Foreign Buyers in Malaysian Property Market 2025: Who Is Buying and Where
Foreign buyers have been an important segment of Malaysia's premium property market for decades. In 2025, the landscape of foreign property investment in Malaysia has been significantly reshaped by new government initiatives - particularly the Malaysia Premium Visa (MPV) - and evolving preferences among buyer nationalities. Here is a comprehensive picture of who is buying, where, and why.
The Regulatory Framework for Foreign Ownership
Before analysing who is buying, it is important to understand the ownership framework. Malaysia has state-level minimum price thresholds below which foreigners cannot purchase property:
| State | Minimum Price for Foreign Purchase | |---|---| | Kuala Lumpur | RM 1,000,000 | | Selangor | RM 1,000,000 | | Johor | RM 1,000,000 | | Penang (Island) | RM 1,000,000 | | Penang (Mainland) | RM 500,000 | | Sabah | RM 750,000 | | Sarawak | RM 750,000 | | Other states | RM 600,000 (general) |
Additionally, all foreign purchases require approval from the relevant state Economic Planning Unit (EPU). Foreign ownership of Malay Reserved Land, low-cost housing, and Bumiputera-allocated units is prohibited.
Malaysia Premium Visa (MPV): The New Foreign Buyer Catalyst
The MPV, launched in 2022 and revamped in 2023, replaced the previous Premium Visa Programme with a more streamlined, higher-value offering. Key conditions for MPV:
- Fixed deposit requirement: RM 2 million in a Malaysian bank
- OR: RM 2 million investment in approved securities/real estate
- OR: Investment in Malaysia Digital Economy approved businesses
- Health insurance requirement
- Annual renewal (subject to continued compliance)
By end-2024, approximately 8,000-10,000 MPV approvals had been granted, with holders from China, Japan, Bangladesh, South Korea, and the Middle East being most numerous. MPV holders do not face the minimum property price threshold in the same way as non-MPV foreigners - they can purchase residential properties subject to the standard state minimums.
Top Foreign Buyer Nationalities in 2025
1. Singaporeans (Malaysian Permanent Residents and Citizens Abroad)
Singaporeans - or more accurately, Johor Bahru-focused Malaysians working in Singapore - account for the most economically significant foreign demand. They are not "foreign buyers" in the traditional sense but rather Malaysians with Singapore permanent residency or citizenship buying homes in Malaysia.
Their purchasing is concentrated in JB (RTS Link corridor), with some activity in KL's premium condo market (Mont Kiara, KLCC) as secondary residences.
2. Mainland Chinese Buyers
Chinese nationals represent the largest non-Malaysian foreign buyer segment by transaction value, particularly in the RM 1-3 million premium residential bracket. Preferred locations include KLCC, Mont Kiara, Penang island, and selected Johor developments.
Motivations include: - Malaysia's relatively affordable property prices vs China's major cities - Cultural and linguistic affinity (large Chinese Malaysian community) - Education migration (children studying in Malaysian international schools) - Diversification away from China's property market, which has been under significant pressure
3. Japanese and Korean Buyers
Japan and South Korea have consistently been among Malaysia's top foreign buyer source countries, driven by long-term Malaysia My Second Home (MM2H) interest. Both nationalities favour KL's mid-tier and premium condominium market.
4. Middle Eastern Buyers
Gulf nationals - particularly from UAE, Saudi Arabia, and Qatar - are increasingly active in Malaysia's high-end property market, drawn by the halal lifestyle, Muslim-friendly environment, and Malaysia's general accessibility. KLCC luxury condominiums and Putrajaya are favoured.
Geographic Distribution of Foreign Buying
Kuala Lumpur (KLCC, Mont Kiara): The highest-value foreign purchases. KLCC ultra-luxury properties (RM 1.5-10+ million) attract Chinese, Japanese, Korean, and Middle Eastern buyers.
Johor Bahru: Primarily Singaporean-linked buyers (Malaysians working in Singapore). Some mainland Chinese purchases in premium JB developments.
Penang Island (Gurney, Tanjung Tokong): Strong Chinese and European buyer presence. Heritage shophouse purchases by international buyers with MM2H or MPV status.
Sabah (Kota Kinabalu): Some Korean and Japanese retiree purchasing under MM2H. Tourism and dive resort-adjacent properties attract interest.
Impact on the Malaysian Property Market
Foreign buyers' direct contribution to transaction volume is modest - less than 10% of all transactions - but their impact on premium segment pricing is disproportionate. The presence of Chinese buyers in the RM 1-3 million segment has helped sustain pricing in KL's premium condominium market during periods of domestic buyer softness.
The MPV's success in attracting fixed deposits and property investment has been seen as positive for market confidence and Malaysia's broader economic positioning as a wealth management hub in Southeast Asia.