Buying property in Malaysia as a Singaporean: Full guide 2024
If you’re a Singaporean, there are plenty of reasons why buying property in Malaysia might appeal. Firstly, buying property in Malaysia could make sense if you plan to move there or travel there often - it can also be a good choice for investing or diversifying your assets. But what are the rules about Malaysian property? Can a Singaporean buy property in Malaysia without restriction, or are there limits on your options?
This guide is exactly what you need as a Singaporean buying property in Malaysia. We’ll cover all you need to start your research, and because buying a property is always a big investment, we’ll also touch on providers like Wise and OFX as good options to make cheap, fast and safe international transfers which could cut your costs when you buy.
Can a Singaporean buy property in Malaysia?
In most cases, Singaporeans can buy property in Malaysia with few or no restrictions. However, there are a few rules and exceptions to understand. Most importantly, individual states can impose their own rules on foreign purchase of property - these may include taxes, fees or minimum purchase prices - so doing your own research based on where you intend to buy is essential. Generally minimum purchase prices start from 500,000 MYR and run up to around a minimum of 2 million MYR in Selangor.
The key federal rules about Malaysian property are that foreigners can not buy:
Low cost properties - definitions here are set by state
Properties built on land reserved for Malays
Properties allocated to Bumiputera groups
This aside there are few rules set by Malaysia that you’ll need to worry about as a Singaporean buying property in Malaysia. However, you’ll need to make sure you keep the right side of the law heere too - more on that next.
What are the requirements to buy a house in Malaysia as a Singaporean?
To buy a house in Malaysia as a Singaporean you’ll need to make sure you’re not inadvertently breaking any rules here - particularly if you have a HDB flat. If you have an HDB, make sure to check your minimum occupation period (MOP) has expired before you embark on any other purchase at home or abroad, to stay on the right side of the law.
Aside from that, you’ll need to consider visa rules if you’re thinking of buying a property to move into. Singapore citizens can go to Malaysia for 30 days without a visa, but longer trips need planning - some people choose to get a MM2H visa, which is designed for people looking to retire to Malaysia for example, as this can offer great flexibility in terms of length of stay.
You’ll also need to prepare adequate documentation to support your purchase - you’ll always need your proof of ID and address so you can verify yourself to the Malaysian agents you deal with, you’ll probably also be asked for proof of funds, and proof of the source of the funds, to comply with anti money laundering law. Your solicitor will help you navigate the paperwork needed to buy a home in Malaysia - so getting a good local expert on side is a bonus.
How to buy a home in Malaysia as a Singaporean: step by step
Let’s walk through an outline of the usual steps you must take to buy a home in Malaysia as a Singaporean:
Find the right property for you, and engage a lawyer to act on your behalf during the purchase.
Property searches are likely to start online - we’ll have some good agents to look at, a little later. Once you’ve spotted the right place, it’s time to get a property expert - a lawyer usually - to act for you in negotiation and finalising the purchase. Get advice from local friends, and do online research to find a property specialist who you can get on with - choosing someone who works with Singaporeans often can also help as they’ll know the sort of questions you’re likely to have.
- Submit your letter of offer and initial payment.
Your lawyer can help you draft a letter of offer once your offer is accepted - you’ll then also need to make an initial payment of around 2% of the purchase price. Yor lawyer will also ask you to submit documents like your ID and tax information so they can seek state approval of your purchase a little later
- Draft a Sale and Purchase agreement (SPA).
Your lawyer will draft your SPA, and you’ll need to pay a downpayment of 10% - the initial payment you’ve already deposited of 2% will count towards this down payment.
- Get state authority consent, and complete.
Your lawyer will apply for state authority consent and once approved, you’ll need to make the outstanding 90% payment before completing the purchase
As you can see, there are several large payments involved in buying a property in Malaysia as a Singaporean. You’ll need to pay your down payment and then the balance of the purchase price, naturally, but there will also be legal costs and tax to consider. When you’re sending money overseas from Singapore, using a specialist provider like Wise could mean you get a faster service - and a lower fee - compared to using your bank. Be sure to shop around before you make any international transfers, to keep down your costs as far as possible, and avoid unnecessary fees and delays.
How much does it cost to buy property in Malaysia?
Malaysia has an extremely varied property market, with all types of property available - meaning a very varied range of costs.
The key thing to consider with buying a property in Malaysia is likely to be the minimum purchase price for foreigners, which is decided based on the specific state you want to buy in. Costs can vary a lot from around 500,000 MYR up to 2 million MYR, with minimum prices reviewed regularly. As these minimum prices are subject to change you’ll need to do a bit of research based on your budget, to see what options are open to you.
In addition to property costs, international transfer fees and marked up exchange rates can also contribute to costs when you’re making an overseas property purchase. Non bank providers like Wise and OFX offer cheap, fast and secure international transfers. Take a look at these providers compared to your bank - to see if you can cut out a few fees here to bring down your overall cost.
Cheapest places to buy property in Malaysia
We’ve mentioned that the main issue with buying a property in Malaysia as a Singaporean is likely to be the minimum prices imposed by the states - but setting that aside, what are the cheapest places to buy property in Malaysia?
A recent report found that some of the cheapest housing in Malaysia was in Melaka and in Perlis, with an average price of around 230,000 MYR. Other good places to look for cheaper housing stock include Terengganu, Kedah, Perak, Pahang, and Kelantan. Bear in mind that the cheapest of homes in Malaysia may be out of limits for a Singaporean buyer due to Malaysian property law.
Factors affecting the house prices
We’ll take a look at the state of the Malaysian housing market in 2024 a little later - but aside from the market, the primary factor affecting property prices is location and property type. As you may expect, most of the most expensive housing in Malaysia is in the capital Kuala Lumpur - while less populous areas may have a larger selection of homes at lower prices. Shop around, bearing in mind the minimum purchase prices for different areas, to see which suits you best.
Ongoing costs of buying a home in the Malaysia
The upfront cost of your home in Malaysia isn’t the only cost you need to think about. Other costs can include:
Land taxes or property taxes - which are set by the specific state you’re in
Mortgage interest - or other fees if you finance your purchase with a loan
Maintenance - costs of upkeep on the property, whether or not you live there
Utilities or security - bills you’ll need to cover, such as utilities if you're in the home, or security if you’ve bought as a holiday home and won’t be there year round
Repairs - don’t let your property depreciate by allowing maintenance to lapse
Is it a good idea to buy a house as an investment in Malaysia?
There’s no correct answer to whether or not it’s a good idea to invest in Malaysian property as a Singaporean. There are risks and challenges associated with buying property for investment purposes in any country, so doing your research and acting on personal advice is essential.
On the upside, as a close neighbour, Malaysia is a popular place to buy property for Singaporeans, and does have some areas where property prices are dramatically lower than here in Singapore. On the downside, buying property in Malaysia means complying with rules in Malaysia about minimum property prices as well as the laws on MOP if you have an HDB here in Singapore - so do check up on the requirements and how they apply to you before you consider buying.
Pros and cons of buying property in Malaysia as a Singaporean
Let’s look at a few benefits and drawbacks of buying property in Malaysia as a Singaporean:
Pros:
Property prices can be much cheaper than at home in some areas
Easy to travel to Malaysia - making it easier to keep an eye on the market and visit the property if it is an investment
Malaysian property prices are still relatively low, which may make an investment attractive at this stage
Cons:
Minimum purchase prices are imposed by Malaysian states which may impact where you can buy
Singapore's HDB minimum occupancy rules apply which may prevent you from buying a private property
There is a risk that your property will lose value if markets are volatile
Should you rent or buy a house in Malaysia?
If you’re moving to Malaysia, the decision to buy or rent may simply come down to your long term plans. If you’re planning on staying a long time - or want to buy now as an investment - buying could be tempting. But renting is also a good option if you’re testing the market or don’t have the funds right now to buy.
What’s the property market like in Malaysia?
Malaysian house prices are still below where they were before the Asian financial crisis, in inflation adjusted terms. Recently there has been a rally, but coming into 2024, prices seem to be cooling a little again. The market has seen its share of volatility, which is not likely to change soon - so whether or not the market suits you as an investor or when looking for a family or holiday home may depend on your risk appetite.
Financing a property purchase in Malaysia
As a Singaporean buying a property in Malaysia, you may be able to get a mortgage here or in Malaysia, or buy with saved funds.
If you’re taking a mortgage in Malaysia, the amount you can get is likely to depend on your resident status. If you have an MM2H visa you may be able to get a mortgage of up to 80% of the property value - in other cases the amount you’ll be able to apply for is likely to be lower. Taking a mortgage in Singapore will come down to your relationship with your bank.
If you’re a cash buyer and paying using international transfers, bear in mind that moving money from SGD to MYR can be extremely expensive with a bank. Consider using an alternative like Wise instead for a seamless and cheap transfer to Malaysia.
Paying property tax in Malaysia
The property tax system in Malaysia can include costs paid to both federal and state authorities - your lawyer will let you know what to consider when you’re starting to confirm your purchase. Get local advice on this as soon as possible so there are no surprise fees once you own your new home in Malaysia.
Tips for foreigners to buy property in Malaysia
Let’s get a few final tips on buying a property in Malaysia as a Singaporean:
States set minimum purchase limits so you will need to know what properties are available to you based on your location
You can’t buy another private property if you’re in your HDB’s MOP - double check to stay the right side of the law here at home
You’ll need a visa if you intend to stay in Malaysia for more than 30 days at a time
Banks may lend you more money in Malaysia if you have an MM2H visa
When sending money to Malaysia for your purchase, check out and compare a few different money transfer services to make sure you get the best available deal
How to find a Malaysian property
You’ll want to start your search for properties in Malaysia using online platforms, real estate agents, and local listings. Umbrella websites like Property Guru are a great place to get a feel for the property prices and options on different places in Malaysia.
Be sure to learn about the minimum prices for foreign purchase, based on where you want to be, to avoid wasting time. Generally sites have filter options so you can filter out any properties which you would not be entitled to buy as a Singaporen buying a property in Malaysia.
Malaysia property websites
Not sure where to start? Kickstart your search for property in Malaysia at any of these popular Malaysia property websites:
Conclusion
Buying a property in Malaysia as a Singaporean should be fairly easy as long as you stick with the rules which are imposed both here at home and in Malaysia. Familiarise yourself in particular with the minimum purchase prices for foreigners which can vary based on where in Malaysia you want to buy - and make sure you’re not in your HDB’s MOP.
This guide gives you some resources to start your search for a new home in Malaysia. Before you make any payments from SGD to MYR, be sure to look at providers like Wise and OFX which can be helpful when buying property abroad, with fast, cheap and secure international transfers, with good exchange rates.
FAQs on Buying Property in Malaysia
Yes. You can buy a property in Malaysia as a Singaporean as long as you are no longer in your HDBs MOP, and you’re buying somewhere which exceeds the Malaysian minimum purchase prices for foreigners, which can vary by state.
You’ll need to pay a downpayment of about 10% of the property purchase price when you agree to your sale. Consider using a specialist service like Wise or OFX to transfer your down payment from Singapore to Malaysia, to cut down on costs.
Malaysia has a good range of properties at very varied prices - often cheaper then the equivalent in Singapore. However, whether or not it is the right place for you to buy a home depends on your personal preferences, risk appetite and what you’re planning on doing with the place.