Malaysia housing guide

Rental market overview

Malaysia has a well-developed rental market, particularly in Kuala Lumpur (KL), Selangor, Penang (especially George Town), Johor Bahru, and Kota Kinabalu (Sabah). High-end condo supply in KL has grown significantly, giving tenants strong negotiating power in the luxury segment (above 3,000 MYR/month). Landed houses are more limited in KL proper but available in the suburbs.

Typical rental costs (monthly, MYR)

Indicative ranges as of May 2026:

Kuala Lumpur / Selangor

Studio/1-bed condo in KLCC or Bangsar: 2,000-3,500 MYR (420-740 EUR)
2-bed condo in Mont Kiara, Bangsar, or KLCC: 2,500-5,000 MYR (530-1,050 EUR)
3-bed condo in Mont Kiara or Desa Park City: 3,500-7,000 MYR (740-1,480 EUR)
3-bed landed house in Petaling Jaya or Subang Jaya: 2,000-4,000 MYR (420-840 EUR)

Penang (George Town)

1-bed condo in George Town: 1,500-2,500 MYR (315-530 EUR)
2-bed condo in George Town: 2,000-3,500 MYR (420-740 EUR)
3-bed landed house: 2,500-5,000 MYR (530-1,050 EUR)

Johor Bahru

2-bed condo (near causeway): 1,500-3,000 MYR (315-630 EUR)
3-bed landed house: 2,000-4,000 MYR (420-840 EUR)

Lease terms

Standard lease: 12 months. Month-to-month is available in some serviced residences at a 20-30% premium.
Deposit: 2.5 months' rent (two months deposit + half month advance) or 3 months (2+1): standard under the National Land Code.
Utilities: electricity (TNB) and water (Air Selangor, PBA Penang, etc.) are paid separately by the tenant. TNB requires a deposit of roughly 300-1,000 MYR.
Maintenance fee: for condos, the maintenance fee is typically included in the rent. Confirm.
Tenancy agreement: stamped (10 MYR per 1,000 MYR of annual rent). Both landlord and tenant pay stamp duty.
Early termination: deposit forfeited. Most contracts require 2 months' written notice.
Tenancy laws fall under the Civil Law Act and specific tenancy agreements. No rent control.

Finding accommodation

Online portals: iProperty, PropertyGuru Malaysia, EdgeProp ^[1,2,3]. All have English interfaces.
Facebook groups: "KL Expats", "Penang Expats", "Mont Kiara Rentals".
Real estate agents: commonly used. The landlord pays the agent fee (one month). Tenants using an agent may need to pay a finder's fee if the landlord isn't already represented.
Property management companies: many condo buildings have an in-house rental office.
Short-term trial: use Airbnb or a serviced residence for the first month.

Property purchase for foreigners

Malaysia allows foreign ownership under the National Land Code, subject to state-level minimum price thresholds:

Minimum purchase price varies by state: generally 1 million MYR (about 210,000 EUR) for condos in KL, Penang, and Johor (raised from 600,000 MYR in 2020). Landed properties minimums vary.
Foreigners can own freehold (fee simple) title. Malaysia is one of only a few SE Asian countries to allow this.
Bumiputera lots and Malay Reserve Land cannot be purchased by non-Malaysians.
Sales and purchase agreement (SPA) is standardised. 10% down payment on signing.
Ownership carries permanent rights; no time limit. However, some states require a minimum holding period before sale (5 years in some cases).
Transfer tax (memorandum of transfer / MOT): 1-4% depending on property value. Annual assessment tax 2-6% of assessed annual value.
Real Property Gains Tax (RPGT): applies on sale within 5 years (30%) declining to 5% after year 5.

Utilities and internet

Electricity: Tenaga Nasional Berhad (TNB). Connection deposit 300-1,000 MYR. Rates 0.218-0.571 MYR/kWh tiered.
Water: state-level providers (Air Selangor, PBA, etc.). Rates low, roughly 10-40 MYR/month for a household.
Internet: TM Unifi, TIME, Maxis Fibre. Fibre broadband 100-1,000 Mbps for 89-299 MYR/month. TIME is fastest in KL/Penang where available.
Mobile: CelcomDigi, Maxis, U Mobile, Yes. Excellent 4G/5G coverage in urban areas.

Common issues

Condominium management: varies widely. Monthly sinking funds may be underfunded. Check if the building has been well maintained (lifts, lobby, swimming pool, security).
Parking: many older condos in KL have inadequate parking. Check the number of allocated lots.
Flooding: some areas (Shah Alam, parts of KL) flood during heavy rain. Check flood history.
Furnished vs unfurnished: most Malaysian rentals are unfurnished. "Partly furnished" usually means kitchen cabinets, hob/hood, and built-in wardrobes. Expect to buy your own appliances.
Strata management issues: service charges in arrears can affect the whole building. Ask the agent about the building's financial health.

This page is not legal advice. Consult a qualified lawyer before signing contracts.