Buying a Home in Malaysia: The Complete Residential Property Guide

Buying a home is the largest financial decision most Malaysians ever make, and also the one most often made on incomplete information. Between choosing the right type of property, understanding the true cost, securing a loan and navigating the legal process, there is a great deal to get right — and the stakes are personal as well as financial. This guide walks through the whole journey of buying residential property in Malaysia, in plain language, for first-time buyers and upgraders alike. It links to deeper articles on specific topics within this knowledge hub.

The main types of residential property

Malaysian homes come in several forms, each with its own lifestyle and cost profile.

Landed property — terraced houses, semi-detached houses and bungalows — sits on its own land. Terraced (or link) houses share walls and are the most common and affordable landed option; semi-detached homes share one wall; bungalows stand alone on their own lot and are the most expensive. Landed property gives you the land itself, more space and more freedom to modify, which is why it tends to hold value well.

High-rise and strata property — apartments, condominiums and serviced residences — gives you a unit within a shared building, usually with facilities such as security, parking and common amenities. It is often more affordable to enter than landed property in the same area, and popular in urban centres, but you share ownership of common areas and pay maintenance and sinking-fund charges.

Townhouses and other hybrids blend features of both. The right choice depends on your budget, your lifestyle, where you need to live and how you weigh space against convenience and price. Browse residential listings across these types on the PropPlace residential search.

Freehold and leasehold

Like all Malaysian property, homes are held as freehold (owned in perpetuity) or leasehold (held for a fixed term, commonly 99 years, after which it reverts to the state unless extended). For a home you intend to live in long-term and pass on, freehold offers certainty. Leasehold is not inferior by default and is often cheaper, but a short remaining lease can affect financing and resale, so always check the remaining term. The freehold versus leasehold question is covered in depth in the money and process cluster.

What a home really costs

The purchase price is only the start. A residential buyer should budget for:

• The down payment — typically a meaningful percentage of the price, paid from your own funds, since banks finance only up to a margin of the property value.
• Stamp duty on the transfer of the property, on a tiered scale, though the government periodically offers exemptions for certain buyers — notably first-time buyers in some price ranges.
• Stamp duty on the loan agreement, a percentage of the amount you borrow.
• Legal fees for the sale and purchase agreement and the loan documentation.
• Valuation, and other disbursements such as searches and registration.
• Moving, renovation and furnishing once the home is yours.

A full breakdown of these costs, and the exemptions that sometimes apply to first-time buyers, is in the costs, taxes and fees pillar.

Financing your home

Most buyers need a home loan, and how much a bank will lend depends on your income, existing commitments and credit record, and on the property itself. A key concept is the margin of financing — the share of the property's value the bank will lend, with the rest funded by your down payment. Your repayment capacity is assessed against your income and debts, so reducing other commitments before applying can help.

It is wise to get an indication of how much you can borrow before you commit to a property, so you shop within reach and know the down payment you will need. Comparing loan offers — interest rate, lock-in terms and flexibility — can save a substantial sum over the life of the loan.

The buying process step by step

A typical residential purchase in Malaysia follows this sequence:

1. Work out your budget — including the down payment and transaction costs, not just the price you can borrow against.
2. Get an indication of your loan eligibility so you search realistically.
3. Search and shortlist properties that fit your needs and budget.
4. View shortlisted homes, ideally more than once and at different times of day.
5. Check the essentials — title, tenure, remaining lease if leasehold, the condition of the property, and the surrounding area.
6. Make an offer and, once agreed, pay the booking or earnest deposit.
7. Apply for your loan and obtain formal approval.
8. Sign the sale and purchase agreement with legal representation and pay the balance deposit.
9. Complete the legal process — loan documentation, stamping and transfer of title.
10. Collect the keys and handle any defects, renovation and moving.

A dedicated buying process article expands on each stage. For a new property bought from a developer, some steps differ — for instance, payments may follow construction progress — so confirm the process for your specific purchase.

Buying a subsale home versus a new development

A subsale property is one bought from an existing owner; a new property is bought from a developer, often before or during construction. Subsale lets you see exactly what you are buying and move in sooner, but you deal with an existing owner's price and condition. New property may offer incentives and a fresh unit, but you may wait for completion and rely on the developer's delivery. Each path has a different process and risk profile worth understanding before you choose.

Tips for first-time buyers

First-time buyers in Malaysia have some advantages worth using — periodic stamp duty exemptions, and various schemes aimed at helping with the down payment or loan access have existed over the years. Beyond any scheme, the fundamentals matter most: buy within your means rather than at the limit of what a bank will lend, budget for the full cost rather than just the price, check the property and its title carefully, and do not rush. A home is a long-term commitment, and patience in the buying stage prevents regret later.

Working with licensed professionals

A licensed estate agent or negotiator helps you find suitable properties, understand local prices, and navigate the offer and transaction — and Malaysia's regulation of agents gives you accountability and recourse. PropPlace.my is a platform connecting buyers and sellers with licensed agents across the country, covering all property types. Search verified listings and connect with the listing agent, or, if you are an agent, collaborate through the co-broke marketplace.

Frequently asked questions

How much down payment do I need to buy a house in Malaysia? Banks finance up to a margin of the property's value, with the remainder paid as your down payment from your own funds, plus transaction costs on top. The exact share depends on the bank, the property and your circumstances, so get an indication of your financing before committing.

Is freehold or leasehold better for a home? Freehold offers ownership in perpetuity and certainty for a long-term home. Leasehold is often cheaper and can be perfectly sound, but check the remaining lease term, as a short one can affect financing and resale.

What is the difference between subsale and new property? A subsale home is bought from an existing owner — you see exactly what you get and can move in sooner. A new property is bought from a developer, sometimes before completion, which may offer incentives but involves waiting and relying on the developer's delivery.

What help is available for first-time buyers? Malaysia has periodically offered stamp duty exemptions and various schemes to assist first-time buyers with down payments or loan access. Availability and detail change over time, so check what current schemes apply to your situation before buying.

Related residential guides

If you are buying a home, start with the first-time home buyer guide, compare freehold and leasehold property, review leasehold property risks, understand home loans, and compare sub-sale versus new launch property.

Related guides

If you are still deciding whether to buy, rent or sell, compare this guide with the tenant-focused guide to renting property in Malaysia and the owner-focused guide to selling property in Malaysia.