With the ever-rising property prices in Singapore, more Singaporeans are looking across the Causeway to Malaysia — where real estate is significantly more affordable, and lifestyle perks like spacious landed homes or seaside condos are within reach.
But if you’re a Singaporean, how exactly do you go about acquiring property in Malaysia, and more importantly, how do you generate rental income from it? In this article, we’ll cover:
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Why Singaporeans are investing in Malaysia
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The legal process of buying property in Malaysia
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Financing options available
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How to rent it out (short- and long-term)
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Risks and tips to know before you commit
🌍 Why Singaporeans Are Buying Property in Malaysia
Here are some of the top reasons why Malaysia is on the radar:
1. Affordability
A high-end condo in KL or Johor Bahru could cost you RM600,000–RM1,000,000 (SGD170,000–SGD300,000), a fraction of what you’d pay for a condo in Singapore.
2. Bigger Homes & Landed Properties
In Malaysia, you can afford spacious landed homes or even bungalows — ideal for families or retirees.
3. Proximity to Singapore
Especially in Johor Bahru (JB), you’re a mere 30–60 minute drive from home. With the RTS Link between JB and Woodlands set to complete by end-2026, connectivity will improve further.
4. Rental Yield Potential
If bought at the right location (e.g. near MM2H hubs, international schools, or tourist hotspots), rental returns can be attractive.
🧾 Step-by-Step: How Singaporeans Can Buy Property in Malaysia
Yes — foreigners, including Singaporeans, are allowed to buy properties in Malaysia, subject to some rules and state-specific regulations.
✅ Step 1: Choose Your Location
Popular cities/areas include:
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Johor Bahru (Iskandar Malaysia) – close to Singapore, popular for retirement and weekend homes
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Kuala Lumpur – business and rental hub
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Penang – lifestyle-focused with good rental demand
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Langkawi/Melaka – tourist appeal for Airbnb
✅ Step 2: Understand the Minimum Purchase Price
Each state has its own minimum threshold for foreigners:
| State | Minimum Price (for Foreigners) |
|---|---|
| Johor | RM1 million (landed), RM600k (strata in Medini) |
| Kuala Lumpur | RM1 million |
| Selangor | RM2 million (landed), RM1 million (strata) |
| Penang | RM1 million – RM3 million, depending on type |
Medini (Iskandar Puteri) is an exception – no minimum price and no RPGT (real property gains tax) on resale.
✅ Step 3: Appoint a Lawyer and Sign the SPA
Hire a licensed Malaysian lawyer to conduct due diligence and draft the Sale & Purchase Agreement (SPA). Lawyer fees typically range between 0.5% to 1% of the property price.
✅ Step 4: Apply for State Consent
Foreigners need to obtain state authority approval before finalising the deal. This may take 1–3 months depending on the state.
✅ Step 5: Stamp Duty & Registration
You’ll need to pay:
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Stamp Duty (based on property value)
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Legal & admin fees
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Valuation (if financing is involved)
💰 Financing Options for Singaporeans
✅ Option 1: Cash Purchase
If you’ve got enough liquidity or CPF can't be used, this is the fastest route. Foreigners can freely transfer funds into Malaysia for property.
✅ Option 2: Malaysian Bank Loans
Certain Malaysian banks offer loans to foreigners (including Singaporeans), typically up to:
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70% Loan-to-Value (LTV)
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Tenure up to 30 years or until age 70
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Interest rate: Typically ~4.5%–5.5%
You will need to provide:
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Proof of income (payslips, tax returns)
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Passport copy
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Bank statements
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Employment letter (if applicable)
Major banks that cater to foreigners:
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Maybank
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CIMB
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HSBC
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RHB Bank
💡 Tip: It's generally easier to get loans if you're buying from a developer with pre-arranged loan packages for foreigners.
✅ Option 3: Singapore Banks
Some Singapore banks do not provide cross-border mortgages, but a few private banks or brokers may offer solutions if you are a high-net-worth individual.
🏘️ Renting Out Your Property in Malaysia
Once you’ve purchased the property, you can start generating rental income. There are two main avenues:
🟩 1. Long-Term Rental (6–24 months)
Ideal in cities like Kuala Lumpur, Cyberjaya, Johor Bahru, and Penang, especially near:
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International schools
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Business hubs
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MRT or LRT stations
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Expat communities
Rental Yields: Typically between 3–6%, depending on location and quality.
How to manage:
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Hire a local property agent (management fee: 8–10% of monthly rent)
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Set up a local bank account for rental income
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Sign a proper tenancy agreement (can be drafted by your lawyer or agent)
🟦 2. Short-Term Rental (Airbnb or Booking.com)
Popular in tourist areas like Langkawi, KLCC, Melaka, or Genting Highlands.
Pros:
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Higher income potential during peak periods
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Flexibility to use the property occasionally yourself
Cons:
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Not allowed in all buildings (check condo by-laws)
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Must register with Malaysia’s Tourism Tax system
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Local council licenses may be required
💡 Tip: Consider hiring a short-term rental manager or agency to manage bookings, check-ins, and cleaning.
📉 Tax and Legal Considerations
✅ Property Taxes
Malaysia has:
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Quit Rent & Assessment Tax (small annual charges, RM200–RM500/year)
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Rental Income Tax: Taxable at progressive rates (up to 30% for non-residents)
💡 You may deduct expenses like interest, maintenance, agent fees, etc.
✅ Real Property Gains Tax (RPGT)
If you sell within:
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5 years: 30% RPGT
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After 5 years: 10% RPGT for foreigners
There is no inheritance tax in Malaysia.
✅ Ownership Structures
You can own property as an:
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Individual
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Company (local or foreign-owned — subject to stricter rules)
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Joint ownership with spouse or family (even if not Malaysian)
⚠️ Risks and Things to Watch Out For
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Currency Risk: MYR may fluctuate against SGD, affecting returns
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Political & Regulatory Changes: Property laws can change by state
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Rental Collection Risk: Enforcing contracts may take time
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Property Management: If you’re not based in Malaysia, you’ll need a trusted agent or firm
🧭 Final Thoughts: Is It Worth It?
Buying property in Malaysia as a Singaporean can be a great way to diversify your portfolio, enjoy a second home, or generate passive rental income — as long as you do it strategically.
It makes sense if:
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You can afford the downpayment & ongoing costs
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You buy in a high-demand area with strong fundamentals
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You understand the tax, currency, and rental risks
Whether it’s a condo in KL, a landed home in Iskandar, or a holiday villa in Penang, there are many avenues to explore — with proper planning.
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