Malaysia has one of the most liberal policies on foreign property ownership among Southeast Asian Nations, according to London-based property consultancy Knight Frank.
However, aliens must first obtain a state government’s approval before they can be permitted to buy a residential property. Failure to comply could result in a rescindable transaction, it said.
Despite this inconvenience, foreigners can freely own all types of properties anywhere in the country like landed houses, industrial facilities, commercial units and high-rise apartments, but purchases are subject to the RM2 million minimum price.
Except for Malay reserve land, wherein ownership is prohibited, aliens can posses these properties under their own name.
Thus, Malaysia’s real estate rules are more accommodating to foreign buyers, unlike for some ASEAN nations where ownership is strictly regulated, Knight Frank concluded.
In the Philippines, for instance, aliens are not allowed to purchase land and property except for condominiums. Similarly, foreigner cannot acquire a freehold property in Indonesia, while in Thailand they’re also not allowed to buy property, except for condos as long as 51 percent of a project’s units are earmarked for Thais.
This means, Malaysia’s property market is more appealing than those aforementioned markets. As such, it’s not surprising that its real estate sector appeals to Singaporeans, Britons, Australians and Americans, it added.
Farah Wahida, Editor of PropertyGuru, wrote this story. To contact her about this or other stories email farahwahida@propertyguru.com.my