Malaysia has 33,094 brand new homes that nobody has bought. More than a third of them cost RM300,000 or less. That doesn't fit the usual story. We keep hearing that homes are too expensive. Yet thousands of homes at the cheapest end of the market are finished and ready to move into, and still unsold. So what is really going on? The National Property Information Centre (NAPIC) released its H1 2026 data on 10 September 2026, and the numbers explain a lot. Some of the answers aren't what you'd expect. Key Takeaways Malaysia's housing overhang reached 33,094 completed unsold residential units worth RM17.78 billion in H1 2026, up 8.6% from 30,471 units in H2 2025 (NAPIC). 37.3% of these homes are priced at RM300,000 and below. That share was 43% to 47% in Q1 2026, so most of the new unsold stock is priced above RM300,000. Unsold serviced apartments, which NAPIC counts separately as commercial property, jumped 24.7% to 23,375 units worth RM19.33 billion. Developers named loan rejections (30%), high pricing (21%) and unreleased Bumiputera units (16%) as the top reasons units stay unsold (Rehda 1H2026 survey). Prices are not falling nationwide. The average Malaysian house price is RM506,317, up 0.9% year on year. A low price alone doesn't make a home affordable. Location, upfront cash, loan approval and the home itself decide whether it sells. In this articleWhat Is Malaysia's Housing Overhang?Why Are Affordable Homes Still Unsold in Malaysia?3. The buyer wants the home, but the bank says noWhich States Have the Most Unsold Homes in Malaysia?Will the Housing Overhang Make Property Prices Drop?What Does the Housing Overhang Mean for Buyers and Investors?Frequently Asked Questions About Malaysia's Housing Overhang What Is Malaysia's Housing Overhang? A housing overhang is a home that has been completed but remains unsold more than nine months after launch. This is NAPIC's official definition, and it is the figure most news reports quote. Unsold units still under construction, and those not yet built, are tracked separately. So are serviced apartments, which NAPIC classifies as commercial property even though many people live in them. Here is how the numbers moved in the first half of 2026. Malaysia's complete unsold homes, H2 2025 vs H1 2026 CategoryH2 2025H1 2026ChangeResidential overhang (units)30,47133,094+8.6%Residential overhang (value)RM17.73 billionRM17.78 billion+0.3%Serviced apartments (units)18,75223,375+24.7%Serviced apartments (value)RM15.42 billionRM19.33 billion+25.4% Source: NAPIC Property Market Report H1 2026, released 10 September 2026, as reported by Malay Mail and The Edge Malaysia. Add both categories together and Malaysia has 56,469 completed, unsold homes worth RM37.11 billion. The residential overhang also has a clear profile: 43.4% are high-rise units and 34.9% are terraced houses. 38% were launched six to 10 years ago, so a large part of this is old stock. 37.3% are priced at RM300,000 and below. That works out to roughly 12,300 homes, based on our calculation. The detail most reports miss: the affordable share is shrinking In Q1 2026, NAPIC figures cited in Parliament and by the National House Buyers Association (HBA) put homes priced at RM300,000 and below at 43% to 47% of the overhang. By H1 2026, that share had fallen to 37.3%. Over the same period, the number of unsold units rose by only 293 (from 32,801 to 33,094). Their total value rose by about RM1.41 billion (from RM16.37 billion to RM17.78 billion). Most of the new unsold stock is priced well above RM300,000. On average, each unsold home is now worth around RM537,000. The government has said the same. Deputy Housing and Local Government Minister Datuk Aiman Athirah Sabu told the Dewan Rakyat on 29 June 2026: "This shows that unsold housing is not limited to affordable housing alone." AUTHOR'S TAKEI think the headline number hides the real story. Yes, thousands of RM300,000 homes are unsold. But that pile is getting smaller, while the pricier stock above it keeps growing. To me, Malaysia doesn't have a cheap-homes problem. It has a problem with homes built in the wrong place, in the wrong form, at the wrong time. How much home can your salary actually carry? See the loan amount banks typically approve at your income level before you start viewing. Check your loan limit → play-button1 Why Are Affordable Homes Still Unsold in Malaysia? Developers have told us why. In Rehda's 1H2026 Property Industry Survey of 181 developers, the top reasons units stayed unsold were loan rejections (30%), high pricing (21%) and unreleased Bumiputera units (16%). Rehda president Datuk Zaini Yusoff summed it up on 23 September 2026: "Housing affordability should not be viewed solely from the perspective of property prices." Here are the four reasons that matter most to buyers. 1. The price is affordable, but the location isn't Many low-cost projects are built where land is cheap. That usually means far from jobs, trains and schools. Tang Chee Meng, chief operating officer of Henry Butcher Real Estate, told The Edge Malaysia in August 2026: "The locations of these houses are often unsuitable for intended buyers." Let's work through the numbers. Say a home is RM80,000 cheaper but adds 40km each way to your drive to work. Worked example: is the cheaper, far-away home really cheaper ItemPer monthInstalment saved on an RM80,000 lower price (90% loan, 4%, 35 years)RM319 savedExtra fuel for 1,760km (80km a day x 22 days, at 12km per litre, RON95 RM1.99)RM292Extra tolls (RM4 each way x 44 trips)RM176Net resultAbout RM149 worse off Illustrative only. Excludes car wear, parking and roughly 1.5 extra hours on the road every working day. The lower price is cancelled out by the commute, and you also lose time with your family. That's why many buyers would rather keep renting near work than buy a cheap home far away. 2. A RM300,000 home still needs close to RM40,000 in cash The price tag is only where the costs start. Here's what a first-time buyer pays on a RM300,000 home with a 90% loan. The real cost of a RM300,000 first home (2026) CostEstimated amount10% down paymentRM30,000Legal fees, SPA and loan agreement (SRO 2023 scale, incl. 8% service tax)About RM7,700Stamp duty on transfer and loan (first home up to RM500,000, until 31 Dec 2027)RM0Cash needed before keysAbout RM37,700 + disbursementsMonthly instalment (RM270,000 loan, 4%, 35 years)About RM1,195Total interest paid over 35 yearsAbout RM232,100 Illustrative calculation. Excludes valuation, disbursements, insurance, maintenance fees and furnishing. Actual rates and approval depend on your bank. A household that can afford RM1,195 a month may still not have RM37,700 saved. That's how a home can be affordable on paper but out of reach in cash. Our guide to the real cost of buying a house in Malaysia lists every fee, and the i-Miliki stamp duty exemption explains what first-time buyers save. Want to try your own numbers? Change the price, rate and tenure below. Estimates for guidance only. Actual figures depend on the bank's assessment, current rates and your full financial profile. 3. The buyer wants the home, but the bank says no Loan rejection is the single biggest reason units stay unsold, at 30% of cases in Rehda's survey. Zaini also said: "Among the main factors contributing to housing loan rejection were purchasers' income eligibility." Banks look at your debt service ratio (DSR), which is all your monthly debt repayments as a share of your income. The instalment is only one part of it. Add the RM1,195 instalment to a RM600 car loan and a RM150 PTPTN repayment. Your commitments are now about RM1,945 a month. For many young buyers, that's where the application gets rejected. Gig workers and the self-employed face an extra hurdle because they can't show regular payslips. Juwai IQI has called on Budget 2027 to offer more creative financing for this group, including rent-to-own and shared ownership. Check where you stand before you apply: Each bank sets its own DSR limits. Use this as a guide, not an approval. Help does exist. Budget 2026 set aside a RM20 billion guarantee under the Housing Credit Guarantee Scheme (SJKP), expected to benefit about 80,000 homebuyers. Compare your options in our first home schemes guide. 4. The home doesn't fit how people live today Remember, 38% of the overhang was launched six to 10 years ago. Many of these homes were planned before the pandemic, before working from home and before new rail lines changed which areas are in demand. Tang put it this way: "The size and design of the units may not meet the needs of targeted buyers." Sulaiman Saheh of Rahim & Co Chestertons was even more direct: "What people want is not just a RM300,000 house." Common mismatches include small two-bedroom layouts for growing families, a single parking bay per unit and high-rise blocks with maintenance fees that push up the monthly cost. In some projects, unsold units are Bumiputera-quota units that have not been released to other buyers. The key takeaway: for most buyers, an affordable home is one they can pay for, reach easily and actually live in, not just one with a low price. AUTHOR'S TAKEYoung buyers don't usually ask, "Is it under RM300,000?" They ask, "Can I get to work by 8.30am?" and "Will the bank say yes?" If a home fails either test, a lower price won't change their mind. Before buying any "affordable" unit, I'd ask whether you would happily live there for 10 years. If the honest answer is no, it isn't really affordable for you. Which States Have the Most Unsold Homes in Malaysia? Johor now has the most unsold homes in Malaysia, with 4,222 completed unsold residential units in H1 2026. It also leads in serviced apartments, with 9,946 unsold units, or about 43% of the national total. Johor wasn't top of the list three months earlier. Here's the Q1 2026 ranking for comparison. States with the highest residential overhang StateQ1 2026 (units)H1 2026 (units)Johor3,852 (2nd)4,222 (1st)Perak4,063 (1st)Not yet publishedSelangor3,745 (3rd)Not yet publishedKuala Lumpur3,733 (4th)Not yet publishedPenang3,165 (5th)Not yet published Sources: NAPIC Q1 2026 Property Market Status Report via Penang Property Talk (2 July 2026); NAPIC H1 2026 report via Malay Mail (10 September 2026). We will update this table once the full H1 2026 state breakdown is public. Johor's unsold stock grew by 370 units, or 9.6%, in a single quarter. Yet Juwai IQI data showed Johor subsale prices rising 8.3% in Q2 2026, among the fastest in the country. Both trends can be true. Buyers are paying more for established homes in good locations, while new high-rise stock in less popular areas stays empty. State totals don't show this, so always look at the specific district and development. Our NAPIC Q1 2026 breakdown covers the state data in more detail. Will the Housing Overhang Make Property Prices Drop? Not across the country. The Malaysian House Price Index stood at 234.7 points in H1 2026. The average house price was RM506,317, up 0.9% year on year, even as unsold stock rose. Stable borrowing costs are a big reason. The Overnight Policy Rate has stayed at 2.75% since July 2025. Kashif Ansari, Co-Founder and Group CEO of Juwai IQI, told Bernama in August 2026: "These stable financing conditions are one of the pillars that support the property market." Prices are under pressure in specific places instead: Older unsold projects, where developers need to recover costs and may offer rebates, free legal fees or furnishing packages. Serviced apartments, where 55.2% of unsold units sit in the RM500,001 to RM1 million band. Areas with a lot of new supply. Rehda found 53% of new launches in 1H2026 were priced RM300,001 to RM500,000, so more homes in that price range are coming. For the wider picture, see our Malaysia property market update and the latest subsale price data. Can better planning stop the overhang from growing? See how Budget 2027 could help prevent RM1.8 billion worth of homes from going unsold. Read the Budget 2027 analysis What Does the Housing Overhang Mean for Buyers and Investors? For homebuyers: more room to negotiate When a developer has finished units it can't sell, you have more room to negotiate. You can also see the actual unit, building quality and neighbourhood before you pay, which isn't possible with an off-plan purchase. Just don't assume every unsold unit is a bargain. Ask these questions first. Buying an unsold or overhang unit: 5 questions to ask AskWhy it mattersWhy hasn't it sold?If it's the location or the layout, a discount won't fix that.How does the price compare with recent sales nearby?The discount should be compared with transacted prices, not the developer's original asking price.How many units in the block are still empty?Low occupancy can mean weaker maintenance-fee collection and slower resale.Can I pass a DSR check with room to spare?You need a buffer for rate changes, repairs and life events.Will this still suit me in 10 years?Think about marriage, children, a new job and how easy the home will be to resell. For investors: opportunities, but check the risks A large overhang can get you better purchase terms. But it also means more competition for tenants. If 200 empty units in your block are listed for rent, your rental yield falls. Before you invest, check actual rental demand nearby, recent transacted prices and how many new units are coming. Find out why the units are unsold, not just how many there are. Malaysia does not simply need more homes. We need the right homes, at the right prices and in the right locations. AUTHOR'S TAKEMy advice is to approach an overhang unit the way you would a subsale. Check the sale prices of comparable units nearby, visit at night and during rush hour, and get the developer's final offer in writing. A discount on a good home in the right area is a great deal. A discount on the wrong home is just a cheaper mistake. The bottom line Malaysia's housing overhang isn't just a story about 33,094 empty homes. It shows a gap between what gets built and what Malaysians can actually pay for, reach and live in. For buyers, the cheapest home is not always the most affordable one in the long run. Choose a home that works for your budget, your commute and your loan. If you're starting out, our complete guide to buying a house in Malaysia takes you through every step. Frequently Asked Questions About Malaysia's Housing Overhang How many unsold homes are there in Malaysia in 2026? Malaysia recorded 33,094 completed unsold residential units worth RM17.78 billion in H1 2026, up 8.6% from 30,471 units in H2 2025, according to NAPIC. Another 23,375 unsold serviced apartments worth RM19.33 billion are counted separately as commercial property What is a housing overhang in Malaysia? Under NAPIC's definition, a housing overhang is a completed residential unit that remains unsold more than nine months after launch. Unsold units under construction and serviced apartments are reported separately. Why are affordable homes still unsold in Malaysia? Developers in Rehda's 1H2026 survey cited loan rejections (30%), high pricing (21%) and unreleased Bumiputera units (16%) as the top reasons. Poor locations, upfront cash costs of close to RM40,000 on a RM300,000 home, and outdated layouts also keep buyers away. Which state has the highest housing overhang in Malaysia? Johor had the highest residential overhang in H1 2026, with 4,222 completed unsold units. It also led in unsold serviced apartments with 9,946 units. In Q1 2026, Perak was first with 4,063 units. Will the housing overhang cause property prices to fall in Malaysia? Not nationwide. The average Malaysian house price was RM506,317 in H1 2026, up 0.9% year on year. Price pressure is more likely in older unsold projects, serviced apartments and areas with heavy new supply. Should I buy an overhang property in Malaysia? It can be a good deal if the price is below recent transacted prices nearby, the location suits your daily life and you can pass a DSR check with a buffer. Always find out why the unit has not sold before you commit. Thousands of unsold homes. But which one is worth buying? Let an IQI agent help you compare prices, spot better deals and find a home that fits your budget. Leave your details below and find your next home with IQI. [custom_blog_form] C Sources Malay Mail, "Malaysia's unsold completed homes rise 8.6pc in H1 2026", 10 September 2026 The Edge Malaysia, NAPIC 1H2026 Property Market Report coverage, 10 September 2026 EdgeProp, Daily Digest (House Price Index H1 2026), 11 September 2026 EdgeProp, Rehda Property Industry Survey 1H2026, 23 September 2026 Malay Mail, Rehda 1H2026 survey findings, 23 September 2026 Malay Mail, Q1 2026 overhang in the Dewan Rakyat, 29 June 2026 The Edge Malaysia, "Why aren't Malaysians buying affordable residential units priced below RM300,000?", 17 August 2026 Penang Property Talk via Newswav, Q1 2026 state overhang ranking, 2 July 2026 BernamaBiz, "Subsale house market to continue growing in 2H 2026: Juwai IQI", 18 August 2026

Version: BM & CN Could Malaysia Budget 2027 make homeownership more affordable? Source:Freemalaysiakini On 9 October 2026, Prime Minister Datuk Seri Anwar Ibrahim tabled Malaysia Budget 2027, the fifth MADANI Budget and the second under the 13th Malaysia Plan (RMK13). Guided by the theme “Malaysia MADANI: Reaching For The Skies, While Anchored On Our Values”, the Budget aims to balance economic growth with the everyday needs of Malaysians, particularly amid rising living costs and housing affordability challenges. With a total allocation of RM 459.84 billion, with nearly RM1 billion for Rumah Mesra Rakyat and Residensi Rakyat homes alone. Going in, developers had pushed for wider stamp duty relief and a fresh Home Ownership Campaign. Buyers were watching for easier access to home loans. They got the first, in a big way. First-home stamp duty relief now stretches to RM750,000 and runs until 2030. There is no new HOC, but there is more help on financing, take-home pay and new housing supply. Here's what changed, and what it means for your next property move. Key Takeaways Stamp duty: full exemption for first homes up to RM500,000. First homes up to RM750,000 get the first RM500,000 exempt and 50% off the balance, for SPAs signed from 1 January 2027 to 31 December 2030. New homes: Bandar MADANI Bukit Jalil (Phase 1 registration opens 12 October 2026), at least 2,500 Rumah MADANI units in Belfield, KL, and nearly RM1 billion for Rumah Mesra Rakyat and Residensi Rakyat. Financing: SJKP guarantees of up to RM20 billion for 80,000 first-time buyers, plus RM270 million from BSN and Agrobank for gig workers. Income: individual tax relief rises from RM9,000 to RM12,000, two tax bands drop one point, and the minimum wage rises to RM2,000 from June 2027. Growth spots: ECRL Phase 1 opens in December, Johor Bahru gets an elevated rail transit system, and the JS-SEZ master plan launches by year-end. Budget 2027 Malaysia: Real Estate & Future DevelopmentCould Malaysia Budget 2027 make homeownership more affordable?1. Stamp Duty: First-Home Relief Now Covers Homes Up to RM750,0002. New Affordable Homes & Better Neighbourhoods3. Home Financing for the Self-Employed and Gig Workers4. More Take-Home Pay, Bigger Loan Eligibility5. Transport, Infrastructure & Investment Hotspots6. What Budget 2027 Means for Buyers & InvestorsThe Bottom LineFrequently Asked Questions About Malaysia Budget 2027 and Property Estimated reading time: 14 minutes 1. Stamp Duty: First-Home Relief Now Covers Homes Up to RM750,000 Until now, first-time buyers got a full stamp duty exemption only on homes up to RM500,000, and only until the end of 2027. Budget 2027 goes further. The government has proposed two tiers of relief on both the loan agreement and the transfer instrument (memorandum of transfer): First homes up to RM500,000: full stamp duty exemption. First homes up to RM750,000: full exemption on the first RM500,000, and 50% off the balance. The relief applies to sale and purchase agreements (SPAs) signed from 1 January 2027 to 31 December 2030, three years longer than the current deadline. It also answers a long-standing industry ask. Developers' association REHDA had lobbied for relief on homes above RM500,000 ahead of the Budget. Juwai IQI had also pushed for the extension, since homes priced up to RM500,000 make up about 77% of transactions, based on NAPIC 2025 data. The stamp duty extension is a vital measure because it helps more than three out of four buyers. Kashif Ansari, Co-Founder and Group CEO, Juwai IQI First home priceStamp duty without reliefUnder Budget 2027You saveRM500,000RM9,000RM0RM9,000RM600,000RM12,000RM1,500RM10,500RM700,000RM15,000RM3,000RM12,000RM750,000RM16,500RM3,750RM12,750 The biggest winners are buyers in the "missing middle". A first-time buyer of a RM700,000 condo saves about RM12,000 on the transfer document alone, money that can go into renovation or a bigger deposit. Want your exact figure? Run it through IQI's property transaction fees calculator or see how the earlier i-MILIKI stamp duty exemption worked in practice. A Rescue Line for Abandoned Housing Projects The government is targeting zero abandoned housing projects by 2030. Rescuing contractors or developers, and the original buyers, will get a full stamp duty exemption on loan agreements and transfer instruments from 1 January 2027 to 31 December 2030. For buyers stuck in a stalled project, that removes one more cost between them and their keys. 2. New Affordable Homes & Better Neighbourhoods Budget 2027 puts real addresses on its housing promises. Most of the new supply lands in and around Kuala Lumpur, where affordability is tightest. ProjectWhat's plannedBandar MADANI Bukit Jalil, KLA people's township with full facilities, including a vertical school. Phase 1 registration opens on Monday, 12 October 2026.Rumah MADANI Belfield, KLAt least 2,500 homes on nearly 11 acres of government land, with 70% for Bumiputera buyers.Rumah Mesra Rakyat and Residensi RakyatNearly RM1 billion, with new projects in Kulai (Johor), Nilai (Negeri Sembilan), Paya Rumput (Melaka) and Lembah Pertang (Terengganu).Malay Reserve Land, KL50 acres gazetted. Petronas has started developing the first 10 acres for affordable housing.Bumiputera land endowment, KL50 acres of strategic land worth RM1 billion, to be developed by PNB with affordable housing in mind.Civil servant quartersRM2.3 billion to build and maintain quarters for police, doctors, soldiers, teachers and firefighters, plus new armed forces family homes in Skudai, Johor.ECRL corridor, PahangPeople's housing planned near KotaSAS station. Upgrades for Existing Communities RM400 million from DBKL for 120 acres of new green space, park restoration and people's housing upgrades, plus 22 kilometres of covered walkways linking homes to schools, clinics and transit. RM50 million for Komuniti Angkat MADANI, focused on urban PPR communities. Over RM100 million to repair and rebuild infrastructure in Chinese new villages. RM1.26 billion for FELDA, including housing for the FELDA generation. Disaster home repair aid doubles from RM5,000 to RM10,000. The government is also upgrading its Property Management Division into a full National Property Department to manage civil servant housing. Not sure which housing scheme fits you? Compare every first-home scheme in Malaysia, from eligibility to price caps, in one guide. Compare first-home schemes 3. Home Financing for the Self-Employed and Gig Workers For many buyers, the real barrier is not the price tag. It is getting a bank to say yes without a fixed monthly payslip. Building affordable homes is only half of the equation. Kashif Ansari, Co-Founder and Group CEO, Juwai IQI, in Business Today (5 October 2026) SJKP (Skim Jaminan Kredit Perumahan) continues to guarantee home financing of up to RM20 billion, helping 80,000 first-time buyers, especially the self-employed without a fixed income. BSN and Agrobank are providing RM270 million to finance gig workers who want to start a business or buy their first home. E-hailing and p-hailing drivers must now contribute to the Lindung Kendiri social protection scheme, and KWSP will match their retirement savings by up to RM600 a year, or RM6,000 over a lifetime. Why does this matter for a home loan? Banks lend on proof of steady income and savings. Regular contributions and a guarantee behind the loan make that proof much easier to show. 4. More Take-Home Pay, Bigger Loan Eligibility Some of the most useful measures for buyers have nothing to do with housing on paper. They put more money in your pocket every month, and that counts when you apply for a loan. Lower Income Tax Individual tax relief rises from RM9,000 to RM12,000, its first revision since 2010. Two tax bands drop by one percentage point: 18% on chargeable income of RM70,000 to RM100,000, and 24% on RM100,000 to RM150,000. Income above RM1 million is adjusted to a 30% rate. The government says about 5 million taxpayers will get up to RM1,600 more in disposable income a year. Here's roughly what that looks like: Chargeable income (before relief)Estimated tax saving a yearPer monthRM60,000About RM330About RM28RM90,000About RM740About RM62RM130,000About RM1,320About RM110 IQI illustrative estimates combining the RM3,000 higher individual relief and the one-point rate cuts. Your actual saving depends on your full tax position. Higher Wages The minimum wage rises from RM1,700 to RM2,000 from June 2027, covering more than 4 million workers. SMEs with sales below RM50 million are exempt for now. A new RM2,500 minimum salary is introduced for semi-skilled jobs and graduates, as a starting point. GLICs and GLCs raise their living wage benchmark from RM3,100 to RM3,400, benefiting 230,000 workers. What does a pay rise do to your loan? Take the RM300 minimum wage increase. At a 60% debt service ratio, it could support up to RM180 more in monthly repayments. That is roughly RM40,000 more in loan eligibility at 4% over 35 years. Treat this as a guide, since every bank sets its own limits. 5. Transport, Infrastructure & Investment Hotspots New lines, stations and jobs tend to reprice the neighbourhoods around them, often years before they open. These are the projects worth watching. Rail and Public Transport ECRL Phase 1, Kota Bharu to Gombak, is expected to start running this December, with an extension to Rantau Panjang agreed. Johor Bahru gets an elevated autonomous rail transit system (e-ART) to ease traffic, plus more buses, more frequent KTM Komuter trains and Grab Shuttle services ahead of the RTS Link. Klang Valley Double Track 2, a new KLIA to Bandar Enstek road and an upgraded Jalan Pajam-Nilai-Salak support Malaysia Vision Valley 2.0 in Negeri Sembilan. 42 new train sets for ETS and KTM Komuter, and over RM3.4 billion from Prasarana to restore its rail services. A new MyKomuter50 pass saves KTM Komuter users up to RM160 a month. Regional and Rural Infrastructure Sabah receives RM18.7 billion and Sarawak RM16.2 billion, with RM3.3 billion for roads. Pan Borneo Sabah Phase 1B and the Sarawak-Sabah Link Road 1 are targeted for completion by end-2027. RM3.3 billion for basic rural infrastructure, from village roads and street lights to clean water and electricity. RM100 million for retention ponds and river works to cut flash flood risk in the Klang Valley. Investment Zones to Watch Johor-Singapore Special Economic Zone (JS-SEZ): RM132 billion in investment recorded from 2025 to June 2026. Its master plan and blueprint launch by the end of this year, and Nexus Sedenak is set to become a new industrial hub with RM12 billion in potential investment and 45,000 jobs. Forest City: the Single Family Office scheme offers zero tax on qualifying income for up to 20 years, and a new Multi-Family Office model is coming. Elmina, Selangor: Sime Darby Property, KWSP and LTAT are setting up a RM1.25 billion fund to develop data centres and logistics assets. Green technology: companies running green projects or EV charging stations, or buying green assets for their own use, can claim an investment tax allowance of up to 100%, now extended to 31 December 2030. 6. What Budget 2027 Means for Buyers & Investors Headlines are one thing. Here's what Budget 2027 actually changes, depending on where you are in your property journey. If you are a...What changedWhat to do nextFirst-time buyer, home up to RM500,000Full stamp duty exemption extended to 31 December 2030No need to rush in 2027. Take time to compare locations and financing.First-time buyer, home up to RM750,000First RM500,000 exempt, 50% off the balanceThe relief covers SPAs signed from 1 January 2027, so check your timing with your agent and lawyer.Self-employed or gig workerSJKP guarantees of up to RM20 billion, plus RM270 million from BSN and AgrobankBuild your income record now: contributions, bank statements and tax filings.Salaried upgraderLower tax and higher relief, but no new stamp duty reliefRecheck your DSR. Higher take-home pay may lift your loan limit.Property investorECRL opening, Johor e-ART, JS-SEZ master plan, Klang Valley Double Track 2Watch homes near upcoming stations and in Johor's growth corridors.Buyer in an abandoned projectFull stamp duty exemption when a rescuing developer takes overFollow up with the developer and KPKT on the revival plan. The Bottom Line Budget 2027 is not law yet. MPs begin debating it on 12 October, and the committee stage wraps up on 26 November. But the direction is clear. Housing sits close to the top of the government's list, with wider stamp duty relief leading the way and new supply following behind it. For buyers, the smart move is to plan around what is confirmed, not what is rumoured. Check how much you can borrow, work out your stamp duty savings, and mark two dates: 1 January 2027, when the wider relief starts, and 31 December 2030, when it ends. Frequently Asked Questions About Malaysia Budget 2027 and Property What is the first-home stamp duty exemption in Budget 2027? Budget 2027 proposes a full stamp duty exemption on the loan agreement and transfer instrument for first homes up to RM500,000. For first homes up to RM750,000, the first RM500,000 is fully exempt and the balance gets 50% off. It applies to SPAs signed from 1 January 2027 to 31 December 2030. How much stamp duty does a first-time buyer save on a RM700,000 home? On the transfer instrument alone, stamp duty on a RM700,000 home is RM15,000 without relief. Under Budget 2027, the first RM500,000 is exempt and the remaining RM6,000 is halved, so the buyer pays about RM3,000 and saves around RM12,000. Loan agreement savings come on top. Is there a Home Ownership Campaign (HOC) in Budget 2027? No Home Ownership Campaign was announced in the Budget 2027 speech. Instead, the government widened first-home stamp duty relief to RM750,000, kept SJKP financing guarantees at up to RM20 billion, and introduced a full stamp duty exemption for rescued abandoned housing projects. How does Budget 2027 help self-employed and gig workers buy a home? SJKP provides home financing guarantees of up to RM20 billion, aimed at 80,000 first-time buyers, especially the self-employed without a fixed income. BSN and Agrobank are also providing RM270 million to finance gig workers who want to start a business or buy their first home. What new affordable housing projects were announced in Budget 2027? Key projects include Bandar MADANI Bukit Jalil, with Phase 1 registration opening on 12 October 2026, at least 2,500 Rumah MADANI units in Belfield, Kuala Lumpur, and nearly RM1 billion for Rumah Mesra Rakyat and Residensi Rakyat, including new projects in Kulai, Nilai, Paya Rumput and Lembah Pertang. When do the Budget 2027 property measures take effect? The stamp duty measures apply from 1 January 2027 to 31 December 2030, once Parliament passes the Budget and the Finance Bill. Policy-level debate runs from 12 to 22 October 2026, ministers reply from 26 to 29 October, and the committee stage runs from 2 to 26 November. Wondering how Budget 2027 could impact your property investment plans? Connect with IQI's property experts today for professional insights and guidance to help you explore the right investment opportunities in Malaysia. [custom_blog_form] Continue Reading: Budget 2026 Malaysia: RM672 Million for Property & Urban Development Growth First-Home Schemes in Malaysia East Coast Rail Link (ECRL) and Future Developments in Penang Malaysia Budget 2027 Forecast for Real Estate and Property Sources Ministry of Finance Malaysia, Ucapan Belanjawan MADANI 2027, 9 October 2026 Free Malaysia Today, 2027 Budget totals RM510bil, says Anwar, 9 October 2026 Free Malaysia Today, Pengecualian duti setem penuh untuk rumah pertama bawah RM500,000, 9 October 2026 Free Malaysia Today, RM1 bilion untuk projek perumahan, SJKP jamin pembiayaan RM20 bilion, 9 October 2026 The Star, Budget 2027: Govt proposes stamp duty exemptions for first-time homebuyers, 9 October 2026 EdgeProp, Budget 2027: Malaysia sets aside nearly RM1b for housing, 9 October 2026 Bernama, Second Reading Of Supply Bill 2027 This Friday At 3.30 pm, 6 October 2026 Bernama, Budget 2027 Must Meet People's Aspirations, Drive National Development, 18 August 2026 The Star, Rehda seeks enhanced housing credit guarantee scheme, stamp duty relief in Budget 2027, 23 September 2026 Business Today, Commentary: Budget 2027 Could Help Prevent RM1.8 Billion Of Empty Homes, Kashif Ansari, 5 October 2026 IQI Blog, Budget 2027 stamp duty exemption for first home buyers, 10 September 2026 Slide images: RTM / TV1, Budget 2027 live broadcast, 9 October 2026

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. In this guideCan Foreigners Buy Property in Malaysia?How Much Do Foreigners Need to Spend? Minimum Prices by StateHow to Buy a Home in Malaysia as a Foreigner: 7 StepsHow Much Does It Really Cost a Foreigner to Buy?Should You Buy Through MM2H?Why Foreigners Choose Malaysia: Experts and Our TakeFAQ 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 Rule for foreign buyersMalaysiaSingaporeThailandOwn a condo in your own nameYesYesYes, within a 49% foreign quota per buildingOwn landed propertyYes in most states, with consent and higher minimumsGenerally no, without government approvalNo freehold land ownershipExtra purchase tax8% flat stamp duty on residential transfers60% Additional Buyer's Stamp DutyStandard transfer feesLong-stay visa linked to propertyMM2H, from USD150,000 fixed depositNoSeparate visa schemes 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. StateLanded (RM)Strata, condo (RM)Kuala Lumpur1,000,0001,000,000Putrajaya and Labuan1,000,0001,000,000Selangor (zones 1 to 3)2,000,0002,000,000Johor2,000,000 (designated international zones)1,000,000Penang Island3,000,0001,000,000Penang mainland1,000,000500,000Melaka1,000,000500,000Negeri Sembilan1,000,000600,000Sabah1,000,000600,000Kedah600,000 (1,000,000 in Langkawi)600,000Perak1,000,0001,000,000Perlis500,000500,000Sarawak500,000 to 600,000, by division500,000 to 600,000, by division 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. Browse subsale homes → 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. Cost itemForeign buyer (RM)Malaysian buyer (RM)Stamp duty on transfer80,000 (8% flat)24,000 (1% to 3% tiers)Legal fee on the SPA11,25011,2508% service tax on legal fee900900State consent fee or levyVaries by stateNot requiredExtra costs, cash purchase92,150 (about 9.2%)36,150 (about 3.6%) 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 Held forRPGT, foreignerRPGT, Malaysian citizenTax on a RM200,000 gain, foreignerYears 1 to 530%30% to 15%RM60,000Year 6 onwards10%0%RM20,000 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. MM2H tierFixed depositPass termMinimum home priceMinimum ageSilverUSD150,0005 years, renewableRM600,00025GoldUSD500,00015 years, renewableRM1,000,00025PlatinumUSD1,000,00020 years, renewableRM2,000,00025SEZ/SFZ (Forest City, Johor)USD65,000 (age 21 to 49) or USD32,000 (age 50+)10 years, renewableSet for the development21 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 From the authorI will be honest. I think Malaysia is one of the best places in Asia for a foreigner who wants a relaxed life at a price that still makes sense.Life here moves at a gentler pace. You can live in a city with good hospitals, international schools and an airport that connects you to the region, and still be an hour from a beach, a rainforest or the cool air of the highlands.Then there is the culture. Malay, Chinese, Indian and indigenous communities live side by side, and you feel it every day. In one day you can have nasi lemak for breakfast, dim sum for lunch and banana leaf rice for dinner, and none of it will cost you much.The history is everywhere too. Walk the shophouse streets of George Town or Melaka, both UNESCO World Heritage cities, and you are walking through centuries of trade between East and West.It is not perfect. KL traffic tests your patience and the humidity takes getting used to. But for value, variety and the way people welcome you, there is so much here worth exploring, and owning a home is the best way to do it properly. FAQ Can a foreigner buy a house in Malaysia? Yes. Foreigners can buy residential property in Malaysia, including freehold homes, and register it in their own name. Every purchase needs state authority consent, must meet the state's minimum price for foreigners, and cannot be low-cost or medium-cost housing, a Bumiputera quota unit or Malay Reserved Land. What is the minimum price a foreigner can pay for property in Malaysia? It depends on the state. Kuala Lumpur sets RM1,000,000, Selangor RM2,000,000, and Penang Island RM1,000,000 for condos and RM3,000,000 for landed homes. Some states are lower, with strata homes from RM500,000 in Melaka, mainland Penang and Perlis. Thresholds change, so confirm with a lawyer before buying. How much stamp duty do foreigners pay in Malaysia in 2026? From 1 January 2026, non-citizens who are not permanent residents, and foreign companies, pay a flat 8% stamp duty on the transfer of residential property. On a RM1,000,000 home that is RM80,000. A Malaysian buyer pays tiered rates of 1% to 4%, or RM24,000 on the same home. Can foreigners get a home loan in Malaysia? Yes. Malaysian banks lend to foreigners, typically 60% to 70% of the property value, depending on the bank, the buyer's income and the property. Expect to provide overseas income documents, tax returns and bank statements. Do I need MM2H to buy property in Malaysia? No. Any foreigner can buy property that meets the state's rules. MM2H is a separate long-stay pass programme. It requires participants to buy a home, with minimum prices of RM600,000 for Silver, RM1,000,000 for Gold and RM2,000,000 for Platinum, and the state's own foreign buyer minimum still applies. Does buying property in Malaysia give me residency? No. Owning property does not give you a visa, permanent residency or citizenship. To live in Malaysia long term, you need a pass such as MM2H, which is renewable but does not lead to citizenship or permanent residency. How long does it take for a foreigner to buy property in Malaysia? A subsale purchase usually takes three to six months from signing the Sale and Purchase Agreement to completion. State authority consent alone can take one to two months or longer, depending on the state. 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. [custom_blog_form] 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