Buying Property in Malaysia: The Complete Step-by-Step Guide (New, Subsale & Foreign Buyers)
Buying property in Malaysia runs through six stages — from booking and the home loan to the SPA, handover, and years of strata management. Each stage is broken into stand-alone guides, organised into three tracks: new property, subsale and foreign buyers. Every rate, fee and rule is sourced and dated.
Short answer
Buying property in Malaysia runs through six stages: checks before you book, booking and the home loan, signing the SPA and loan agreement with stamp duty, waiting for handover or completing the transfer, post-handover inspection and utilities, then years of strata management. A subsale purchase typically completes in 3–4 months; a new launch takes 6 to 36 months.
Key numbers at a glance
| Stages | 6: before booking / booking & loan / signing / to keys / after keys / management |
|---|---|
| Down payment | 10% of the price (70% max margin from the third housing loan) |
| Transfer stamp duty | 1%/2%/3%/4% tiers; 8% flat for non-citizens from 1 Jan 2026 |
| Loan agreement duty | 0.5% of the loan |
| First-home exemption | Full exemption up to RM500,000; SPA signed 1 Jan 2026 – 31 Dec 2027 |
| Subsale completion | 3 months + 1 month extension (late interest commonly 8% a year) |
| New-build delivery | 24 months landed / 36 months strata; LAD 10% a year |
| Guides | 48 articles, every figure sourced and dated |
What kind of property are you buying?
New property is protected by the Housing Development (Control and Licensing) Act 1966 (HDA) and sold on a statutory contract. Subsale contracts are negotiated between lawyers, so the process and risks differ. Foreign buyers add state price thresholds and state consent. Pick your track — each one is laid out in the same six stages.
The six stages of buying property in Malaysia
Each card is a stand-alone guide. The tag shows whether it applies to new property, subsale or foreign buyers. Not sure where to start? Read from Stage 1 down.
Before you book
What to understand before you pay a single ringgit: property types, titles, budget, developer and title checks, agents and valuation.
Booking & the home loan
Booking, applying for the bank loan, reading the letter of offer — plus EPF, interest rates and insurance that decide your instalment.
Signing the SPA
The SPA, the loan agreement, stamp duty and legal fees — understood clause by clause before you sign.
From SPA to keys
Construction and handover for new property; transfer and disbursement for subsale — every step between signing and keys.
After you get the keys
Inspection, utilities, assessment and quit rent, renovation, renting out, refinancing, selling and inheritance.
Repairs & property management
The Strata Management Act, JMB/MC, maintenance fees and sinking fund, by-laws, common-property defects and leaks.
Ask Louis directly
Not sure which stage you are at or what comes next? Send me your situation and I will put it in order for you.
I can work out the full upfront cost sheet for your price range — stamp duty, legal fees and the small items — at no charge.
Frequently asked questions
What is the process of buying property in Malaysia?
Six stages: (1) before booking — understand property types, titles and budget, and check the developer or the title; (2) book and apply for the home loan; (3) sign the Sale and Purchase Agreement (SPA) and loan agreement, and pay stamp duty and legal fees; (4) for new property, wait for construction and vacant possession; for subsale, complete the transfer and loan disbursement; (5) after keys — inspection, utilities, assessment and quit rent; (6) ongoing repairs and strata management. Each stage has its own guides on this page.
How much money do I need to buy a house in Malaysia?
Plan for a 10% down payment plus stamp duty, legal fees and loan costs. Individuals usually borrow up to 90% on a first housing loan (bank practice rather than a BNM cap); most sources say 90% on a second, some say 80%; from the third, BNM caps it at 70%. Stamp duty on the transfer is tiered at 1%/2%/3%/4%, the loan agreement is 0.5%, and legal fees under the Solicitors’ Remuneration Order 2023 start at 1.25% on the first RM500,000. See how much you need to buy a house or use the buying-costs calculator.
Are there incentives for first-time homebuyers in Malaysia?
Malaysian citizens buying their first home priced up to RM500,000 pay no stamp duty on the transfer or the loan agreement, for SPAs signed from 1 January 2026 to 31 December 2027. Other schemes and conditions are in first-time homebuyer incentives 2026.
What is the main difference between new and subsale property?
New property is sold on an HDA statutory SPA (Schedule G for landed, Schedule H for strata), paid in progress stages, with late-delivery damages (LAD) of 10% a year and a 24-month defect liability period. A subsale SPA is negotiated, usually completes in 3 months plus a 1-month extension, is paid in a lump sum and has no defect warranty. See new vs subsale.
Can foreigners buy property in Malaysia?
Yes, if the price is above the state’s minimum (for example RM1,000,000 for strata and RM2,000,000 for landed in Johor) and the state gives written consent. From 1 January 2026 non-citizens pay a flat 8% stamp duty on residential transfers, and Johor adds a levy of 3% of the price or RM30,000, whichever is higher. See foreigners buying in Malaysia.
How are the figures in these guides verified?
Statutes, the gazette and official bodies (LHDN, Bank Negara Malaysia, KPKT, EPF, the Malaysian Bar) come first, then at least two reputable secondary sources. Each guide lists its sources and the date it was verified. Where sources conflict, both figures are printed.
Louis Koh
11 years in Malaysian property · Johor Bahru & Kuala Lumpur · English & 中文
I help local buyers and cross-border buyers from Singapore with new and subsale property. Every figure in these guides is sourced; when a rule changes, I update the page and date it.
Verified: 2026-09-20. This guide is general information, not legal, tax or financial advice. Rules and rates change — confirm in writing with your lawyer, bank or the relevant authority before you sign.
Stuck on this step? Ask me directly
Send me your situation — new or subsale, budget, state, and where you are in the process — and I will tell you what to do next and what to watch for.
I can work out the full upfront cost sheet for your price range — stamp duty, legal fees and the small items — at no charge.
Louis Koh · 11 years in Malaysian property · +60 10-906 6685 · replies 9am–10pm MYT