Buying Property in Malaysia as a Singaporean: Rules, prices, and what to know
Considering buying a property in Malaysia as an investment, a place to live or a holiday home? This article focuses on buying Malaysian property as a Singaporean, and the specific issues you might need to know about.
Looking for a general guide to buying property in Malaysia? Get all you need to know about the Malaysian property market, processes to buy a property in Malaysia, and Malaysian costs and taxes, in our full guide to buying a property in Malaysia.
Can Singaporeans buy property in Malaysia?
Yes. Singapore citizens can legally purchase property in Malaysia. However, under Malaysian law, Singaporeans are classified as foreign buyers, which means additional restrictions apply.
Properties off-limits to foreigners include:
- Low and medium-cost housing (definitions vary by state)
- Properties on Malay-reserved land
- Units allocated to Bumiputera groups
In addition, foreign buyers must meet state-specific minimum purchase price thresholds, which can be a significant factor in affordability and location choice.
Note for Singapore PRs:
Singapore Permanent Residents are treated the same as Singapore citizens under Malaysian property law. The same restrictions and minimum price thresholds apply.
Minimum property prices by state
Malaysia sets minimum purchase prices for foreign buyers, and these thresholds differ by state. Here's a summary of key states popular with Singaporean buyers:
| State | Minimum Price for Foreigners |
|---|---|
| Kuala Lumpur | RM1 million |
| Johor | RM1 million (strata) / RM2 million (landed) |
| Penang (Island) | RM3 million |
| Selangor | RM1–2 million (varies by zone) |
| Sarawak | RM500,000 |
| Melaka | RM500,000 (strata) / RM1 million (landed) |
HDB Owners: Check your MOP status
If you currently own an HDB flat in Singapore, you must complete your Minimum Occupation Period (MOP) before buying any private property, including overseas property.
For HDB flats, the MOP start from 5 years from key collection. During this period:
- You must physically occupy the flat
- The MOP clock does not pause if you work or live overseas temporarily
Make sure you've fulfilled your MOP before signing any property agreements in Malaysia.
What types of property can Singaporeans buy?
Not all property types are equally accessible to foreign buyers:
- Condominiums and apartments: Generally allowed, subject to minimum price thresholds
- Landed property: Heavily regulated and varies by state; some states allow it under strict conditions, others prohibit it
- Agricultural land: Typically restricted to Malaysian citizens
- Commercial property: May be permitted, but subject to separate regulations
If you are considering landed property, check state-level rules carefully before proceeding.
Taxes and costs to expect
In addition to the purchase price, foreign buyers should factor in several mandatory costs.
Stamp Duty (Memorandum of Transfer)
| Property Value | Stamp Duty Rate⁵ |
|---|---|
| First RM100,000 | 1% |
| RM100,001 to RM500,000 | 2% |
| RM500,001 to RM1 million | 3% |
| Above RM1 million | 4% |
Other common costs
- State consent fee: Approximately 2% of the property price (or RM25,000, whichever is higher)
- Legal fees: Typically 0.5% to 1% of the property value
- Real Property Gains Tax (RPGT): If you sell within 5 years, expect 30% tax on your gains. After 5 years, the rate drops to 10% for foreigners.
Factor these costs into your budget from the start. They can add up to 6% to 8% on top of your purchase price.
Can I take a home loan in Malaysia?
Depending on where you intend to buy property in Malaysia, you’ll find a minimum value requirement, which may mean that as a foreigner you can only purchase properties valued at over 1 million MYR (around 315,000 SGD). This minimum value requirement does vary by state, so shopping around may be a good idea if you’re looking for a good deal.
However, there’s a good chance that you’ll need to finance your home purchase with a loan. Singaporeans can apply for a home loan in Malaysia, as there are no specific restrictions on foreigners taking a mortgage. Terms may vary compared to the loans available to Malaysian citizens and residents, though.
How easily can a Singaporean live in Malaysia?
One final point as a Singaporean buying property in Malaysia - you’ll still need to ensure you have the right to visit or live in Malaysia, as owning a place doesn’t automatically confer residency rights. In general terms as a Singaporean you can visit Malaysia visa free for up to 30 days³. However, if you’re buying a place to live longer term, you’ll probably need to apply for a long term visa and residence rights.
One popular option for people moving to Malaysia is the Malaysia My Second Home scheme (MM2H)⁴. Under this, you may be eligible to get a visa for up to 10 years, which makes it far easier to live in Malaysia without needing to reapply for visas or worry about permits. Eligibility criteria apply - in most cases this means:
- You’re aged 35 or older
- You have a monthly income of at least 40,000 MYR (around 12,600 SGD)
- You have liquid assets of 1.5 million MYR (around 475,000 SGD) when you apply (this can be used to pay your deposit)
- You can pay a deposit of 1 million MYR (around 315,000 SGD) to secure your visa (this requirement may drop to 500,000 MYR after the first year, and your deposit is interest bearing)
Paying for your property in Malaysian ringgit? Save money by making a secure transfer with Wise
If you’re planning to pay your deposit in Malaysia, or even pay for the entire property purchase, you’ll need a safe and cost-effective way to do it.
Open a Wise multi-currency account and you can send money from Singapore to Malaysia for small fees and the mid-market exchange rate.
Your multi-currency account can be used for anything, from deposits to estate agency fees, and transactions are simple and quick. The recipient merely needs a regular bank account; there are no additional fees to worry about.
It's common to worry about transferring money overseas because buying a home often entails big quantities of money. The good news is that Wise is is licensed by the Monetary Authority of Singapore and uses advanced security and anti-fraud procedures to protect your money. Even better, you can monitor your payments online or with the useful Wise app.
Please see Terms of Use for your region or visit Wise Fees & Pricing: Only Pay for What You Use for the most up-to-date pricing and fee information.
Conclusion
As a Singaporean, Malaysia can be a great place to own a property, whether that's for full time living, holidays or as an investment. You’ll need to ensure you’re eligible from the Singapore side - including having passed your HDB’s MOP, but then there are relatively few restrictions on what you can buy. Make sure you’ve worked out visas and passes - either through an employment visa, MM2H or another solution - before you leap in. Good luck!
Sources:
- Property Guru Malaysia - guide to buying in Malaysia
- HDB - eligibility and MOC
- Ministry of Foreign Affairs - Malaysia information
- MM2H
- Stamp duty
*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.
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