Every state in Malaysia sets its own minimum purchase price for foreign buyers. There is no single national threshold. And the distinction is not just state-by-state — several states split thresholds by zone, by property type (strata vs landed), and even by sub-district. A Singaporean asking "can I buy property in Malaysia for less than RM1 million?" gets a different answer depending on whether they are looking at Penang Island (RM3M strata, landed prohibited), Selangor Zone 3 (RM1M strata), or Labuan (RM500K anything).
This guide covers every state, every zone variation, every known exception, and the practical strategies for foreign buyers who want to enter the Malaysian market without committing RM2M+ of capital.
The Complete State-by-State Minimum Price Table (2026)
This is the most comprehensive table available. It includes zone breakdowns for states that apply them.
| State / FT | Strata Min (RM) | Landed Min (RM) | Zone / Notes |
|---|---|---|---|
| Kuala Lumpur | 1,000,000 | 1,000,000 | Same for all property types. Federal territory — EPU consent. |
| Putrajaya | 1,000,000 | 1,000,000 | Federal territory. Very limited stock. |
| Labuan | 500,000 | 500,000 | Federal territory. Lowest threshold among FTs. |
| Selangor Zone 1 | 2,000,000 | 2,000,000 | Petaling, Gombak, Hulu Langat, Klang — per PTG Circular 1/2014 |
| Selangor Zone 2 | 2,000,000 | 2,000,000 | Sepang, Kuala Selangor, Hulu Selangor |
| Selangor Zone 3 | 1,000,000 | 1,000,000 | Sabak Bernam, Kuala Langat — lower threshold |
| Penang Island (strata) | 3,000,000 | — | Highest strata threshold in the country |
| Penang Island (landed) | — | Not allowed | Absolute prohibition. No price makes it possible. |
| Penang Mainland (strata) | 500,000 | — | Seberang Perai. Lowest Peninsular threshold. |
| Penang Mainland (landed) | — | 1,000,000 | Landed still requires RM1M on mainland |
| Johor | 1,000,000 | 1,000,000 | Medini zone: no minimum for new strata (special exemption) |
| Sabah | 600,000 | 1,000,000 | Sabah Land Ordinance. Separate state ministry approval. |
| Sarawak | 500,000 | 500,000 | Sarawak Land Code. LCDA approval required. Most restrictive. |
| Perak | 1,000,000 | 1,000,000 | Revised from RM500K. Ipoh is the main market above threshold. |
| Negeri Sembilan | 1,000,000 | 1,000,000 | Customary (adat) land off-limits. |
| Melaka | 1,000,000 | 1,000,000 | Standard consent process. Heritage zone may add conditions. |
| Kedah | 1,000,000 | 1,000,000 | Langkawi may have specific additional guidelines. |
| Pahang | 1,000,000 | 1,000,000 | Cameron Highlands has specific foreign purchase rules. |
| Terengganu | 1,000,000 | 1,000,000 | Significant Malay Reserve land. Very limited stock. |
| Kelantan | 1,000,000 | 1,000,000 | Majority Malay Reserve. Almost no options above threshold. |
| Perlis | 1,000,000 | 1,000,000 | Smallest state. Near-zero stock above RM1M. |
For a full breakdown of how these thresholds have changed over time, see our complete state-by-state minimum price reference.
Can You Buy Property in Malaysia for Less Than RM1 Million?
Yes — but only in specific states and property types. Here are the sub-RM1M options that actually exist for foreign buyers:
Labuan — RM500,000
Labuan is a Federal Territory off the coast of Sabah. The RM500K threshold applies to both strata and landed property. It is the lowest barrier on the Peninsular side of the equation (technically off-coast Borneo). The property market is small — Labuan's population is under 100,000 — but there is genuine rental demand from the offshore financial services and oil & gas sectors.
In SGD terms: RM500,000 = approximately SGD 147,000. With 60% financing, your cash outlay (downpayment + transaction costs) is roughly SGD 75,000-85,000.
Penang Mainland (Strata) — RM500,000
Seberang Perai strata properties start at RM500K for foreign buyers. This is the lowest Peninsular Malaysia threshold for strata. The mainland is a different market from Penang Island — more industrial, less tourist-driven, but growing as manufacturing and data centre investment pours in.
In SGD terms: Same as Labuan. RM500K = SGD 147,000. A 2-bedroom condo in Seberang Perai at RM500K-RM600K is realistic, not a minimum-threshold stretch.
Sabah (Strata) — RM600,000
Sabah's strata threshold is RM600K — landed requires RM1M. Kota Kinabalu is the primary market. Tourism and the growing service economy provide rental demand, though yields are more volatile than KL or Penang due to seasonal tourism patterns.
In SGD terms: RM600,000 = SGD 176,000. With 60% financing, total cash needed is approximately SGD 95,000-105,000.
Sarawak — RM500,000
Both strata and landed at RM500K. But Sarawak operates under the Sarawak Land Code, which requires LCDA (Land Custody and Development Authority) approval on top of standard consent. Historically, Sarawak is the most restrictive state for foreign buyers. The low threshold is offset by a longer, less predictable approval process.
Selangor Zone 3 — RM1,000,000
Technically RM1M, not sub-RM1M, but worth noting: Selangor Zone 3 (Sabak Bernam and Kuala Langat) has a RM1M threshold versus RM2M in Zones 1 and 2. If you want a Selangor address, Zone 3 is the affordable entry point. Kuala Langat is developing rapidly with the KLIA Aeropolis and data centre corridors.
Foreign Buyer Edition available. The PropCashflow Ebook covers minimum price thresholds, state consent fees, RPGT for non-citizens, and financing options. Get Instant Access — SGD 999 →
The Medini Johor Exemption
Medini Iskandar Malaysia is a special economic zone in Iskandar Puteri, Johor. Under the Iskandar Regional Development Authority (IRDA) incentives, foreign buyers purchasing new strata properties in Medini are exempt from the standard RM1M minimum price threshold. There is no minimum price.
This exemption made Medini the go-to zone for Singaporean buyers wanting sub-RM1M exposure in Johor. Projects like Iskandar Residences, Gleneagles Medini, and Avira marketed heavily to Singapore-based investors.
The catch: The exemption applies only to new developments purchased directly from the developer within the Medini zone. Subsale purchases may not carry the same exemption. And the Medini zone is specifically delineated — not all of Iskandar Puteri qualifies. Verify with your lawyer whether a specific project falls within the exemption zone.
Current status (2026): The exemption remains in effect, but the pipeline of new strata developments in Medini has slowed. Fewer new launches mean fewer opportunities to use this exemption.
The Commercial Property Loophole
Commercial-titled properties in most states either have lower minimum thresholds or no minimum threshold at all. This is not a grey area — commercial property is genuinely classified differently from residential under state foreign ownership guidelines.
What this means practically:
| Property Type | Title Type | Foreign Minimum Typically | Residential Rules Apply? |
|---|---|---|---|
| Shophouse | Commercial | RM1M or lower (state-dependent) | No |
| SOHO / SoVo / SoFo | Commercial | May be below residential threshold | No |
| Office unit | Commercial | RM1M or lower | No |
| Serviced residence (commercial title) | Commercial | May differ from residential condo | Depends on state |
| Residential condo | Residential | State minimum (RM500K-RM3M) | Yes |
Some developments marketed as condominiums are actually built on commercial land with commercial titles. These SOHO, SoVo, and SoFo units look like apartments, function like apartments, but are legally commercial. The practical consequence: they may fall below the residential minimum price threshold in some states.
The trade-off is real: Commercial-titled units pay 20-40% higher electricity tariffs, higher quit rent, higher assessment, and have no Housing Development Act protection. Over a 10-year holding period, the higher utility costs alone add RM15,000-RM30,000 to your total cost versus a comparable residential unit.
For a full analysis of commercial property rules for foreign buyers, see our commercial property guide.
What About "Can Singaporean Buy Property in Malaysia Less Than 1 Million?"
This is one of the most searched questions by Singapore-based buyers. The direct answer:
Yes, if you target the right state.
| Budget (RM) | Realistic Options | In SGD (at 3.4) |
|---|---|---|
| 500,000 | Labuan, Penang Mainland (strata), Sarawak | SGD 147,000 |
| 600,000 | Above + Sabah (strata) | SGD 176,000 |
| 800,000 | Above only (no new states unlock) | SGD 235,000 |
| 1,000,000 | KL, Johor, Selangor Z3, Penang Mainland (landed), most other states | SGD 294,000 |
| 2,000,000 | Above + Selangor Z1/Z2 | SGD 588,000 |
| 3,000,000 | Above + Penang Island (strata) | SGD 882,000 |
For Singaporean buyers specifically, the RM500K options translate to roughly SGD 147,000 for the property. Add stamp duty at 8% (RM40,000 / SGD 11,760), legal fees, state consent, and the 30-40% downpayment, and total cash required is approximately:
Worked example — RM500K Penang Mainland strata, 60% financing:
| Cost Component | Amount (RM) | Amount (SGD) |
|---|---|---|
| Purchase price | 500,000 | 147,059 |
| Downpayment (40%) | 200,000 | 58,824 |
| Stamp duty (8% flat) | 40,000 | 11,765 |
| Legal fees (SPA + loan) | ~8,500 | ~2,500 |
| State consent fee | ~8,000 | ~2,353 |
| Valuation fee | ~1,500 | ~441 |
| Total cash needed | ~258,000 | ~75,882 |
SGD 76,000 all-in for a Malaysian property. Compare that to an HDB BTO downpayment in Singapore.
Use our Singapore buyer costs calculator to model your specific scenario with exact stamp duty, legal fees, and state consent estimates.
Selangor Zone System Explained
Selangor's zone system confuses even local agents. Here is the breakdown per PTG Circular 1/2014 (effective 1 September 2014):
| Zone | Districts | Strata Min (RM) | Landed Min (RM) |
|---|---|---|---|
| Zone 1 | Petaling, Gombak, Hulu Langat, Klang | 2,000,000 | 2,000,000 |
| Zone 2 | Sepang, Kuala Selangor, Hulu Selangor | 2,000,000 | 2,000,000 |
| Zone 3 | Sabak Bernam, Kuala Langat | 1,000,000 | 1,000,000 |
Why this matters: Zone 1 covers the entire Klang Valley corridor — Petaling Jaya, Subang Jaya, Shah Alam, Ampang. These are the prime investment areas. At RM2M minimum, Selangor effectively prices itself out for most foreign investors.
Zone 3's RM1M threshold is accessible, but Sabak Bernam is rural (limited rental demand), and Kuala Langat is only now developing with the KLIA Aeropolis and data centre projects. The investment thesis in Zone 3 is infrastructure-driven appreciation, not immediate rental yield.
The alternative: Skip Selangor entirely. KL's RM1M threshold gets you into Mont Kiara, Bangsar, KLCC fringe, and Damansara — all within 15-30 minutes of Selangor's prime areas, at half the minimum price. This is why many foreign investors who would naturally target Selangor end up buying in KL instead.
Penang: Island vs Mainland — Two Different Markets
Penang is effectively two separate property markets with dramatically different foreign buyer rules.
| Factor | Penang Island | Penang Mainland |
|---|---|---|
| Strata minimum | RM3,000,000 | RM500,000 |
| Landed | Prohibited | RM1,000,000 |
| Consent fee | ~RM30,000 | ~RM10,000 |
| Typical condo yield | 3-4% | 4-5% |
| Rental demand | Strong (George Town, Tanjung Bungah) | Growing (Butterworth, Batu Kawan) |
| Capital appreciation | Slower at RM3M+ price points | Faster relative to lower base |
For a foreign buyer with RM500K-RM1M budget, Penang Mainland is the only option. The island's RM3M threshold is the highest in the country. Even wealthy foreign investors question whether a RM3M condo in George Town generates sufficient yield to justify the entry cost.
Penang Mainland is where the math works. Batu Kawan is developing into a major commercial hub with IKEA, Design Village, and data centre investment. Strata condos in this area at RM500K-RM700K offer 4-5% gross yields and are within the foreign buyer threshold.
Strategies for Budget-Conscious Foreign Buyers
If your total budget is SGD 150,000-300,000 (RM500K-RM1M), here is the priority list:
Strategy 1: Target Sub-RM1M States at Market Price
Buy in Labuan, Penang Mainland, or Sabah at prices that reflect the actual market — not inflated to meet a threshold. A RM500K condo in Seberang Perai is market-rate housing, not a threshold play. You are buying where the market naturally prices, which means rental yields reflect genuine demand.
Strategy 2: Johor Medini for Below-Threshold Entry
If Medini developments are still available (check current pipeline), the no-minimum exemption lets you buy at RM400K-RM800K in an Iskandar Malaysia zone with Singapore proximity. The risk: Medini has had oversupply issues, and rental yields have been under pressure. Due diligence on specific projects is critical.
Strategy 3: Commercial-Title Units in KL
A SOHO or SoVo unit in KL on commercial title may be purchasable below the RM1M residential threshold. You get a KL address and access to the deepest rental market in the country. The trade-off: higher utility costs, no HDA protection, and ensure the unit's commercial classification actually means the residential minimum does not apply (verify with your lawyer).
Strategy 4: Wait for Threshold Stabilisation
Thresholds have moved in one direction over the past decade: up. But they do stabilise for periods. Sabah has held at RM600K strata since 2020. KL has held at RM1M since 2020. If a state's threshold has been stable for 3+ years, the current level is likely to hold for the medium term.
What Happens If You Try to Buy Below the Minimum?
Short version: the deal fails.
- You sign the SPA for a property below the state minimum.
- Your lawyer submits the state consent application.
- The state authority compares the purchase price against the threshold.
- The application is rejected. No negotiation, no appeal, no exception.
- The SPA falls through under the state consent conditional clause.
- You get your deposit back (if the SPA includes the standard conditional clause), but you lose months and legal fees.
There is no workaround. Structuring the price (e.g., separate renovations or furnishings to push the nominal price above the threshold) is scrutinised by state authorities. If the property's market value does not support the stated purchase price, consent may still be denied.
Run your numbers through our stamp duty calculator to see the full 8% foreign buyer stamp duty impact, and use the cashflow calculator to check whether your target property is cashflow-positive after all costs.
The Bottom Line
The minimum price question for foreign buyers in Malaysia comes down to this:
- SGD 75,000-85,000 total cash gets you into Penang Mainland or Labuan (RM500K, 60% financing)
- SGD 95,000-105,000 opens Sabah strata (RM600K)
- SGD 115,000-130,000 opens KL, Johor, and most states (RM1M)
- SGD 240,000-270,000 opens Selangor Zones 1-2 (RM2M)
- SGD 360,000-400,000 opens Penang Island strata (RM3M)
Start with the budget, match it to the state, then evaluate the rental yield and capital appreciation thesis for that specific market. Do not stretch to meet a threshold in a state where the market does not support the price.
Related resources: