Kuala Lumpur
Kuala Lumpur, officially known as the Federal Territory of Kuala Lumpur and often referred to as KL, is Malaysia’s capital and largest city. It has a total area of 243 square kilometers and a population of 8,621,720 in 2023. Moreover, the city is home to the Petronas Towers, the tallest twin buildings globally and iconic symbols of Malaysian progress. Kuala Lumpur is a major tourist destination and the best state in Malaysia. In 2023, around 22.23 million domestic tourists visited the city, up from nearly 17 million the previous year.
Reasons to buy property in Kuala Lumpur
Kuala Lumpur is considered one of the best places to buy property in Malaysia for various reasons. Below are some compelling reasons foreigners should choose Kuala Lumpur to buy investment property in Malaysia:
- Low property prices: Compared to other major Asian cities, Kuala Lumpur offers relatively affordable property prices, making it one of the best places to buy property in Malaysia. Buying properties in Kuala Lumpur costs an average of RM 952,756 ($213,227) for land, RM 499,847 ($111,866) for houses, RM 500,691 ($112,055) for condos, and RM 2.18 million ($486,875) for commercial spaces.
- Potential for rental income: Another reason why Kuala Lumpur is one of the best places to buy property in Malaysia is the potential for high rental income. Starting Airbnb is specifically in demand, and a typical short-term rental is booked for 204 nights per year. It boasts a median occupancy rate of 56% and an average daily rate of RM 199 ($44.54). In 2023, the average annual income for a host was RM 40,000 ($8,952).
- Strategic location: Located at the heart of the trade route between China and India and adjacent to one of the world’s busiest shipping lanes, the Straits of Melaka, Kuala Lumpur’s strategic position enhances its appeal as a business destination. The city has excellent transportation infrastructure, including road networks like the North-South expressway and KTM railway, and a plan to build an RM 28 billion ($6.27 billion) port at Port Klang to compete with expanding regional ports in Singapore, Thailand, and Vietnam.
- Quality of life: Kuala Lumpur is among the best places to buy property in Malaysia because of its Quality of Life Index (130.94), which is higher than Bangkok’s (88.41), the capital city of Thailand. Kuala Lumpur also has a significantly higher Purchasing Power Index (102.16 vs. 41.66) and a much lower Property Price to Income Ratio (7.97 vs. 29.73), indicating better affordability.
Penang
Penang is a state in Peninsular Malaysia situated on the northwest coast by the Strait of Malacca. It comprises two regions: Penang Island, which houses the capital city of George Town, and Seberang Perai, located on the Malay Peninsula. You can travel to Penang by land from Kuala Lumpur, which takes approximately 4 hr and 27 mins. Penang Island has an area of 295 square kilometers and a population of 1,771,600 in 2023. It is considered the best state in Malaysia for various reasons. The Penang property market, particularly the residential sector, continued its steady growth in the first quarter of 2024, as reported by NAPIC. It is among the best places to buy property in Malaysia as residential property transactions increased by about 4%, with the most significant growth observed in properties priced between RM 900,000 ($201,420) and RM 1 million ($223,800).
Reasons to buy property in Penang
Penang offers the best places to buy property in Malaysia, making it an attractive destination for property investment and retirement for foreigners. Below are some reasons why Penang is the best place to live in Malaysia:
- High property supply: Penang offers various properties that attract foreign buyers who want to buy investment property in Malaysia. If you are looking for the best places to buy property in Malaysia, Penang’s real estate market offers houses, townhouses, apartments, condominiums, villas, beachfront properties, and commercial spaces. Moreover, foreigners can buy land in Malaysia subject to foreign ownership restrictions.
- Affordable property prices: Penang is among the best places to buy property in Malaysia due to its affordable property prices. Residential properties cost an average of RM 583,526 ($130,593) for condos. Buying a house in Malaysia can cost an average of RM 924,051 ($206,803). The average rent price for commercial spaces in Penang is RM 4,578 ($1,025). Moreover, the average land cost is RM 300,000 ($67,140) or RM 60 ($13.43) per square foot.
- Quality healthcare and education: The Penang Medical Tourism Centre (PMED) promotes Penang’s healthcare services worldwide in partnership with local healthcare institutions. According to the Malaysia Healthcare Travel Council, in 2024, the Centre contributed 45% of Malaysia’s medical tourism revenue, amounting to RM 1.15 billion ($257.37 million) in the first half alone. Moreover, Penang hosts several internationally recognized institutions, including branches of Australian and Irish universities and partnerships with top universities in the U.S., U.K., and Australia.
- Tourism: Penang is considered one of the best places to buy property in Malaysia because tourism contributes to the marketability of properties. Penang recorded 6,979,748 passenger arrivals in 2023, up 64.5% from 4,242,997 in 2022. Famous tourist attractions include the UNESCO-listed George Town, which features Hindu temples, Buddhist pagodas, historic Chinese storefronts, and remnants of Malaysia’s colonial history. Penang National Park, the world’s smallest national park, also offers lush jungles near white-sand beaches.
Johor Bahru
Johor Bahru, the capital of Johor state in Malaysia, is located at the southernmost point of the Malay Peninsula. It spans 220 square kilometers and had a population of 1,086,000 in 2023. It is strategically connected to Singapore by two causeways, making it a crucial travel gateway. The city hosts the busiest international land border crossing globally, with about 350,000 individuals crossing daily, totaling around 128 million annually. Uniquely, Johor is the only Malaysian state with its military unit, the Royal Johor Military Force (RJMF), which serves as the royal guard for the Sultan of Johor.
Reasons to buy property in Johor Bahru
Johor Bahru offers various advantages, allowing it to be recognized as one of the best places to buy property in Malaysia. Here are some of the reasons why it is an ideal location for property investment:
- Affordable property prices: Properties in Johor are affordable, which attracts foreigners looking for the best places to buy property in Malaysia. The average cost of condominiums in Johor is RM 402,383 ($90,053) or per square meter. Buying a house in Malaysia here costs an average of RM 610,686 ($136,672) or RM 3,415 ($764), while commercial spaces cost an average of RM 1.52 million ($339,845) or RM 2,885 ($646) per square meter.
- Access to amenities: Foreigners looking to buy property investment in Malaysia here can ensure access to amenities. Johor Bahru offers many amenities, including shopping malls, night markets, and diverse dining options featuring international cuisines and local delicacies. It is home to recreational attractions like Legoland Malaysia and many amusement parks. Nearby beaches are accessible by well-connected public transportation systems, such as the Johor Bahru-Singapore Rapid Transit System, which can facilitate travel to Singapore. These qualities contribute to why Johor Bahru is included among the best places to buy property in Malaysia.
- Economic growth: Johor’s economy is thriving and has the potential to skyrocket due to the recent agreement between Singapore and Malaysia to work together on the Johor-Singapore Special Economic Zone (JSSEZ). This partnership aims to enhance economic ties and improve connectivity between the two nations. Foreign investors are eyeing Johor as among the best places to buy property in Malaysia, taking advantage of this development in the coming years.
- Potential rental income: Johor also boasts potential rental income, making it one of the best places to buy property in Malaysia for rental business purposes. A standard Airbnb rental in Johor Bahru is occupied for 164 nights each year, boasting a median occupancy rate of 45% and an average daily rate of RM 218 ($48.79). In 2023, the average income for hosts was RM 36,000 ($8,057). As of September 2024, there are 4,440 active listings on Airbnb. Renting an apartment in Johor can generate an average annual yield of 6.22%, with rents running from $300 to $800, depending on the unit type.
Langkawi
Langkawi, officially referred to as Langkawi, the Jewel of Kedah, is a duty-free island and an archipelago comprising 99 islands situated approximately 30 kilometers off the northwestern coast of Malaysia and just a few kilometers south of Ko Tarutao, near the Thai border. The distance between Kuala Lumpur and Langkawi is 519 kilometers, and it can be traveled by flight, which takes only around 1 hour. Langkawi has become one of the top tourist destinations worldwide and one of the best places to buy property in Malaysia. The island boasts a range of attractions, including its delectable cuisine, world-class beaches, wildlife, watersports, and island-hopping tours.
Reasons to buy property in Langkawi
Below are some of the reasons why Langkawi is considered one of the best places to buy property in Malaysia:
- Duty-free status: Since Langkawi gained duty-free status in 1987, it has become a popular tourist destination and among the best places to buy property in Malaysia. The island offers a wide range of duty-free items, the most popular being chocolates, liquor, cigarettes, perfumes, and cooking ware, all available at significantly lower prices than other parts of Malaysia, like Kuala Lumpur. Shopping hubs include Kuah Town, where large duty-free stores sell various items, and Pantai Cenang, a tourist hotspot with great tobacco, liquor, and electronics deals.
- Affordable property prices: Residential properties in Langkawi can range from RM 100,000 ($22,380) to RM 618,800 ($138,487). Buying a house in Malaysia in this area can incur an average cost of RM 247,500 ($55,391) or RM 206 ($46.10) per square foot. Langkawi’s affordable luxury properties make it one of the best places to buy property in Malaysia, including bungalow houses priced at RM 55,000 ($12,309), apartments at RM 205,000 ($45,879), and terraced houses at RM 170,000 ($38,046).
- Tourism: Langkawi offers a variety of fun activities, attracting foreign investors looking for the best places to buy property in Malaysia. Nature lovers can explore Kilim Karst Geoforest Park, which features mangrove tours and limestone caves. Langkawi’s beaches, such as Pantai Cenang, are perfect for water sports while discovering the island’s waterfalls, such as Telaga Tujuh. Visitors can enjoy a sunset cruise on the Andaman Sea, island hop to Pulau Dayang Bunting, and experience panoramic views from the SkyCab and SkyBridge.
- High rental yields: Langkawi offers high rental yields because of tourism and the vast influx of tourists visiting the island. Langkawi is one of the best places to buy property in Malaysia for rental business purposes. An Airbnb in Langkawi is booked for 157 nights annually, with a median occupancy rate of 43% and an average daily rate of RM 242 ($54.16). In 2023, the typical host earned an annual income of RM 37,000 ($8,281). As of September 2024, there are 733 active Airbnb listings.
Ipoh
Ipoh is the capital of the Malaysian state of Perak. It is situated along the Kinta River, approximately 200 kilometers north of Kuala Lumpur and about 150 kilometers southeast of George Town in Penang. The city has an area of 643 square kilometers and a population of 857,000 in 2023. Ipoh is a quiet and overlooked city, often used by tourists as a transit point. However, Ipoh is a hidden gem for Malaysian tourists who appreciate the culinary experience. Despite being a large city, Ipoh retains its small-town charm with colonial architecture, narrow streets, and street art. Malaysia’s housing transaction data for 2021 ranks Ipoh among the top five most popular areas and one of the best places to buy property in Malaysia based on total transactions, with 527 transactions.
Reasons to buy property in Ipoh
Ipoh is among the best places to buy property in Malaysia due to the following reasons:
- Affordable property prices: Property prices in Malaysia are generally low, and Ipoh is among the best places to buy property in Malaysia if you are looking for the cheapest ones. The average price of properties in Ipoh is RM 313,000 ($70,049) or RM 216 ($48.34) per square foot. These properties can cost as low as RM 55,000 ($12,309) or RM 75 ($16.79) per square foot or as high as RM 398,000 ($89,072) or RM 420 ($94) per square foot, depending on the size, location, and features.
- Potential rental income: The short-term rental market for Ipoh, Perak, Malaysia, currently has an occupancy rate of 34%, indicating the percentage of available nights a property is booked. The revenue for typical listings is $6,948 annually, and the nightly rate averages $54 per stay. With 1,992 active listings, Ipoh’s rental market is active, offering potential for rental businesses.
- Cost of living: Ipoh is among the best places to buy property in Malaysia if you are looking for cities with the most affordable cost of living. The cost of living in Ipoh is 10.8% lower than in Kuala Lumpur, and rent prices are lower, at 40.3%. To sustain the same standard of living in Ipoh, you would require approximately RM 10,736 ($2,403), compared to RM 13,000 ($2,909) in Kuala Lumpur. This makes Ipoh an ideal location for budget-conscious people looking for the best place to live in Malaysia since it offers a high quality of life at lower prices.
Georgetown
George Town, Malaysia’s primary port, is located on a triangular promontory in the northeastern part of Penang Island. The harbor is well-protected and is divided from the west coast of Peninsular (West) Malaysia by a five-kilometer channel that allows international ships to navigate from the north. George Town has a total area of 121 square kilometers and is inhabited by over 790,000 people. It is widely known as a UNESCO World Heritage Site and attracts numerous tourists yearly. George Town is among the best places to buy property in Malaysia if you want luxury condos, villas, and apartments.
Reasons to buy property in Georgetown
Here are some of the compelling reasons why Georgetown is one of the best places to buy property in Malaysia:
- UNESCO World Heritage status: The George Town UNESCO World Heritage Site showcases some of Malaysia’s best-preserved traditional architecture and is known for its rich heritage, trades, and arts. Its famous “Street of Harmony” highlights the cultural diversity of Penang, where different communities have thrived. Covering just 2.5 square kilometers, the site is easily explored on foot or by bicycle. The core heritage zone spans 109.38 hectares and includes over 1,700 historic buildings, while a 150.04-hectare buffer zone surrounds and protects it from further development.
- High rental yields: George Town is among the best places to buy property in Malaysia for rental business purposes. A standard short-term rental in George Town is typically reserved for 226 nights annually, boasting a high median occupancy rate of 62% and an average daily rate of RM 247 ($55.28). In 2023, the average annual income for hosts was RM 55,000 ($12,309). As of September 2024, 1,774 active Airbnb listings are in the area. The 62% occupancy rate reflects the number of tourists visiting here, contributing to the potential of rental businesses.
- Cost of living: The cost of living in George Town is lower than in Kuala Lumpur, especially when considering rent prices, which are lower by 27.0%. Restaurant prices are lower in George Town than in Kuala Lumpur by 23.1% and groceries by 10.4%. This means that you would need less money to maintain the same standard of living in George Town compared to Kuala Lumpur. Specifically, you would need around RM 10,004 ($2,239) in George Town to have the same lifestyle as you would with RM 13,000 ($2,909) in Kuala Lumpur.
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Frequently Asked Questions (FAQs)
What are the best cities in Malaysia for foreigners to invest in property?
The best cities in Malaysia for foreigners to invest in property are Kuala Lumpur, Penang, Johor Bahru, Langkawi, Ipoh, and George Town.
Are there any restrictions on where foreigners can buy property in Malaysia?
Yes, there are restrictions on where foreigners can buy property in Malaysia. Properties on Malay Reserved Lands are exclusively for Malays and cannot be sold or rented to foreigners. Moreover, since each state in Malaysia operates under its land laws, restrictions can differ regionally, making it crucial for foreign buyers to research local regulations.
What factors should I consider when choosing a location to buy property in Malaysia?
When choosing a location to buy property in Malaysia, consider the benefits these locations offer, including the property prices, potential for rental income, access to amenities, and, most importantly, the local property laws.
Is buying property in Kuala Lumpur a better investment than in Penang or Langkawi?
No, buying property in Kuala Lumpur cannot generally be considered a better investment than in Penang or Langkawi since various factors must be considered. Although Kuala Lumpur is one of the best places to buy property in Malaysia, Penang, and Langkawi offer attractive choices like lower property prices and tourism-driven business potential.
Where can I buy the cheapest property in Malaysia?
You can buy the cheapest property in Malaysia in rural areas, such as Langkawi, where the average price is RM 247,500 ($55,391), and Ipoh, where the average price is RM 313,000 ($70,049).
