Foreigner Purchase Threshold



Davi, an Aussie who resides in Malaysia who wishes to buy a semi-detached house in Petaling Jaya. He noticed from the last Budget 2014 that the foreigner purchase threshold has been pushed to RM1 million. While the latest Budget 2015 did not further increase the limit, Davi felt relieved that he is able to purchase the semi-detached house that he has viewed for several times for RM1.5 million. Is that true?


Budget 2015 did not mention the foreigner purchase threshold hence the existing state guidelines are to be followed. The threshold of foreigner purchase is subject to the adoption by the State Governments. While Economic Planning Unit (EPU) has on 1 March 2014 enforced the RM1 million threshold, the State of Selangor has on 1 September 2014 announced a different requirement where the foreigner purchase threshold on residential property in Selangor is minimum RM2 million at Zone 1 & 2 and minimum RM1 million at Zone 3. The residential property is also restricted to strata only including landed. The details can be found at our previous Mythbuster (Myth #74) Thus, Davi cannot purchase the Semi-detached house because it is:-

  1. less than 2 million; and
  2. not under strata title

Meanwhile, a comparison of the foreign purchase requirement in Penang, Kuala Lumpur and Johor are as follows:

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