Everything you need to know before making your first move
If you’re a foreigner looking to buy property in Malaysia—especially in beautiful Penang—you’re not alone. Over the past few years, more international buyers have been drawn to Penang’s unique mix of affordable luxury, island lifestyle, and investor-friendly policies.
But how exactly does the buying process work for non-Malaysians?
Here’s your complete guide to buying property in Penang in 2025, designed to make your journey smooth, informed, and stress-free.
Yes, foreigners can legally own property in Malaysia, including freehold titles—something not always available in other Southeast Asian countries.
However, there are certain rules and thresholds you need to be aware of, particularly in Penang:
Minimum Purchase Price (2025):
RM 1.8 million for landed property
RM 800,000 for strata-titled condominiums (on Penang Island)
RM 500,000 on the mainland (Seberang Perai)
➡️ Most new high-end condominiums in Penang already meet or exceed these thresholds, making them eligible for foreign ownership.
Yes. All foreign property purchases in Malaysia are subject to state authority consent. This is a formal approval process that typically takes 2–4 months and is handled by your lawyer.
The good news? If you're purchasing a reputable presale property from a licensed developer, they’ll often assist in coordinating this process for you.
Malaysia is known for having lower property holding costs compared to many Western countries. Here’s what you can expect:
Stamp Duty (one-time): 4% depending on property SPA price
Legal Fees: 0.4% to 1.0% depending on property price
Levy Fees: 3% depending on property SPA price
No inheritance tax, no annual property tax, and no capital gains tax if you hold the property for more than 5 years.
➡️ Malaysia is particularly attractive for long-term ownership and legacy planning.
Presale or “off-plan” properties offer a flexible entry point for foreign buyers:
Progressive payment structure: You pay based on construction stages, not all at once.
Lower upfront cost: Booking fees are typically around RM 10,000–30,000.
Better unit selection & launch prices: Early buyers often get the best layouts and prices before market value rises.
Modern designs, warranty coverage, and developer support throughout the process.
Popular examples of foreign-friendly presale projects in Penang include:
Seaview luxury condominiums in Gurney Drive
Integrated lifestyle developments near Straits Quay
Branded residences and wellness-themed communities in The Light City and Andaman Island
Retirees (MM2H or PR holders): For peace, healthcare access, and cost-efficiency.
Accompanying study families: For international school zones and family-friendly layouts.
Investors: Looking for long-term capital appreciation and rental returns.
Choose the right area (Ex: Gurney, Tanjung Tokong, Tanjung Bungah, George Town)
Work with a trusted agent who understands foreigner requirements
Check developer background and project delivery record
Engage a legal team experienced with state consent applications
Understand your financing options (foreigners often buy cash, but financing via Malaysian banks may be possible with stricter terms)
Penang is no longer a secret. But it’s still one of Southeast Asia’s most practical, scenic, and rewarding places to own property—especially for foreigners.
With the right guidance, you can secure a beautiful sea-facing home, enjoy flexible payment terms, and tap into one of Asia’s rising real estate markets—all while embracing a relaxed island lifestyle.
📩 Need help choosing your first home in Penang?
Get your free 2025 Foreign Buyer Handbook and personalized project recommendations. Just send us a message today!
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