Foreign buyers spend hours researching Malaysia's property rules only to find contradictory information about minimum price thresholds. One website says Penang is RM1M. Another says RM3M. A forum post from 2019 lists Selangor at RM1M across the board. None of these are fully wrong — they are just out of date or missing critical distinctions between strata and landed, island and mainland.
This page is the definitive reference. Every Malaysian state and federal territory. Strata and landed thresholds listed separately. Consent requirements, fee estimates, and special conditions included. Updated for February 2026.
The Complete State-by-State Table
This table covers all 13 states and 3 federal territories. All figures are in Malaysian Ringgit (RM). Consent fee estimates are approximate and vary by property value and specific district.
| State / FT | Strata Min Price (RM) | Landed Min Price (RM) | State Consent Required? | Consent Fee Estimate (RM) | Special Notes |
|---|---|---|---|---|---|
| Kuala Lumpur | 1,000,000 | 1,000,000 | Yes | ~10,000 | Federal territory; EPU processes consent. Same threshold for all property types. |
| Putrajaya | 1,000,000 | 1,000,000 | Yes | ~10,000 | Federal territory; very limited property stock. Primarily government-built. |
| Labuan | 1,000,000 | 1,000,000 | Yes | ~5,000 | Federal territory. |
| Selangor (Zone 1 & 2) | 2,000,000 | 2,000,000 (landed strata only) | Yes | Varies by district | Petaling, Gombak, Hulu Langat, Sepang, Klang, Kuala Selangor, Kuala Langat. Foreigners restricted to strata and landed strata only. |
| Selangor (Zone 3) | 1,000,000 | 1,000,000 (landed strata only) | Yes | Varies by district | Hulu Selangor, Sabak Bernam. Same property type restriction applies. |
| Penang Island | 1,000,000 | 3,000,000 | Yes | ~30,000 | Landed allowed at RM3M minimum. State levy of 3% applies on top. Strata at RM1M. |
| Penang Mainland | 500,000 | 1,000,000 | Yes | ~10,000 | Seberang Perai. Significantly lower than island. Growing commercial hub. |
| Johor | 1,000,000 (strata) | 2,000,000 (landed/designated zones) | Yes | Varies by zone | Medini/SFZ zone may have specific guidelines. Strong Singapore buyer demand. |
| Perak | 1,000,000 | 1,000,000 | Yes | ~5,000 | Previously RM500K; revised upward. Ipoh is the primary market for above-threshold properties. |
| Negeri Sembilan | 600,000 | 1,000,000 | Yes | ~5,000 | Seremban and surrounding areas. Customary (adat) land is off-limits. |
| Melaka | 500,000 | 1,000,000 | Yes | ~10,000 | Lower strata threshold. Tourist-driven demand in heritage areas. |
| Kedah (Mainland) | 600,000 | 600,000 | Yes | ~5,000 | Mainland threshold. |
| Kedah (Langkawi) | 1,000,000 | 1,000,000 | Yes | ~5,000 | Langkawi has separate, higher thresholds. |
| Pahang | 1,000,000 | 1,000,000 | Yes | ~5,000 | Cameron Highlands has historically attracted foreign buyers. Check specific area rules. |
| Terengganu | 1,000,000 | 1,000,000 | Yes | ~5,000 | Significant Malay Reserve land. Limited stock above threshold for foreigners. |
| Kelantan | 1,000,000 | 1,000,000 | Yes | ~5,000 | Most land is Malay Reserve. Extremely limited options for foreign buyers. |
| Perlis | 500,000 | 500,000 | Yes | ~5,000 | Smallest state. Limited property stock. |
| Sabah | 600,000 (strata) | 1,000,000 | Yes (additional state approval) | ~20,000 | Sabah Land Ordinance applies. Separate state ministry approval required. |
| Sarawak | 500,000 | 500,000 | Yes (LCDA approval) | ~15,000 | LCDA must approve. Kuching division RM600K. Historically most restrictive state. |
Thresholds are set by individual state authorities and the EPU and change periodically. Always verify current thresholds with a Malaysian property lawyer before committing to a purchase.
Selangor's RM2M threshold (Zone 1 & 2) and Penang Island's RM3M landed threshold are the two highest barriers in the country. Selangor's restriction to strata-only properties adds a further limitation. Together, they push foreign buyers toward KL or Johor unless they are prepared to commit serious capital.
Reading the Table: Key Distinctions
Strata vs Landed Thresholds
Most states apply the same threshold for strata and landed. The exceptions matter:
Selangor has a unique restriction: foreigners can only buy strata and landed strata (gated/guarded) properties — standard individual-title landed is not permitted. The minimum is RM2M in Zones 1 and 2 (the most populated districts) and RM1M in Zone 3.
Penang Island has the most extreme price differential: RM1M for strata and RM3M for landed. A foreigner who wants a bungalow on Penang Island faces the highest landed threshold in the country. A 3% state levy on top further increases the cost of entry.
Sabah and Sarawak offer lower thresholds (RM500K-RM600K for strata) but add state-level approval layers that increase both cost and timeline. The lower price floor is offset by higher consent fees and longer processing.
Federal Territories vs States
Kuala Lumpur, Putrajaya, and Labuan are Federal Territories. Their consent process goes through the Economic Planning Unit (EPU) at the federal level, not a state authority. This generally means:
- More standardised process
- Shorter timelines (3-4 months for KL)
- Less variance between districts
- Lower consent fees
State-level processes vary significantly. Selangor's district land offices may apply different standards. Johor's Iskandar zones have evolved their own guidelines. East Malaysian states operate under entirely separate land laws.
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How Thresholds Have Changed Over Time
Malaysian minimum price thresholds for foreigners have moved in one direction: up. Understanding the trajectory helps predict where they might go next.
| State | 2014 | 2020 | 2024 | 2026 |
|---|---|---|---|---|
| Kuala Lumpur | 500,000 | 1,000,000 | 1,000,000 | 1,000,000 |
| Selangor (strata) | 1,000,000 | 1,000,000 | 2,000,000 | 2,000,000 |
| Selangor (landed) | 1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 |
| Penang Island (strata) | 1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 |
| Penang Island (landed) | 2,000,000 | 3,000,000 | 3,000,000 | 3,000,000 |
| Penang Mainland | 500,000 | 500,000 | 1,000,000 | 1,000,000 |
| Johor | 500,000 | 1,000,000 | 1,000,000 | 1,000,000 |
| Perak | 500,000 | 500,000 | 1,000,000 | 1,000,000 |
| Sabah | 500,000 | 500,000 | 500,000 | 500,000 |
| Sarawak | 350,000 | 500,000 | 500,000 | 500,000 |
| Other states | 500,000 | 1,000,000 | 1,000,000 | 1,000,000 |
Key observations:
KL doubled between 2014 and 2020. The RM500K to RM1M jump was the most significant shift for foreign investors. It eliminated the sub-RM1M KL condo market for foreigners overnight.
Selangor strata doubled between 2020 and 2024. The RM1M to RM2M move was the most recent major change. This pushed many foreign condo buyers from Selangor into KL, where the RM1M threshold is lower.
Penang Island increased its landed threshold. The move from RM2M to RM3M for landed property made Penang Island one of the most expensive locations for foreign landed buyers. The strata threshold has remained at RM1M.
Sabah and Sarawak have been stable. The RM500K threshold has held since 2020 in Sabah and since 2020 in Sarawak. These are the lowest thresholds in the country for a reason — both states actively seek foreign investment.
The trend is clear. Thresholds rarely decrease. The 2024 Penang and Selangor increases caught many foreign investors by surprise. If you are considering a purchase in a state where the threshold is currently stable, the current price floor may not last.
If thresholds continue their upward trajectory, properties purchased today at or near the minimum become more "exclusive" over time — fewer foreign buyers can enter at the same price point, which may support resale values.
What Happens if You Buy Below the Threshold?
Short answer: you cannot. Here is the process failure that occurs:
- You sign an SPA for a property below the state minimum.
- Your lawyer submits the state consent application.
- The state authority reviews the application and compares the purchase price against the minimum threshold.
- The application is rejected.
- The SPA falls through. The conditional clause (subject to state consent) triggers, and the deposit is refundable — provided your SPA includes this standard condition.
- You lose months of time and legal fees already incurred.
There is no workaround. No appeal. No exception. The threshold is a hard floor, and state authorities enforce it mechanically.
Common scenarios where buyers get caught:
Auction/lelong properties. A property might sell at auction below the state minimum. A foreigner who bids and wins at RM800K for a property in a state with a RM1M minimum will have the consent rejected. The auction purchase fails.
Subsale below market value. A distressed seller offers a RM1.2M property for RM900K. Even if the deal is genuine, the state looks at the transaction price. Below the threshold means rejection.
Renovated price vs. original price. Renovations do not change the purchase price for threshold purposes. The threshold applies to the SPA transaction price, not the property's assessed or renovated value.
Strategies to Meet the Threshold Without Overpaying
The threshold creates a distortion in the market. In areas where the average property price is RM600K-RM800K, foreigners are forced to buy above-average properties or in above-average locations. This creates a risk of overpaying — buying a property worth RM850K for RM1M just to meet the threshold.
Here is how to avoid that trap:
Strategy 1: Buy in Markets Where RM1M Is Normal
In KL (KLCC, Mont Kiara, Bangsar, Damansara Heights), RM1M is a standard market price for a decent condo. You are not overpaying to hit the threshold — you are buying at market.
Similarly, in Johor's Iskandar Puteri gated developments, RM1M-RM2M is the normal price range for semi-detached and bungalow properties. The threshold aligns with the market.
Where it does not work: Perak (Ipoh), Kedah, Perlis, and rural areas of most states. In these markets, RM1M properties represent the upper end or luxury segment. You are buying premium property in a market that does not support premium pricing. Rental yields suffer, and resale liquidity is poor because the local buyer pool cannot afford that price range.
Strategy 2: Target New Developments at Launch
New developments often price entry-level units near the foreign buyer threshold because developers want foreign sales. A developer launching a KL condo project may price 2-bedroom units at RM950K-RM1.1M, with the RM1M+ units specifically packaged for foreign buyer marketing.
The advantage: new-build pricing typically includes developer discounts, furnishing packages, and early-bird incentives that offset the premium.
The risk: new developments carry completion risk and may not deliver the same rental yield as established properties in proven rental markets.
Strategy 3: Look at Undervalued States
Sabah (RM500K threshold) and Labuan (RM500K) offer lower entry points. These are genuine property markets with rental demand — Kota Kinabalu has a growing tourism and business base. The lower threshold means you can buy at market price without the distortion seen in Peninsular states.
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Strategy 4: Commercial-Titled Properties
Some states apply different (or no) minimum thresholds for commercial-titled properties. A SOHO or SoVo unit on a commercial title may be purchasable below the residential threshold. These units often look and function like residential condos but carry commercial title. The trade-off: higher utility rates, higher assessment, no HDA protection. But the lower entry point may justify the ongoing cost increase.
Consent Fees: What to Actually Budget
Consent fees are separate from legal fees, stamp duty, and loan agreement costs. They are paid to the state authority as part of the consent application.
| State / FT | Estimated Consent Fee (RM) | Payable To | Notes |
|---|---|---|---|
| Kuala Lumpur | 8,000 – 12,000 | EPU / Federal Government | Fixed range; lower end for smaller transactions |
| Putrajaya | 8,000 – 12,000 | EPU / Federal Government | Same as KL |
| Labuan | 3,000 – 7,000 | EPU / Federal Government | Lowest among FTs |
| Selangor | 10,000 – 25,000 | State Authority | Varies significantly by district and property value |
| Penang Island | 20,000 – 35,000 | State Authority | Highest consent fees nationally; reflects RM3M threshold |
| Penang Mainland | 8,000 – 15,000 | State Authority | Lower than island |
| Johor | 8,000 – 20,000 | State Authority | Iskandar zone may have different fee structure |
| Sabah | 15,000 – 25,000 | State Ministry + Land Office | Two-layer approval increases fees |
| Sarawak | 12,000 – 20,000 | LCDA + Land Office | LCDA adds to cost |
| Other states | 3,000 – 10,000 | State Authority | Lower property values mean lower fees |
These fees are non-refundable if consent is granted. If consent is denied, some states refund partially; others do not. Clarify the refund policy with your lawyer before submitting.
The Upfront Cost Picture at Minimum Threshold
What does it actually cost to buy at the minimum threshold? Here is a worked example for KL at RM1M with 65% bank financing:
| Cost Component | Amount (RM) |
|---|---|
| Purchase price | 1,000,000 |
| Down payment (35%) | 350,000 |
| MOT stamp duty (8% flat for foreigners from 2026) | 80,000 |
| Loan agreement stamp duty (0.5% of RM650K) | 3,250 |
| Legal fees (SPA + loan agreement) | ~12,000 |
| State consent fee | ~10,000 |
| Valuation fee | ~2,500 |
| Miscellaneous (search fees, admin) | ~1,500 |
| Total upfront cash needed | ~459,250 |
At the RM1M threshold, a foreign buyer needs approximately RM460,000 in cash — before furnishing costs. In SGD terms (at approximately 3.4 RM per SGD), that is roughly SGD 135,000.
For Selangor at the RM2M strata threshold with 60% financing:
| Cost Component | Amount (RM) |
|---|---|
| Purchase price | 2,000,000 |
| Down payment (40%) | 800,000 |
| MOT stamp duty (8% flat for foreigners from 2026) | 160,000 |
| Loan agreement stamp duty (0.5% of RM1.2M) | 6,000 |
| Legal fees | ~20,000 |
| State consent fee | ~15,000 |
| Valuation fee | ~4,000 |
| Miscellaneous | ~2,000 |
| Total upfront cash needed | ~1,007,000 |
Selangor's RM2M Zone 1/2 threshold demands over RM1,000,000 upfront (including the 8% stamp duty from 2026). That is approximately SGD 296,000 — a significant capital commitment that rivals entry-level property purchases in Singapore itself.
Practical Recommendations
For first-time foreign buyers: Start with KL. The RM1M threshold is manageable. The consent process is predictable. The rental market is deep. And the capital appreciation track record is strong.
For budget-conscious buyers: Look at Sabah (Kota Kinabalu), Labuan, or Johor. Lower thresholds mean less capital locked up. Johor offers the added advantage of Singapore proximity and demand.
For premium buyers: Penang Island landed at RM3M and Selangor Zone 1/2 at RM2M force you into the premium segment. If you are going to spend that much, ensure the rental yield justifies it — which in many cases, it does not.
For landed buyers: KL and Johor are the most accessible. Penang Island is possible but at RM3M minimum with a 3% state levy. Avoid East Malaysia (complex additional approvals) unless you have experienced local counsel and patience for 6-12 month consent timelines.
For all buyers: Verify the current threshold with a Malaysian property lawyer before committing. Thresholds can change with state budget announcements or policy revisions. What is accurate in February 2026 may shift by year-end.
Related resources:
- Complete guide for foreign buyers in Malaysia
- Can foreigners buy without MM2H?
- Foreigners buying landed property
- Singapore buyer costs calculator
- Stamp duty calculator
Sources
- State-by-State Minimum Prices — MM2H.com
- Selangor Foreign Purchaser Guidelines — Zone 1/2/3 and Property Type Restrictions
- Penang Foreign Purchaser Requirements
- EPU Foreign Acquisition Guidelines
- National Land Code 1965 — Section 433B
- Malaysian Bar Circular No. 444/2024 — Restrictions for Non-Citizens