry losses forward. For a host who spent RM30,000 furnishing a unit, that can be worth more than any other deduction. But 4(a) also means Form B, the June deadline, business-level record-keeping, and a classification you must be able to defend.

Classification follows the facts, not the smaller bill. If you are near the line, get it confirmed by a licensed tax agent before you file. For the legal side of hosting, see our guide to running Airbnb services in Malaysia.

3. What expenses reduce your rental income tax?

Deductions are the main lever you control, and this is where landlords leave the most money on their rental income tax.

The rule is that an expense must be wholly and exclusively incurred in producing the rental income. In practice that splits into a clean list.

Why the “first tenant” rule catches so many people

Expenses incurred to obtain your first tenant are treated as initial expenses to create the income source. They are not deductible.

Once the property is let, the same categories of cost become deductible on every subsequent tenancy.

Split your costs into “getting started” and “keeping it running” and most of the confusion disappears.

How much of your instalment is actually interest?

Only the interest portion of your monthly loan repayment is deductible, and in the early years of a loan that portion is much larger than most owners assume.

Run your loan through the calculator below to see the split before you fill in your form.

Estimates for guidance only. Use your bank’s annual loan statement for the exact interest figure when you file.

Buying another unit to rent out? Check the full cost stack first with our property transaction fees calculator.

4. Rental income tax example: what does a RM2,500 condo cost?

Numbers make rental income tax concrete. Meet a salaried landlord in the Klang Valley.

She earns RM90,000 a year from employment and rents out a condo at RM2,500 a month. The unit has been tenanted for three years, so this is not a first letting.

Step 1: Work out net rental income

Step 2: Find the marginal rate

After EPF relief of RM4,000 and personal relief of RM9,000, her salary alone gives chargeable income of around RM77,000. That sits in the 19% band.

Rental income stacks on top of employment income, so the net rent is taxed at her marginal rate.

Step 3: The tax

RM7,000 x 19% = RM1,330.

That is roughly 4.4% of the gross rent she collected.

The cost of getting it wrong

Had she declared the gross RM30,000 without deductions, the tax would have been RM5,700.

Claiming what she was entitled to saved her RM4,370 in a single year.

That is the entire argument for keeping receipts.

Thinking of buying a second unit to rent out?

The yield on paper and the yield after tax, maintenance fees and vacancy are two different numbers. An IQI agent helps you compare real rental demand by area, sense-check the asking price, and understand the holding costs before you commit.

Or browse now: subsale homes and new launches.

5. Does joint ownership lower your rental income tax?

It often does, and it is one of the few structural ways to reduce rental income tax, and this is one of the most under-discussed points in Malaysian landlord tax.

Where a property is held in joint names, the rental income is generally split according to the ownership share, and each owner declares their portion in their own return.

Because Malaysia taxes individuals progressively, splitting income across two people can pull part of it into a lower band.

Take the same condo from Section 4, now held 50/50 by a couple. One spouse is in the 19% band, the other in the 6% band.

A saving of RM455 on one modest condo, every year.

Two cautions. The split should follow actual legal ownership rather than whatever is convenient at filing time. And ownership structure affects far more than tax, including financing and future disposal. Decide it when you buy, not when you file.

6. Is there still a 50% rental income tax exemption?

No. This is the single most repeated piece of outdated advice about rental income tax in Malaysia.

The incentive existed. Announced in Budget 2018, it gave resident individuals a 50% exemption on statutory rental income from residential property let at up to RM2,000 a month, subject to a legal tenancy agreement.

It was gazetted through the Income Tax (Exemption) (No. 2) Order 2019 and covered the 2018 calendar year. It has since lapsed.

For YA 2025 and YA 2026 there is no blanket exemption on residential rental income. You are taxed on the net, and your relief comes from claiming your deductions properly.

If a blog, forum post or agent tells you otherwise, check the date on it.

7. What happens if your rental property makes a loss?

Plenty of Klang Valley condos run at a paper loss in the early years, once loan interest and maintenance fees are counted.

Under Section 4(d), your rental properties are generally pooled as a single source for the year. A loss on one unit can be set against income from another in the same year.

But here is the trap. An overall rental loss under Section 4(d) cannot be carried forward to future years, and cannot be set against your salary.

Declare it anyway. A loss year is not a reason to skip the entry, and under-declaring is exactly what invites a review.

If you hold several properties and losses are a recurring feature of your position, that is a conversation worth having with a licensed tax agent rather than a blog.

8. Do you need to charge SST on rent in 2026?

This is the newest part of the picture, and it changed twice in twelve months.

Rental and leasing services came into the service tax net under Group K of the Service Tax Regulations 2018 on 1 July 2025, at 8%.

Then, effective 1 January 2026, the rate dropped from 8% to 6%, and the annual sales threshold for the MSME tenant exemption rose to RM1.5 million.

Who this actually affects

• Residential landlords: generally outside the scope. Housing accommodation used for residential purposes is not caught.
• Commercial landlords: registration is required once taxable rental turnover exceeds RM1 million over a 12-month period.
• The use test matters more than the title. The updated Customs guide makes clear that a residential unit let out as an office or administrative premises can fall into scope. A condo rented to a small design studio is not automatically exempt just because it is a condo.

Short-stay hosts sit under a different heading. Accommodation is taxed under Group A, not Group K, and the short-term rental rules table above sets out how it works.

For the wider picture across the property sector, see our guide on how expanded SST affects real estate in Malaysia. SST rules move often, so confirm current rates and thresholds on the MySST portal before you invoice.

9. Are foreign landlords taxed differently in Malaysia?

Not in the way most people assume. Your rate is decided by your tax residency, not by your passport.

Under Section 7 of the Income Tax Act 1967, the main test is physical presence: 182 days or more in Malaysia during the calendar year makes you a tax resident. Citizenship does not enter into it, and neither does your visa type. An employment pass does not make you a resident, and not holding one does not stop you from being one.

That produces a result many foreign owners find surprising.

The expat living in Malaysia on rental income

A foreigner who actually lives here, holds a few units, and lives off the rent is almost certainly a tax resident. He is taxed exactly like a Malaysian: progressive rates of 0% to 30%, full deduction of allowable expenses, and access to personal reliefs.

Say he holds three units at RM3,000 a month each.

Same three units, same rent, same expenses. A difference of around RM13,560, decided entirely by day count.

Note that with no employment there is no EPF relief to claim, so the reliefs available are narrower than a salaried person’s. Medical, insurance and lifestyle reliefs may still apply and would reduce the figure further.

Two things foreign landlords get wrong

You still deduct your allowable expenses as a non-resident. Some sources claim non-residents are taxed on gross rent, or that the tenant must withhold the tax. Malaysian withholding tax does not apply to rent from immovable property in this way, so confirm your position with a tax agent. Non-residents file Form M.

The residency test cuts both ways. Spend five months back home and you can drop under 182 days without anything about your property changing. Your rate flips to 30% with no reliefs for that year, so keep passport stamps and flight records.

11. How and when do you file rental income tax?

You declare rental income tax in your annual return, filed through LHDN’s MyTax portal.

• Form BE if you are employed and your only non-employment income is rent. Due 30 April, with e-Filing grace usually to 15 May.
• Form B if you also carry on a business. Due 30 June, with e-Filing grace usually to 15 July.
• Form M for non-residents.

Rental income is declared in the dedicated statutory income from rents section, and the HK-4 working sheet is where you show the rent-minus-expenses maths.

You do not attach receipts when you file, but you must keep them for seven years. Deductions you cannot substantiate are deductions LHDN can disallow.

Keep one folder per property. Rent in, expenses out, plus the stamped tenancy agreement and the annual loan interest statement from your bank.

Hosting short stays? Download your annual payout report from each platform. It is the cleanest record of gross income you will have.

Renting to a business? Expect them to ask for an e-invoice, or to issue a self-billed one. Check the current thresholds in LHDN’s e-Invoice guideline on MyTax.

New to filing? Follow our step-by-step guide to filing income tax in Malaysia, and check the full list of personal tax reliefs while you are at it.

12. What if you have never declared your rental income?

Undeclared rental income tax is more common than most landlords admit, and it is fixable.

Under Section 113 of the Income Tax Act 1967, making an incorrect return by omitting or understating income is an offence. It carries a fine and a penalty calculated on the tax undercharged. Persistent or deliberate evasion can escalate further.

The practical route back is a voluntary amendment before LHDN comes to you. Disclosure that you initiate is generally treated more leniently than income LHDN discovers on its own. The tax owed still has to be paid, but the penalty treatment can differ.

A licensed tax agent can file the revised returns and represent you. Do not let a small undeclared amount become several years of compounding exposure.

Key Takeaways

• Rental income tax applies to all rent from Malaysian property. There is no small-landlord exemption.
• You are taxed on net rent. Deductions are the difference between a fair bill and an inflated one.
• Loan interest is deductible, loan principal is not, and first-tenant costs are not.
• The 50% residential rental exemption expired years ago. Ignore any source that still promotes it.
• Joint ownership can meaningfully reduce the total bill by splitting income across tax bands.
• A Section 4(d) rental loss cannot be carried forward or offset against salary, but should still be declared.
• Short-term rental and Airbnb operators should confirm their tax classification before filing. Most hosts fall under Section 4(d), while those providing comprehensive services may qualify as Section 4(a) business income, affecting filing deadlines, capital allowances and loss carry-forward.
• Service tax on rental is 6% from 1 January 2026, mostly affects commercial lettings, and turns on how the property is actually used.
• Keep every receipt for seven years. Undocumented deductions are the ones that get disallowed.

Is your rental actually earning its keep?

Tax is only one line in the equation. Rent levels, tenant demand and vacancy in your area matter just as much. An IQI agent gives you a straight read on what your unit should be renting for, and what it would fetch if you sold instead.

Frequently Asked Questions

This rental income tax guide is general information, not tax advice. Rates, thresholds and phase dates change, and several were revised during 2026. Verify against LHDN and Royal Malaysian Customs before you file or invoice, and speak to a licensed tax agent about your own position.

Continue reading:

• What Are The Hidden Costs of Owning a Rental Property?
• A Complete Guide to Property Taxes in Malaysia for Homeowners
• 5 Things You Should Know About Tenancy Agreements in Malaysia
• Damansara Rental Yield Guide for Property Investors
• A Comprehensive Guide On Buying Property In Malaysia

Sources

• LHDN, Public Ruling No. 12/2018, Income from Letting of Real Property, 19 December 2018 (summary via CTIM)
• Airbtics, Malaysia Short-Term Rental Market Review 2025, 22 January 2026
• Airbtics city data for Kuala Lumpur, Johor Bahru, Kota Kinabalu and George Town, updated 12 March 2026
• The Vibes, Malaysia records 42.19 million visitors last year, 28 March 2026
• Bernama, Penang first state to enforce private homestay by-law, 21 August 2026
• Malay Mail, Penang introduces new licensing laws for short-term rentals, 21 August 2026
• The Vibes, MOTAC: short-term rental premises must get local operating licence, 8 September 2025
• New Straits Times, Short-term rental rules under review to protect consumers, 5 June 2025
• PwC Malaysia, Malaysian Tax Booklet 2025/2026: Service Tax
• Skrine, Tourism tax and digital platform service providers, April 2021

The post Rental Income Tax in Malaysia 2026: What Landlords Actually Pay appeared first on IQI Blog.

Forty. That is how many British MM2H participants had bought homes in Malaysia by the end of 2025, making the UK first in Europe.

No other European country made the top 10. Out of 744 completed MM2H home purchases, China accounted for 304 and Britain for 40, according to parliamentary figures reported by Malay Mail.

The latest figures show a similar pattern. Malaysia received 7,650 MM2H applications between October 2024 and August 2026, yet European countries remain largely absent from the leading markets.

Malaysia offers warm weather, lower living costs and an attractive retirement lifestyle. But with Portugal, Spain, Greece and Italy much closer to home

So, what makes Malaysia worth the 13-hour flight? Here is what Europeans actually gain from living in Malaysia under MM2H.

Key Takeaways

• Europeans can apply for MM2H through a MOTAC-licensed operator.
• Kuala Lumpur costs less than London, Paris and Lisbon, based on Expatistan’s September 2026 data.
• Silver MM2H starts at USD150,000, plus a home worth at least RM600,000, for a renewable 5-year pass.
• Foreign buyers pay 8% stamp duty, and state property price floors may exceed MM2H requirements.
• Applicants aged 50+ have no minimum stay requirement, offering greater flexibility for European retirees.
• MM2H does not offer PR or citizenship, while employment and business activity are limited to Platinum.

MM2H Europe in 60 seconds: can Europeans apply?

Quick answer: Yes. Malaysia My Second Home (MM2H) is open to Europeans who meet its age and financial requirements, applying through a MOTAC-licensed operator. It grants a renewable long-term pass of 5 to 20 years, depending on tier, with multiple-entry rights, but no work rights outside Platinum and no route to citizenship.

Europe isn’t new to MM2H either. Britain has long been one of the programme’s most reliable source markets.

The other top nations for MM2H applicants, after China and Australia, are South Korea, Japan, Bangladesh, and the United Kingdom.

Kashif Ansari, Co-Founder and Group CEO, Juwai IQI
Bernama, 11 March 2025

If you are new to the programme, our MM2H eligibility and application guide covers the basics. Here, the question is narrower: how does Malaysia stack up against the places Europeans actually consider?

IQI comparison, October 2026. Climate range from International Living; residence and stamp duty rules from MOTAC, KPMG and Schengen Borders Code.

The pattern is clear. Malaysia wins on cost, climate and lifestyle value. Europe wins on proximity, healthcare rights and ease of entry.

How much cheaper is Kuala Lumpur than European cities?

Treating “Europe” as one price point is where most MM2H articles go wrong. Moving from London is a completely different calculation from moving from Lisbon.

So we compared Kuala Lumpur against five European cities using the same dataset.

Source: Expatistan city comparisons. IQI converted Expatistan’s “X% more expensive than KL” into “KL is X% cheaper”. Expatistan flags these comparisons as still gathering data, so treat as indicative.

Even Lisbon, Europe’s favourite budget retirement city, costs about 55% more than Kuala Lumpur for the same lifestyle.

Where the gap actually shows up

Housing, transport and medical visits drive most of the difference. Here is what a month looks like, converted to ringgit.

Source: Expatistan, prices updated 30 September 2026. Converted at RM5.402 per pound and RM4.636 per euro, the rates Expatistan used.

A normal-area flat in London costs six times its Kuala Lumpur equivalent. In Lisbon, it is still nearly three times.

Where the gap disappears

Not everything is cheaper. A gym membership in Kuala Lumpur averages RM236 a month, more than Paris (about RM148) or Lisbon (about RM176).

Home internet costs roughly the same as in Paris. Imported wine, cheese and European brands carry duties that make them pricier than back home.

The rule of thumb: live locally and Malaysia is remarkably affordable. Recreate your European shopping basket, and the savings shrink.

The Europe to Kuala Lumpur lifestyle calculator

Using Expatistan’s equivalence for each city pair, here is what a comparable lifestyle costs in Kuala Lumpur.

IQI calculation, October 2026. Derived from Expatistan’s stated cost-of-living equivalence for each city pair and the exchange rate shown on that comparison. Indicative only; your own spending pattern will differ.

Outside the capital, budgets stretch further. International Living estimates a retiree in Penang can live comfortably on about US$2,200 a month.

Why choose Malaysia over Spain or Portugal?

This is the comparison that matters. International Living’s 2026 index places Greece first, Portugal fourth, Italy sixth, France seventh and Spain eighth. Malaysia is 10th.

Southern Europe has the home advantage. But the gap has narrowed in three ways.

1. Southern Europe isn’t the bargain it used to be

Lisbon housing is now about twice the price of comparable Kuala Lumpur housing. Spain closed its golden visa in April 2025, and Portugal’s NHR tax regime closed to most new applicants in 2024.

The “cheap sunny corner of Europe” is getting harder to find, especially in the cities retirees prefer.

2. For British retirees, Brexit changed the maths

Since leaving the EU, UK citizens can spend only 90 days in any 180 in the Schengen area without a national visa. That cuts a winter in the Algarve short.

MM2H works differently. Participants aged 50 and above have no minimum stay requirement at all, and passes run 5 to 20 years, renewable. You can split your year between Britain and Malaysia without counting days.

3. Winter becomes optional, and Asia becomes next door

Malaysia stays roughly 25°C to 35°C all year. No heating bills, no grey February.

Kuala Lumpur also puts Bangkok, Bali, Singapore and Ho Chi Minh City within short-haul reach. Malaysia Airlines flies twice daily to London Heathrow and returned to Paris with daily flights in March 2025.

The honest trade-offs

• Distance. About 13 hours nonstop, and Kuala Lumpur is 6 to 8 hours ahead of Europe. Family emergencies and grandchildren’s birthdays are harder.
• Healthcare rights. EU social security cover and the UK GHIC do not apply in Malaysia. You will need private insurance.
• Pensions. The UK State Pension is frozen for residents of Malaysia. More on this below.
• Climate. Heat and humidity are constant, with heavy monsoon rain on parts of the coast late in the year.

If you are weighing Malaysia against another long-haul option, our MM2H UAE comparison with Dubai runs the same analysis for Gulf residents.

How much does MM2H cost a European?

MM2H is not a cheap retirement visa. It is a financial commitment that locks money into Malaysia, and that is by design.

Source: MOTAC, mm2h.gov.my category pages, checked 1 October 2026. Euro figures converted at RM4.636 per euro. Processing fee RM5,000 per principal and RM2,500 per dependant. Pass fee RM500 a year.

Silver, Gold and Platinum applicants must be at least 25. SEZ/SFZ starts at 21, but the property must be in Forest City, Johor.

After approval, you can withdraw up to 50% of the fixed deposit for buying your home, education, medical costs or tourism. Many participants use it to fund the property purchase.

For the full tier-by-tier breakdown, see MM2H explained: Silver, Gold, Platinum and SEZ requirements.

The two property costs nobody puts in the brochure

First, stamp duty. Since 1 January 2026, non-citizens pay a flat 8% on residential property transfers. MM2H participants get no exemption.

Source: KPMG Malaysia, Budget 2026 tax highlights. Citizen figures use the standard 1% to 4% scale. Permanent residents are excluded from the 8% rate.

Second, state price floors. Each state sets its own minimum price for foreign buyers, and it often sits above the MM2H minimum.

Source: IQI, foreign home ownership rules in Malaysia, updated January 2026. State rules change; confirm before you commit.

In practice, a Silver participant buying in Kuala Lumpur needs a home worth at least RM1 million, not RM600,000. That means about RM80,000 in stamp duty alone, before legal fees.

Run your full numbers with IQI’s property transaction fees calculator. And remember the lock-in: you cannot sell the home for 10 years, unless you are upgrading to a higher-value one.

Which MM2H tier suits a European?

IQI summary of MOTAC rules. Not advice; confirm your tier with a licensed MM2H operator.

Buying as a foreigner for the first time?

See which properties foreigners can own, and the price floors in each state. Read the foreign ownership guide →

What is daily life like for Europeans in Malaysia?

Cost and visas get you through the door. Daily life decides whether you stay.

Healthcare: private, modern and affordable, but insure it

A short private doctor visit in Kuala Lumpur averages RM106. The same visit costs about RM367 in London and RM348 in Lisbon on Expatistan’s data.

In Penang, International Living reports specialist consultations typically between US$21 and US$53, at well-equipped private hospitals such as Island, Gleneagles and Adventist.

MM2H permits long-term medical treatment in Malaysia. But affordable is not the same as free. Budget for international health insurance, because European public cover will not follow you.

Family: you don’t have to move alone

MM2H lets you bring a spouse, children under 21, and unmarried, unemployed children aged 21 to 34. Medically certified children with disabilities have no age limit.

Parents and parents-in-law can join too. Dependant children may study up to tertiary level at government-recognised institutions, and Platinum participants may also bring a foreign maid

Where Europeans tend to settle

• Kuala Lumpur: city living, international schools, private hospitals and the best flight links.
• Penang: heritage, food and a slower pace. International Living’s pick for retirees. See the best areas for retirees and expats in Penang.
• Johor: next to Singapore, and home to the Forest City SEZ/SFZ tier.
• Langkawi, Sabah and Sarawak: islands, rainforest and diving. Note that Sarawak runs its own S-MM2H programme with separate rules.

Demand is building across these locations, even if Europeans are a small share of it.

A further 2,637 MM2H participants are still in the process of purchasing homes, including finalising sale and purchase agreements and identifying suitable home locations.

Datuk Seri Tiong King Sing, Minister of Tourism, Arts and Culture
Malay Mail, 4 February 2026

What this means for you: 5 checks before you apply

Malaysia can offer Europeans an excellent second life. But MM2H rewards preparation. Run these five checks first.

1. Your tax position, on both ends

Malaysia exempts foreign-sourced income for resident individuals until 31 December 2036, but the exemption covers income already taxed in the country where it was earned. Partnership business income is excluded.

Your home country’s rules matter just as much. Get cross-border tax advice before you move, not after your first assessment.

2. Your pension

The UK only increases the State Pension abroad where a reciprocal agreement exists. Malaysia has none, so a British pension is frozen at the rate paid when you leave.

Over a 20-year retirement, that matters. EU pensioners should check their own scheme’s rules on payments outside the EU.

3. Your healthcare cover

Arrange international health insurance that covers Malaysia before you relocate. Pre-existing conditions and age limits vary widely between insurers.

4. Your property, and where you’ll really live

Because the home is compulsory and locked for 10 years, choose a place you would happily live in, not just one that clears the MM2H threshold.

5. What MM2H is, and isn’t

MM2H is a long-term visa. It is not an immigration shortcut.

MM2H has never offered citizenship or permanent resident status.

Datuk Seri Tiong King Sing, Minister of Tourism, Arts and Culture

So, is living in Malaysia better than Europe?

The short answer: it depends on what you want your money to do. For Europeans who want more lifestyle per euro or pound, year-round warmth and long-term residence without counting days, Malaysia beats most of Europe, Lisbon included. For those who put family proximity and EU healthcare rights first, Southern Europe still wins.

Use this to find your side of the line.

IQI summary, October 2026. Based on MOTAC MM2H rules, Expatistan cost data and the checks above.

The numbers behind the verdict are simple. Kuala Lumpur costs about 68% less than London and 35% less than Lisbon. Entry starts at a USD150,000 deposit plus a home, foreign buyers pay 8% stamp duty, and MM2H never leads to permanent residency.

Malaysia knows what the programme is worth, and wants more of these buyers.

The programme has successfully brought in billions of ringgit into the country in a short period of time and has benefitted many sectors of our economy

Chiew Choon Man, Deputy Minister of Tourism, Arts and Culture

So the better question for Europeans isn’t “Is Malaysia cheaper?” It is: what kind of life could your existing savings buy here? For many, the answer is a noticeably bigger one.

Frequently Asked Question (FAQs)

Make Your Move to Malaysia Count.

Your MM2H application starts with a licensed operator. Your new home starts with IQI. Share your tier, budget and preferred city, and let a local IQI agent find the right fit.

Continue Reading:

• MM2H UAE: Is Living in Malaysia Better Than Dubai in 2026?
• MM2H China: Are Chinese Buyers Taking Over Malaysian Property?
• MM2H Explained: Why Malaysia Is a Safe Haven for Property Investors in 2026
• Retire in Malaysia: #1 in Asia for American Retirees

Sources

• MOTAC, MM2H category overview
• MOTAC, MM2H guidelines
• Malay Mail, 4 February 2026
• Bernama, MM2H draws 7,650 applications, 26 September 2026
• Bernama, Reformed MM2H programme boosts economy, 11 March 2025
• ExpatGo, 5 February 2026
• International Living, 2026 Annual Global Retirement Index
• Expatistan, Kuala Lumpur vs London (also Paris, Amsterdam, Berlin, Lisbon)
• KPMG Malaysia, Budget 2026 stamp duty
• The Edge Malaysia, foreign-sourced income exemption extended to 2036
• House of Commons Library, Frozen overseas pensions
• Flightradar24, Malaysia Airlines returns to Paris, March 2025
• Global Citizen Solutions, Spain golden visa ended April 2025

The post MM2H Europe: Is Living in Malaysia Worth It for Europeans in 2026? appeared first on IQI Blog.

Version: BM

Some career decisions are not made in meeting rooms.

They are made quietly.

Late at night.
Between doubts.
Between “what if” and “what now”.

If you have ever searched “how to become a real estate agent in Malaysia”, chances are you are not just curious.

You are considering change!

Before you step into a real estate agent career in Malaysia, there is one story you should hear.

View this post on Instagram

A post shared by IQI (@iqiglobal)

Why Real Estate Remains an Open Opportunity in Malaysia

Unlike professions that demand specific degrees or years of industry certification, becoming a real estate agent in Malaysia follows a structured yet accessible pathway. You do not need a property-related academic background.

You need:

• Registration under a licensed real estate agency
• Official Real Estate Negotiator status
• Required training
• Commitment

Malaysia’s property market continues to generate transactions across residential, subsale and investment segments. As long as people buy, sell and upgrade homes, agents remain relevant.

Real estate is not limited by corporate hierarchy.

Income is performance-based.

For many, that is both the attraction and the fear.

The Challenges Many Faces in Career Transitions

Changing careers is rarely comfortable. The biggest challenge is not learning something new. It is leaving something familiar.

Fixed salaries provide stability. Commission-based careers provide possibility.

But possibility comes with uncertainty.

New agents often struggle with:

• Irregular income in early months
• Rejection from prospects
• Doubt from friends or family
• Self-doubt

The first year is less about talent and more about resilience. Those who stay consistent build momentum. Those expecting quick results often leave too early.

From Journalism to Real Estate Success: The Story of MarieJualKondo (Natasha Gideon)

Before becoming a recognised real estate agent in Malaysia, MarieJualKondo or Natasha Gideon was a journalist covering the property industry. Through interviews with developers and negotiators, she observed how successful agents built their careers.

Over time, she realised that long-term success in a real estate agent career in Malaysia was not about being the loudest — it was about discipline, follow-up and consistency.

Eventually, she made a decision that many consider but few execute.

She left a fixed salary to enter commission-based real estate.

@natashagideon This page started in 2019 and I’ve been posting a lot since then. Here’s just a reminder of who I am and what I do #hartanahmalaysia #realestate #realestatejourney #teammjk #mariejualkondo ♬ original sound – MarieJualKondo

The early months were challenging.

There were viewings that did not convert and periods without commission. Instead of losing confidence, she focused on professionalism and structured follow-up.

Within three weeks of handling one of her early subsale cases, she secured the deal!

@natashagideon Thanks for having me @HITZ. What a blast with @Keanu Azman and my twin @ili ♬ original sound – songs n lyrics

Nine years later, Natasha is now a team leader within IQI. Her journey was not built on luck, but on consistency, resilience and operating within a structured real estate platform.

What Natasha’s Journey Teaches About Career Reinvention

Her story reveals several truths about becoming a real estate agent in Malaysia.

First, background does not determine success. She transitioned from journalism into property sales.

Second, the early stage is emotionally demanding. Not because the industry is unfair, but because momentum takes time.

Third, consistency compounds. Natasha did not rely solely on transactions. She began sharing educational property content under the name ‘MarieJualKondo’ long before digital branding became common among agents.

I’m motivated by challenges. I’ve always understood the income potential that comes with being a REN and real estate negotiator, and I genuinely enjoy building my earnings! In a 9-to-5 job, even if you give 200 percent effort, your salary stays the same. But in real estate, when I put in 200 percent effort, my income can grow just as fast!

Natasha Gideon

There was no viral breakthrough.

There was repetition, structured explanations and steady content creation.

Over time, credibility accumulated, media recognition followed and leadership opportunities expanded. Career reinvention, especially in real estate, is rarely dramatic.

It is disciplined and cumulative.

What It Actually Takes to Succeed as a Real Estate Agent in Malaysia

A sustainable real estate agent career in Malaysia depends on behavioural consistency.

It rewards daily prospecting, systematic follow-ups, relationship management and emotional regulation during rejection. It does not reward impatience.

Success during the first year often depends on three factors: surviving income fluctuations, committing to daily outreach activity and choosing structured mentorship.

Operating under an established agency such as IQI provides compliance support, training systems, brand credibility and access to experienced leaders.

While structure does not eliminate effort, it significantly reduces confusion and accelerates early learning.

How to Start a Real Estate Career in Malaysia

If you are serious about becoming a real estate agent in Malaysia, the pathway is clear:

1. Join a licensed real estate agency
2. Register as a Real Estate Negotiator
3. Complete required training
4. Operate under supervision

The mechanics are straightforward.

The mindset is the real decision.

Is This the Right Path for You?

Ask yourself honestly:

1. Can you operate without guaranteed income initially?
2. Are you willing to stay consistent even when results are delayed?
3. Do you want growth without ceiling?

Real estate in Malaysia remains one of the few industries where effort directly impacts income trajectory.

Natasha once wrote about Malaysia’s property market.

Today, she shapes it.

The opportunity remains open.

The real question is whether you are prepared to commit to it.

At IQI, we provide the platform, training and mentorship to help you grow faster. Join Natasha’s team and build your real estate career in an environment designed for performance, progression and real results.

Continue Reading:

• What are the Benefits of Joining IQI Global as a Real Estate Agent?
• From Engineer to Top-Selling Real Estate Agent: How One Failure Can Bring You Closer to Years of Success
• Are You a -P or -J MBTI Personality Type? Unleash Your Hidden Talent as a Real Estate Agent Based On Your Type!

The post 10 Years as a Property Agent: Lessons From MarieJualKondo appeared first on IQI Blog.

Malaysia’s Budget 2027 could help reduce unsold affordable homes while setting the foundation for the country’s new 10-year National Housing Policy.

With Malaysia targeting one million affordable homes by 2035, Juwai IQI believes the focus should not simply be on building more homes, but building the right homes in the right locations and at prices Malaysians can afford.

How Could Better Planning Prevent RM1.8 Billion in Unsold Homes?

If better housing planning prevents just 1,000 affordable homes averaging RM195,000 from remaining unsold each year, the impact could reach approximately RM1.76 billion over nine years.

Better use of household income, population, employment, transport and housing supply data could help determine what homes to build, where to build them and at what price.

Not every unsold property is considered property overhang. Read our guide on property overhang vs unsold property in Malaysia to understand the difference.

Note: RM1.76 billion is the estimated value of homes that could potentially be prevented from remaining unsold over nine years, not Malaysia’s current total property overhang.

Building Homes Malaysians Actually Need

Kashif said Budget 2027 could help turn Malaysia’s housing targets into practical action.

Budget 2027 can support better data-led planning, more flexible financing and modern construction technologies so that the homes we build better reflect what Malaysian households actually need.

Kashif Ansari, Co-Founder and Group CEO, Juwai IQI

More Ways to Finance a Home

Housing affordability is not only about property prices. Malaysians also need access to financing.

Around 27,000 Malaysians received guarantees through the Housing Credit Guarantee Scheme (SJKP) last year to help purchase their first homes.

Juwai IQI believes Budget 2027 could build on this with alternatives such as rent-to-own, shared ownership and long-term fixed-rate mortgages, particularly for gig workers, freelancers and self-employed Malaysians.

Upfront buying costs are another concern. Juwai IQI has also called for the government to continue supporting first-time buyers through the Budget 2027 first-home stamp duty exemption.

Build Smarter, Not Just More

Malaysia does not simply need more homes. We need the right homes, at the right prices and in the right locations.

Kashif Ansari, Co-Founder and Group CEO, Juwai IQI

echnology could also help Malaysia deliver affordable homes more efficiently.

Industrialised Building System (IBS) can shorten construction periods, while newer methods such as Prefabricated Prefinished Volumetric Construction (PPVC) could further improve construction speed and productivity.

Budget 2027 could encourage developers to adopt technologies that reduce waste, improve efficiency and help control construction costs.

One Million Affordable Homes by 2035

Malaysia aims to deliver one million affordable homes by 2035, or around 100,000 homes per year.

The target is ambitious, but the bigger challenge is making sure those homes are built where people need them, priced within their means and supported by realistic financing options.

As the first federal budget under the new 10-year National Housing Policy, Budget 2027 could help set that direction.

For Juwai IQI, success should not only be measured by how many homes Malaysia builds, but by how many Malaysians can actually afford, finance and live in them.

This article is based on reporting by DagangNews and BusinessToday in October 2026, with insights from Juwai IQI Co-Founder and Group CEO Kashif Ansari on Budget 2027, affordable housing supply, home financing and measures to reduce unsold homes in Malaysia.

Juwai IQI provides expert insights into the property, economic and investment trends shaping markets locally and globally.

Click below to get more expert property insights from our blog!

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The post Budget 2027 Could Help Prevent RM1.8 Billion of Unsold Homes appeared first on IQI Blog.

Policy Reform Takes Centre Stage

Vietnam’s residential market is entering the final quarter of 2026 with policy, rather than pricing, driving the conversation. Resolution 21-NQ/TW is set to shape the next round of Land Law and housing amendments, including proposals linking apartment use to a building’s service life and placing greater reconstruction obligations on owners. 

The changes could also introduce heavier taxation on excess property profits and vacant or unused assets, while land allocation may increasingly favour commercial apartment supply. MBS Research expects some new apartment projects could shift toward 50–99-year tenures, although implementing rules have not yet been issued. 

Despite the uncertainty, activity remains substantial. Nearly 34,000 new homes were launched nationwide in Q2, with around 19,600 units sold, equivalent to an absorption rate of approximately 58%. Average primary apartment prices reached around VND 80 million per sqm, up 10% from 2025. 

Strong Economy Meets Financing Pressure

Hanoi illustrates the market’s growing divide. Q2 sales fell 45% year-on-year, even as luxury-led launches pushed primary prices up 36% to about US$4,659 per sqm. Mortgage rates of 12–14% remain the biggest obstacle for first-time buyers. 

At the same time, Vietnam’s macroeconomic backdrop remains strong. GDP grew 8.39% year-on-year in Q2, while registered FDI reached US$40.63 billion in the first eight months, up 55.4%. Of this, US$5.32 billion was committed to real estate. 

Outlook

Vietnam is likely to remain a selective, end-user-led market rather than enter a broad rally. High financing costs and new legal considerations will make cash strength, legal clarity and land-backed assets increasingly important.

For buyers and investors, due diligence around ownership structure, land-use rights and project legality will matter as much as location and product quality. Vietnam, October 2026

The contents of this article were contributed by Dustin Trung Nguyen, Head of IQI Vietnam.

The post Vietnam Property Market October 2026: Policy Reform Reshapes a Resilient but Selective Market appeared first on IQI Blog.

Luxury Segment Drives Bangkok Condominium Activity

Downtown Bangkok recorded more new condominium launches in H1 2026 than during the same period a year earlier, with luxury and super-luxury developments emerging as the main drivers of new supply. 

Completed condominium projects achieved an average sales rate of 93%, led by the luxury segment at 95%. Projects still under construction recorded a lower average sales rate of 52%, although the super-luxury segment significantly outperformed at 85%. 

The figures suggest that buyers are becoming more cautious, but demand remains strong for premium developments offering the right combination of location, product quality and brand strength. This reinforces the increasingly selective nature of Bangkok’s upper-end property market.

Foreign Buyer Demand and Branded Residences Gain Momentum

Foreign participation is becoming a more important component of central Bangkok condominium demand. Thai buyers accounted for 68% of purchases, while foreign buyers represented 32%—well above the average 18% foreign-buyer share recorded between 2021 and 2025. 

In the super-luxury segment, the leading overseas buyers came from Japan, the United Kingdom, Taiwan and Russia. Branded residences are also becoming an increasingly important market driver, strengthening international recognition and helping developments differentiate themselves through reputation, service and perceived value. 

Outlook

Thailand’s premium residential market is likely to remain selective but resilient, with the strongest demand focused on well-located, differentiated projects. As competition intensifies, success in the luxury and super-luxury segments will depend less on price alone and more on brand, product quality, location and overall value.

The contents of this article were contributed by Somsak Chutisilp, Head of IQI Thailand.

The post Thailand Property Market October 2026: Luxury Condominiums Lead Bangkok’s Selective Growth appeared first on IQI Blog.

New Home Sales Rebound Sharply

Singapore’s private residential market started the second half of 2026 on a stronger note, with new home sales rebounding after two consecutive months of decline.

According to URA data, new private home sales jumped from 156 units in June to 731 units in July 2026, more than quadrupling month-on-month. However, sales were still 22.2% lower year-on-year compared with the 940 units sold in July 2025. 

The rebound was driven mainly by two major launches: Dunearn House in the Core Central Region and Lentor Gardens Residences in the Outside Central Region. The projects achieved healthy take-up rates of 55.8% and 54.1%, respectively. 

Dunearn House benefited from its first-mover position in the new Turf City Precinct, while Lentor Gardens Residences attracted buyers with efficient layouts, accessible pricing and proximity to Lentor MRT and Lentor Modern Mall. 

Suburban Demand Leads Developer Sales

The Outside Central Region accounted for 45.7% of July developer sales, or 334 units, making it the strongest-performing market segment. The Core Central Region contributed 32.1%, while the Rest of Central Region accounted for 22.2%. 

Luxury demand also remained present, including a S$17.3 million unit at Skywaters Residences, sold at S$5,880 per sq ft. 

Outlook

The strong performances at Dunearn House and Lentor Gardens Residences have given Singapore’s residential market a positive start to H2 2026. Buyer demand should remain selective, with well-located and competitively priced launches likely to perform best.

Upcoming projects such as Amberwood at Holland and Lucerne Grand will be key launches to watch as the year progresses. 

The contents of this article were contributed by Raymond Khoo, Vice President, Orange Tee & Tie.

The post Singapore Property Market October 2026: New Home Sales Rebound on Strong Project Launches appeared first on IQI Blog.

Market Growth Becomes More Selective

Saudi Arabia’s property market entered the second half of 2026 in a period of recalibration. Long-term fundamentals remain strong, but residential demand is becoming increasingly price- and affordability-sensitive, favouring well-located and correctly priced projects over broad market speculation. 

Real estate transaction value reached SAR 112 billion in Q1 2026, up 6.8% year-on-year, while Q2 recorded 53,663 transactions worth SAR 72.3 billion. Residential prices increased 1.3% year-on-year, but financing conditions and affordability are playing a larger role in buyer decisions. 

Demand remains structurally supported by population growth, household formation and Saudi Arabia’s homeownership agenda, although buyers are becoming more selective about value, location and end-user demand. 

Riyadh Office Market Remains a Standout

Riyadh continues to offer one of the strongest commercial property stories. Prime office rents reached SAR 3,320 per sqm in Q2 2026, up 3% year-on-year, while Grade A occupancy remained near full capacity. 

Limited high-quality supply, corporate expansion and continued Vision 2030 investment are supporting office demand. Broader opportunities are also emerging across hospitality, logistics, industrial, mixed-use and infrastructure-linked assets, supported by tourism development, economic diversification and major construction activity. 

Outlook

Saudi Arabia remains a positive long-term growth market, but investment is shifting toward a more fundamentals-driven approach. Riyadh is likely to remain the strongest opportunity, while investors should prioritise location, tenant or end-user demand, cash flow visibility and development execution.

Affordability pressure, financing conditions and differences between prime and secondary locations remain key risks, reinforcing the need for a selective rather than broad-based investment strategy.

The contents of this article were contributed by Shareef Ghaleb Kattan, Head of IQI Saudi Arabia.

The post Saudi Arabia Property Market October 2026: Riyadh Leads as Investment Turns More Selective appeared first on IQI Blog.

Residential Recovery Moves Into Clearer View

The Philippine property market is showing stronger signs of recovery, led by a sharp improvement in residential absorption.

In Metro Manila, preselling net take-up surged 765% year-on-year in Q1 2026, driven mainly by the economic and affordable segments. As a result, remaining inventory life fell to 6.8 years, down from a peak of 13.4 years in mid-2025. 

Developers are now prioritising the clearance of ready-for-occupancy stock before launching new projects, while completions are expected to decline from 2027 onward. Vacancy is still projected to reach 25.6% by year-end, but this largely reflects earlier supply decisions rather than current demand conditions. 

Demand also remains healthy in well-priced fringe locations such as the C5 Corridor and Katipunan, reinforcing the importance of the right combination of product, location and pricing. 

Commercial and Industrial Demand Adds Depth

The recovery is also being supported by stronger commercial demand. The Philippines is ranked as the world’s second-largest GCC delivery location, with the GCC workforce projected to reach around 289,000 professionals across approximately 200 centres in 2026. This is supporting demand for prime CBD offices and key provincial markets. 

Tourism has also improved, with 3.16 million international arrivals in H1 2026, up 5.4%, while hotel average daily rates rose 2.4%. Industrial remains another strong segment, supported by new logistics supply and PHP 81.4 billion in approved foreign manufacturing pledges. 

Outlook

The Philippines appears to be entering a confirmed recovery phase, but opportunities remain selective. With buyer-friendly pricing gradually being absorbed and future supply becoming more constrained, well-located residential, office and industrial assets may benefit most as the market continues to improve.

The contents of this article were contributed by Dara Ko-Saavedra, Head of IQI Philippines.

The post Philippines Property Market October 2026: Recovery Strengthens Across Residential, Office and Industrial Sectors appeared first on IQI Blog.