Yes, foreigners can buy landed property in Malaysia. Terrace houses, semi-detached homes, bungalows — all available to non-citizens in most states. The exception is Penang Island, where foreign landed purchases are completely prohibited regardless of price.
But "allowed" and "advisable" are different conversations. Landed property comes with higher minimum price thresholds (Selangor demands RM2M), longer consent timelines (6-12 months versus 3-6 for strata), and rental yields that typically run 1-2 percentage points below condos. For foreign investors accustomed to strata ownership, landed property requires a fundamentally different investment thesis: you are buying appreciation potential and land value, not rental cashflow.
This guide covers the state-by-state rules, the strata vs landed investment case, and the practical path for foreigners who want land under their name in Malaysia.
State-by-State Landed vs Strata Comparison
The threshold difference between landed and strata varies by state. In some states, they are identical. In others, landed is dramatically more expensive — or outright blocked.
| State / FT | Strata Min (RM) | Landed Min (RM) | Gap | Key Notes |
|---|---|---|---|---|
| Kuala Lumpur | 1,000,000 | 1,000,000 | None | Same threshold. Easiest path for foreign landed buyers. |
| Selangor Z1/Z2 | 2,000,000 | 2,000,000 | None | RM2M for everything in prime zones. |
| Selangor Z3 | 1,000,000 | 1,000,000 | None | Sabak Bernam, Kuala Langat only. |
| Penang Island | 3,000,000 | Not allowed | N/A | Absolute landed prohibition on the island. |
| Penang Mainland | 500,000 | 1,000,000 | +500K | Strata cheaper. Landed requires double. |
| Johor | 1,000,000 | 1,000,000 | None | Iskandar Malaysia zones actively marketed to foreigners. |
| Sabah | 600,000 | 1,000,000 | +400K | Strata cheaper. State ministry approval adds 3-6 months. |
| Sarawak | 500,000 | 500,000 | None | LCDA approval required. Historically restrictive. |
| Perak | 1,000,000 | 1,000,000 | None | Limited stock above RM1M outside Ipoh. |
| Melaka | 1,000,000 | 1,000,000 | None | Heritage zone may add conditions. |
| Negeri Sembilan | 1,000,000 | 1,000,000 | None | Customary (adat) land off-limits. |
| Pahang | 1,000,000 | 1,000,000 | None | Cameron Highlands has specific guidelines. |
| Kedah | 1,000,000 | 1,000,000 | None | Langkawi may have separate rules. |
| Kelantan | 1,000,000 | 1,000,000 | None | Majority Malay Reserve. Almost no options. |
| Terengganu | 1,000,000 | 1,000,000 | None | Significant Malay Reserve. Limited stock. |
| Labuan | 500,000 | 500,000 | None | Federal territory. Relatively open. |
Key takeaway: In states where strata and landed thresholds differ (Penang Mainland, Sabah), strata is always cheaper. In states where they are the same, the threshold is not the differentiator — the investment characteristics are. For the complete minimum price table with zone-level detail, see our foreigner minimum price guide. You can also check whether a specific property qualifies using our foreigner eligibility checker.
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Penang Island: The Hard Prohibition
Penang Island does not allow foreigners to buy landed property. This is absolute. No price threshold overcomes it. A foreigner cannot buy a RM15M bungalow on Penang Hill or a RM5M semi-D in Tanjung Bungah.
The prohibition covers:
- Detached houses (bungalows)
- Semi-detached houses
- Terrace houses
- Townhouses on landed title
- Any property with individual (non-strata) land title on Penang Island
The only foreign-purchasable option on Penang Island is strata property at RM3M minimum. That means condominiums, serviced residences, and strata-titled units only.
Penang Mainland is the alternative. Landed property on the mainland (Seberang Perai) is available to foreigners at RM1M. It is a different market — less scenic, more industrial — but the landed opportunity exists at a fraction of the island's strata threshold.
Selangor: RM2M Makes Landed Premium
Selangor's Zone 1 and Zone 2 apply RM2M minimum for both strata and landed. Under the PTG Circular 1/2014 (effective 1 September 2014), the premium zone districts — Petaling, Gombak, Hulu Langat, Klang, Sepang, Kuala Selangor, Hulu Selangor — all carry this threshold.
What does RM2M buy in landed Selangor?
| Property Type | Typical Area | Price Range (RM) | Typical Size |
|---|---|---|---|
| Double-storey terrace | Petaling Jaya, Subang | 1.8M-3.0M | 1,800-2,400 sqft |
| Semi-detached | Shah Alam, Kota Damansara | 2.5M-5.0M | 2,800-4,000 sqft |
| Bungalow | Damansara Heights, Bangsar | 4.0M-15M+ | 4,000-10,000 sqft |
| Cluster house (gated) | Setia Alam, Eco Sanctuary | 2.0M-3.5M | 2,200-3,200 sqft |
At RM2M, you are shopping in the upper end of terraces and the entry point for semi-detached in established Selangor neighbourhoods. Gated-and-guarded developments in Kota Damansara, Tropicana, and Setia Eco Park are common targets for foreign buyers at this price point.
The alternative: Buy landed in KL instead. KL's RM1M threshold means a terrace in Bangsar, Taman Tun Dr Ismail, or Mont Kiara is accessible at half the Selangor minimum. You get a KL address, a shorter consent process (EPU federal versus Selangor district land office), and stronger rental demand.
The Malay Reserve Land Block
This is the single most critical due diligence item for any foreign landed purchase. Malay Reserve Land (Tanah Rizab Melayu) is gazetted under the Malay Reservations Enactment 1913 and can only be owned by Malays. Not just restricted from foreigners — restricted from all non-Malays, including Chinese and Indian Malaysians.
Where Malay Reserve is concentrated:
| State | Malay Reserve Prevalence | Impact on Foreign Landed Buyers |
|---|---|---|
| Kelantan | Majority of land | Almost no options exist |
| Terengganu | Significant proportion | Very limited stock |
| Kedah | Substantial areas | Limited, especially outside Alor Setar |
| Rural areas (all states) | Common | Avoid rural landed purchases |
| KL urban pockets | Scattered | Title search catches these |
| Selangor suburban | Scattered | Title search essential |
How to check: Your lawyer conducts an official land title search at the relevant Land Office (Pejabat Tanah). Cost: RM50-RM100. Turnaround: a few days. The search confirms whether the land is Malay Reserve, freehold or leasehold, existing caveats, and land category.
Do this before signing anything. A property agent may not know (or disclose) the Malay Reserve status. If you sign an SPA and the state consent is rejected because the land is Malay Reserve, you have wasted months and legal fees.
Landed vs Strata: The Investment Case for Foreigners
The data is clear: landed appreciates faster but generates lower rental yield. The question is which matters more for your investment horizon.
| Factor | Landed | Strata (Condo) |
|---|---|---|
| Typical gross rental yield | 2.0-3.5% | 4.0-6.0% |
| Capital appreciation (10-year average) | 4-6% p.a. | 2-4% p.a. |
| Maintenance responsibility | Entirely on owner | Strata management body |
| State consent timeline | 5-12 months | 3-6 months |
| Tenant turnover | Low (families, 2-3 year tenancies) | Higher (professionals, 1-2 year) |
| Remote management difficulty | High | Low-moderate |
| Financing availability | Same LTV (60-70%) | Same LTV (60-70%) |
| Foreign buyer stamp duty | 8% flat | 8% flat |
| RPGT | Same rates (30%/10%) | Same rates (30%/10%) |
| Vacancy risk | Lower | Higher |
Why Strata Usually Wins on Cashflow
The math is straightforward. At 60-70% LTV and 4.5-5.0% mortgage rate, you need approximately 5.5-6.0% gross rental yield to break even on cashflow (before tax). Strata properties in KL routinely achieve 4-6%. Landed properties rarely exceed 3.5%. Non-resident owners also face a 30% flat tax on rental income, which further erodes landed yields.
Worked example — RM1.5M landed terrace in Johor, 60% LTV:
| Item | Monthly (RM) | Annual (RM) |
|---|---|---|
| Rental income (2.8% yield) | 3,500 | 42,000 |
| Loan instalment (RM900K at 4.75%, 30yr) | (4,717) | (56,604) |
| Maintenance/upkeep (owner) | (400) | (4,800) |
| Insurance (building + contents) | (150) | (1,800) |
| Assessment + quit rent | (200) | (2,400) |
| Rental income tax (30% on net) | (685) | (8,220) |
| Net monthly cashflow | -2,652 | -31,824 |
That is negative RM2,652 per month. RM31,824 per year in holding cost. Over 5 years, that is RM159,000 in negative cashflow — before RPGT on sale.
Same capital in a RM1.5M KL condo, 60% LTV:
| Item | Monthly (RM) | Annual (RM) |
|---|---|---|
| Rental income (5.0% yield) | 6,250 | 75,000 |
| Loan instalment (RM900K at 4.75%, 30yr) | (4,717) | (56,604) |
| Maintenance + sinking fund | (500) | (6,000) |
| Assessment + quit rent | (150) | (1,800) |
| Rental income tax (30% on net) | (1,380) | (16,560) |
| Net monthly cashflow | -497 | -5,964 |
Negative RM497/month versus negative RM2,652/month. The condo cuts your annual holding cost by RM25,860. Over 5 years, that is RM129,000 more in your pocket.
Use our cashflow calculator to model your specific scenario with precise mortgage, tax, and expense calculations.
Why Landed Wins on Appreciation
The counter-argument is capital growth. Landed property in established Malaysian neighbourhoods has outperformed strata consistently over the past two decades.
Historical appreciation examples:
| Location | 2010 Price | 2025 Price | Annualised Growth |
|---|---|---|---|
| Bangsar terrace (KL) | RM700,000 | RM2,000,000+ | ~7.2% p.a. |
| Damansara Heights bungalow (KL) | RM3,000,000 | RM8,000,000+ | ~6.8% p.a. |
| Taman Tun terrace (KL) | RM550,000 | RM1,400,000+ | ~6.4% p.a. |
| Eco Botanic semi-D (Johor) | RM900,000 | RM1,800,000+ | ~4.7% p.a. |
Condo appreciation in the same areas: typically 2-4% annually. The gap is driven by land scarcity — in landed property, you own the land directly. In a condo, your land value is diluted across hundreds of unit holders.
The maths over 10 years on a RM1.5M property:
- Landed at 5% appreciation: RM1.5M grows to RM2.44M. Gross gain: RM944,000.
- Condo at 3% appreciation: RM1.5M grows to RM2.02M. Gross gain: RM516,000.
- Difference: RM428,000 in additional wealth creation from landed.
After deducting the RM258,000 in additional negative cashflow (landed vs condo over 10 years) and the 10% RPGT on the gain difference, landed still produces approximately RM125,000 more net wealth. But this assumes consistent 5% landed appreciation — not guaranteed.
The landed investment thesis is: accept negative cashflow today for superior capital gains tomorrow. This requires holding power and a medium-to-long time horizon (7-10+ years). If your horizon is under 5 years, the 30% RPGT and negative cashflow make landed extremely expensive for foreign buyers.
State Consent: Landed Takes Longer
Expect landed consent to take 50-100% longer than strata in the same state.
| State | Strata Consent | Landed Consent | Landed Premium |
|---|---|---|---|
| KL | 3-4 months | 4-6 months | +1-2 months |
| Selangor | 4-6 months | 6-9 months | +2-3 months |
| Johor | 3-5 months | 5-8 months | +2-3 months |
| Penang Mainland | 4-6 months | 6-9 months | +2-3 months |
| Sabah | 4-6 months | 6-12 months | +2-6 months |
| Sarawak | 4-6 months | 6-12 months | +2-6 months |
SPA implication: Standard SPAs allow 3+1 months for completion. For landed purchases, negotiate 6+3 months to accommodate the longer consent timeline. If consent runs long and your SPA expires, you face default penalties or the deal collapses.
The Practical Path for Foreign Landed Buyers
If you are set on landed property, here is the priority order:
1. Kuala Lumpur. RM1M threshold, same as strata. EPU federal process — predictable. Established landed neighborhoods (Bangsar, TTDI, Mont Kiara, Damansara Heights) with strong appreciation track records.
2. Johor (Iskandar Malaysia). RM1M threshold. Strong Singapore buyer ecosystem. Gated developments (Eco Botanic, Horizon Hills, Leisure Farm) with established foreign ownership precedent. RTS Link under construction — potential appreciation catalyst.
3. Penang Mainland. RM1M threshold. Less established than KL or Johor for foreign landed, but growing with industrial and data centre investment.
Avoid for first landed purchase:
- Penang Island (prohibited)
- Sabah, Sarawak (complex dual-layer approvals, 6-12 month consent)
- Kelantan, Terengganu (majority Malay Reserve, near-zero options)
- Rural areas in any state (limited rental demand, slow consent)
Due Diligence Checklist for Foreign Landed Buyers
Landed purchases require more thorough checks than condos because there is no strata management body handling structural and compliance matters.
- Land title search — Confirm freehold/leasehold, Malay Reserve status, existing caveats, land area, land category. RM50-100 at Land Office.
- Building plan verification — Confirm all structures match approved plans. Unapproved extensions create consent and resale problems.
- Structural inspection — Engage a qualified building inspector. Check for cracks, roof condition, plumbing, electrical, termite damage, drainage.
- Flood zone check — Review DID flood maps. Ask neighbours about flood history. Critical in Johor, Pahang, and low-lying areas.
- Boundary verification — Physical inspection against title boundaries. Neighbour encroachment is more common than buyers expect.
- Quit rent and assessment — Confirm all payments current. Arrears become the buyer's problem.
- Access rights — Verify proper road access, especially in older developments with private roads or easements.
Model your full purchase costs with our stamp duty calculator (8% foreign rate) and check your RPGT exposure based on your planned holding period.
Summary: Landed vs Strata Decision Framework
| Your Situation | Recommendation |
|---|---|
| Investment horizon under 5 years | Strata. 30% RPGT + negative cashflow makes landed too expensive. |
| Need cashflow-neutral or positive | Strata. Landed yields too low at 60-70% LTV. |
| Long-term wealth building (10+ years) | Landed has a case. Appreciation premium offsets cashflow drag. |
| Remote management from overseas | Strata. Management body handles building issues. |
| Budget under RM2M in Selangor | Skip Selangor for landed. Buy KL or Johor at RM1M. |
| Want Penang | Island: strata only (RM3M). Mainland: landed at RM1M. |
| First-time Malaysian property buyer | Strata. Learn the system before adding landed complexity. |
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