This is for Bumiputera buyers looking at new or subsale homes in Johor Bahru, and for non-Bumi buyers who have spotted a “Bumi lot” listing in Mount Austin or elsewhere and want to know whether they can buy it. The one-line answer: a Bumi lot is a unit the developer must set aside for Bumiputera buyers under Johor state rules. The restriction stays on the title after resale, so a non-Bumi buyer generally cannot buy one without state consent, while a Bumi buyer finances it like any other home.
What a Bumi lot is, and how it differs from Malay Reserve Land
When the state approves a housing project, it fixes how many units must be offered to Bumiputera buyers. Those units become Bumi lots. The restriction is usually endorsed on the title as a “restriction in interest”, which the National Land Code allows the state to impose; any transfer that breaks it needs State Authority consent. Rehda Johor’s then chairman said in May 2020 that Johor’s Bumi units carry this endorsement, unlike Selangor’s, which makes them harder to sell.
Malay Reserve Land is a different thing. It is land gazetted as a reserve under the state’s own enactment, which in Johor dates from 1936. The rule attaches to the land, not to selected units, and limits ownership to Malays rather than all Bumiputera.
| Bumi lot | Malay Reserve Land | |
|---|---|---|
| What is restricted | Selected units in a project | The whole piece of land |
| Who can own it | Bumiputera | Malays, as defined in the state enactment |
| Where the rule comes from | State approval conditions, endorsed on title | Johor’s Malay Reservation Enactment (1936) |
| Can it pass to other buyers? | Only with State Authority consent | Not by ordinary sale to non-Malays |
The Bumi quota on new projects in Johor
According to iProperty’s state-by-state summary (updated May 2024), Johor applies a flat 40% quota to residential, commercial and industrial projects whose land conversion was approved before 11 December 2004. For residential projects approved after that date, the quota depends on the selling price:
- Below RM200,000: 40% of units.
- RM200,000 to RM300,000: 30%.
- Above RM300,000: 20%.
Johor also has a separate affordable housing rule. In December 2024 the state housing exco, Datuk Mohd Jafni Md Shukor, said developers must allocate 40% of housing projects to Rumah Mampu Milik Johor (RMMJ), with 60% for the open market. In April 2026 he described homes up to RM300,000 as RMMJ and those above as Bumi lots. The exact mix for any project is set in its approval, so ask the developer which units are Bumi lots. Bumi lots are priced under state rules; ask the developer for the Bumi price.
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WhatsApp JasonWhat happens to unsold Bumi units
Developers must apply to the state to release an unsold Bumi lot, and pay a fee:
- The fee. In March 2017 the then Menteri Besar, Datuk Seri Khaled Nordin, said that since 2013 developers converting Bumi lots to non-Bumi status pay a 7.5% contribution to the state, which goes into a Bumiputera housing fund; older projects pay less. In August 2022 Datuk Mohd Jafni put the release fee at 7.5% to 10% of the sold unit price. Reports differ on the top of the range, so check the current rate.
- The waiting period. In August 2022 the exco said developers may apply once a unit has stayed unsold for a year. The state had released 2,211 Bumi lots in the previous four months, worth about RM1.9 billion, and collected RM146 million in release fees.
- Faster processing. Johor’s housing rejuvenation policy, launched in November 2022, cut the processing time for developers’ Bumi lot applications from 180 days to seven.
- The current stance. In April 2026 the exco said only about 20% of Bumi units priced RM300,000 and above in Johor Bahru had been sold, and that existing controls would stay, with release only after a set period.
One point buyers miss: iProperty notes that a released Bumi lot does not stop being a Bumi lot. A non-Bumi buyer who gets one from the developer may still need consent again when selling to another non-Bumi.
Can a non-Bumi buyer buy a Bumi unit on subsale?
Generally, no. Because the restriction is endorsed on the title, the owner must get State Authority consent before transferring to a non-Bumiputera. Mah Weng Kwai & Associates say the owner needs good reasons, such as failing to find a Bumi buyer for a long time, and may have to pay back the price benefit received when buying. iProperty says the process is long and most requests are rejected.
So when you look at subsale condos in Johor Bahru, ask for a copy of the title and have your lawyer run a land search before you pay the earnest deposit. I explain the order of these checks in my guide to the legal steps of buying property in Johor.
Resale: plan for a smaller buyer pool
If you are Bumiputera and buying a Bumi lot, you can later sell it to another Bumiputera buyer in the normal way. What you cannot count on is selling to the wider market. That is a consideration, not a reason to avoid one: check recent Bumi resales in the same project and allow more time to sell.
Financing a Bumi unit
Banks assess a Bumi lot loan like any other home loan: your income, commitments and debt service ratio decide the amount. I could not find a Bumi-specific loan margin, so assume none. My home loan guide for Johor Bahru covers how banks look at JB applications. State help that may apply:
- Perumahan Kasih Johor. In April 2026 the state said 1,800 first-time buyers would receive RM5,000 towards homes priced below RM500,000, and raised the one-off move-in aid from RM1,000 to RM2,000. By October 2026, six phases had reached 21,236 people (RM84 million); the current round closes on 30 November. Check eligibility before applying.
- A possible Bumi M40 scheme. In April 2026 the Menteri Besar said the state was considering extending purchase aid to Bumiputera M40 buyers of homes priced RM300,000 to RM650,000. In the reports I read it was still under consideration, not a confirmed scheme.
- Help with loans. In November 2022 the state housing corporation partnered Syarikat Jaminan Kredit Perumahan, BSN, Bank Muamalat and Bank Rakyat to help buyers struggling to get loans.
Federal first-home relief such as the stamp duty exemption is covered in my first-home guide for Johor Bahru.
Where Bumi units turn up in JB
Because the quota applies to new residential projects, Bumi lots exist across Johor Bahru rather than in a few estates: in Mount Austin, in Tebrau, Setia Indah and Molek, in Iskandar Puteri and elsewhere. With most Bumi units above RM300,000 in JB unsold as of April 2026, Bumi buyers often have a choice. Ask the developer for the Bumi lot list and price, and for subsale homes confirm the title status through your lawyer.
Questions about your situation?
Tell me whether you are Bumiputera, your budget and the area you like, and I will help you check the Bumi lot status and your loan.
Sources: iProperty, “Bumi Lot and Malay Reserve Land: What You Need To Know”, April 2021, updated January 2024; iProperty, “Bumi Lot: How to check its status and the reasoning behind different Bumi quota in each state”, June 2022, updated May 2024; Mah Weng Kwai & Associates, “Property Transactions Requiring State Consent”, February 2023, updated June 2024; EdgeProp, “Efficient Bumiputera units release can help reduce property overhang”, May 2020; Malaysiakini, “MB: Bayaran pelepasan status bertujuan bantu bumiputera”, March 2017; The Iskandarian, “Johor is Releasing Unsold Bumi Lots – Exco”, August 2022; The Vibes, “Johor launches housing rejuvenation policy to encourage developers”, November 2022; The Star, “Developers must allocate 40% of projects to Johor’s affordable housing scheme, says exco man”, December 2024; Berita RTM, “Hanya 20% unit hartanah, lot bumiputera RM300,000 ke atas terjual di Johor Bahru”, April 2026; Utusan Malaysia, “Johor perluas inisiatif PKJ, bantu lebih ramai rakyat miliki rumah”, April 2026; The Star, “Johor targets 100,000 affordable homes by 2030”, October 2026
Jason Lim, REN 84424, IQI Realty Sdn. Bhd. E (1) 1584/6. General information checked on 20 October 2026, not legal, tax or financial advice.