Author: Jason Lim

中文 · Bahasa Melayu · Bahasa Indonesia

By Jason Lim, REN 84424 · IQI Realty · Checked on 7 November 2026

This guide is for buyers from Singapore, Indonesia, India, China and Malaysia who want to know what a Johor Bahru resale (subsale) home is really worth before making an offer. The short answer: look up recorded sale prices from NAPIC and JPPH (the government valuation department), not listing prices; compare only truly similar units in the same project, size and floor band; and work out price per square foot on the right area. Recorded data runs months behind the market, so treat it as a range, not an exact figure.

Asking prices vs recorded prices

Every price on a listing is an asking price: what the seller hopes to get. Some stay online long after the unit is sold. A recorded (transacted) price is what a buyer actually paid, taken from the transfer documents that pass through JPPH (Jabatan Penilaian dan Perkhidmatan Harta).

The difference matters for three reasons:

• Your offer. An offer backed by recorded sales is harder to dismiss. My guide to making an offer on a JB subsale covers the offer letter and deposit.
• Your loan. Bank valuers work mostly from recorded sales. Pay well above them and you may cover a valuation gap in cash.
• Your stamp duty. Transfer stamp duty is charged on the price or the market value, whichever is greater, and JPPH looks at recent nearby transactions when it assesses market value.

Where to find recorded transaction prices

NAPIC (Pusat Maklumat Harta Tanah Negara, the National Property Information Centre) is part of JPPH and the official source of Malaysian property transaction statistics.

Source	What you get	Cost	Best for
NAPIC Open Transaction Data (Data Transaksi Terbuka)	Published transaction data for residential, commercial and industrial property	Open on the NAPIC portal	A first look at what similar homes sold for
JPPH e-Data	Unpublished, more detailed transaction data and reports, bought online after registering an account	Charged per search or request, calculated by the system; paid online	A deeper check on one project or street
Form A (Borang A)	An application to JPPH for sale or transfer details	Check with JPPH	Specific records
NAPIC Property Market Report and house price index	Quarterly and half-year totals, average prices and indices by state and house type	Published by NAPIC	Market direction, not unit prices
Private transaction websites	JPPH records republished in a searchable form	Varies	Quick searches by project or road; check the date range and the size of each record

What a record tells you, and what it doesn’t

Expect the basics: location, property type, size, tenure, roughly when it sold and the price. Don’t expect the unit number, view, renovation, furniture or why the seller sold; for condos the floor is often missing. A recorded price is a starting point that you adjust, not an answer.

The market picture in 2026

• Malaysia, first half of 2026: 187,320 transactions worth RM105.12 billion. The Malaysian House Price Index stood at 234.7 points, with an average price of RM506,317, up 0.9% on a year earlier (NAPIC report launched 10 September 2026, reported by Berita RTM).
• Johor, first quarter of 2026: 8,730 residential transactions worth RM4.45 billion, down 9.5% in volume year on year, based on preliminary NAPIC data (New Straits Times, June 2026).

State averages mix low-cost flats with large landed homes; use them for direction only.

How stamp duty and bank valuations use the same evidence

JPPH and stamp duty

When a property is transferred, LHDN (the Inland Revenue Board) charges stamp duty on the price or the market value on the date of the transfer, whichever is greater. JPPH assesses that market value for LHDN. In a 2023 statement, JPPH said it studies the property in detail, including recent transactions of similar properties nearby, and that the price agreed between buyer and seller does not decide market value alone. Sales between related parties can be set aside because they may not reflect the open market.

LHDN is moving stamp duty to self-assessment (Sistem Taksir Sendiri Duti Setem); its timetable, updated 28 August 2026, brings property transfers not involving a JPPH valuation in from 1 January 2027. Your lawyer handles the filing. My stamp duty guide for 2026 has the rates.

How a bank valuer uses comparables

For homes, valuers mainly use the comparison method: recent sales of similar properties, adjusted for differences. A University of Malaya survey ranked the factors Malaysian valuers adjust for, in order: tenure, date of transaction, location, physical features, economic factors, land use and zoning, quantum (size of the deal), topography and financial terms (Journal of Design and Built Environment, 2010).

Banks usually lend a percentage of the price or the valuation, whichever is lower, so checking comparables first tells you roughly where the valuation will land. My guide to a bank valuation that comes in lower than the price covers what to do if it doesn’t.

Compare like with like

The most common mistake is comparing with the wrong records. A 3-bedroom in a 20-year-old block and one in a new tower nearby are different products. Filter in this order:

Factor	Why it moves the price	What to check
Same project, block or street	Location and building quality are the biggest drivers	Use the same development first; widen to nearby similar projects only if records are thin
Size and layout	Larger units often sell for less per square foot; awkward layouts sell for less	Compare units of the same or very similar size; see my floor plan red flags
Floor level	Higher floors often ask more, for views and less noise	Note the floor where you can; see high floor vs low floor
Facing and view	Open or water views, or a unit facing a highway, change appeal	Visit and look out of the window; see which way a condo should face
Age and condition	Older units may need rewiring, plumbing or kitchen work	Budget repairs; see my subsale inspection checklist
Renovation and furniture	Sellers price these in, but buyers and valuers often value them below cost	Separate the home from the furniture in your own sums
Tenure	Freehold usually commands more than leasehold, and short leases less again	Check the title; see freehold vs leasehold
Title type and land use	Strata vs master title, residential vs commercial title, affect loans and running costs	See strata title explained
Type of sale	Family transfers, auctions and forced sales are not open-market prices	Treat far-off records as outliers; see auction property in JB

Comparing a subsale with a new launch is also risky, as developer prices come with their own terms. My guide to new launch vs subsale explains the trade-offs.

Reading price per square foot correctly

Price per square foot (psf) only works if you divide by the same kind of area each time.

• Condos and serviced apartments. Use the unit’s floor area (parcel area). A listing’s built-up figure, the SPA area and the strata title area can differ slightly, and accessory parcels such as car parks are usually separate. Check which number each source uses.
• Landed homes. Work out both psf on land area and psf on built-up area. A corner lot with extra land can look expensive on built-up psf and good value on land psf. Compare intermediate lots with intermediate lots and corners with corners.
• Use the median, not the average. One odd record can drag an average a long way. Sort the prices and take the middle one.

Illustration only, made-up numbers: a 22 x 70 ft terrace (1,540 sq ft of land) with 2,000 sq ft built up at RM800,000 is RM400 psf built-up and about RM519 psf on land. A corner unit with 3,000 sq ft of land and 2,100 sq ft built up at RM1,000,000 is about RM476 psf built-up but only about RM333 psf on land.

The time lag: why the latest deals aren’t there yet

Recorded prices always run behind the market:

• Paperwork first. A subsale is recorded from the transfer documents, and completion usually comes several months after the SPA is signed, longer for foreign buyers who need state consent (see my SPA guide). A record dated this month may reflect a price agreed months earlier.
• Release timing. JPPH says a month’s transaction data cannot be bought until the 15th of the following month, and late records keep arriving after that.
• Reports come later still. NAPIC’s first-quarter 2026 figures were released on 14 May 2026, and the first-half report on 10 September 2026.

So look at 12 to 24 months of records, note which way prices were moving, and ask about deals signed but not yet recorded. Where prices have moved quickly, older records can understate today’s level; where many units are for sale, they can overstate it.

Worked example: from records to an offer

Illustration only. The project, records and prices below are made up to show the method. You like a 1,100 sq ft, 3-bedroom condo on a mid floor, renovated, asking RM650,000 (about RM591 psf). Recorded sales in the same project over the past 18 months look like this:

Record	Size	When	Price	psf	Use it?
A	1,100 sq ft	Q3 2025	RM560,000	RM509	Yes
B	1,100 sq ft	Q1 2026	RM600,000	RM545	Yes
C	1,250 sq ft	Q1 2026	RM650,000	RM520	As a cross-check only (larger unit)
D	1,100 sq ft	Q2 2026	RM585,000	RM532	Yes
E	1,100 sq ft	Q4 2025	RM450,000	RM409	No: far below the rest, possibly a family transfer or forced sale

1. Find the range. Same-size records A, B and D run from RM509 to RM545 psf, a median of RM532. For 1,100 sq ft that is about RM560,000 to RM600,000.
2. Adjust honestly. A higher floor, renovation or better view may justify the top of the range. Ask for renovation receipts and value furniture separately.
3. Test the bank’s view. At a 90% margin, a RM650,000 price needs a RM585,000 loan. If the valuation comes in at RM590,000, the bank lends RM531,000 and you pay RM54,000 more in cash.
4. Make the offer. An offer within the recorded range, with records B and D attached, gives the seller a clear reason for your number.

Run your own numbers in the home loan calculator and the buying costs calculator. Selling instead? My guide to pricing a house for sale in Johor Bahru uses the same data from the other side.

Notes for foreign and MM2H buyers

• Check the RM1 million line first. Foreigners can generally buy Johor residential property only from RM1 million, with exceptions such as designated zones (New Straits Times, 20 April 2026). In many projects most recorded sales are below that, so compare only within the eligible band. See Johor’s minimum price and foreign quota.
• Think about resale. A later foreign buyer faces the same minimum, so recorded sales in the eligible band show how deep that market is.
• Loans. Foreign buyers often get lower margins than Malaysians, so a valuation gap costs more cash. See home loans for foreigners.

For MM2H, I coordinate with a MOTAC-licensed MM2H agent and handle the property side; approval is decided by the authorities. See MM2H property support.

How I prepare a price check

When a buyer sends me a unit, I follow the steps above: recorded sales in the same project or street over one to two years, filtered by type and size; psf on the right area; outliers set aside with a reason; and current asking prices alongside, marked as asking. You get a range and the records behind it. A price check from an agent is not a formal valuation; only a valuer registered with LPPEH (the Board of Valuers, Appraisers, Estate Agents and Property Managers) can issue one. My page on how I verify projects explains how I check developments more generally.

Recorded prices help you avoid overpaying, but also check the title, the seller and the building: see property scams in Johor Bahru and the legal steps of buying in Johor.

Where to buy if this matters to you

Price checks work best where there are plenty of resales to compare:

• Mount Austin: many completed condos and landed homes.
• Tebrau, Setia Indah and Molek: established neighbourhoods with a long resale history.
• JB Sentral and Bukit Chagar: city-centre high-rises near the RTS Link station.
• Danga Bay: waterfront condos where floor and view make a big difference.
• Iskandar Puteri: a mix of newer projects; compare within each project.
• Bukit Indah and Gelang Patah: landed homes where land area and lot type need care.

Compare them on my JB property map.

More Johor living guides: Making an offer on a JB subsale · Subsale house inspection checklist · Checking condo management before you buy · Buying a tenanted property in JB

Frequently asked questions

Where can I see what homes actually sold for in Johor Bahru?

Use NAPIC’s Open Transaction Data section on the JPPH portal, JPPH’s paid e-Data service (open to the public since 1 February 2026, NAPIC said), or private websites that republish JPPH records. Listing sites show asking prices only.

Are listing prices the same as transaction prices?

No. A listing shows what the seller is asking; a recorded price is what a buyer actually paid. Bank valuers and JPPH work from recorded prices, so base your offer on them.

How up to date is official transaction data in Malaysia?

It runs behind the market. JPPH says a month’s transaction data cannot be bought until the 15th of the following month, and later records keep arriving, so look at 12 to 24 months and treat the latest months as incomplete.

How should I compare price per square foot for condos and landed homes?

For condos, divide by the unit’s floor area and check whether car parks are counted separately. For landed homes, work out psf on both land area and built-up area, and compare corner lots only with corner lots.

Will the bank valuation match recorded transaction prices?

Usually it lands close to them, because valuers mainly use the comparison method with recent sales of similar homes, adjusted for tenure, date, location and features. Banks lend on the lower of price and valuation.

Can foreign buyers rely on recorded prices in Johor?

Yes, but compare within the RM1 million and above band, since foreigners can generally buy Johor homes only from RM1 million. Many recorded sales in a project may be units a foreigner cannot buy.

Is an agent’s price check the same as a valuation?

No. A price check is a comparison of recorded sales to help you negotiate. Only a valuer registered with LPPEH can issue a formal valuation, such as the one your bank orders.

Found a unit and want to know what it’s worth?

Send me the project or address, the size, the floor and the asking price. I’ll check recorded sales for similar units, show you the records and the range, and help you frame an offer. You can also book an appointment to view, or a Zoom consultation if you are still abroad.

Sources: NAPIC (JPPH), Data Transaksi Terbuka (Open Transaction Data): residential, commercial and industrial property transaction data, page updated 7 November 2026; NAPIC (JPPH), Panduan E-Data (e-Data guide): products, online payment and the 15th-of-the-month release rule, checked November 2026; JPPH official portal, online services (link to Data Transaksi Terbuka), updated 21 July 2026; The Edge Malaysia, “Napic’s e-data to be available to public starting Feb 1”, 29 January 2026; Bernama, 1Q 2026 property transactions about 90,000 units valued at RM51.9 billion (JPPH), 14 May 2026; Berita RTM, “Pasaran hartanah separuh pertama 2026 catat 187,320 transaksi”, 10 September 2026; New Straits Times, “State election unlikely to derail Johor home sales” (preliminary NAPIC data for Johor, Q1 2026), June 2026; The Sun, “JPPH assessment of market value done according to Stamp Act 1949”, 2023; LHDN, Sistem Taksir Sendiri Duti Setem (stamp duty self-assessment) phases, updated 28 August 2026; Anuar Alias and Noor Hana Asyikin Nor Hanapi, “Comparison method: preference of adjustment techniques among valuers”, Journal of Design and Built Environment, Universiti Malaya, 2010; New Straits Times, “Foreigners hit Johor property resale wall”, 20 April 2026; LPPEH (Board of Valuers, Appraisers, Estate Agents and Property Managers), checked November 2026

Jason Lim, REN 84424, IQI Realty Sdn. Bhd. E (1) 1584/6. General information checked on 7 November 2026, not legal, tax, financial or valuation advice. Data services, charges and rules change; confirm with NAPIC/JPPH, LHDN, your bank and your lawyer before you commit. Worked examples use made-up numbers.

中文 · Bahasa Melayu · Bahasa Indonesia

By Jason Lim, REN 84424 · IQI Realty · Checked on 7 November 2026

Many serviced apartments, SOHO and SOFO units in Johor Bahru sit on land approved for commercial buildings rather than housing, so they can cost more to run than a residential condo of the same size. The main differences are the council assessment rate, quit rent, and the electricity and water accounts if they are billed at non-domestic rates; loan margins and stamp duty treatment can differ too. None of this makes them a bad buy; just compare the real yearly costs before you commit.

Serviced apartment, SOHO, SOFO, condo: what the labels mean

These are marketing labels, not legal categories. What matters for your costs is the land title and how each account is classified. A rough guide:

Label	What it usually is	Usual land condition
Condominium / apartment	Strata home in a residential scheme	Building category, residential
Serviced apartment (pangsapuri servis) / serviced residence	Strata home, often in a mixed development with retail or a hotel	Often building category, commercial; some are residential
SOHO (small office home office)	Compact unit sold for living or working	Usually commercial
SOFO / SOVO (office or virtual office)	Unit approved mainly as an office	Commercial

For the wider comparison of layouts, space and lifestyle, see my guide to condo vs landed vs SOHO in Johor Bahru.

Why some homes are on commercial title

Under the National Land Code 1965 (Kanun Tanah Negara), alienated land is placed in a category of land use: agriculture, building or industry. Land in the building category also carries an express condition (syarat nyata) saying what the buildings may be used for, for example residential, or commercial such as shops, offices and serviced apartments.

When a developer builds a strata scheme, each strata title (hakmilik strata) follows the conditions on the master title. So if the land was approved for commercial buildings, every unit in the tower generally carries that commercial condition, even if people live there. Mixed developments with retail podiums, hotels or offices, and city-centre sites zoned for commerce, are commonly on commercial land.

• Where to check: the “category of land use” and “express condition” lines on the title (or the master title for a new launch), and the description of the property in the sale and purchase agreement (SPA). Your lawyer’s land search shows both.
• Can the title be changed? A change of category or condition is a decision of the State Authority for the land and usually involves paying a premium. Do not buy expecting a conversion.
• Buyer protection: the Housing Development (Control and Licensing) Act 1966 covers buildings built wholly or principally for living in, and those partly for living and partly for business. For a new launch, check that the developer has a housing developer’s licence for the project and that the SPA is in the statutory Schedule H form; see my SPA guide.

For how strata titles are issued and transferred, see strata title explained.

Running costs: what changes and by how much

Cost	Residential-title condo	Commercial-title serviced apartment
Assessment tax (MBJB area)	0.08% of rateable value a year	0.22% of rateable value a year
Quit rent / parcel rent	Residential rate set by the state	Usually a higher commercial rate; varies by land office and lot
Electricity (individual meter)	Domestic tariff	Domestic or non-domestic, depending on how the account is classified
Water (Ranhill SAJ)	Domestic tariff (or bulk meter)	Domestic, bulk-meter or non-domestic, depending on the account
Maintenance fee and sinking fund	Set by the management body	Set by the management body; no title-based rate
RPGT when you sell	Standard rates	Same rates

Assessment tax (cukai taksiran / cukai pintu)

This is the biggest and most predictable difference. MBJB lists its rates as a percentage of each holding’s rateable value, which is based on market value at a state-approved valuation date (currently 2020 values):

MBJB holding type	Rate	Illustration: rateable value RM500,000
Residential and others	0.08%	RM400 a year
Serviced apartments	0.22%	RM1,100 a year
Commercial	0.23%	RM1,150 a year

Iskandar Puteri (MBIP), Pasir Gudang and Kulai councils set their own rates and categories, so ask the seller for the latest assessment bill, which is the simplest check. My quit rent and assessment tax guide explains how both bills work.

Quit rent (cukai tanah) and parcel rent (cukai petak)

Quit rent is paid to the state land office, and for a strata unit it is billed as parcel rent once the strata title is issued. The rate follows the land category and condition, so commercial land is usually charged more per square metre than residential land. Johor does not publish one simple figure for every lot, so I do not quote one here: ask for the seller’s last bill, or the developer’s estimate for a new launch.

Electricity: domestic vs non-domestic tariff

Since July 2025, TNB’s base tariff in Peninsular Malaysia has separate energy, capacity and network charges plus a fixed retail charge:

Charge	Domestic general	Non-domestic low voltage general
Energy	27.03 sen/kWh (37.03 sen above 1,500 kWh)	27.03 sen/kWh
Capacity	4.55 sen/kWh	8.83 sen/kWh
Network	12.85 sen/kWh	14.82 sen/kWh
Total per kWh (my sum)	44.43 sen	50.68 sen
Retail charge	RM10 a month; waived at 600 kWh or less	RM20 a month
Illustration: 400 kWh a month	About RM178	About RM223

On a typical apartment’s use the gap is tens of ringgit a month, not hundreds. Which tariff applies depends on how the unit’s account is classified, and a serviced apartment can be on either. Owners using a unit as a home have been able to apply to TNB to change the tariff, but TNB decides each application (FocusM, June 2021). Before you buy, ask to see a recent electricity bill: it shows the tariff category. My utilities and internet guide covers opening accounts.

Water in Johor: domestic, bulk meter and non-domestic

Ranhill SAJ account type	Rate	Minimum monthly charge
Domestic, individual meter	RM1.05/m³ for 0–20 m³; RM2.35/m³ for 20–35 m³; above 35 m³, RM3.15/m³ plus 35 sen since August 2025	RM10.50
Domestic bulk meter (strata, billed to management)	RM2.55/m³ from February 2024, plus 20 sen since August 2025	Set per account
Non-domestic	Raised by RM1.00 to RM1.75/m³ on 1 August 2025, depending on category	RM41.50

A household using 20 m³ a month pays RM21 on the domestic individual tariff. On a non-domestic account, the RM41.50 minimum alone is about twice that. As with electricity, look at a recent water bill or ask the management office how the building’s water is metered.

Maintenance fee and sinking fund

The title does not set the maintenance fee. The developer, then the Joint Management Body (JMB) or Management Corporation (MC), sets it under the Strata Management Act 2013, and the sinking fund is 10% of the charges. Serviced apartments with hotel-style lobbies, sky facilities or a retail podium can cost more to run. Compare the fee per square foot and read the accounts; see my maintenance fee and sinking fund guide and how to check a building’s management.

Buying costs and financing

Home loan margins

Bank Negara Malaysia’s fixed rule for individuals is a maximum loan-to-value (LTV) ratio of 70% from the third house financing onwards (since November 2010). For the first and second properties, each lender sets its own margin within its credit policy.

Commercial-title homes are where offers differ most. Some lenders treat a serviced apartment bought to live in much like a condo; others apply their commercial-property policy, which can mean a lower margin, a shorter tenure or a different rate. Get the title details to your banker early and ask for a written indication of margin and tenure before you pay a booking fee. Related guides: home loans in Johor Bahru 2026, home loans for foreigners, second home loans and when the bank valuation comes in low. Not financial advice: confirm with your bank.

Stamp duty and first-home exemptions

• Normal scale: 1% on the first RM100,000, 2% up to RM500,000, 3% up to RM1 million and 4% above, on the higher of price or market value (LHDN guideline, 30 June 2026). This is the same whatever the title.
• First-home exemption: for Malaysian citizens buying a first home up to RM500,000, extended to 31 December 2027 in Budget 2026. The exemption orders define residential property as a house, condominium unit, apartment or flat bought solely as a dwelling house. Whether a commercial-title serviced apartment or SOHO qualifies is not spelled out, so get your lawyer’s view before you count on it.
• Foreign buyers: transfers of real property to non-citizens who are not permanent residents, or to foreign companies, are charged at 4%; from 1 January 2026, residential property is charged at 8%. LHDN’s guideline does not define “residential” for this purpose, so confirm with your lawyer which rate applies to a commercial-title unit rather than assuming.

Full tables are in my stamp duty 2026 guide; the buying costs calculator adds legal fees too. Not legal or tax advice.

RPGT when you sell

Real property gains tax (RPGT) applies to gains on any real property, so the rates by holding period are the same for commercial and residential titles. See the RPGT guide.

Foreign buyers in Johor

• Minimum price: the New Straits Times reported in April 2026 that foreigners can generally buy Johor homes from RM1 million, that developers can get special approval to sell lower-priced units to foreigners, and that such buyers may later resell only to Malaysians. Designated zones such as Medini are outside the thresholds. Details are in my Johor foreigner minimum price guide.
• State levy: since 1 July 2025 the minimum levy on a foreign purchase of a serviced apartment below RM1 million is RM50,000, on top of state consent.
• MM2H: the same NST report noted that MM2H Silver participants can buy from RM600,000. I coordinate with a MOTAC-licensed MM2H agent on applications; approval rests with the authorities. Start with MM2H property support.

Video: 61,000 new condos coming to JB: is it an oversupply trap? (Jason Lim, Smart Asset with Jason on YouTube).

Who serviced apartments suit, and the resale question

Serviced apartments are a large part of JB’s high-rise market. Johor’s housing committee chairman said in February 2025 that the state had 102,438 serviced apartment units, of which 11,810 were unsold, with about 27,700 more under development (The Star, 3 February 2025). That supply cuts both ways: plenty of choice for buyers and tenants, and more competition when you sell or let.

• Singapore commuters: many serviced apartments are near the CIQ, JB Sentral and the RTS Link station, where walking to the border can outweigh a higher assessment bill. See homes near the RTS Link station and renting to Singapore commuters.
• Short stays: some buildings allow short-term letting under their by-laws and others ban it; national guidelines were being finalised in October 2026. Check before you buy; see Airbnb and short-stay rules in JB.
• Families staying long term: a residential-title condo or landed home usually means lower yearly charges, and buyers using the first-home exemption have a clearer route. Weigh this against location.

Checklist before you buy

1. Title: land use category, express condition and tenure (see freehold vs leasehold).
2. Bills: the latest assessment, quit rent or parcel rent, electricity and water bills, showing tariff categories.
3. Management: maintenance fee, sinking fund, arrears and by-laws on short stays and renovation.
4. Loan: written margin and tenure from your lender for this title type.
5. Stamp duty: your lawyer’s view on the first-home exemption or the foreigner rate.
6. Prices: compare recorded prices for the same building against similar residential-title condos nearby (see new launch vs subsale).

Where to buy if this matters to you

• JB Sentral and Bukit Chagar: many serviced apartments within reach of the CIQ and the RTS Link.
• Danga Bay: waterfront towers a short drive from the city centre.
• Medini and Iskandar Puteri: mixed developments near EduCity and the Second Link.
• Mount Austin and Tebrau: residential condos and serviced residences side by side, popular with families.
• Permas Jaya and Senibong: east-side condos at moderate prices.

Compare areas on my JB property map.

More Johor living guides: Condo vs landed vs SOHO · High floor vs low floor · Home insurance in JB · Cost of living in JB

Frequently asked questions

Is a serviced apartment on commercial title a residential property?

People live in it, but the land carries a commercial express condition under the National Land Code, and the strata titles follow it. That is why councils, utilities, lenders and some tax rules can treat it differently from a residential-title condo.

Do serviced apartments in Johor Bahru pay commercial electricity rates?

It depends on how the unit’s TNB account is classified, not only on the title. Since July 2025 the domestic tariff works out at 44.43 sen/kWh for up to 1,500 kWh, against 50.68 sen/kWh plus a RM20 monthly retail charge for non-domestic low voltage. Check a recent bill for the tariff category.

How much more is assessment tax for a serviced apartment in JB?

In the Johor Bahru City Council (MBJB) area the rate is 0.22% of rateable value for serviced apartments, against 0.08% for residential holdings. On a rateable value of RM500,000 that is about RM1,100 a year instead of RM400. Other councils set their own rates.

Can I get a home loan for a commercial-title serviced apartment?

Yes, but terms vary. Bank Negara Malaysia caps the loan at 70% of value from your third house; below that, each lender sets its own margin and tenure, and some apply commercial-property policies to commercial-title units. Get a written indication from your bank before you book.

Does the first-home stamp duty exemption apply to a serviced apartment?

The exemption, for Malaysian citizens buying a first home up to RM500,000 and extended to the end of 2027, defines residential property as a house, condominium unit, apartment or flat bought solely as a dwelling. It does not spell out commercial-title units, so ask your lawyer before relying on it.

Can foreigners buy a serviced apartment in Johor below RM1 million?

Generally the floor is RM1 million, but developers can get special approval to sell lower-priced units to foreigners, who may then resell only to Malaysians. Since 1 July 2025 the minimum state levy for a serviced apartment below RM1 million is RM50,000. Designated zones such as Medini are outside the thresholds.

Want to compare the real costs?

Tell me which serviced apartments or condos you are considering and whether you plan to live in, let or use the unit part-time. I will check the title details, gather the bills and arrange a viewing or a live video walk-through. You can also book an appointment, or a Zoom consultation if you are abroad.

Sources: Suruhanjaya Tenaga, TNB tariff table (domestic and non-domestic), valid 1 July 2025 to 31 December 2027, checked November 2026; FocusM, on serviced apartments billed at commercial electricity tariffs and TNB tariff change applications, 20 June 2021; Majlis Bandaraya Johor Bahru (MBJB), property tax rates by holding type, checked November 2026; The Star, “New water tariffs for Johor in effect from Feb 1”, 18 January 2024; The Star, Johor water tariff adjustment from 1 August 2025, 2 August 2025; UNEP LEAP, summary of the National Land Code (Act 56 of 1965), land categories, accessed November 2026; Housing Development (Control and Licensing) Act 1966 (Act 118), section 3 definition of housing accommodation, text published by the National House Buyers Association, accessed November 2026; Bank Negara Malaysia, measures on the property market (70% LTV for the third house financing), 3 November 2010; LHDN, Garis Panduan Pengenaan Duti Setem, First Schedule, Stamp Act 1949 (Item 32), 30 June 2026; EY tax alert on the Stamp Duty (Exemption) Orders 2021, P.U.(A) 53 and 54, definition of residential property, February 2021; The Star, “Budget 2026: Stamp duty exemption extended for first-time homebuyers”, 10 October 2025; New Straits Times, “Foreigners hit Johor property resale wall”, 20 April 2026; The Star, “Significant drop in Johor property overhang”, 3 February 2025; The Star, short-term rental guidelines being finalised, 26 October 2026

Jason Lim, REN 84424, IQI Realty Sdn. Bhd. E (1) 1584/6. General information checked on 7 November 2026, not legal, tax or financial advice. Tariffs, council rates and stamp duty rules change; confirm with the council, TNB, Ranhill SAJ, LHDN, your bank and your lawyer before you commit.

中文 · Bahasa Melayu · Bahasa Indonesia

By Jason Lim, REN 84424 · IQI Realty · Checked on 7 November 2026

This checklist is for buyers from Singapore, Indonesia, India, China, MM2H participants and Malaysians visiting a developer’s sales gallery or show unit in Johor Bahru. The short answer: a show unit is a marketing display, not a promise. What you will actually get is set by the sale and purchase agreement (SPA) and its schedules, so check the developer’s licence and advertising permit on KPKT’s TEDUH portal, compare the show unit with the SPA specifications and floor plan, and get every important point in writing before you pay anything.

Why a show unit is not the home you are buying

Show units are built to sell. Common differences I see in JB galleries:

• Furniture and built-ins such as wardrobes, cabinets and feature walls that are not in the specification list.
• Walls removed or moved to make the living area feel bigger.
• Ceilings that differ from the final building, or hide where beams and pipes will run.
• Mirrors and glass that make rooms look deeper and brighter.
• AC ledges and windows placed differently from your real stack, or not shown at all.
• Finishes and appliances of a higher grade than the standard specification.

Malaysia has no specific law on what a show unit must match. In February 2021 a lawyers’ association called for show-unit rules similar to Singapore’s, after a Federal Court ruling that the Tribunal for Homebuyer Claims (Tribunal Tuntutan Pembeli Rumah) can only decide claims based on the SPA, and a buyer’s showroom expectation was not a valid basis. The practical lesson: if it matters to you, it must be in the SPA.

Step 1: check the developer and the permits

Under the Housing Development (Control and Licensing) Act 1966 (Akta Pemajuan Perumahan (Kawalan dan Pelesenan) 1966, Act 118), a housing developer needs a licence, and carrying out housing development without one is an offence with a fine of RM50,000 to RM500,000, prison of up to five years, or both. The developer must also hold an advertising and sales permit (permit iklan dan jualan) and display copies at its offices. The regulations require advertisements to show the licence and permit numbers with their validity dates, the tenure (and expiry and encumbrances for leasehold land), the expected completion date and the selling price of each house type.

Take a photo of these details at the gallery and check them on TEDUH (teduh.kpkt.gov.my or the TEDUH app). On 7 September 2026 KPKT urged buyers to check TEDUH before buying. It shows the licence and APDL status, project progress, approved selling prices, whether a private project is classed as delayed, troubled or abandoned, and approved extensions of time. In April 2025 KPKT said it had blacklisted 109 developers for failing to submit required reports, so this check is worth five minutes. I explain how I do it in how I verify projects.

Since 1 July 2015, licensed developers’ advertisements may not offer to pay your legal fees, show projected profit or rental returns, make claims about scenic views, or quote travel times to well-known places, or include any detail the developer cannot prove. If you hear such claims at a gallery, check them yourself.

Step 2: compare the show unit with the SPA

New homes from a licensed developer are sold on statutory SPA forms that the developer cannot rewrite in its own favour. My SPA guide covers them in full; here is what matters at the gallery.

Point	Schedule G (landed with land)	Schedule H (strata: condos, serviced apartments)
Vacant possession	24 months from the SPA date	36 months from the SPA date
Late-delivery damages (LAD)	10% a year of the purchase price, calculated daily	10% a year of the purchase price, calculated daily
Defect liability period	24 months from vacant possession	24 months from vacant possession
First payment	10% on signing the SPA	10% on signing the SPA
Specifications	In a schedule to the SPA	In a schedule to the SPA (the Fourth Schedule in the 2015 form), with common facilities in the Second Schedule

Example only: on a RM600,000 condo, LAD at 10% a year is about RM164 for each day of late delivery. See late vacant possession and LAD claims.

Ask for the specification list

Ask for the specification schedule that will be attached to your SPA, or a sample SPA. Walk the show unit with it and tick off flooring, doors, windows, sanitary fittings, kitchen, water heater, air-conditioner and power points, and whether grilles or cabinets are included. Anything not on the list is not included, however good it looks.

Built-up size: brochure vs SPA

Brochures may quote a “built-up” figure that includes balconies, planter boxes or air-conditioner ledges. The SPA states the parcel area from the approved plans. Under the 2015 Schedule H form, if the final strata title area is more than 2% smaller than the plan area, the price is adjusted at the rate stated in the SPA; if it is larger, there is no extra charge. Write down both figures and ask what each includes. For what strata titles are and when they come, see strata title explained.

Layout, windows and ledges

Get the floor plan for your exact unit type and stack. Check the air-conditioner ledges (noise and view), bedroom windows, wet areas and corridors that waste space. My floor plan red flags article lists what to look for.

Step 3: choose the unit, not just the layout

• Floor. Higher floors get more view and less street noise; lower floors mean shorter lift waits. See high floor vs low floor.
• Facing. West-facing units get the afternoon sun. Ask what faces the unit and what is zoned for the empty land next to it. See which way should your condo face.
• Facilities floor. Find out which floor the pool, gym, function rooms and playground are on. Units beside a facilities deck can be noisier.
• Lifts. Ask how many units share each lift lobby, and check the floor plate for refuse chutes next to your unit.

Step 4: running costs and parking

Maintenance charges and sinking fund. Under the Strata Management Act 2013 (Akta Pengurusan Strata 2013), the developer sets the charges during the developer management period, in proportion to each parcel’s share units, and the sinking fund contribution is 10% of the charges. The Schedule H form also asks the buyer to pay the first four months of charges and sinking fund in advance at handover. Ask for the estimated rate per square foot in writing and the share units for your parcel. See maintenance fees and sinking fund.

Car parks. Ask how many bays come with your unit and how they are held: as an accessory parcel shown in the strata plan for use with your unit, or as common property allocated by management. Ask whether they are tandem, and if you need an EV charger; see EV charging and parking.

Title and land use. Ask whether the project is on residential or commercial land. Serviced apartments and SOHOs are often on commercial land, which can change running costs and loan terms (see condo vs landed vs SOHO). Add quit rent and assessment tax to your budget.

Step 5: booking fees and the paperwork

Regulation 11(2) of the Housing Development (Control and Licensing) Regulations 1989, as amended in 2015, says no person, including parties acting as stakeholders, may collect any payment except as the SPA prescribes, and the statutory SPA makes the first 10% payable on signing. In practice, many galleries still ask for a “booking fee” or “registration fee”. In January 2021 the Federal Court held that the time for late-delivery damages runs from the date a booking fee was paid, not from the SPA date.

In May 2026 KPKT said it was studying an “Option to Purchase” clause in the proposed Real Property Development Bill, to let buyers and developers withdraw before the SPA. It was still a proposal when I checked in November 2026. If you pay anything at a gallery:

• Pay only to the developer’s company account, never to a salesperson’s personal account and never in cash.
• Get an official receipt showing the unit number, price, date and developer’s name.
• Get the refund terms in writing, for example if your loan is not approved or you do not sign the SPA. See booking fee refunds.
• Ask for the SPA draft before you sign and find out which lawyer acts for you; see legal fees.
• After the SPA, your progress payments go into the project’s Housing Development Account, which Act 118 requires the developer to open for each project or phase. See progressive payment schedule.

Printable gallery checklist

Screenshot or print this table and tick it off during your visit.

✓	Check	What to ask or do
☐	Developer licence and APDL	Photograph the numbers and validity dates; check them on TEDUH
☐	Project status	On TEDUH: progress, any delayed or troubled status, approved extensions of time
☐	Tenure and land use	Freehold or leasehold (expiry year); residential or commercial land
☐	Expected completion	Date on the permit details; 24 months (landed) or 36 months (strata) from SPA under the statutory forms
☐	Specification list	Ask for the SPA schedule; tick off each show-unit item, and ask which items are not included
☐	Area	Brochure built-up vs SPA parcel area; what is included (balcony, ledges)
☐	Floor plan	Your exact unit type and stack; windows, AC ledges, wet areas
☐	Floor and facing	View, sun direction, what could be built next door
☐	Facilities	Which floor; distance from your unit; listed in the SPA schedule
☐	Car parks	Number of bays, accessory parcel or allocated, tandem or not
☐	Maintenance charges	Estimated rate per sq ft in writing; sinking fund 10% of charges; share units
☐	Price and payment	Price on the booking form matches the price list; progressive payment schedule
☐	Booking fee	Paid to the company account; official receipt; refund terms in writing
☐	SPA and lawyer	Draft SPA before signing; who acts for you; legal fees and stamp duty
☐	Loan	Loan eligibility checked before booking; valuation risk
☐	Foreign buyer rules	Johor minimum price, state consent, timing

What to bring

Bring: your IC or passport, a phone with a camera, a measuring tape, a notebook, your budget and loan figures (see home loans in JB), and, if you are a foreign buyer, your pass details. If you plan to book, find out beforehand how payment is taken.

Red flags at a sales gallery

• No licence or APDL number on the materials, or numbers that do not match TEDUH.
• A request to pay into a personal account or in cash.
• Pressure to book on the spot without seeing the specification list or the SPA draft.
• Verbal promises of rental income, resale profit or “sea views” that nobody will put in writing.
• Plans that differ between the brochure, the show unit and the SPA, with no explanation.
• A project shown as delayed or troubled on TEDUH, or a developer with no completed projects you can visit.

See also property scams in JB and new launch vs subsale.

Foreign buyers and MM2H

• Minimum price. Johor generally allows foreigners to buy homes priced at RM1 million or more, with some exceptions in designated zones. See Johor’s minimum price and foreign quota.
• State consent. A foreign buyer needs Johor state consent, which adds time; ask how the consent application is handled and how long it usually takes, and make sure your SPA timeline allows for it.
• Costs and distance. Stamp duty differs for foreigners (stamp duty guide). If you cannot attend, ask me for a live video walk-through of the show unit and site.

For MM2H, I coordinate with a MOTAC-licensed MM2H agent and handle the property side; approval is decided by the authorities. See MM2H property support.

After you sign: handover

Keep your gallery photos, brochure and specification list for vacant possession, when you compare the unit with the SPA and have 24 months to report defects. Use my vacant possession defect checklist, and for problems that show up later see latent defects after the DLP.

Where to buy if this matters to you

• New launch property in JB: current projects I follow.
• New landed launches: terraces and semi-Ds.
• JB Sentral and Bukit Chagar: near the CIQ and the RTS Link station.
• Iskandar Puteri: Medini, EduCity and the Second Link.
• Mount Austin: condos near schools and malls.
• Permas Jaya and Senibong: waterfront projects on the east side.

Compare them on my JB property map.

More Johor living guides: Floor plan red flags · High floor vs low floor · Checking condo management · Bank valuation lower than price

Frequently asked questions

Is a show unit the same as the unit I will get?

Not necessarily. Show units often include furniture, built-ins and finishes that are not part of the sale, and some move walls or ceilings. What you get is set by the SPA and its specification schedule, so compare the two.

How do I check a developer’s licence and advertising permit in Malaysia?

Use KPKT’s TEDUH portal (teduh.kpkt.gov.my) or app. It shows the developer licence and APDL status, project progress, approved selling prices and whether a project is delayed, troubled or abandoned.

Can I claim if my unit does not match the show unit?

Claims generally depend on the SPA. In 2021 the Federal Court held that the homebuyer tribunal could only decide claims based on the SPA’s terms, and a showroom expectation was not enough. Get important items written into the SPA.

Is a booking fee at a sales gallery allowed?

The housing regulations bar collecting any payment except as the SPA prescribes, though many galleries still ask for one. If you pay, pay the developer’s company account, get an official receipt and the refund terms in writing.

How long does a developer have to complete a new condo in Malaysia?

Under the statutory Schedule H form, 36 months from the SPA date for strata units, and 24 months under Schedule G for landed homes, with late-delivery damages of 10% a year of the price. Approved extensions of time can change this.

Can foreigners buy at a Johor Bahru sales gallery?

Yes, subject to Johor’s rules: generally a RM1 million minimum price for most homes and state consent. Check both before you book a unit.

Book a sales gallery visit with me

Tell me the project or area, your budget and when you can visit. I will check the developer and project on TEDUH, arrange the gallery and show unit visit, and go through this checklist with you on the day before any money moves. You can also book an appointment, or a Zoom consultation if you are abroad.

Sources: Bernama, KPKT urges homebuyers to check developer and project information on TEDUH, 7 September 2026; Bernama, KPKT blacklists 109 developers; check licence status on TEDUH, 7 April 2025; Housing Development (Control and Licensing) Act 1966 (Act 118), sections 5, 7, 7A and 18, copy hosted by Universiti Teknologi Malaysia, checked November 2026; Housing Development (Control and Licensing) Regulations 1989, P.U.(A) 58/1989, regulations 6 and 11, via the National House Buyers Association, checked November 2026; Housing Development (Control and Licensing) (Amendment) Regulations 2015, P.U.(A) 106/2015, in force 1 July 2015 (regulation 8(1A), regulation 11(2), Schedules G and H), checked November 2026; Sunday Star, defect liability period extended to 24 months from 1 December 2007, 16 December 2007, via the National House Buyers Association; Strata Management Act 2013 (Act 757), sections 9, 12 and 25, copy hosted by DBKL, checked November 2026; Free Malaysia Today, call for show-unit rules after a Federal Court ruling on homebuyer tribunal claims, 20 February 2021; Focus Malaysia, Federal Court ruling (19 January 2021) on booking fees and the start of LAD, August 2021; Malay Mail (Bernama), Housing Ministry studying an Option to Purchase clause in the proposed Real Property Development Bill, 8 May 2026; Sinar Harian, Johor’s RM1 million minimum for foreign buyers (state housing exco), 13 June 2023

Jason Lim, REN 84424, IQI Realty Sdn. Bhd. E (1) 1584/6. General information checked on 7 November 2026, not legal or financial advice. Rules and practice change; confirm with your lawyer, your bank, KPKT and the Johor land office before you commit.

中文 · Bahasa Melayu · Bahasa Indonesia

By Jason Lim, REN 84424 · IQI Realty · Checked on 7 November 2026

This guide is for buyers in Singapore, Indonesia, India, China and elsewhere, including MM2H applicants, who want to buy a Johor Bahru home with as few trips as possible. The short answer: you can shortlist, view by live video, book, appoint a lawyer, pay and take handover from abroad. Signing needs the most planning, because Malaysia is not in the Apostille Convention and a foreign buyer generally cannot sign Johor land documents through a power of attorney. Most overseas buyers make one well-planned trip, or none if they sign before a notary and have the documents legalised.

Which steps can be done remotely?

Step	Remote?	How it usually works
Check eligibility and costs	Yes	By message or video call
Shortlist and view	Yes	Live video walk-through by the agent
Book the unit	Yes	Signed form by email; bank transfer against a receipt
Appoint a lawyer and pass identity checks	Yes	Certified documents and a video call
Sign the SPA and land forms	Possible	Before a notary or Malaysian mission, or one signing trip
Home loan documents	Varies	Depends on the bank
State consent	Yes	Your lawyer files it with the Johor land office (Pejabat Tanah dan Galian Johor)
Payments	Yes	Transfers from your home bank
Keys and defect inspection	Yes	A representative with your authorisation letter
Malaysian bank account	Usually no	Most banks still ask non-residents to visit a branch

Step 1: Check the Johor rules and costs before you shortlist

Remote buying saves flights, not rules. These decide which units you can buy at all:

• Minimum price. Foreigners can generally buy Johor residential property only from RM1 million (Malaysian Bar table of state thresholds, October 2024; New Straits Times, April 2026). Designated zones such as Medini have their own rules, and some projects get special approval. A foreign owner of a unit below the threshold can usually sell only to Malaysians, which limits resale. See my Johor foreigner minimum price guide.
• State consent (kebenaran Pihak Berkuasa Negeri). Every purchase by a non-citizen needs Johor’s approval under section 433B of the National Land Code. Make the SPA conditional on it.
• State fees. From 1 July 2025, Johor charges an approval fee of 3% of the price for residential and commercial purchases, with a minimum of RM30,000 (RM50,000 minimum for serviced apartments below RM1 million, where the state allows them), plus RM2,000 per title to apply (PTG Johor circular No. 3 of 2025, 13 June 2025).
• Stamp duty. Transfers of residential property to foreign buyers carry a flat 8% from 2026, up from 4% (The Star, December 2025; New Straits Times, April 2026). See my stamp duty guide.

Illustration only: on a RM1,200,000 condo, the state approval fee would be RM36,000, stamp duty on the transfer RM96,000 and the application fee RM2,000, before legal fees and loan costs. My calculations; your lawyer confirms the actual figures. The buying costs calculator and the SGD cost calculator help with a full budget.

If you are applying for MM2H, the programme has its own property rules. I coordinate with a MOTAC-licensed MM2H agent for the visa side and handle the property side; approval is decided by the authorities. Start with the MM2H eligibility checker and MM2H property support.

Step 2: View by live video, and do it properly

Photos and edited videos show a unit at its best; a live call shows it as it is. This is how I run remote viewings, and what to ask any agent for:

1. Live and unedited. One continuous call from the lobby to the unit. Record it on your side to review later.
2. You direct the camera. Ceilings and corners (water stains), under sinks, window frames and the aircon ledge.
3. Test things. Taps, shower pressure, toilets, windows, sliding doors and lights.
4. Listen. A minute of silence with the windows open, then closed, to judge traffic and construction noise.
5. Outside the unit. Corridor, lift lobby, the view from each window, car park bays and facilities.
6. The neighbourhood. A short drive past shops, schools or the checkpoint route.
7. A second call in the evening or at the weekend, when residents are home.

For a resale home, ask for recent maintenance, quit rent and assessment statements; see my subsale inspection guide and how to check a condo’s management. For a new launch, ask for the specifications list and floor plan that will be in the SPA, since show units often have upgraded finishes (see floor plan red flags), and check the developer licence and advertising permit on KPKT’s TEDUH portal.

Step 3: Booking the unit from abroad

How you reserve a unit depends on who is selling.

• New launch (developer). Developers commonly ask for a booking amount, but regulation 11(2) of the Housing Development (Control and Licensing) Regulations 1989 says a developer may not collect any payment except as the contract of sale provides. In practice, pay any booking amount only to the developer’s company account, keep the official receipt, and get the refund terms in writing, including what happens if your loan or state consent is refused. My booking fee refund guide covers this in detail.
• Resale (subsale). You sign a letter of offer, usually with an earnest deposit of about 2 to 3% held by a stakeholder, and the SPA follows within a few weeks. For a foreign buyer, make the offer subject to state consent and, if you need one, your loan. See how to make an offer on a JB subsale.

These can usually be signed on a scanned copy and sent by email. The formalities start with the SPA.

Step 4: Appoint a lawyer and get through identity checks

Lawyers acting in property sales are reporting institutions under Malaysia’s anti-money laundering law (Malaysian Bar circular, June 2021), so they must verify who you are and where your money comes from. Remotely, expect to provide:

• a certified copy of your passport, often certified by a notary or a lawyer where you live;
• proof of your home address;
• source-of-funds documents, such as payslips, bank statements or a business record;
• a video call with the lawyer, which many firms use for remote clients.

Ask at the start how the lawyer handles overseas signing and which witnesses they accept in your country. See legal steps for buying in Johor and legal fees.

Step 5: Signing the SPA and loan documents abroad

This step most often brings buyers to Johor. Two rules shape your options:

• Land forms need a qualified witness. Under section 211 of the National Land Code, a person signing a transfer or charge must sign before someone listed in the Code’s Fifth Schedule. Your lawyer will tell you who qualifies where you live.
• No apostille shortcut. Malaysia does not appear on the Hague Conference’s list of Apostille Convention parties (checked November 2026), even though Singapore, India, Indonesia and China are members. Malaysia’s foreign ministry asks for documents issued abroad to be authenticated first by a Malaysian embassy, high commission or consulate.

Option	How it works	Things to check
One signing trip to JB	Sign the SPA, transfer form and loan papers at the lawyer’s office (and the bank) in a single visit	The simplest route; line up the bank account and key collection for the same trip
Malaysian embassy, high commission or consulate	Sign before a consular officer where you live	Appointment availability and which documents the mission will witness
Notary public plus legalisation	Sign before a local notary, then have the notarisation authenticated by the Malaysian mission	Whether your lawyer, the developer and the bank accept it; allow time for each step
Power of attorney	Someone in Malaysia signs for you	Generally not usable by foreign buyers for land documents (section 433F); can suit Malaysians abroad

Courier the originals by tracked service and keep scans. A document signed abroad must be stamped within 30 days of reaching Malaysia to avoid LHDN late penalties. A February 2021 Johore Bar circular also recorded that Johor’s land office accepted statutory declarations sworn overseas before a Malaysian High Commissioner or a notary public.

Loan documents vary most: some banks accept signing abroad before an approved witness, others want you in Malaysia. Ask before you choose a lender, and plan for a larger cash portion than locals; see home loans for foreigners.

Malaysians abroad can also use a properly deposited power of attorney; see my power of attorney guide.

Step 6: State consent, handled by your lawyer

You do not need to visit the land office. Your lawyer normally files the consent application with Pejabat Tanah dan Galian Johor using your signed documents, and the approval fee is payable once consent is granted. Processing time varies, so there is no fixed figure. In a resale, the completion period usually runs from the consent date, and a foreign buyer’s subsale often takes five to six months in total. Ask your lawyer for an estimate.

Step 7: Paying from abroad

You can pay every stage from your home bank. Bank Negara Malaysia’s Foreign Exchange Policy Notices (in force 1 October 2025) let non-residents bring in money for property, borrow ringgit for a home and send sale proceeds out in foreign currency.

• New launch: into the project’s Housing Development Account named in the SPA and each progress bill. See progressive payments.
• Resale: into your lawyer’s client account, which holds the money as stakeholder until the conditions are met.
• Before each transfer: call the lawyer or developer on a number you found yourself and read the account number back. A “new account” email is a classic scam.

Your home country may limit money sent out. My guide to paying for Johor property from abroad covers Singapore, Indonesia, India and China, and the LRS and TCS guide covers Indian residents.

Step 8: Keys and defect inspection by a representative

Developers and sellers commonly accept a representative with your signed authorisation letter and passport copy; ask what format they want.

• New homes. The statutory SPA gives a 24-month defect liability period from vacant possession, and the developer has 30 days to repair after your written report (The Edge, December 2020). Your representative can submit the defect list; use my defect checklist.
• Resale homes. Keys usually pass through the lawyers. Have meter readings recorded and utility accounts transferred (see utilities).
• After handover. Set up who pays maintenance fees, quit rent and assessment, and who looks after the unit. See managing a JB property from overseas.

What usually still needs a trip

• A Malaysian bank account. Bank Negara’s e-KYC policy allows online onboarding, but non-residents are usually still asked to visit a branch. You don’t need one for the purchase money, but it helps with instalments and bills. See opening a bank account as a foreigner.
• Loan or SPA signing, at some banks or if no suitable witness is near you.

If you travel once, fit the bank account, loan, SPA signing and a final viewing into two or three working days. Chinese citizens can stay up to 30 days per visit without a visa (mutual exemption since 17 July 2025), and Indian nationals have a 30-day exemption to 31 December 2026; check your passport’s rules with the Immigration Department. See my JB viewing trip guide, visiting from India and buying from Indonesia.

Safeguards when you cannot be there

Remote buyers attract scammers because so much happens by message. These checks take minutes:

• Check the agent on the LPPEH register at search.lppeh.gov.my: name, photo and active status. My REN number is 84424.
• Check the project on TEDUH (teduh.kpkt.gov.my): developer licence, advertising permit and status.
• Check the owner through your lawyer’s title search, and pay only into the HDA or your lawyer’s client account. Check unfamiliar accounts on the police Semak Mule portal.
• If something goes wrong, call the National Scam Response Centre on 997 and your bank straight away.

My guide to property scams in Johor Bahru goes further, and how I verify projects lists the checks I run before featuring an off-plan project.

Where to buy if this matters to you

Remote buying is easiest with completed homes in buildings with an established management office. Starting points:

• Completed JB homes near the Causeway: ready units close to Singapore.
• JB Sentral and Bukit Chagar: city-centre homes near the checkpoint and the RTS Link station.
• Iskandar Puteri and Medini: planned townships near the Second Link and EduCity.
• Mount Austin: established, with many completed condos.
• Danga Bay: waterfront condos a short drive from the city.
• New launches in JB: for off-plan buyers.

Compare them on my JB property map.

More Johor living guides: Power of attorney for Malaysian property · Opening a bank account as a foreigner · Paying for Johor property from abroad · Buying a tenanted property

Frequently asked questions

Can I buy property in Johor Bahru without visiting Malaysia?

Often, yes. You can view by live video, book, appoint a lawyer, pay and take handover through a representative. The SPA can often be signed before a notary or Malaysian mission abroad, if your lawyer, bank and developer accept it. Opening a bank account usually needs a branch visit.

Can a foreigner sign a Malaysian SPA overseas?

Often, yes: before a Malaysian consular officer, or a notary whose signature a Malaysian mission then authenticates, since Malaysia is not in the Apostille Convention. It must be stamped within 30 days of reaching Malaysia.

Can I use a power of attorney to buy property in Johor as a foreigner?

Generally not for land documents. Section 433F of the National Land Code voids most land documents a non-citizen executes through an attorney where state approval is needed, so foreign buyers usually sign themselves.

How much does Johor state consent cost for a foreign buyer?

Since 1 July 2025, Johor charges an approval fee of 3% of the price for residential purchases, with a minimum of RM30,000, plus RM2,000 per title to apply, under PTG Johor circular No. 3 of 2025. Stamp duty on the transfer is a separate 8% for foreign buyers from 2026.

Who applies for state consent, and do I need to visit the land office?

Your lawyer normally files it with Pejabat Tanah dan Galian Johor, so you need not attend. Processing time varies; a foreign buyer’s resale often takes five to six months in total.

Is a video viewing safe enough to buy a property?

It can be, if it is live and unedited, you direct the camera, and you add a title search or TEDUH check and pay only to the Housing Development Account or your lawyer’s client account.

Can someone collect the keys and inspect defects for me?

Yes. Developers and sellers commonly accept a representative with your signed authorisation letter and passport copy, who can also submit the defect list within the 24-month defect liability period.

Buying in JB from overseas?

Start with a Zoom consultation: we go through the Johor rules for your passport, your budget and areas, and plan which steps you can do from home. Then I can arrange live video viewings of shortlisted units, at a time that suits your time zone. If you will be in JB, you can also book an appointment for in-person viewings.

Sources: Pejabat Pengarah Tanah dan Galian Johor, Pekeliling Bil. 3 Tahun 2025 (fees for foreign acquisitions and transfers, effective 1 July 2025), 13 June 2025; The Star, “Johor looking to raise levy on property purchases by foreigners”, 19 June 2025; Malaysian Bar, Circular No 444/2024 (state thresholds for foreign acquisitions, Johor table dated October 2024), 23 December 2024; New Straits Times, “Foreigners hit Johor property resale wall”, 20 April 2026; The Star, “The Malaysian tax landscape in 2026”, 23 December 2025; National Land Code (Revised 2020), section 211, attestation of instruments, checked November 2026; National Land Code (Revised 2020), section 433F, execution by non-citizens under power of attorney, checked November 2026; Hague Conference on Private International Law (HCCH), Apostille Convention status table, checked November 2026; Ministry of Foreign Affairs Malaysia (Wisma Putra), attestation of documents, updated 7 June 2023; Johore Bar Committee, Circular No 9/2021, meeting with Pejabat Tanah dan Galian Johor on 22 February 2021; LHDN, stamp duty penalties and stamping deadlines, updated 13 May 2026; Malaysian Bar, Circular No 240/2021 on BNM’s AML/CFT data compliance report for lawyers (gazetted activities incl. buying and selling immovable property), 17 June 2021; Housing Development (Control and Licensing) Regulations 1989, regulation 11, as hosted by the National House Buyers Association, checked November 2026; Bank Negara Malaysia, Consolidated Foreign Exchange Policy Notices, in force 1 October 2025; Bank Negara Malaysia, Electronic Know-Your-Customer (e-KYC) policy document, 15 April 2024; The Association of Banks in Malaysia, response on foreigners opening bank accounts, 20 December 2013; The Edge Malaysia, “Know your stuff: understanding defect liability period and latent defects”, 7 December 2020; Beijing Municipal Government (from China Consular Affairs), China-Malaysia mutual visa exemption takes effect, 17 July 2025; New Straits Times, “Malaysia extends visa exemption for Indian nationals until 2026”, 20 December 2024; KPKT, TEDUH portal (developer licence and advertising permit checks), checked November 2026; LPPEH, public register of estate agents and negotiators, checked November 2026; Royal Malaysia Police, Semak Mule portal, checked November 2026; MyGOV, NSRC 997 hotline, updated 21 October 2026

Jason Lim, REN 84424, IQI Realty Sdn. Bhd. E (1) 1584/6. General information checked on 7 November 2026, not legal or financial advice. Rules, fees and practice change and differ between lawyers, banks and developers; confirm with your lawyer, your bank, PTG Johor and the Immigration Department before you commit.

中文 · Bahasa Melayu · Bahasa Indonesia

By Jason Lim, REN 84424 · IQI Realty · Checked on 7 November 2026

A power of attorney (surat kuasa wakil) lets someone you trust sign and act for you, so you can sell, rent out or manage a Johor Bahru property without flying in for every step. In Johor it must be signed before a recognised witness, stamped (a fixed RM10) and deposited with the High Court, or filed at the land office for land dealings. The big exception: under section 433F of the National Land Code, land documents executed by a non-citizen through a power of attorney are void in most cases, so foreign buyers should plan to sign the key documents themselves.

This is general information, not legal or financial advice. A power of attorney hands real control of your property to someone else, so have a Malaysian lawyer draft it and check how it will be used.

What a power of attorney is, in plain words

It is a signed deed in which you, the donor (pemberi kuasa), authorise another person, the donee or attorney (penerima kuasa), to do certain things in your name. What they can do depends entirely on the wording, so the most important choice is how wide the powers are.

	General power of attorney	Specific (limited) power of attorney
What it covers	Broad powers over your affairs or all your property	Named acts for one property, such as signing a tenancy or a sale
Who it suits	Rarely the right tool for a property owner abroad	Most overseas owners with one task to get done
Risk if misused	High: the attorney may be able to sell, charge or deal widely	Lower: limited to what is written, ideally with an end date
How others treat it	Banks, lawyers and land offices will check that it covers the exact step	Easier to check, because the property and acts are named

What owners abroad commonly use it for

• Selling: signing the sale and purchase agreement and transfer documents, and dealing with the buyer’s lawyer. See selling a JB property as a foreigner and the SPA explained.
• Renting out: signing tenancy agreements and inventory lists, handing over keys and dealing with the management office. See landlord tenancy agreements.
• Taking delivery of a new home: collecting keys at vacant possession and signing defect forms.
• Day-to-day admin: quit rent, assessment, utilities and management office matters. Many of these only need an authorisation letter, not a full power of attorney.

Malaysians abroad vs foreign owners: section 433F

For a Malaysian citizen living in Singapore or elsewhere, a properly signed, stamped and deposited power of attorney is a normal way to deal with a JB home. For foreigners, section 433F of the National Land Code changes the picture. It says a deed or instrument executed by a non-citizen or foreign company under a power of attorney over alienated land, or an interest in it, is void, and a dealing cannot be registered. The two exceptions are where state approval is not required under sections 433B or 433E, or where the dealing is exempted under rules.

Your situation	Can a power of attorney be used for the land dealing?
Malaysian citizen abroad, buying, selling or renting out	Yes, if it is executed, stamped and deposited or filed correctly.
Foreign buyer (Singapore, Indonesia, India, China, MM2H) buying in Johor	A purchase by a non-citizen needs state approval, so section 433F applies. Plan to sign the transfer and other land documents yourself.
Foreign owner selling to a Malaysian citizen	State approval is not usually needed for a sale to a citizen, so the exception may apply. Get your lawyer’s written view, and expect the land office to check.
Non-citizen acting as attorney for a Malaysian relative	Avoid it for land documents: Penang’s land office FAQ describes instruments signed by a non-citizen holding a power of attorney as invalid and not registrable.

Foreign buyers also need Johor state consent and, for most homes, a purchase price of at least RM1 million (Johor’s threshold in the Bar Council’s October 2024 table). See my Johor foreigner minimum price guide and legal steps for buying in Johor. If you are on the MM2H programme, I coordinate with a MOTAC-licensed MM2H agent for the visa side; see MM2H property support.

How to sign a power of attorney from overseas

1. Have a Malaysian lawyer draft it. Name the property (title or parcel details), the exact acts allowed, anything excluded and an end date.
2. Sign before an authorised person. Outside Malaysia, section 3 accepts a notary public, commissioner for oaths, judge, magistrate or Malaysian consular officer. In Singapore, a local advocate and solicitor or a qualifying bank officer can also authenticate it.
3. Check the extras. If it is not in English or Malay, a certified translation is needed when it is deposited (section 4(2)). Ask your lawyer whether the notary’s signature should also be legalised, as practice varies.
4. Send the original to your lawyer by tracked courier and keep a scanned copy.
5. Stamp it within 30 days of it arriving in Malaysia. The duty is a fixed RM10; late stamping costs at least RM50 within three months of the deadline and at least RM100 after that (LHDN, from 1 January 2025).
6. Deposit or file it at the High Court or the land office (see the next section).
7. Give certified copies to the people who will rely on it: the other side’s lawyer, the bank, the developer or the management office.

High Court deposit or land office filing

	High Court	Land office or land registry (Pejabat Tanah)
Rule	Powers of Attorney Act 1949, section 4: a certified true copy is deposited with the Senior Assistant Registrar	National Land Code, sections 309 to 311
When it is needed	For the power to have effect in Peninsular Malaysia generally: banks, developers, tenants, management	When an instrument signed by the attorney is presented for registration, such as a transfer or charge
What you get or file	An office copy, accepted as evidence of the deposit and its contents (sections 9 to 13)	The office copy (or the original where section 4(4) applies) plus a copy for the registrar to keep
How	By e-filing at the High Court of Malaya since 15 August 2018 (Practice Direction No. 2 of 2018)	With the instrument; later instruments can refer to the copy already filed
Extra checks	Anyone can search the register for a fee	The registrar may ask for a statutory declaration that the power was still in force (section 311)

The Act sets no deadline for depositing, but the power cannot be relied on until it is done, so build the time into your plans. Fees for deposit and office copies are set by court rules; ask your lawyer for a quote. See my guide to legal fees.

Cancelling a power of attorney, and when it ends by itself

Under section 5, a deposited power stays in force until a written notice of revocation (or the attorney’s renunciation) is deposited in every office that holds a copy. It also ends on:

• the death of the donor or the attorney;
• the attorney becoming of unsound mind, or the donor being adjudged of unsound mind;
• a bankruptcy receiving order against the donor.

Section 8 protects people who act in good faith without knowing it has ended, so revoking it properly matters. Deposit the revocation at the High Court and, if a copy was filed there, the land office, then tell your bank, the management office, tenants and anyone else who has a copy.

Not a tool for old age or after death

Because an ordinary power ends on death and on the donor being adjudged of unsound mind, it does not replace a will or planning for elderly parents. In May 2024 the government said it was working on a Mental Capacity Act to allow this kind of advance planning; I could not confirm it had been passed as of November 2026, so check before you rely on it. See will writing in Malaysia, when a property owner dies and aged care in JB.

Risks and how to protect yourself

A 2015 study in the Pertanika Journal of Social Sciences and Humanities, citing police statistics for 2009 to 2013, found misuse of powers of attorney was the most common method in land scam cases. Simple drafting choices reduce the risk.

• Keep it specific. One property, named acts and an end date. Leave out powers you don’t need, such as borrowing against the property.
• Control the money. Have sale money paid to your own account or held by the lawyer, not paid to the attorney. See paying for Johor property from abroad.
• Choose carefully and ask for copies of everything signed in your name.
• Revoke it formally once the job is done, rather than leaving it in force.
• Buying from someone’s attorney? Ask for the office copy, have your lawyer search the High Court register, check the wording covers the sale, and speak to the owner by video. See property scams in JB.

Will banks and developers accept it?

Practice varies between banks, developers and transactions. Many want to see the deposited office copy, check that the wording covers that exact step, and may still ask the borrower or purchaser to sign some documents personally. Ask the bank and the developer’s lawyer before you rely on a power of attorney, and allow time for their review. For loans, see my guide to Malaysian home loans for foreigners.

Alternatives to a power of attorney

• Travel for the key signatures. Many buyers combine viewing, signing the SPA and meeting the lawyer in one trip; see planning a JB viewing trip.
• Sign each document abroad yourself. Land forms must be attested by a person listed in the Fifth Schedule of the National Land Code (section 211), so ask your lawyer who can witness them where you live. A February 2021 Johore Bar circular recorded that Johor’s land office accepted statutory declarations sworn overseas before a Malaysian High Commissioner or a notary public.
• Electronic signing. Some steps may be signed electronically if the other party agrees, but land transfer forms still need attested signatures. Ask before you assume.
• A co-owner or a property manager. Joint ownership or an authorisation letter can cover day-to-day matters. See joint names and managing a JB property from overseas.

Where to buy if this matters to you

If you will own from abroad, a completed home with an established management office and easy access from Singapore makes remote ownership simpler. Starting points:

• JB Sentral and Bukit Chagar: city-centre homes near the checkpoint and RTS Link station.
• Completed JB homes near the Causeway: ready units you can inspect in one trip.
• Danga Bay: waterfront condos close to the city.
• Iskandar Puteri: planned townships near the Second Link.
• Mount Austin: an established area with shops, schools and condos.
• Permas Jaya and Senibong: east-side condos and townships.

Compare them on my JB property map.

More Johor living guides: Managing a JB property from overseas · Selling JB property as a foreigner · Legal steps for buying in Johor · Renting out a Johor property · Stamp duty in 2026

Frequently asked questions

Can I buy property in Malaysia using a power of attorney?

A Malaysian citizen abroad can usually have an attorney sign for them if the power is properly executed, stamped and deposited. For a foreign buyer, section 433F of the National Land Code makes land documents a non-citizen executes under a power of attorney void where state approval is needed, so plan to sign the key documents yourself. Ask your lawyer first.

Does a power of attorney need to be registered in Malaysia?

Yes. In Peninsular Malaysia, including Johor, a certified copy must be deposited with the High Court before the power has effect, under section 4 of the Powers of Attorney Act 1949. A power used only for land office or land registry business can instead be filed with the instrument under sections 309 to 311 of the National Land Code.

How do I sign a power of attorney for Malaysian property from overseas?

Sign it before a notary public, commissioner for oaths, judge, magistrate or Malaysian consular officer, as section 3 of the Powers of Attorney Act 1949 allows. In Singapore, an advocate and solicitor or a qualifying bank officer can also authenticate it. Then send the original to your Malaysian lawyer for stamping and deposit.

How much is stamp duty on a power of attorney in Malaysia?

A power of attorney carries a fixed stamp duty of RM10 under LHDN’s guideline of 30 June 2026. Stamp it within 30 days of signing in Malaysia, or within 30 days of it arriving in Malaysia if it was signed abroad, to avoid late penalties.

Can a foreigner sell Malaysian property through a power of attorney?

Possibly, but check first. Section 433F voids land documents a non-citizen executes under a power of attorney unless state approval is not required or the dealing is exempted. A sale to a Malaysian citizen usually needs no state approval, so the exception may apply, but readings differ. Get your lawyer’s written view.

How do I cancel a power of attorney in Malaysia?

Sign a written notice of revocation and deposit it in every office holding a copy, normally the High Court and any land office where it was filed, under section 5 of the Powers of Attorney Act 1949. Then tell your bank, tenants, management office and anyone else who relies on it. Powers expressed as irrevocable follow different rules.

Does a power of attorney still work after the owner dies?

No. An ordinary power of attorney ends on the death of the donor or the attorney, and also if the donor is adjudged of unsound mind or bankrupt. After death, the property is dealt with under the will or the estate rules, so a power of attorney is not a substitute for a will.

Dealing with a JB property from overseas?

Tell me where the property is and what you need done. I can share recorded and asking prices, plan your viewing or signing trip, and handle the sale or letting side while your lawyer prepares and files the power of attorney. You can also book an appointment or a Zoom consultation.

Sources: Powers of Attorney Act 1949 (Act 424), Malay text as at 1 February 2013 (sections 3 to 8), hosted by Pejabat Tanah dan Galian Melaka, checked November 2026; Malaysian Bar, Circular No 196/2018 on Practice Direction No. 2 of 2018 (e-filing of powers of attorney from 15 August 2018), 9 August 2018; National Land Code (Revised 2020), section 309, documents accompanying instruments executed under a power of attorney, checked November 2026; National Land Code (Revised 2020), section 310, procedure for such instruments, checked November 2026; National Land Code (Revised 2020), section 311, registrar’s enquiries and statutory declarations, checked November 2026; National Land Code (Revised 2020), section 211, attestation of instruments, checked November 2026; National Land Code (Revised 2020), section 433E, state approval for disposals to non-citizens, checked November 2026; National Land Code (Revised 2020), section 433F, execution by non-citizen or foreign company under power of attorney void, checked November 2026; Malaysian Bar, Circular No 444/2024 (section 433F and state thresholds for foreign acquisitions, Johor table dated October 2024), 23 December 2024; Pejabat Tanah dan Galian Pulau Pinang, FAQ on registration of land dealings (surat kuasa wakil, section 433F), checked November 2026; Johore Bar Committee, Circular No 9/2021, meeting with Pejabat Tanah dan Galian Johor on 22 February 2021; LHDN, guideline on stamp duty under the First Schedule of the Stamp Act 1949 (power of attorney, fixed RM10), 30 June 2026; LHDN, stamp duty penalties and stamping deadlines, updated 13 May 2026; Harun, Ismail@Nawang and Hassim, “Land Scam Involving the Power of Attorney in Land Dealings in Malaysia”, Pertanika Journal of Social Sciences and Humanities, 23 (S11), 2015; The Star, “Govt working to enact Mental Capacity Act for Malaysia”, 21 May 2024

Jason Lim, REN 84424, IQI Realty Sdn. Bhd. E (1) 1584/6. General information checked on 7 November 2026, not legal or financial advice. Rules and practice change and every case turns on its facts; confirm with a Malaysian lawyer, the High Court registry, the land office, LHDN and your bank before you sign.

中文 · Bahasa Melayu · Bahasa Indonesia

By Jason Lim, REN 84424 · IQI Realty · Checked on 7 November 2026

This guide is for buyers from Singapore, Indonesia, India, China, MM2H participants and Malaysians looking at a Johor Bahru subsale home with a tenant in it. The short answer: you can buy it, but you buy the tenancy too. Read the tenancy agreement before you offer, make the letter of offer and the sale and purchase agreement (SPA) say the sale is subject to the tenancy, and have the SPA pass the tenant’s deposits and the rent for the completion month from the seller to you.

Why buy a home that already has a tenant?

Tenanted units come up often in JB subsales. Buyers like them because rent starts from the first month with no empty period, the rent actually agreed and paid is on record rather than just a portal asking rent, and the unit is usually furnished already. That suits investors living in Singapore, Jakarta, Mumbai or Shanghai.

The trade-offs: you inherit a tenant you did not choose, at a rent you did not set, for the rest of the term, and you cannot move in until the tenancy ends.

Vacant possession or subject to tenancy?

Decide this before you sign the letter of offer, because it changes the deal. A seller cannot simply ask a tenant to leave because a buyer has come along; the tenancy agreement decides whether and when it can be ended.

Point	Vacant possession (milikan kosong)	Subject to tenancy (tertakluk kepada penyewaan)
What happens at completion	The seller hands over keys to an empty unit	The tenant stays; you take over the landlord’s side
Who ends the tenancy	The seller, before completion, under the tenancy agreement’s own terms	No one; it runs to expiry or until ended under its terms
Your inspection	Full joint inspection at handover	By appointment with the tenant; a final check at completion
Deposits and rent	Settled between seller and tenant	Passed to you or credited at completion; rent apportioned
Main risk	Tenant does not leave on time, delaying completion	A weak tenant, below-market rent or a long remaining term
Usually suits	Own stay, MM2H home, renovation plans	Investors who want income from day one

If you choose vacant possession, ask your lawyer for a clause covering a tenant who has not left by completion, such as a later completion date or part of the price held back until the unit is empty.

Does the tenancy bind the new owner?

This is a legal question, and the answer starts with the National Land Code (Kanun Tanah Negara):

• Three years or less. This is a “tenancy exempt from registration” (sewaan bebas daftaran) under section 223, oral or written, and not registered on the title.
• Endorsement. The tenant can protect it with an endorsement (endorsan) on the title under section 316, which a title search shows.
• Longer than three years. That is a lease, which must be registered; a registered lease binds a new owner.
• Unendorsed tenancies. Commentators have long warned these may not bind a new registered owner. The finer points are for a lawyer.

In practice, JB subsales do not rely on that technical point. When you buy subject to the tenancy, the SPA says so and you take over the landlord’s role, so treat yourself as bound by the term, rent, repair split and any renewal option. And a landlord cannot remove a tenant without a court order (Specific Relief Act 1950, section 7(2)); changing the locks is not an option.

The Residential Tenancy Bill was still being finalised when the deputy housing minister spoke in the Dewan Negara on 4 August 2026, and I found no report of it being tabled by early November 2026. This article is general information, not legal advice.

What to check before you make an offer

Ask the seller for these documents. The tenant’s personal details should only be shared with their consent, so expect some masking at first.

Document	What to look for
Tenancy agreement (perjanjian sewa), all pages	Names, start and expiry dates, rent and due date, renewal option and how the renewal rent is set, early-termination and sale clauses, repair split, permitted use and number of occupants
Proof of stamping	The stamp certificate. An unstamped agreement cannot be used as evidence until it is stamped, with late penalties
Rent records for 6 to 12 months	Bank statements showing rent paid in full and on time; any arrears or side arrangements
Deposit receipts	How much security and utility deposit the seller actually holds
Inventory list and photos	Furniture and appliances that belong to the owner and must still be there at completion
Tenant’s pass (foreign tenants)	That the pass is valid for the term; letting to someone without a valid pass can expose the owner under section 55E of the Immigration Act
Management statement (strata)	Maintenance fee and sinking fund paid up to date; tenant registered with management; any by-law breaches
Title search	Owner’s name, charges, caveats and any endorsed tenancy claim

Also ask for a short tenant confirmation: a signed note from the tenant confirming the rent, deposits paid, expiry date and that there are no other agreements with the owner. And compare the rent with asking rents for similar units nearby before you rely on it.

My subsale house inspection checklist still applies, and for a condo see checking condo management before you buy.

Writing the offer and the SPA

Your letter of offer should say “subject to the existing tenancy” (or “with vacant possession”) and name the tenancy agreement by date. Your lawyer then carries this into the SPA. Clauses to look for:

Clause	What it should cover
Sale subject to tenancy	The tenancy agreement is identified and attached, and the buyer accepts it on those terms
Seller’s warranties	The rent, the deposits held, no arrears, no other agreements with the tenant and no notice to end the tenancy given or received
No changes before completion	The seller does not renew, vary or end the tenancy, or accept rent in advance, without the buyer’s written consent
Deposits	Security and utility deposits paid to the buyer, or credited against the balance price, at completion
Rent apportionment	Rent for the month of completion split by days; arrears up to completion stay with the seller
Notice to the tenant	A letter signed by the seller telling the tenant that the buyer is the new landlord and where to pay rent from completion (often called a notice or letter of attornment)
Handover items	Original tenancy agreement, stamp certificate, inventory and spare keys

My SPA guide explains the 10% deposit, the usual three-month completion period and the extension, and the legal steps of buying in Johor show where each document fits. Legal fees follow the scale in my legal fees guide.

At completion: deposits, rent and the tenant

The tenant’s deposits

The tenant paid the deposits to the seller, and the refund duty sits in the tenancy contract, not the land. Once you are landlord, the tenant will expect you to refund them, so make sure the money comes to you. The usual JB pattern is two months’ security deposit plus about half a month’s utility deposit (custom, not law): about RM6,250 on a RM2,500 rent. The SPA should have the seller pay it to you or deduct it from your balance.

Apportioning the rent

Rent is split by days at completion. Example only: RM2,500 is paid to the seller on the 1st of a 30-day month and completion is on the 11th. The seller keeps 10 days (about RM833) and credits you the other 20 days (about RM1,667). Arrears before completion normally stay the seller’s to collect.

Telling the tenant

1. Notice from the seller. The seller’s signed letter tells the tenant to pay rent to you from the completion date.
2. Your introduction. Your contact details, rent account and who handles repairs.
3. Joint check. Walk through with the tenant against the inventory and take dated photos.
4. Utilities and management. Update the TNB and Ranhill SAJ accounts as needed and register as owner with the JMB or MC.
5. Insurance. Your own cover from completion; see my property insurance guide.

New agreement or keep the old one?

Many buyers continue under the existing agreement until expiry, then sign a fresh one; some prefer a three-way novation at completion. A new agreement needs stamping within 30 days. LHDN’s guideline of 30 June 2026 sets the duty at RM1 per RM250 of annual rent for terms up to one year and RM3 for terms of over one year up to three years; on RM2,500 a month for two years, that is RM360. My landlord tenancy agreement guide covers the clauses for your next agreement.

Loans and bank valuation

• Valuation basis. Banks lend on the lower of price and valuation, and homes are usually valued by comparing recent sales, so a high rent alone does not lift it. See valuation lower than the price.
• Access. Ask the seller to arrange the valuer’s visit with the tenant early.
• Tell the bank. Whether rental income counts in your assessment varies by bank; ask, and see home loans for foreigners.

As in every subsale, you retain part of the price for the seller’s real property gains tax and pay it to LHDN within 60 days of disposal: 3% for most sellers, 7% if the seller is neither a citizen nor a permanent resident. See my RPGT guide.

Foreign buyers: what changes

• Minimum price and consent. Generally RM1 million for most Johor homes, with exceptions in designated zones, plus state consent under section 433B of the National Land Code. See Johor’s minimum price and foreign quota.
• Stamp duty. 8% on residential transfers to non-citizens and non-permanent residents since 1 January 2026. See my stamp duty guide.
• Longer timeline. Consent can add months while the tenancy runs on, so say in the SPA what happens if it ends or renews before completion.
• Rental income tax. Taxable in Malaysia; non-resident individuals pay a flat 30% with no reliefs (LHDN). See my rental income tax guide.
• Managing from abroad. See managing JB property from overseas.

MM2H participants usually buy to live in, so check the tenancy ends before your move date. For MM2H I coordinate with a MOTAC-licensed MM2H agent and handle the property side; approval is decided by the authorities. See MM2H property support.

Red flags in a tenanted sale

• No written agreement, or an unstamped one, or a copy with pages missing.
• Cash rent with no records, or a rent well above similar units.
• A long renewal signed just before the sale, or rent collected months ahead.
• A seller who will not confirm the deposits held.
• Room-by-room letting or short stays the by-laws may ban (see short-stay rules in JB).
• No viewing allowed before the SPA deposit.

Bank auctions differ: there is no SPA with the owner (see my auction property guide).

Where to buy if this matters to you

• JB Sentral and Bukit Chagar: near the CIQ and the RTS Link station.
• Mount Austin: established condos near schools and malls.
• Tebrau, Setia Indah and Molek: mature neighbourhoods.
• Iskandar Puteri: Medini, EduCity and the Second Link.
• Danga Bay: waterfront condos near the city.
• Skudai, Tampoi and Kempas: near universities and industrial areas.

Compare them on my JB property map. Planning to let it out again later? See renting out property in Johor.

More Johor living guides: Landlord tenancy agreements in JB · Renting in JB as a foreigner · Strata title explained · Maintenance fees and sinking fund

Frequently asked questions

Can I buy a property in Johor Bahru that already has a tenant?

Yes. The letter of offer and SPA should say the sale is subject to the existing tenancy, identify the agreement, and set out how the deposits and the completion month’s rent pass to you.

Does the tenant have to move out when the property is sold?

No. A sale does not by itself end a tenancy; the agreement decides, and a landlord cannot remove a tenant without a court order (Specific Relief Act 1950, section 7(2)). If you want it empty, agree vacant possession.

Who gets the tenant’s deposit when I buy a tenanted unit?

The seller holds it and it does not pass automatically. The SPA should have the seller pay the security and utility deposits to you, or credit them against the balance, at completion.

How is the rent split in the month of completion?

By days. The seller keeps rent up to completion and you receive it from then on, usually as a credit in the completion statement.

Can I end the tenancy after buying so I can move in?

Only as the agreement allows, such as at expiry or under an early-termination clause. If you need the home by a set date, buy with vacant possession.

Does a tenant affect my bank loan or valuation?

Banks lend on the lower of price and valuation, and homes are usually valued by comparing recent sales, so a high rent alone does not raise it. Arrange the valuer’s access early.

Can a foreigner buy a tenanted unit in Johor?

Yes, on the usual Johor rules: generally RM1 million minimum for most homes, state consent and 8% stamp duty since 1 January 2026. Rent is taxed at a flat 30% for non-resident individuals.

Buying a tenanted home in JB?

Tell me the project or area, your budget, and whether you want rent from day one or a home to move into. I will shortlist units, request the tenancy documents from sellers and go through the offer terms with you before any money moves. You can also book an appointment for viewings, or a Zoom consultation if you are abroad.

Sources: Universiti Teknologi Malaysia, lecture notes on land dealings under the National Land Code (sections 223 and 316), October 2023; The Star, column on leasing and tenancy under the National Land Code, 19 February 2002, via the National House Buyers Association; PropCashflow, “Landlord selling a tenanted property in Malaysia”, 26 July 2026, updated 2 August 2026; iProperty, tenant rights and obligations in Malaysia (registered leases and new owners), accessed November 2026; PropertyGuru, on unpaid rent, the Specific Relief Act 1950 and the Distress Act 1951, accessed November 2026; PropertyGuru, rental deposits guide, accessed November 2026; PropertyGuru, property valuation methods in Malaysia, accessed November 2026; Berita RTM, government finalising the Residential Tenancy Bill (Dewan Negara reply), 4 August 2026; LHDN, Garis Panduan Pengenaan Duti Setem, First Schedule, Stamp Act 1949, 30 June 2026; PwC, Malaysian Tax Booklet, stamp duty (8% on residential transfers to non-citizens and non-permanent residents from 1 January 2026), checked November 2026; LHDN, responsibilities of disposer and acquirer (section 21B retention, 60 days, e-CKHT), updated 26 June 2026; LHDN, RPGT rates and disposer categories, updated 23 June 2026; LHDN, who is taxable (non-resident individuals taxed at 30%, no reliefs), accessed November 2026; New Straits Times, “Foreigners hit Johor property resale wall”, 20 April 2026; Daily Express, Immigration Act section 55E(1) case, 26 April 2024; Malay Mail, on strata by-laws under the Strata Management Act 2013, 29 September 2026; myTNB, change of tenancy, checked November 2026; Ranhill SAJ, change of account name, checked November 2026

Jason Lim, REN 84424, IQI Realty Sdn. Bhd. E (1) 1584/6. General information checked on 7 November 2026, not legal, tax or financial advice. Rules and practice change; confirm with your lawyer, your bank, LHDN and the Johor land office before you commit.

中文 · Bahasa Melayu · Bahasa Indonesia

By Jason Lim, REN 84424 · IQI Realty · Checked on 7 November 2026

This guide is for people who own or are buying a home in Johor Bahru, whether from Singapore, Indonesia, India, China, as an MM2H participant or as a Malaysian. The short answer: a condo’s building is insured by its management body under the Strata Management Act 2013, so as an owner you mainly need cover for your contents, your renovations and your liability. A landed house, including one in a gated strata scheme, needs its own building policy, and your bank will ask for one. Flood is often an add-on, and the sum insured should match the cost of rebuilding, not the market price.

The main types of home insurance in Malaysia

Malaysian home cover is sold under a few standard names. Policy wording differs between insurers and takaful operators, so treat this table as a map rather than a promise of what any one policy pays.

Policy	What it protects	Usual perils	Who typically needs it
Fire insurance (insurans kebakaran)	The building only	Fire, lightning and domestic gas explosion. Flood and storm only if added for an extra premium.	Landed owners with a home loan; the most basic option
Houseowner (insurans pemilik rumah)	The building, including walls, roof, gates, fixtures and fittings	A wider list such as fire, explosion, impact, theft with forcible entry and natural disasters including flood; some add personal liability	Landed owners who want more than fire cover
Householder (insurans isi rumah)	Contents: furniture, appliances, personal items	Similar perils to houseowner; payouts may allow for depreciation; often personal liability	Condo owners, landlords who furnish units, tenants
Mortgage cover (MRTA, MLTA or takaful MRTT, MLTT)	Your home loan, not the property	Pays down the loan if the borrower dies or becomes totally and permanently disabled	Borrowers, depending on the lender’s terms

Some insurers sell houseowner and householder cover together in one combined policy. Mortgage cover is a different product; my MRTA vs MLTA guide explains it, and my property insurance overview covers the wider picture.

What your home loan requires

• Building cover. Lenders expect the property they finance to be insured, usually through a fire or houseowner policy, with the bank named on it and a copy given to the bank while the loan is outstanding.
• Your choice of insurer. The Insurance Info consumer site says you may buy from any insurer, and cites a Bank Negara Malaysia directive of July 2016 that banks cannot force you to buy fire insurance through them.
• Watch the sum insured. If the bank arranges the policy, the sum insured may follow the loan balance. Insurance Info gives the example of a home insured for an RM100,000 loan balance that would cost RM700,000 to rebuild.
• Strata units. For a condo, the building is already insured by the management body, and owners usually show the bank the management’s certificate of insurance. Ask your bank exactly what it accepts.
• Mortgage cover. MRTA or MLTA is not property insurance. EdgeProp noted in October 2026 that banks set their own requirements for it under their loan terms.

Foreign buyers borrowing from a Malaysian bank face the same insurance conditions as locals. See my guides to home loans for foreigners and home loans in Johor Bahru.

Condos and strata homes: what the building’s policy covers

Part VIII of the Strata Management Act 2013 (Akta Pengurusan Strata 2013) sets the insurance rules for strata buildings:

• Who insures. Whoever maintains and manages the building must insure it: the developer during its management period, then the joint management body (JMB, badan pengurusan bersama), then the management corporation (MC, perbadanan pengurusan). The premium comes out of the maintenance account.
• What kind of policy. Section 93 requires a “damage policy” with a licensed insurer against events such as fire, lightning, explosion, burst water tanks or pipes and windstorm. It pays to rebuild or repair to an as-new standard, plus debris removal and professional fees.
• How much. Section 94 requires at least the reinstatement value, based on a registered valuer’s valuation obtained at least once every five years.
• Extra risks. Under section 98, owners can vote by special resolution for the management to insure against other risks.
• Rebuilding first. Section 100 says insurance money for damage to the building must go straight into rebuilding or repair.

The building policy protects the structure and common property. It is not designed for what you put inside your unit:

Item	Building (master) policy?	Your own cover
Structure, lifts, lobbies, pool and other common property	Yes, by the developer, JMB or MC	Not needed, but ask for the certificate of insurance
Renovations you added (built-in cabinets, false ceilings, new flooring, kitchen)	Often not, or only to the original specification	Ask whether an insurer will extend houseowner or renovation cover to your strata unit
Furniture, appliances, electronics, personal items	No	Householder policy
Injury to visitors in your unit, or damage you cause to a neighbour	No	Personal liability, often part of a householder policy
Lost rent while a damaged unit is repaired	No	Landlord cover (see below)

Before you buy a subsale condo, ask the management office for the current certificate of insurance and the date of the last reinstatement valuation. My guide to checking a condo’s management before buying lists the other documents to request, and my maintenance fee and sinking fund guide explains where the premium comes from.

Leaks from the unit above

Ceiling leaks are a common condo problem. Section 142 of the Act presumes a leak comes from the parcel above unless shown otherwise. Under the Strata Management (Maintenance and Management) Regulations 2015, you notify the developer, JMB or MC, which must inspect within seven days and issue a certificate stating the cause and who must repair it. If you disagree with the decision, you can refer it to the Commissioner of Buildings (Pesuruhjaya Bangunan). Your own householder policy may cover damaged contents if burst pipes or water damage are listed perils, so read the wording.

Landed homes: you insure the house yourself

For a terrace, semi-detached or bungalow on its own individual title, no management body insures the house, so a fire or houseowner policy is your job. Many newer landed homes in Johor Bahru are in gated and guarded schemes with strata titles for land parcels. Section 97 of the Act says the building insurance rules do not apply to land parcels, and each owner must insure their own building. Ask the management what its own policy covers for shared facilities such as the guardhouse or clubhouse. My strata title guide and gated and guarded homes guide explain how these schemes work.

Flood and other special perils

Bank Negara Malaysia warned in January 2026 that flood cover is low among households, even in high-risk areas. It said flood is usually an optional add-on, and that many people wrongly assume a standard home or fire policy includes it. Floods have caused about 85% of Malaysia’s disasters since 2000, and roughly RM4 billion of the 2021 flood losses were uninsured.

• Fire policies. Flood can be added for an extra premium, the general insurance association PIAM and the Malaysian Takaful Association said in December 2021.
• Houseowner and householder policies. They often list flood, but not always. Ask your insurer to confirm in writing.
• Usually excluded unless added. Subsidence and landslip, and riot, strike and malicious damage, are commonly left out of basic policies (Malay Mail, November 2024).
• Timing. MetMalaysia expected the 2026/2027 northeast monsoon to run from 27 October 2026 to March 2027. Check your flood cover before the wettest months, not after.

Bank Negara also pointed to Perlindungan Tenang products, with annual premiums of RM50 to RM75, and the Ministry of Finance gives Sumbangan Tunai Rahmah (STR) recipients an RM30 voucher towards eligible insurance and takaful (September 2025). For how to judge a location before you buy, see my flood risk guide for Johor Bahru and my guide to JB weather and the monsoon.

Getting the sum insured right

• Use rebuilding cost, not market value. Market value includes land and the developer’s margin, which a fire does not destroy. Insurance Info suggests PIAM’s building cost calculator as a starting point for estimating it.
• Do not use the loan balance. It falls every year while building costs tend to rise.
• Know the under-insurance risk. If the sum insured is below the real rebuilding cost, you may not get enough to rebuild, and many property policies also scale down partial claims in proportion. Check whether your policy has this condition.
• List your contents. Householder policies often ask for items to be listed and may deduct depreciation. Keep receipts and dated photos.
• Review after changes. Update the cover after a renovation, an extension or new furniture. My renovation and furnishing costs guide helps put a figure on what you added.

I have not quoted typical premiums because no official or association source publishes a current figure for Johor homes. They depend on the sum insured, construction, added perils and the insurer, so compare product disclosure sheets.

If you rent out your Johor Bahru home

• Tell your insurer. Letting the home is usually a change you must disclose under a standard policy. Ask for written confirmation that cover continues, or switch to a let-property policy.
• Your furniture, their belongings. Your householder policy can cover the furniture and appliances you supply. Tenants need their own householder policy for their things.
• Landlord cover. Landlord policies may add lost rent after insured damage, damage by tenants, legal costs and liability. Cover for unpaid rent is often capped, and wear and tear is excluded.
• Short stays. Short-let use usually needs its own endorsement, and building by-laws may restrict it. See my Airbnb and short-stay rules guide.
• Write it into the agreement. State who insures what. My landlord tenancy agreement guide and guide to renting out property in Johor cover the rest.

If you live abroad, name someone local who can let in a loss adjuster and the management after a leak or a fire. My guide to managing JB property from overseas covers this.

Making a claim, and what to do if it is refused

1. Make the home safe. Switch off power and water where needed and prevent further damage.
2. Notify the insurer quickly. Your policy sets the notice period. In a condo, also tell the management office.
3. Record everything. Take dated photos and video, and keep damaged items until the insurer says you may dispose of them.
4. Report crimes. Make a police report for theft, break-ins or malicious damage.
5. Work with the loss adjuster. For larger losses, insurers may appoint an independent loss adjuster. Payment depends on the assessed loss, the sum insured and the policy terms.
6. If you disagree. Complain to the insurer and ask for a written final decision. You then have six months to refer the dispute to the Financial Markets Ombudsman Service (FMOS), which handles claims up to RM250,000 with no fee. If the insurer has not replied within 60 days, you can escalate.

Notes for foreign owners and MM2H participants

Foreign owners insure a Johor home the same way as Malaysians, with premiums in ringgit. Foreigners can generally buy Johor residential property only from RM1 million, with some exceptions such as designated zones (New Straits Times, April 2026), so renovation and contents cover can be substantial. Keep the policy and certificate of insurance with your property papers; my guide to paying for Johor property from abroad covers ringgit payments. For MM2H, I coordinate with a MOTAC-licensed MM2H agent and handle the property side; approval is decided by the authorities. Start with the MM2H eligibility checker.

Where to buy if this matters to you

Insurance itself varies little by area. What changes is the building type and the location’s flood history, so match the home to the cover you want:

• JB Sentral and Bukit Chagar: high-rise condos near the CIQ and the RTS Link station, where the building policy sits with the management.
• Danga Bay: waterfront condos; check flood history and the management’s policy.
• Mount Austin: a mix of condos and landed homes popular with families.
• Iskandar Puteri: newer condos and gated landed schemes near Medini, EduCity and the Second Link.
• Bukit Indah and Gelang Patah: established and newer landed townships.
• Permas Jaya and Senibong: east-side condos and landed homes near the coast.
• Tebrau, Setia Indah and Molek: older landed neighbourhoods where you insure the house yourself.

Compare them on my JB property map.

More Johor living guides: Flood risk in JB · Strata title explained · Maintenance fees and sinking fund · Landlord tenancy agreements in JB

Frequently asked questions

Do I need home insurance for a condo in Johor Bahru?

The building itself must be insured by the developer, JMB or MC under the Strata Management Act 2013, and the premium comes from the maintenance account. Owners usually still need their own householder cover for contents and liability, and cover for any renovations they added.

What is the difference between houseowner and householder insurance?

Houseowner insurance covers the building, including walls, roof, fixtures and fittings. Householder insurance covers the contents, such as furniture, appliances and personal items. A basic fire policy covers only the building against a short list of perils such as fire and lightning.

Is fire insurance compulsory for a home loan in Malaysia?

Lenders expect the financed property to be insured and the bank named on the policy. You can buy from any insurer; a Bank Negara Malaysia directive of 2016 says banks cannot force you to buy fire insurance through them. For condos, banks generally look to the management’s building policy; ask your bank what it accepts.

Does home insurance in Malaysia cover floods?

Not always. Bank Negara Malaysia said in January 2026 that flood cover is usually an optional add-on. A fire policy needs a flood extension; houseowner and householder policies often list flood, but check that your policy names it.

How much should I insure my house for?

Insure the building for its rebuilding cost, not its market value or loan balance, because market value includes land. A strata building must be insured for at least its reinstatement value, valued by a registered valuer at least every five years.

Who insures a house in a gated strata landed scheme?

You do. Section 97 of the Strata Management Act 2013 says the building insurance rules do not apply to land parcels, and each owner must insure the building on their own parcel.

What can I do if my home insurance claim is rejected?

Complain to the insurer and ask for a written final decision. Within six months you can refer the dispute to the Financial Markets Ombudsman Service, which handles claims up to RM250,000 with no fee to consumers.

Buying or owning a home in JB?

Tell me the project or area, whether it is a condo or landed home, and whether you plan to live in it or rent it out. I can help you get the building’s insurance details and other management documents before you commit, and shortlist homes that fit your budget. You can also book an appointment for viewings, or a Zoom consultation if you are abroad. For the policy itself, speak to a licensed insurer, takaful operator or their agent.

Sources: Strata Management Act 2013 (Act 757), Part VIII, sections 93 to 100 (LawPlayer reprint), checked November 2026; Strata Management Act 2013 (Act 757), text published by DBKL (sections 9, 21 and 23 on insurance duties and maintenance accounts), checked November 2026; EdgeProp, “Inter-floor leakage provisions matter” (section 142 and Strata Management Regulations 2015), accessed November 2026; The Sun, “Flood insurance uptake low in Malaysia, BNM warns”, 28 January 2026; The Malaysian Insight, “Not all policyholders insured against floods, say insurers” (PIAM and Malaysian Takaful Association), 25 December 2021; Insurance Info, “Important points to note when buying insurance for your property”, 18 August 2023; Malay Mail, guide to home insurance coverage and policies in Malaysia, 22 November 2024; NextSix, home insurance: fire vs houseowner vs householder, bank rules and strata cover, updated 12 December 2025; EdgeProp, “MRTA vs MLTA Malaysia: what homebuyers need to know”, 13 October 2026; Malaysiakini, on the Financial Markets Ombudsman Service (limits, time limits, no cost to consumers), 24 March 2026; PropertyGuru, landlord insurance guide, accessed November 2026; Speedhome, “Does my home insurance still apply when I rent out my property?”, accessed November 2026; Ministry of Finance, Perlindungan Tenang Voucher 3.0 press release, 2 September 2025; The Star, “Start of Northeast Monsoon expected on Oct 27, MetMalaysia says”, 23 October 2026; New Straits Times, “Foreigners hit Johor property resale wall”, 20 April 2026

Jason Lim, REN 84424, IQI Realty Sdn. Bhd. E (1) 1584/6. General information checked on 7 November 2026, not financial, legal or insurance advice. Policy wording, perils and premiums differ between insurers and takaful operators; confirm with your insurer, your bank, your building’s management and, where needed, a lawyer before you rely on any cover.

中文 · Bahasa Melayu · Bahasa Indonesia

By Jason Lim, REN 84424 · IQI Realty · Checked on 7 November 2026

This guide is for buyers and residents from Singapore, Indonesia, India, China and elsewhere, including MM2H participants, who need a bank account in Malaysia. The short answer: yes, a foreigner can open a personal account here. Bank Negara Malaysia (BNM) allows non-residents to hold both ringgit and foreign currency accounts with licensed onshore banks, but each bank sets its own documents and checks, and most will want to see you in person with your passport.

Can a foreigner open a bank account in Malaysia?

Yes. No law stops foreigners from banking in Malaysia. BNM’s own guidance for non-residents says they may open a ringgit account or a foreign currency account with a licensed onshore bank and move money in and out, subject to the bank’s usual due diligence. What decides your case in practice is the bank’s customer checks (known as Know-Your-Customer, or KYC) under Malaysia’s anti-money laundering rules, and your reason for needing the account.

Your situation	Can you usually open an account?	What banks commonly look for
Employment pass or other work pass	Yes, this is the most common case	Passport, valid pass, employer letter or contract, Malaysian address
MM2H (Silver, Gold, Platinum, SEZ/SFZ)	Yes; MM2H also requires a fixed deposit at a licensed Malaysian bank	Passport, MM2H approval or pass, address
International student	Yes, at many banks	Passport, student pass, letter from the college or university
Non-resident on a visit pass, buying property	At many banks, case by case	Passport, signed SPA or booking documents, home address abroad
Malaysian permanent resident	Yes, treated as a resident for exchange rules	MyPR card and usual documents

The Association of Banks in Malaysia has said that most of its member banks let foreigners on a social visit pass who are buying property open savings or current accounts, as long as they meet that bank’s terms and pass its customer checks. A refusal at one bank does not mean every bank will say no.

Resident or non-resident? It is not about your visa

Under BNM’s Foreign Exchange Policy (FEP) Notices, a “resident” individual is a Malaysian citizen or a foreigner with Malaysian permanent residence who ordinarily lives here. Everyone else is a non-resident. So an expatriate on a work pass, an MM2H participant who lives in Johor Bahru full time, and a Singaporean who visits at weekends are all non-residents for exchange rules. Tax residence is a separate test.

Documents banks commonly ask for

There is no single national checklist. These are the documents commonly asked for, and each bank may add others or skip some:

• Passport with plenty of validity left. Ask the bank how many months it needs.
• Your pass or visa: employment pass, student pass, MM2H approval or pass, or your entry stamp if you are visiting.
• Proof of address: a recent utility bill, tenancy agreement or bank statement, in Malaysia or in your home country.
• The reason for the account: an employment letter, a university offer letter, MM2H papers, or for buyers a signed sale and purchase agreement (SPA) or booking form.
• Source of funds or income: payslips, an overseas bank statement or a tax return, especially for larger deposits.
• Introducer or reference letter: some banks still ask for one, for example from your employer or an existing customer.
• A minimum opening deposit, which differs by account type and bank.
• A tax residence self-certification for international tax reporting. Have your home tax number ready.

Bring originals and copies, and ask in advance whether documents not in English or Malay need a certified translation.

BNM rules that matter to foreign buyers

Malaysia’s exchange rules are set out in BNM’s Foreign Exchange Policy Notices. The current consolidated version took effect on 1 October 2025. The parts most foreign home buyers run into are these:

Topic	What the rules say	What it means for you
Ringgit account (External Account)	A non-resident may open and keep a ringgit External Account with a financial institution in Malaysia, alone or jointly (Notice 4).	The ordinary ringgit account a foreigner holds; it can be joint with a resident spouse.
Using the External Account	Payments in and out are allowed if you can show documents proving the purpose meets the FEP Notices.	Keep your SPA, loan papers, bills and receipts. The bank may ask.
Foreign currency account (FCA)	A non-resident may open an FCA with a licensed onshore bank (Notice 4).	Useful if you earn or save in SGD, USD or another currency and want to convert only when a payment is due.
Buying ringgit	Non-residents can buy ringgit with foreign currency from a licensed onshore bank or its appointed overseas office.	Convert purchase money through a bank, not informal money changers.
Borrowing ringgit for property	A non-resident may borrow ringgit from a resident lender for real sector activity, which includes buying residential or commercial property, but not land that will not be built on (Notice 2).	A Malaysian bank may lend to a foreign buyer for a home. Approval, margins and terms are still the bank’s decision.
Taking money out	Non-residents may repatriate divestment proceeds, profits and income; repatriation is made in foreign currency.	When you sell or let your home, the money can be converted and sent abroad. Keep records of the money you brought in.
Carrying cash	Travellers must declare cash and bearer instruments above the equivalent of USD10,000 when entering or leaving Malaysia (since 1 January 2010).	Use bank transfers for property money. Carrying cash is slower and riskier.

Your home country has its own rules on sending money out. Indian residents, for example, remit under the Liberalised Remittance Scheme, which I cover in my guide to LRS and TCS for Malaysian property. For transfer methods, timing and exchange-rate tips, see paying for Johor property from abroad.

Why a JB property buyer needs a Malaysian account

You can sign an SPA without a local account, but owning a home here is far easier with one. These are the regular payments it handles:

• Home loan instalments. Lenders commonly ask borrowers to pay by direct debit from a ringgit account, often one held with the lending bank. See my guide to home loans for foreigners.
• Maintenance fees and sinking fund for condos, usually billed monthly or quarterly. Arrears can attract late-payment interest. See my maintenance fee guide.
• Quit rent (cukai tanah) and assessment tax (cukai pintu), paid to the land office and the city council each year or half-year. See my quit rent and assessment guide.
• Electricity, water and internet, easiest to set up as automatic payments. My moving-in and utilities guide covers the accounts you need to open.
• Rent from tenants, if you let the home. A local account gives you a clear record for rental income tax.
• The MM2H fixed deposit. It must be held with a bank or Islamic bank licensed in Malaysia, and after approval up to 50% of the principal’s deposit can be withdrawn for buying a home, education or medical costs in Malaysia.

Paying each bill from abroad costs fees and exchange spreads, and bills posted to an empty unit are easy to miss. If you will be overseas most of the year, my guide to managing JB property from overseas covers who can handle bills for you.

Do you need an account before you pay for the property?

Not always. The purchase money itself usually does not go into your own account first:

• Subsale (resale) homes. The deposit and balance are commonly paid to a lawyer acting as stakeholder, who holds them in a client account until the SPA conditions are met. Solicitors’ client accounts are governed by the Solicitors’ Account Rules 1990. Always check the account belongs to the law firm named in your SPA. My guides to the SPA and the legal steps of buying in Johor explain who holds what.
• New launches. Under the Housing Developers (Housing Development Account) Regulations 1991, purchasers’ payments go into the developer’s Housing Development Account for that project, and a lender pays each progress claim directly into it. See my progressive payment guide.
• Loan money goes from the bank to the seller or developer, not to you.

So you can pay the deposit from your home bank and open your Malaysian account on a later visit, before the first instalment or bill. Before any transfer, confirm the account details by phone with the lawyer, using a number you found yourself. Fake “updated bank details” emails are a known trick; my guide to property scams in JB has more.

Opening the account, step by step

1. Pick the account type. A ringgit savings or current account for bills, plus a foreign currency account if you hold SGD, USD or other currency.
2. Call the branch first. Ask what they need for your pass type, the minimum deposit and whether a reference letter is required.
3. Visit in person. BNM’s e-KYC policy (revised 15 April 2024) allows banks to onboard customers online, but each bank decides who qualifies. Foreign customers, and non-residents in particular, are usually still asked to come to a branch.
4. Customer checks. Expect questions about your work, income, source of funds and expected transactions.
5. Set up online banking. One-time codes often go to a mobile number, so ask whether your overseas number works or whether you need a Malaysian one.
6. Fund it and set up direct debits for the loan, maintenance and utilities before you fly home.

How long it takes varies by bank and by how complete your documents are, and extra checks add time. Don’t leave it until the week a payment is due.

Tax, deposit insurance and dormant accounts

Topic	Rule	Source
Deposit insurance (PIDM)	Eligible deposits are protected up to RM250,000 per depositor per member bank, principal and interest included. Foreign currency deposits are covered within the same limit, and residence or nationality does not matter.	PIDM FAQ, accessed November 2026
Interest paid to non-residents	Interest paid by a bank licensed under the Financial Services Act 2013 or the Islamic Financial Services Act 2013 to a non-resident is generally exempt from Malaysian withholding tax, with exceptions such as interest linked to a business in Malaysia. Your home country may still tax it.	LHDN withholding tax page, accessed November 2026
Dormant accounts	Savings, current and auto-renewing fixed deposit balances untouched for seven years or more are passed to the Registrar of Unclaimed Moneys (Accountant General’s Department). Owners can still claim them.	JANM, general information on unclaimed money, accessed November 2026

Practical tips from the buying side

• Update the bank when your pass changes. Banks commonly review or restrict accounts when the pass on file expires. Send the renewed pass promptly.
• Keep a paper trail. Save remittance advice, conversion slips and your SPA. They help when you later sell and send the proceeds home (see my guide to selling as a foreigner).
• Never let anyone else use your account. Penal Code amendments that took effect in October 2024 let police charge people who lend their accounts for scams. Never hand over cards or log-ins.
• Think about joint accounts and succession. FEP rules allow a non-resident to hold an External Account jointly with a resident or another non-resident. Plan what happens to the account and the property if you die; see my guides to will writing and joint names.
• If something goes wrong, raise it with the bank first; BNMLINK (1-300-88-5465) handles public enquiries on banking and exchange rules. For a suspected scam, call the National Scam Response Centre on 997.

Remember the bigger rule too: foreigners can generally buy Johor residential property only from RM1 million, with some exceptions such as designated zones (New Straits Times, April 2026). My guide to Johor’s foreigner minimum price has the details, and buyers from Singapore, Indonesia and China have their own guides. For MM2H, I coordinate with a MOTAC-licensed MM2H agent and handle the property side; approval is decided by the authorities. Start with the MM2H eligibility checker and MM2H property support.

Where to buy if this matters to you

Banks have branches across the city, so any area works. These are popular with foreign buyers:

• JB Sentral and Bukit Chagar: city-centre branches within walking distance, next to the CIQ and the RTS Link station.
• Mount Austin: an established family area with banks, malls and schools nearby.
• Tebrau, Setia Indah and Molek: older neighbourhoods with plenty of services.
• Iskandar Puteri: Medini, EduCity and the Second Link to Tuas.
• Danga Bay: waterfront condos a short drive from the city centre.
• Forest City: the SEZ/SFZ MM2H zone; see the SEZ/SFZ MM2H guide.

Compare them on my JB property map.

More Johor living guides: Paying for Johor property from abroad · Home loans for foreigners · Managing JB property from overseas · Renting in JB as a foreigner

Frequently asked questions

Can a foreigner open a bank account in Malaysia?

Yes. BNM allows non-residents to open ringgit and foreign currency accounts with licensed onshore banks. Each bank sets its own documents and customer checks, and most ask foreign customers to visit a branch with their passport.

Can I open a Malaysian bank account without a work pass?

Often, yes. Many banks accept non-residents who are buying property, MM2H participants and students, but it is decided case by case. A signed SPA or booking form, MM2H papers or a student pass usually help show why you need the account.

What documents do I need to open a bank account in Malaysia as a foreigner?

Commonly a valid passport, your pass or visa, proof of address, and a document showing why you need the account, such as an employment letter, SPA or MM2H approval. Some banks also ask for proof of income, a reference letter and a minimum deposit.

Can a non-resident open a Malaysian bank account online?

BNM’s e-KYC policy lets banks onboard customers online, but each bank decides who qualifies. Foreign customers, and non-residents in particular, are usually still asked to open the account in person at a branch.

Do I need a Malaysian bank account to buy property in Johor?

Not to pay the purchase price itself. Subsale money commonly goes to a lawyer’s client account, and new-launch payments go into the developer’s Housing Development Account. A local account makes loan instalments, maintenance fees, quit rent, assessment and utilities much easier.

Can I send money out of Malaysia when I sell my property?

Yes. BNM’s rules let non-residents repatriate divestment proceeds, profits and income, with repatriation made in foreign currency. Keep your SPA and records of the money you brought in, as banks can ask for supporting documents.

Buying a JB home from abroad?

Tell me where you are buying from, your budget and the areas you like. I will shortlist homes that fit, explain the payment steps for your purchase and line up viewings for when you are in JB to open your account. You can also book an appointment, or a Zoom consultation if you are still abroad.

Sources: Bank Negara Malaysia, Consolidated Foreign Exchange Policy Notices, 1 October 2025; Bank Negara Malaysia, FEP FAQs Part 2: Non-residents, updated 11 February 2019; Bank Negara Malaysia, FEP rules for non-residents: investing in Malaysia, accessed November 2026; Bank Negara Malaysia, FEP rules for non-residents: buying and selling foreign currency (BNMLINK contact), accessed November 2026; Bank Negara Malaysia, new currency declaration requirement, 23 December 2009; Bank Negara Malaysia, Electronic Know-Your-Customer (e-KYC) policy document, 15 April 2024; The Association of Banks in Malaysia, response on foreigners opening bank accounts, 20 December 2013; PIDM, deposit insurance system FAQs, accessed November 2026; LHDN, withholding tax (interest paid to non-residents), accessed November 2026; Accountant General’s Department (JANM), general information on unclaimed money, accessed November 2026; MM2H official site, requirements and regulations, last updated 10 February 2026; Housing Developers (Housing Development Account) Regulations 1991, P.U.(A) 231/1991, text via the National House Buyers Association, accessed November 2026; Malaysian Bar, reference to the Solicitors’ Account Rules 1990 (P.U.(A) 301/90), accessed November 2026; The Star, “Malaysia steps up anti-scam efforts with new law amendments”, 30 November 2024; MyGOV, NSRC 997 hotline, updated 21 October 2026; New Straits Times, “Foreigners hit Johor property resale wall”, 20 April 2026

Jason Lim, REN 84424, IQI Realty Sdn. Bhd. E (1) 1584/6. General information checked on 7 November 2026, not financial, legal or tax advice. Bank requirements and rules change; confirm with the bank, BNM and your lawyer before you commit.

By Jason Lim, REN 84424 · IQI Realty · Checked on 6 November 2026

When a marriage ends in Malaysia, the family home is divided by agreement or by court order. For non-Muslim marriages the High Court divides matrimonial assets under section 76 of the Law Reform (Marriage and Divorce) Act 1976; for Muslim marriages the Syariah High Court decides jointly acquired property (harta sepencarian). Both weigh money and homemaking contributions. The home is then sold and split, bought out by one spouse, transferred under the order or kept jointly for a time, and the bank must agree to any change to the loan.

This is general information, not legal or financial advice. Speak to a family lawyer, or a peguam syarie for a Syariah case, before you agree to anything about the house.

Civil or Syariah: which rules apply to your home

Which system applies depends on how you married, not on whose name is on the title. DOSM recorded 60,457 divorces in 2024, 7,826 of them in Johor.

	Civil (non-Muslim marriages)	Muslim marriages
Law	Law Reform (Marriage and Divorce) Act 1976, section 76, amended by Act A1546 from 15 December 2018	State Islamic family law; in Johor, section 122 of the Islamic Family Law (State of Johor) Enactment 2003
Court	High Court	Divorce in the Syariah Lower Court of the state where the applicant lives; harta sepencarian claims in the Syariah High Court
What is divided	Matrimonial assets (aset perkahwinan), mainly those acquired during the marriage	Property acquired during the marriage, by joint effort or by one spouse’s effort
What the court weighs	Money, property or work towards the assets or family expenses; looking after the home or caring for the family; joint debts; minor children’s needs; length of marriage	Contributions in money, property or work; joint debts; minor children’s needs. Where one spouse acquired the asset, the other’s contribution to the home is weighed and the acquiring spouse generally takes the larger share
When a claim is made	With the divorce petition or afterwards	On divorce, on taking another wife (polygamy), or after a spouse dies

Timing in a civil divorce

A civil petition generally cannot be filed within two years of the marriage unless a judge allows it (section 50). A joint petition by mutual consent (section 52) needs proper provision for the wife and children, so many couples settle the house as part of those terms.

Harta sepencarian in Johor

A 2026 study of Johor Bahru Syariah High Court cases found claims allowed on divorce, polygamy and death. There is no fixed time limit, but a Syariah Judiciary Department (JKSM) practice direction asks for claims to be filed as soon as reasonably possible. Many couples settle by agreement; ask your peguam syarie how to have it recorded.

Four options for the matrimonial home

Option	How it works	Watch out for
Sell and split	Sell on the open market, settle the loan from the proceeds and split the balance as agreed or ordered.	Who pays instalments and bills until completion; both owners must sign; RPGT may apply.
One spouse buys the other out	Agree the market value, pay the other spouse’s share of the equity and refinance the loan in one name.	The buyer must qualify for the loan alone; stamp duty, legal and valuation fees.
Transfer under a court order	The court orders the home or a share to one spouse, sometimes balanced against other assets.	The order still has to be carried out: bank consent, stamping and registration at the land office.
Keep it jointly for a time	Both stay on the title, for example until the youngest child finishes school.	Both stay liable for the loan; agree in writing who lives there, who pays and when to sell.

Selling is often the cleanest break if neither of you can carry the loan alone. See my guides to pricing a JB home, agent fees, offers and sell first or buy first.

A buy-out example

Example (round numbers, for illustration only)	Amount
Agreed market value of the home	RM800,000
Outstanding joint loan	RM400,000
Equity, split 50:50 by agreement	RM200,000 each
New loan the staying spouse needs (settle the old loan and pay the other’s equity)	RM600,000
Stamp duty on the new loan agreement at 0.5%	RM3,000
Stamp duty on the half share (RM400,000) if no exemption applies	RM7,000 (1% on RM100,000, 2% on RM300,000)
If instead the half share were a gift while still married	Exempt under P.U.(A) 420/2007

The home loan: what the bank needs

• Both borrowers stay liable. Joint loans usually make each borrower responsible for the whole debt, whatever the divorce order says. Only the bank can release a borrower, normally through a new loan in the remaining owner’s name.
• The staying spouse must qualify alone. The bank looks at that person’s income, existing debts and debt service ratio, and will want a valuation. See my guides to refinancing and DSR and loan rejections.
• Keep paying while you negotiate. Missed instalments show on both borrowers’ CCRIS records. If money is tight, speak to the bank early or to AKPK (Agensi Kaunseling dan Pengurusan Kredit); see missed home loan payments.
• Check the lock-in. Settling the old loan early can trigger a penalty under your letter of offer, so ask for a redemption statement before agreeing dates.

If the strata title is not yet issued, the developer’s consent is usually needed too; see strata titles explained.

Stamp duty and RPGT on divorce transfers

Stamp duty (duti setem) is charged on the higher of price and market value. Real property gains tax (RPGT, Cukai Keuntungan Harta Tanah) depends on whether the transfer is “no gain, no loss”.

Situation	Stamp duty	RPGT for the person transferring
Gift between husband and wife while still married	Exempt (P.U.(A) 420/2007, voluntary disposition between husband and wife)	No gain, no loss if the donor is a Malaysian citizen (Schedule 2, paragraph 12)
Transfer between husband and wife for a price	Normal scale: 1% on the first RM100,000, 2% on the next RM400,000, 3% on the next RM500,000, 4% above RM1 million	No gain, no loss if the transferor is a Malaysian citizen (paragraph 3(1)(b)(i), citizenship condition since 1 January 2018)
Transfer between former spouses under a divorce court order	No specific exemption in LHDN’s list of orders; ask your lawyer and LHDN how it will be assessed	No gain, no loss with or without payment, if the transferor is a Malaysian citizen (paragraph 3(1)(b)(ia))
Sale to an outside buyer	Paid by the buyer	Normal RPGT on each owner’s share, by holding period
Transfer to a spouse who is not a citizen or permanent resident	8% on residential property since 1 January 2026	Depends on the transferor’s status
New loan to refinance or buy out	0.5% of the loan amount	Not applicable

• Timing can matter. The husband-and-wife exemption covers gifts between spouses, so signing before or after the divorce is final, and whether money changes hands, can change the duty. Ask your lawyer before signing.
• The recipient inherits the cost. The disposal price is deemed equal to the transferor’s cost, so a later sale by the spouse who keeps the home is generally measured from the original price. Under LHDN’s general rule the acquisition date is the transfer date; ask a tax adviser how this applies to you.
• Selling to an outside buyer. Citizens and permanent residents pay 30% on gains within three years, 20% in year four, 15% in year five and 0% after. Non-citizens pay 30% within five years and 10% after. Individuals get RM10,000 or 10% of the gain, whichever is greater, and citizens and PRs have a once-in-a-lifetime private residence exemption.
• Filing. Both sides file RPGT returns on e-CKHT within 60 days, even when no tax is due (online only since 1 January 2025). Stamping is due within 30 days of signing.

More detail is in my guides to RPGT, stamp duty in 2026 and legal fees.

Title, caveats and consents

• Start with a title search (carian rasmi). It shows the registered owners and shares, the bank’s charge, caveats and any restriction in interest needing state consent. See my joint name guide and freehold vs leasehold guide.
• The house is in one name only. It can still be a matrimonial asset or harta sepencarian. If you fear a sale before the court decides, ask your lawyer about a private caveat (kaveat persendirian, Form 19B under the National Land Code) or a court order to preserve it. A caveat without a proper basis can lead to a claim against you.
• A foreign spouse. A non-citizen taking ownership of Johor land needs state approval under the National Land Code. Johor generally sets RM1 million as the minimum for most residential purchases by foreigners; see my Johor foreigner minimum price guide and ask your lawyer how the state treats a transfer under a divorce order.

Children and where everyone will live

Both civil and Syariah courts consider the needs of minor children. In practice the questions are school, the commute and stability: some parents keep the home until a school year ends, others sell and buy two smaller homes in the same school area.

• Two smaller homes. Compare types in my condo vs landed vs SoHo guide and schools in JB schools and family life.
• Renting for a while. If both of you move out, renting the house can help cover the instalments. See renting out a Johor property.
• Insurance and wills. Check who the mortgage insurance covers (MRTA vs MLTA) and review your will and nominations.

Practical steps, in order

1. Get advice early from a lawyer or the Legal Aid Department.
2. Collect documents: title or SPA, loan statements, records of who paid the deposit and instalments, EPF withdrawals and renovation receipts.
3. Do a title search and ask the bank for a redemption statement and the lock-in terms.
4. Agree a market value from recorded prices or, where needed, a registered valuer’s report.
5. Keep the loan and bills paid, with any interim arrangement in writing.
6. Choose an option and record it in a written agreement or court order, with who pays what and deadlines.
7. Carry it out: refinance or sell, stamp within 30 days, file e-CKHT within 60 days and register the transfer at the land office.
8. Update the records: quit rent (cukai tanah), assessment (cukai pintu), the management office, insurance and utilities. See my quit rent and assessment guide.

Legal aid for divorce and property claims

JBG helps Malaysian citizens who qualify under the Legal Aid Act 1971, including in divorce, custody and matrimonial property cases, and has a Syariah unit. What you pay depends on your annual financial resources:

Annual financial resources	Registration fee	Contribution
RM50,000 or less	RM10	None
RM50,001 to RM70,000 (four bands)	RM10	From RM500 to RM5,000, rising by band
Above RM70,000 (needs the Minister’s approval)	RM10	RM5,001 to RM50,000

Where to buy if this matters to you

Many people buy a smaller home near the children’s school or work. Starting points in JB:

• Mount Austin: established family area with schools, shops and condos.
• Tebrau, Setia Indah and Molek: mature neighbourhoods near malls, with landed and high-rise options.
• Skudai, Tampoi and Kempas: terrace houses and condos at moderate prices.
• Permas Jaya and Senibong: east-side condos and townships.
• Bukit Indah and Gelang Patah: west-side townships near the Second Link.
• Kulai and Senai: larger homes for the budget.

Compare them on my JB property map, or read the best areas to live in JB.

More Johor living guides: Transferring property to family · Joint names and tenancy in common · RPGT explained · Refinancing a home loan · Sell first or buy first?

Frequently asked questions

Is the matrimonial home always split 50:50 in a Malaysian divorce?

No. There is no fixed split. A civil court weighs contributions in money and work, homemaking, debts, minor children’s needs and the length of the marriage; a Syariah court weighs similar factors for harta sepencarian. Couples can also agree their own split. This is general information, not legal advice.

Does a spouse who did not work get a share of the house?

Usually, yes. Since 15 December 2018 civil courts consider looking after the home or caring for the family under section 76 of the Law Reform (Marriage and Divorce) Act 1976. In Johor, section 122 of the Islamic family law enactment also weighs contributions to the home.

What is harta sepencarian?

It is property acquired by a Muslim husband and wife during the marriage, by joint effort or by one spouse’s effort. In Johor it is claimed in the Syariah High Court under section 122 of the Islamic Family Law (State of Johor) Enactment 2003, on divorce, polygamy or after a spouse’s death.

Can my ex-spouse be removed from our joint home loan?

Only the bank can release a borrower. A divorce order between you does not by itself change the loan agreement. Usually the spouse who keeps the home refinances in their own name, which needs them to qualify on income and debt service ratio.

Is there RPGT when I transfer the house to my ex-spouse under a divorce order?

A transfer between former spouses made under a divorce court order is treated as no gain, no loss, with or without payment, if the transferor is a Malaysian citizen. Both sides still file RPGT returns on e-CKHT within 60 days, according to LHDN.

Is there stamp duty on transferring the house to my spouse or ex-spouse?

A gift of property between husband and wife is exempt under P.U.(A) 420/2007. LHDN’s list of stamp duty orders shows no separate exemption for transfers under a divorce order, and a transfer for a price is assessed on the normal scale, so ask your lawyer and LHDN before signing.

Can I get legal aid for a divorce and property claim?

Jabatan Bantuan Guaman helps qualifying Malaysian citizens, including in divorce and matrimonial property cases, and has a Syariah unit. With annual financial resources of RM50,000 or less you pay a RM10 registration fee and no contribution.

Deciding what to do with the family home?

Tell me where the property is and what you are considering. I can share recorded and asking prices for similar homes, handle the sale if you decide to sell, and help you find a new home. Your lawyer and the court handle the division itself. You can also book an appointment or a Zoom consultation.

Sources: The Star, on the Law Reform (Marriage and Divorce) (Amendment) Act 2017 (Act A1546) in force from 15 December 2018, 24 December 2018; IIUM Law Journal, “The Amendment to the Law Reform (Marriage and Divorce) Act 1976: Reconciling the Irreconcilable”, Vol. 29 (S1), 2021; Ministry of Home Affairs, Act 164 online reprint as at 1 October 2015 (sections 50 and 52), checked November 2026; Journal of Contemporary Islamic Law (UKM), study of harta sepencarian claims after death at the Johor Bahru Syariah High Court (section 122, Johor enactment), 15 June 2026; MyGOV, couples planning for divorce, updated 21 October 2026; MyGOV, legal services related to divorce, updated 21 October 2026; Jabatan Bantuan Guaman, khidmat bantuan guaman (eligibility bands and contributions), checked November 2026; DOSM, Marriage, Divorce and Rujuk Statistics, Malaysia 2025 (2024 data), November 2025; The Star, “Malaysia recorded 190,304 marriages, 60,457 divorces in 2024”, 20 November 2025; LHDN, list of stamp duty orders (P.U.(A) 420/2007, husband and wife), updated 1 November 2026; LHDN, stamp duty exemptions and reliefs, updated 21 July 2026; PwC, Malaysian Tax Booklet, stamp duty (scale, loan agreements, 8% rate from 1 January 2026), checked November 2026; LHDN, deemed no gain no loss disposals (Schedule 2, paragraphs 3 and 12, RPGT Act 1976), updated 18 May 2026; LHDN, disposal and acquisition dates, updated 18 May 2026; LHDN, responsibilities of disposer and acquirer (e-CKHT, 60 days), updated 26 June 2026; LHDN, RPGT rates, updated 23 June 2026; LHDN, RPGT exemptions, updated 22 June 2026; Pejabat Tanah dan Galian Pulau Pinang, checklist for private caveats (Form 19B), checked November 2026; New Straits Times, “Foreigners hit Johor property resale wall”, 20 April 2026

Jason Lim, REN 84424, IQI Realty Sdn. Bhd. E (1) 1584/6. General information checked on 6 November 2026, not legal or financial advice. Rules change and every case turns on its facts; confirm with a family lawyer or peguam syarie, the court, Jabatan Bantuan Guaman, LHDN and your bank before you sign.

By Jason Lim, REN 84424 · IQI Realty · Checked on 6 November 2026

LPPSA (Lembaga Pembiayaan Perumahan Sektor Awam, the Public Sector Home Financing Board) finances homes for Malaysian civil servants and staff of statutory bodies and local authorities who are in a permanent, confirmed post with at least one year of service. Under its 2026 guideline you can borrow up to 100% of the price or official valuation, at 4% a year up to RM750,000 and up to 4.5% above that, to a new ceiling of RM1 million, over up to 35 years, repaid by salary deduction.

What LPPSA is and how it differs from a bank loan

LPPSA is a statutory body under the LPPSA Act (Act 767), running a conventional scheme (SPPSA) and an Islamic one (SPPSAi). The instalment comes off your salary, or later your pension, and LPPSA holds a first charge over the property.

Feature	LPPSA (2026 rules)	Typical bank home loan
Rate	4% up to RM750,000; up to 4.5% from RM750,001 to RM1 million; set for the term	Mostly floating, linked to the bank’s reference rate and the OPR
Margin of financing	Up to 100% for a first financing	Commonly up to 90%; Bank Negara caps the third housing loan at 70%
Repayment	Salary or pension deduction	Direct debit
Valuation	JPPH (Jabatan Penilaian dan Perkhidmatan Harta)	A valuer on the bank’s panel

Who qualifies for LPPSA financing

LPPSA’s 2026 circular covers the civil service, police and armed forces, staff of statutory bodies and local authorities (pihak berkuasa tempatan, PBT), and some office holders such as ministers, certain judges and elected representatives during their term. For public servants and statutory body or PBT staff, you must be a Malaysian citizen and a permanent officer in service, confirmed in post (disahkan dalam jawatan) with at least one year of service, and not bankrupt, a judgment debtor or facing dismissal proceedings.

So contract staff and officers still on probation usually have to wait; check your status with LPPSA. If your employer, such as a state government, statutory body or PBT, runs its own housing loan scheme for you, the circular says you are not eligible. Foreigners cannot use LPPSA and face Johor’s general RM1 million minimum price (see my foreigner minimum price guide).

Skim Muda for civil servants aged 30 and below

The Young Civil Servants Housing Financing Scheme (Skim Pembiayaan Perumahan Muda, SPPM) started on 1 April 2025 as a one-year pilot, and LPPSA said in November 2025 it would run another year. It is for permanent, confirmed officers aged 30 or below, and allows up to 40 years (480 months) at the same 4% rate with 100% margin. Its page still showed a RM750,000 maximum in November 2026, so ask LPPSA whether the higher ceiling applies.

Buying with your spouse or family

Joint financing (pembiayaan bersama) is allowed between spouses, or between parents and their children, if at least one applicant is a public servant. All co-applicants use the same lawyer and the same MRTA or MRTT panel. See my guide to joint names.

How much you can borrow

LPPSA approves the lowest of these: the property price, the JPPH valuation, the amount you apply for, and your maximum eligibility based on income. If JPPH values the home below the price, you pay the difference in cash, as with a bank valuation that comes in low.

Eligibility is based on net income: basic salary plus counted fixed allowances, minus compulsory deductions. Under the 2026 guideline:

Rule	First financing	Second financing
Monthly instalment	Not more than 60% of net income	Not more than 50% of net income
All debts together	Not more than 80% of net income (the lower test applies)	Not more than 80% of net income, after the first financing
Margin of financing	Up to 100%	Up to 100% if the first is settled; up to 90% if it is not
Rate	4% up to RM750,000; up to 4.5% above that	Same tiers

Fixed allowances such as ITP, ITKA and COLA count; overtime, hazard allowance and arrears do not. EPF, SOCSO, tax, court orders and other housing loans are deducted; zakat and savings deductions such as ASB, Tabung Haji and SSPN are not. LPPSA’s Smart Kira calculator gives an estimate; use it before you pay a booking fee. The approved amount can also cover the MRTA or MRTT and LTHO premiums and the legal fees for the financing documents.

The RM1 million ceiling

Budget 2026 raised LPPSA’s maximum from RM750,000 to RM1 million. The Star reported on 30 September 2026 that it would start as early as the fourth quarter, and EdgeProp reported on 2 October 2026 that an LPPSA notice set 4 October as the start date. MyGOV’s page (updated 21 October 2026) still says RM750,000, so confirm the figure for your application. The ceiling is a maximum, not an entitlement.

What the instalment looks like (my calculation)

Financing amount	Rate and tenure	Approximate monthly instalment
RM300,000	4%, 35 years	RM1,328
RM500,000	4%, 35 years	RM2,214
RM1,000,000	4.5% (the upper limit), 35 years	RM4,733

Profit rate and tenure

Profit is charged monthly on the reducing balance. On the Islamic SPPSAi the contract ceiling is 7%, but customers pay an effective 4% to 4.5% through ibra’ (a waiver of part of the profit). The rate does not change with the Overnight Policy Rate (OPR), which Bank Negara kept at 2.75% on 5 November 2026.

Scheme	First financing	Second financing
Pension scheme (skim pencen)	Up to 420 months (35 years) or age 90, whichever comes first	Up to 360 months (30 years) or age 90
EPF scheme (skim KWSP)	Up to 420 months or the end of your service, whichever comes first	Up to 360 months or the end of service
Skim Muda (age 30 and below)	Up to 480 months (40 years) or age 90 (pension) or end of service (EPF)	Not stated

When deductions start

For a completed home, salary deduction starts the month after the first disbursement (two months later if paid after the 15th). For a home under construction, it starts the month after the 95% progress payment, or in the 25th month after approval for landed homes and the 37th month for high-rise, whichever comes first. Profit follows the same timetable. Budget for rent meanwhile.

If you leave the public service

Leaving service, or retiring without a pension, breaches the financing terms. Settle the balance within 30 days and the original rate applies; otherwise LPPSA can charge up to 7% a year on the outstanding principal. If you plan to resign, line up a bank loan first; see my refinancing guide.

What you can buy with LPPSA: the seven financing types

Type	What it covers	Notes from the 2026 guideline
Jenis 1	Buying a completed house or strata unit	New or subsale
Jenis 2	Building a house on land you own	Paid in stages
Jenis 3	Buying a house or unit under construction	Licensed developer; HDA payment schedule
Jenis 4	Buying land to build a house	Individual title, one lot, up to 50% of your eligibility
Jenis 5	Settling an existing bank housing loan (refinance)	Cannot take over a loan LPPSA already financed for you
Jenis 6	Building on land financed under Jenis 4 or 5	Counts with Jenis 4 or 5 as one eligibility
Jenis 7	Renovating a home financed by LPPSA	Extending the floor area on the same lot, once only

The property must be residential, with a permanent living room, bedrooms, bathroom and kitchen; a shophouse with residential features can qualify. Leasehold titles need at least 10 years left after the financing ends. LPPSA sets no general price cap.

How many times you can use LPPSA

You get two financing eligibilities. You can apply for the second before the first is settled once its deductions have started and you have no arrears, but the second is then capped at 90% margin and 30 years. See my second home loan guide for the other costs.

How to apply, step by step

1. Check your eligibility with Smart Kira and your latest payslip.
2. Choose and check the home. For a new launch, the developer licence and permit; for a subsale, the title and lease left. Read my SPA guide and booking fee guide.
3. Sign the SPA, with dates your lawyer thinks are realistic for LPPSA’s steps.
4. Apply online through LPPSA’s application portal (LMS), which is the only channel for public servants and statutory body and PBT staff. Print the form, have your head of department (Ketua Jabatan) sign it, attach the checklist documents and submit it through your department.
5. Valuation by JPPH.
6. Offer letter. Pick your insurance or takaful panel at the pre-acceptance (pra-penerimaan) step; it cannot be changed later. Appeals on the amount are possible only before you accept.
7. Lawyer and charge. Your lawyer must submit the charge or assignment documents within 30 days of appointment.
8. Disbursement to the seller, the existing bank or the developer, then salary deduction.

LPPSA’s 2026 documents give no processing time; ask through its e-Tiket channel.

What developers and sellers need to know

New launches (Jenis 3)

• The SPA must show the developer licence and the advertising and sales permit, at a price within the developer’s registered range.
• Payments follow the Housing Development Act 1966 schedules (Schedule G landed, Schedule H strata), against progress billings and architect’s certificates. See my progressive payment guide.
• The developer gives a letter of undertaking to refund payments if the project is abandoned.
• The last 5% is released on the CCC, or six months after the 95% payment, whichever comes first.

Subsales (Jenis 1)

• Master title only: the unit must be 100% complete; LPPSA pays after the assignment.
• Seller has a bank loan: the price must be at least the outstanding balance, and LPPSA pays after the bank’s discharge is registered or under the undertaking arrangement in its guideline.
• Searches: a private search and bankruptcy searches on the seller and buyer.

Sellers should agree a completion period and extension clause that allow for these steps. My legal steps guide shows the order.

Costs you still pay in cash

• Booking fee and SPA deposit, usually paid before LPPSA disburses.
• Any shortfall if JPPH values the home below the price.
• SPA and transfer legal fees (see my legal fees guide).
• Stamp duty. Malaysian first-time buyers of a home up to RM500,000 are fully exempt on the transfer and loan agreement for SPAs signed by 31 December 2027 (The Star, October 2025). See my stamp duty guide.

EPF Akaun Sejahtera can help (see using EPF to buy a house), and the buying costs calculator adds it all up. Before you book, check how existing debts affect you with my DSR guide. For homes above RM1 million, LPPSA said in November 2025 that partner institutions can add financing on top.

Where to buy in JB if you are using LPPSA

Start with the commute to your office:

• Iskandar Puteri: near the state administrative centre at Kota Iskandar.
• Skudai, Tampoi and Kempas: established townships near the city.
• Kulai and Senai: landed townships north of JB.
• Tebrau, Setia Indah and Molek: mature neighbourhoods with schools and malls.
• Permas Jaya and Senibong: east-side condos and terraces.
• Bukit Indah and Gelang Patah: the west side, towards the Second Link.

State affordable housing applications go to the state, not an agent (see my RMMJ guide). For open-market homes, compare condo, landed and SOHO or use my JB property map.

More Johor living guides: First home in JB · Home loans in JB (2026) · Using EPF to buy a house · Best areas to live in JB

Frequently asked questions

Who is eligible for LPPSA home financing?

Malaysian citizens in the civil service, police, armed forces, statutory bodies and local authorities who are permanent officers, confirmed in post, with at least one year of service, plus some office holders.

What is the LPPSA profit rate in 2026?

4% a year on the reducing balance up to RM750,000, and up to 4.5% above that up to RM1 million, under LPPSA’s 2026 guideline. It does not move with the OPR.

What is the maximum LPPSA financing amount?

Budget 2026 raised it from RM750,000 to RM1 million, reported to start in October 2026. You get the lowest of the price, the JPPH valuation, the amount applied for and your eligibility.

Can contract or probation staff apply for LPPSA?

Generally not yet. The 2026 circular requires a permanent post, confirmation and at least one year of service. Check your status with LPPSA.

How many times can I use LPPSA financing?

Two times. The second can come before the first is settled, once deductions have started with no arrears, but is then limited to 90% margin and 30 years.

Can I use LPPSA for an under-construction condo?

Yes, under Jenis 3, with a licensed developer. For high-rise units, deduction starts after the 95% progress payment or in the 37th month after approval, whichever comes first.

What happens to my LPPSA financing if I resign?

Settle within 30 days and the original rate applies; otherwise LPPSA can charge up to 7% a year on the outstanding principal. Arrange a bank refinance before you resign.

Buying your JB home with LPPSA?

Tell me your Smart Kira estimate, where you work and whether you want a new launch or a completed home. I will shortlist homes within your amount and check the licence or title details LPPSA looks at. You can also book an appointment for viewings, or a Zoom consultation if you are posted outside Johor.

Sources: LPPSA, Pekeliling Pembiayaan Perumahan LPPSA Bil. 1/2026, checked 6 November 2026; LPPSA, Garis Panduan Pembiayaan Perumahan LPPSA Bil. 2/2026, checked 6 November 2026; LPPSA, FAQ on the eligibility calculation method, checked 6 November 2026; LPPSA, Skim Pembiayaan Perumahan Muda (SPPM) FAQ, checked 6 November 2026; LPPSA myFinancing, new customer information and documents, checked 6 November 2026; LPPSA, application guide and checklists by financing type, checked 6 November 2026; LPPSA, Jenis Pembiayaan (financing types), checked 6 November 2026; LPPSA, Smart Kira eligibility calculator, checked 6 November 2026; MyGOV, Pembiayaan Perumahan Sektor Awam, updated 21 October 2026; Bernama, LPPSA on Skim Muda and the RM1 million limit, 16 November 2025; Berita RTM, “LPPSA teruskan Skim Muda”, 16 November 2025; Malay Mail, LPPSA extends Skim Muda and raises financing limit, 16 November 2025; The Star, “Higher LPPSA financing ceiling seen supporting homeownership, property market”, 30 September 2026; EdgeProp, “RM1m LPPSA ceiling seen supporting housing demand”, 2 October 2026; Bank Negara Malaysia, Monetary Policy Statement, 5 November 2026; Bank Negara Malaysia, measures on the property market (70% LTV on the third housing loan), 3 November 2010; The Star, “Budget 2026: Stamp duty exemption extended for first-time homebuyers”, 10 October 2025; New Straits Times, “Foreigners hit Johor property resale wall”, 20 April 2026

Jason Lim, REN 84424, IQI Realty Sdn. Bhd. E (1) 1584/6. General information checked on 6 November 2026, not financial or legal advice. LPPSA rules, rates and ceilings change; confirm with LPPSA (myfinancing.lppsa.gov.my or e-Tiket), your head of department, your bank and your lawyer before you sign or apply.

By Jason Lim, REN 84424 · IQI Realty · Checked on 6 November 2026

The My First Home Scheme (Skim Rumah Pertamaku, SRP) no longer takes new applications: Cagamas stopped it on 1 April 2023. First-time buyers who need a loan above the usual 90% now use two other bank-based guarantees: the government’s Housing Credit Guarantee Scheme (Skim Jaminan Kredit Perumahan, SJKP), with financing of up to 110% or 120% depending on the scheme, and Cagamas SRP’s First Home Mortgage Guarantee Programme (First Home MGP), with up to 110% for homes of RM500,000 or less. This guide explains who qualifies, the limits, how to apply and what Budget 2027 changes.

What Skim Rumah Pertamaku was, and why you still hear about it

Skim Rumah Pertamaku started in 2011. Cagamas SRP Berhad, a sister company of the national mortgage corporation Cagamas, was set up that year to guarantee the part of each loan above the normal margin, so participating banks could lend young first-time buyers up to 110% of the price. It was aimed at lower-income households: in its later rules, gross monthly income of up to RM5,000 for a single applicant or RM10,000 for joint applicants.

Cagamas’s 2023 annual report says the scheme was discontinued with effect from 1 April 2023, following a government announcement. Between 2011 and 2023 it approved 101,736 loans and financings worth about RM23.8 billion. In March 2023 the housing ministry said SRP would be replaced by SJKP (FMT, 23 March 2023).

Many websites and posts still use the old name for any 100% or 110% first-home loan. If someone mentions it today, ask which guarantee your loan will actually carry: SJKP, SJKP MADANI or First Home MGP. The rules differ.

The schemes first-time buyers can use in 2026

	SJKP MADANI	SJKP (main scheme; Budget 2027 “Pembiayaan Rumah Inklusif”)	First Home MGP (Cagamas SRP)
Run by	SJKP, a company wholly owned by the Minister of Finance, under KPKT policy	SJKP	Cagamas SRP Berhad
Main target	B40 and M40 first-time buyers, gig workers, freelancers, the self-employed, micro-entrepreneurs, youth, contract civil servants	First-time buyers beyond the affordable-home bracket, including people without a fixed income	First-time buyers in the B40 and M40 groups, salaried or self-employed
Home price or loan limit	Affordable homes under RM300,000; financing up to RM360,000	Financing up to RM500,000	Home value up to RM1 million
Highest financing margin	Up to 120% (100% of the price plus up to 20% for costs such as insurance or takaful, legal and valuation fees, renovation and furniture)	Up to 110% under Budget 2027 (SJKP’s site describes guarantee cover of more than 100%)	Up to 100% up to RM1 million; up to 110% for homes up to RM500,000
Income limit	Not published on SJKP’s site; ask the bank	Reported at RM11,000 a month for the main applicant (2025 guide); confirm with the bank	RM15,000 gross a month, single or combined
Tenure	Up to 35 years; two-generation loans allowed	Up to 35 years; two-generation loans allowed	Up to 35 years or age 70, whichever is earlier
Guarantee fee	0.25%	0.25% up to RM300,000 of financing; 0.50% above that, up to RM500,000	Paid by the bank; Cagamas SRP does not charge the buyer

All three are for Malaysian citizens buying a first home to live in. The bank lends, not the government; the guarantee covers part of the bank’s risk, which lets it go above the usual margin. You still repay the whole loan.

SJKP: the housing credit guarantee in detail

Syarikat Jaminan Kredit Perumahan Berhad was incorporated on 6 December 2007 and is wholly owned by the Minister of Finance. It was set up for people without a fixed income, such as farmers and petty traders, who lacked payslips. Today the MyGOV portal describes the target group as the self-employed, gig workers such as e-hailing riders and freelancers, and micro traders and hawkers (page updated 21 October 2026).

Who can apply

• Malaysian citizens aged 18 and above. SJKP’s own FAQ says the scheme is open to all Malaysians in that age group.
• First home, to live in. New, under-construction, subsale and auction homes have been accepted, according to guides published in 2025.
• Income type. Built for non-fixed income (pendapatan tidak tetap), though Budget 2027 also lists youth, B40 and M40 buyers and contract civil servants among the target groups.
• Affordability. A 2025 guide in FMT put the main applicant’s income limit at RM11,000 a month and total monthly loan repayments at no more than 65% of income, with a clean credit record. Banks apply their own checks on top.
• Joint and two-generation loans. Joint applications are possible, and a parent or child aged 18 or above can join to stretch the tenure.

Documents banks usually ask for

For applicants without a payslip, the October 2025 FMT guide listed: the booking form and SPA or offer, six months of bank statements, a tax return or EPF statement if you have one, a copy of your MyKad, your business licence or permit, and a self-declaration stating your income source, average monthly income, business address and years in business. My guide to home loan rejections and DSR explains how banks read these documents.

What changed in Budget 2026 and Budget 2027

• Budget 2026 (10 October 2025): the SJKP guarantee ceiling was doubled from RM10 billion to RM20 billion, aimed at up to 80,000 first-time buyers, especially gig workers and the self-employed (The Star; The Vibes, October 2025).
• Budget 2027 (9 October 2026): another RM20 billion of guarantees for about 80,000 first-time buyers, split by MOF into two RM10 billion schemes: SJKP MADANI for affordable homes under RM300,000 (up to 120%) and a wider first-home scheme up to RM500,000 of financing (up to 110%). MOF also set aside RM1 billion of guarantees for rent-to-own financing.
• What the extra margin can cover: the housing minister said the guarantee of up to 120% can also cover renovation, furniture and household appliances such as air-conditioners (Bernama, 9 October 2026).
• Track record: KPKT said in October 2026 that SJKP has helped more than 124,000 people get housing financing, with over 34% of them aged 26 to 30 (Bernama, 15 October 2026).

Budget measures apply as banks roll them out, so ask which SJKP version your bank offers.

First Home MGP: Cagamas SRP’s programme for first-time buyers

Cagamas’s 2023 annual report said Cagamas SRP would launch a new First Home Mortgage Guarantee Programme in 2024, and by the end of 2024 eight banks had joined it. It works on commercial terms: the guarantee fee is paid by the bank, not the buyer, and there are conventional and Islamic (First Home MGP-i) versions.

Rule	First Home MGP
Who	Malaysian citizens aged 18 and above, first-time buyers, salaried or self-employed
Income	Up to RM15,000 gross a month, single or combined for joint applicants
Joint applicants	Immediate family only (spouse, parents, children or siblings), and each must be a first-time buyer
Property	A home in Malaysia for your own occupation, completed or under construction, new or subsale, valued at up to RM1 million
Margin	Up to 100% for homes up to RM1 million; up to 110% for homes up to RM500,000, with the extra 10% for entry costs such as insurance or takaful, legal fees, valuation and stamp duty
Not covered	Building on land you already own, and refinancing an existing loan
Inherited homes	An inherited property does not count as your first home
Second home	Only for PR1MA homes, and only if your first home loan has been running for five years

How to apply, step by step

1. Check your profile. Pull your CCRIS report from BNM and list your commitments. If self-employed, keep income in one account and declare it to LHDN.
2. Set a price within the limits. Under RM300,000 for SJKP MADANI, financing up to RM500,000 for the main SJKP scheme, and up to RM500,000 (110%) or RM1 million (100%) for First Home MGP.
3. Choose the home and book it. Ask the seller or developer for the booking form and the draft SPA (perjanjian jual beli).
4. Apply at a participating bank. Say which guarantee you are applying under. The bank assesses you, then requests the guarantee from SJKP or Cagamas SRP.
5. Valuation. The bank values the home. If the valuation is lower than the price, the loan follows the lower figure (see my bank valuation guide).
6. Letter of offer. Read the margin, rate, tenure, lock-in and insurance or takaful terms before you sign.
7. Sign the SPA and loan documents with your lawyer, and claim the first-home stamp duty exemption if you qualify.

You do not apply to SJKP or Cagamas directly, and you pay nobody to “secure” a place. If someone asks for a fee to get you into a government scheme, stop and read my guide to property scams in Johor Bahru.

What 100% or 110% financing really costs

A higher margin means less cash today but a bigger loan. Here is a worked example for a RM300,000 home, assuming 4.0% a year over 35 years. The rate is only an assumption for the arithmetic, not a quote or a forecast; the OPR was 2.75% after Bank Negara’s meeting on 5 November 2026, and each bank sets its own rate.

Loan	Loan amount	Monthly instalment (approx.)	Total interest over 35 years (approx.)
90% (normal margin)	RM270,000	RM1,195	RM232,000
100%	RM300,000	RM1,328	RM258,000
110% (price plus entry costs)	RM330,000	RM1,461	RM284,000

In this example the 110% loan costs about RM266 more a month than a 90% loan and about RM52,000 more in interest over the full term. That can still beat years of saving, but check the instalment fits if your income drops: a loan above the price leaves little equity if you sell early.

Other first-home help you can combine

Stamp duty (duti setem) exemption

Malaysian citizens buying their first residential home worth up to RM500,000 pay no stamp duty on the transfer or the loan agreement, for SPAs signed from 1 January 2021 to 31 December 2027 (PwC tax summary, checked November 2026). Budget 2027 proposes a new version for SPAs signed from 1 January 2027 to 31 December 2030: full exemption up to RM500,000, and for homes up to RM750,000, exemption on the first RM500,000 plus 50% off the duty on the rest. That was still a proposal when I checked. My stamp duty guide has the full scale and examples.

EPF Akaun Sejahtera

You can use EPF savings in Akaun Sejahtera towards the purchase or to reduce the loan, subject to KWSP’s conditions. With a 110% loan you may not need it for the down payment, but it can still help with costs or with paying down the loan later. See my guide to using EPF to buy a house.

Johor first-home aid and RMMJ

In Johor, the state’s Perumahan Kasih Johor programme offers a RM5,000 purchase incentive and RM2,000 move-in aid to first-time buyers who are registered Johor voters living in the state, for homes priced below RM500,000, with a minimum household income of RM4,500 (The Star, 4 February 2026). Forms are at the Johor Housing Development Corporation (PKPJ) or assemblymen’s offices. If your budget is lower, also look at Rumah Mampu Milik Johor (RMMJ), which you apply for directly with the state.

Foreigners and permanent residents

SJKP, First Home MGP and the first-home stamp duty exemption are for Malaysian citizens. Foreign buyers use normal bank loans and in Johor can generally buy residential property only from RM1 million; see my guides to home loans for foreigners and Johor’s foreigner minimum price.

Where to buy in JB if this matters to you

The schemes reward staying under RM300,000 or RM500,000. In JB that usually means looking at subsale condos and apartments, older terraces and some new launches in established districts, rather than the city-centre waterfront. These area guides are a starting point:

• Skudai, Tampoi and Kempas: older, established neighbourhoods near universities, schools and the main highways.
• Kulai and Senai: near the airport and the data-centre and industrial belt, popular with buyers who work on the north side.
• Tebrau, Setia Indah and Molek: settled family areas with malls and schools nearby.
• Permas Jaya and Senibong: east-side condos and landed homes off the Pasir Gudang Highway.
• Bukit Indah and Gelang Patah: west-side homes near the Second Link and Iskandar Puteri.

Compare them on my JB property map, and read condo vs landed vs SOHO before you choose a type: banks and schemes treat SOHO and serviced apartments case by case.

More Johor living guides: Buying your first home in JB · Home loans in JB 2026 · Using EPF to buy a house · Best areas to live in JB

Frequently asked questions

Is Skim Rumah Pertamaku still available in 2026?

No. Cagamas discontinued Skim Rumah Pertamaku on 1 April 2023. First-time buyers who need a loan above 90% now use the SJKP housing credit guarantee or Cagamas SRP’s First Home Mortgage Guarantee Programme, both through participating banks.

What replaced Skim Rumah Pertamaku?

The housing ministry said in March 2023 that SJKP would replace it. Cagamas SRP also launched the First Home Mortgage Guarantee Programme in 2024. Both let banks lend first-time Malaysian buyers above the usual margin.

Who qualifies for SJKP?

Malaysian citizens aged 18 and above buying a first home to live in. It is built for people without a fixed income, such as gig workers, the self-employed and small traders, and Budget 2027 also names B40 and M40 buyers, youth and contract civil servants. The bank checks affordability and credit history.

Can I get a 110% or 120% home loan as a first-time buyer?

Possibly. Under Budget 2027, SJKP MADANI covers up to 120% for affordable homes under RM300,000, and another SJKP scheme up to 110% for financing up to RM500,000. First Home MGP allows up to 110% for homes up to RM500,000. Approval and the final margin are the bank’s decision.

What is the income limit for First Home MGP?

Gross monthly income of up to RM15,000, for a single applicant or combined for joint applicants. Joint applicants must be immediate family and each must be a first-time buyer. The home can be worth up to RM1 million.

Where do I apply for SJKP or First Home MGP?

At a participating bank, not at SJKP or Cagamas. Tell the bank which guarantee you are applying under; it assesses you and requests the guarantee. Nobody needs to be paid to get you into either scheme.

Planning your first home purchase?

Tell me your budget, where you work and how you earn. I will shortlist homes within the scheme limits, line up the booking and SPA dates with your loan application, and help you check the documents before you sign. You can also book an appointment for viewings, or a Zoom consultation if you are outside JB.

Sources: Cagamas Holdings, Annual Report 2023, business review (SRP discontinued 1 April 2023; SRP approvals 2011–2023); Cagamas Holdings, Annual Report 2024, key highlights (First Home MGP in 2024), April 2025; Cagamas SRP, overview, checked November 2026; Cagamas, First Home Mortgage Guarantee Programme, checked November 2026; Cagamas SRP, FAQ, checked November 2026; SJKP, scheme overview, checked November 2026; SJKP, Skim Jaminan Kredit Perumahan MADANI, checked November 2026; SJKP, Skim Jaminan Kredit Perumahan, checked November 2026; SJKP, about SJKP, checked November 2026; SJKP, FAQ, checked November 2026; MyGOV, Skim Jaminan Kredit Perumahan (SJKP), updated 21 October 2026; Ministry of Finance, Belanjawan 2027, Lampiran 1: Ringkasan Langkah, October 2026; Bernama, “Budget 2027: RM20 bln boost for SJKP guarantee fund”, 9 October 2026; Bernama, jaminan pembiayaan hingga 120 peratus SJKP, 9 October 2026; Bernama, “KPKT strengthens access to first-home ownership through RM20 bln financing guarantee”, 15 October 2026; The Star, “Budget 2027: RM20bil to assist 80,000 first-time homebuyers”, 9 October 2026; The Star, “Budget 2027: Govt proposes stamp duty exemptions for first-time homebuyers”, 9 October 2026; The Star, “Budget 2026: Housing Credit Guarantee Scheme doubles to RM20bil”, 10 October 2025; The Vibes, “Over RM21 billion in housing loans approved under SJKP scheme”, 13 October 2025; FMT, “Govt to provide up to RM5bil financing guarantees for house buyers”, 23 March 2023; FMT, “A guide to Malaysia’s Housing Credit Guarantee Scheme”, 9 October 2025; Residensi Wilayah (federal territories portal), first-home financing schemes incl. former SRP income limits, checked November 2026; PwC Malaysia, tax booklet: stamp duty (first-home exemption and Budget 2027 proposal), checked November 2026; The Star, “New scheme to buy, rent Johor homes”, 4 February 2026; The Star, “Bank Negara keeps OPR steady at 2.75%”, 5 November 2026

Jason Lim, REN 84424, IQI Realty Sdn. Bhd. E (1) 1584/6. General information checked on 6 November 2026, not financial or legal advice. I am not a bank and do not decide loan or guarantee approvals. Scheme rules, limits and Budget proposals change; confirm with your bank, SJKP, Cagamas SRP, LHDN and your lawyer before you commit.

By Jason Lim, REN 84424 · IQI Realty · Checked on 6 November 2026

Yes, you can get a housing loan in Malaysia if you run a business, work on commission, freelance or drive for a platform. The difference is proof: banks usually want two years of tax returns (Form B), your SSM registration and 6 to 12 months of bank statements, and they often count less income than you actually earn. Your debt service ratio (DSR), your CCRIS and CTOS records and the size of your down payment then decide how much you can borrow.

Who counts as self-employed to a bank

Banks sort applicants by how their income can be proven, not by job title.

Type of earner	Main income proof	What banks tend to look at
Sole proprietor (pemilikan tunggal)	Form B, SSM registration, bank statements	Business income declared to LHDN, and whether bank credits match it
Partner in a partnership (perkongsian)	Form B for the partner, Form P for the partnership, SSM registration	Your share of the partnership income
Director-shareholder of a Sdn Bhd	Form BE or B, company financial statements, SSM company information	Your salary or director’s fees, and sometimes part of the company’s profit
Commission earner	Commission statements, Form CP58 or EA form, Form B or BE	An average of recent months, often counted at a lower figure
Freelancer or professional	Form B, invoices, contracts, bank statements	Steadiness of payments over at least a year
Gig worker (pekerja gig)	Platform earning statements, bank statements, Form B	Regular deposits over 6 to 12 months

LPPSA public-sector financing is only for eligible public-sector staff (MyGOV, October 2026), so for business owners, freelancers and gig workers the loan comes from a bank or an Islamic bank.

Documents banks usually ask for

Lists differ by bank, but these appear in most published checklists:

Document	Who needs it	Notes
MyKad copy	Everyone	Both sides; joint applicants too.
Form B with e-Filing acknowledgement, for the last two years	Sole proprietors, partners, freelancers, gig workers with business income	Some banks also ask for tax payment receipts or the notice of assessment.
Form BE and EA form	Salaried commission earners and directors paid a salary	Shows employment income, including commissions paid through payroll.
Form CP58	Agents, dealers and distributors paid by a company	Companies issue it under section 83A of the Income Tax Act when yearly payments exceed RM5,000 (deadline 31 March 2026 for 2025 payments).
SSM registration	Sole proprietors and partnerships	Keep it renewed. SSM charges RM30 a year for a business in your own name, RM60 for a trade name.
SSM company information and financial statements	Sdn Bhd directors	Usually two years; audited accounts for companies.
Bank statements, 6 to 12 months	Everyone, especially commission and gig earners	Personal and business accounts. Used to check that money actually comes in.
Supporting papers	Optional but helpful	Contracts or retainers, recent invoices, tenancy agreements for rental income, savings and investment statements.

Tax return deadlines to keep

Banks treat tax returns as the most official record of your income, so late filing works against you. LHDN’s dates for income earned in 2025:

Form	Who files it	Due date	With e-Filing grace
Form BE	Residents without business income	30 April 2026	15 May 2026
Form B	Residents with business income	30 June 2026	15 July 2026
Form P	Partnerships	30 June 2026	15 July 2026

How banks count your income

Bank Negara’s responsible financing rules require banks to make proper enquiries into a borrower’s income and to measure affordability on income after statutory deductions such as tax and EPF. Bank Negara publishes no single DSR limit or income formula; each bank sets its own. This is general information, not financial advice. Common practice, as portal guides describe it in 2025–2026:

• Business owners: an average of the last two years of income declared in Form B. Some banks use the lower of the two years, so a weak year can pull your figure down.
• Company directors: salary or director’s fees, with some banks also counting part of the company’s profit for majority shareholders. Practice varies widely.
• Commission earners: an average of 6 to 12 months of commission, with some banks counting about 70% to 80% of that average.
• Rental income: commonly counted at about 70% to 80% to allow for vacancies and costs, backed by stamped tenancy agreements.
• Bank statements: used mainly to check that the income you declared really arrives, regularly, in your account. Cash takings that never reach the bank are hard to count.

The lesson: the income that counts is the income you declare and bank. Lower taxable income on paper means a smaller loan.

A worked example (round numbers, for illustration only)

Step	Example figure
Business income in Form B, year 1 and year 2	RM84,000 and RM108,000
Two-year average	RM96,000 a year, RM8,000 a month
If the bank uses the lower year instead	RM7,000 a month
Assumed income after tax and deductions (bank’s own method)	About RM6,500 a month
Existing commitments: car loan RM900, PTPTN RM200, credit cards RM300	RM1,400 a month
If that bank’s DSR limit for this income were 60% (an assumption)	RM3,900 total commitments allowed
Room left for a new home loan instalment	About RM2,500 a month

Clearing the card balance and car loan would add about RM1,200 a month of room here, often more than a pay rise would. Put your own instalment figure into my home loan calculator, and read my guide to rejected housing loans and DSR for how banks treat each type of debt.

CCRIS and CTOS: what banks see

Check what the bank will see before you apply:

	CCRIS (Bank Negara)	CTOS and other credit reporting agencies
What it holds	Your loans and financing with banks and other reporting lenders, with 12 months of repayment history	Court cases, bankruptcy records, directorships and business interests, trade references from suppliers, plus other data sources
How to check	eCCRIS online, at no fee, or at AKPK offices	MyCTOS: a basic report twice a year at no fee; the score report was RM27 in July 2026
Score	None. Bank Negara says CCRIS is not a blacklist	CTOS score from 300 to 850
Why it matters for business owners	Business loans you guarantee personally can appear	Unpaid supplier invoices or a company you direct can show up

Credit reporting agencies such as CTOS must be registered with the Ministry of Finance under the Credit Reporting Agencies Act 2010. If you find an error, ask the agency or lender to correct it before you apply.

Ways to strengthen your application

Add a joint applicant

A spouse or family member with a steady salary and few debts can make the combined DSR work. Each borrower is responsible for the loan; my guide to joint names and tenancy in common explains the options.

Guarantors

Some banks may ask for a guarantor (penjamin). A guarantor can be asked to repay the full debt, the bank need not chase the borrower first, and a default can hurt the guarantor’s credit record. A guarantor should read the documents with their own lawyer.

A larger down payment

Portal guides report that self-employed borrowers are often offered a margin 5 to 10 percentage points lower than salaried buyers, and that businesses under two years old may be offered 50% to 70% or declined. Bank Negara also caps financing at 70% from your third outstanding housing loan. Plan for a bigger down payment plus legal fees and stamp duty; my buying costs calculator, legal fees guide and stamp duty guide show the amounts. A low bank valuation widens the gap further, as my guide to a bank valuation lower than the price explains.

SJKP for buyers without fixed income

The Housing Credit Guarantee Scheme (Skim Jaminan Kredit Perumahan, SJKP) is a government scheme for people whose irregular income makes bank loans hard to get: small traders, hawkers, farmers, e-hailing and delivery riders, freelancers and micro traders. The government stands behind the bank’s loan, and the bank still decides.

• Limits: financing up to RM500,000 under SJKP and up to RM360,000 under SJKP Madani, for up to 35 years or across two generations (MyGOV, checked November 2026).
• Funding: Budget 2026 doubled the guarantee to RM20 billion (The Star, 10 October 2025), and Budget 2027 again set RM20 billion for self-employed and gig workers (Malay Mail, 23 October 2026).
• How to apply: through a participating bank, which assesses you and asks SJKP for the guarantee. Confirm the current conditions with SJKP and the bank.

First-time buyers also get a stamp duty exemption on a first home up to RM500,000 for SPAs signed by 31 December 2027; Budget 2027 proposes extending it to 2030 with partial relief up to RM750,000 (still a proposal when I checked). My first home guide and EPF housing withdrawal guide cover the rest.

Gig workers and the new PERKESO rules

PERKESO began enforcing the Gig Workers Act 2025 at the end of March 2026, with platforms deducting 1.25% of each completed job for social security cover (The Star, 1 April 2026). Banks still assess you the same way, but platform statements and contribution records help show steady work.

Your 6–12 month plan before applying

1. File on time and declare fully. Two clean years of Form B carry the most weight.
2. Bank all your income. Route payments through one business account and stop relying on cash.
3. Pay yourself a fixed amount. A regular monthly transfer to your personal account, clearly labelled, reads like a salary.
4. Keep business and personal money apart. Mixed accounts make income hard to verify.
5. Cut debts and card limits. Settle small loans and avoid new hire purchase or personal financing before you apply.
6. Check CCRIS and CTOS. Fix errors and pay overdue supplier or telco bills.
7. Renew your SSM registration and prepare accounts. Companies should have recent financial statements ready.
8. Save for the gap. Plan for a lower margin, legal fees, stamp duty, valuation and moving costs.
9. Get a loan assessment before you book. Ask one or two banks for an indicative eligibility check before paying a booking fee, rather than sending many full applications at once.

If a bank declines you, ask which factor caused it and fix that before reapplying. If debts are a strain, AKPK, the credit counselling agency set up by Bank Negara, helps at no fee. Buying through your company? Read my guide to buying property through a company first, because company loans and taxes work differently.

After the loan: refinancing, insurance and payments

• Refinance later. Once your income record is stronger, a refinance may get better terms; see my refinancing guide for costs and lock-in periods.
• Protect the loan. With uneven income, cover for death and disability matters. Compare MRTA and MLTA.
• Plan for slow months. Keep several months of instalments in reserve, and read my guide to missed home loan payments. Buying a new launch? See the progressive payment schedule.

Foreigners who are self-employed abroad face extra steps, such as foreign tax returns and Johor’s minimum price for foreign buyers, generally RM1 million for most residential property. See my guide to Malaysian home loans for foreigners, and my JB home loan guide for 2026 for the wider picture.

Where to buy if this matters to you

• Skudai, Tampoi and Kempas: established neighbourhoods with many older subsale homes.
• Kulai and Senai: near the airport and the data centre and industrial areas.
• Bukit Indah and Gelang Patah: west-side townships towards the Second Link.
• Permas Jaya and Senibong: east-side condos and landed homes.
• Tebrau, Setia Indah and Molek: mature areas close to malls and business hubs.
• Mount Austin: a busy mix of shops, offices and homes.
• Iskandar Puteri: newer townships, Medini and EduCity.

Compare them on my JB property map, or browse new launches in Johor Bahru. If you are weighing state affordable housing, see my RMMJ guide.

More Johor living guides: Home loans in JB for 2026 · Why housing loans get rejected · Buying a second home · Setting up a business in the JS-SEZ

Frequently asked questions

Can a self-employed person get a housing loan in Malaysia?

Yes. Banks lend to business owners, partners, commission earners, freelancers and gig workers. They usually want two years of tax returns, SSM registration and 6 to 12 months of bank statements, and they assess the loan with your debt service ratio (DSR) and credit records.

How many years of Form B do banks need?

Most published checklists mention the last two years of Form B with the LHDN e-Filing acknowledgement. Banks often average the two years, and some use the lower year, so file on time and declare your full income. Requirements differ by bank.

How do banks calculate commission income?

Portal guides report that banks commonly average 6 to 12 months of commission statements and may count only about 70% to 80% of that average. Salaried commission earners also show Form BE and the EA form; agents paid by a company may have Form CP58.

Can I get a home loan if my SSM business is less than two years old?

It is harder. Portal guides report that businesses under two years old may be offered a lower margin, around 50% to 70%, or be declined. A salaried joint applicant, a larger down payment or the SJKP scheme for buyers without fixed income may help.

What is SJKP and who can use it?

The Housing Credit Guarantee Scheme (Skim Jaminan Kredit Perumahan) helps people with irregular income, such as small traders, freelancers and e-hailing or delivery riders, get bank financing. MyGOV lists limits of up to RM500,000 under SJKP and RM360,000 under SJKP Madani. You apply through a participating bank.

Do CCRIS and CTOS affect a self-employed home loan application?

Yes. CCRIS shows 12 months of repayments on your loans, including business loans you guarantee, and can be checked at no fee on Bank Negara’s eCCRIS. CTOS can also show court cases, directorships and unpaid supplier invoices. Check and fix both before applying.

Can self-employed people use LPPSA?

No, not as self-employed people. LPPSA financing is only for eligible public-sector staff. Business owners, freelancers and gig workers borrow from banks or Islamic banks, possibly with SJKP backing if they qualify.

Self-employed and ready to look at homes?

Tell me what you do, your budget and the area you like. I will shortlist homes with recorded and asking prices and walk you through the buying costs. You can also book an appointment for viewings, or a Zoom consultation if you prefer to talk online first.

Sources: Bank Negara Malaysia, measures to promote responsible financing practices (income after statutory deductions; enquiries into income), 18 November 2011; Bank Negara Malaysia, measures in promoting a stable and sustainable property market (70% LTV on the third housing loan), 3 November 2010; Bank Negara Malaysia, measures to further promote a sound and sustainable household sector (35-year tenure), 5 July 2013; The Star, “Bank Negara keeps OPR steady at 2.75%”, 5 November 2026; Bank Negara Malaysia, CCRIS report and eCCRIS, checked November 2026; Bank Negara Malaysia, “Agensi Kaunseling dan Pengurusan Kredit commences operations”, 17 April 2006; RinggitPlus, on AKPK’s counselling and debt management programme, 11 May 2026; LHDN, Return Form (RF) Filing Programme for the Year 2026, 30 December 2025 (updated 1 April 2026); The Star, “2025 Tax Return Form deadline extended to May 15”, 29 April 2026; Landco, complete guide to Form CP58, 26 February 2026; SSM (Companies Commission of Malaysia), registration of business table of fees, checked November 2026; Ministry of Finance, “10 credit reporting agencies renew registration for 2026/2027”, 20 October 2026; StashAway, guide to CCRIS and CTOS, 29 July 2026; EdgeProp, DSR guide for homebuyers, 13 October 2026; PropCashFlow, home financing for self-employed Malaysians, 21 February 2026 (updated 11 September 2026); NextSix, housing loans for the self-employed, 14 November 2025 (updated 12 December 2025); iProperty, home financing guide for freelancers, self-employed and commission earners, accessed November 2026; RinggitPlus, “What does it mean to be a guarantor?”, December 2014 (updated December 2019); MyGOV, Skim Jaminan Kredit Perumahan (SJKP), checked November 2026; The Star, “Budget 2026: Housing Credit Guarantee Scheme doubles to RM20bil”, 10 October 2025; Malay Mail, guide to Budget 2027 financial aid (SJKP, first-home stamp duty), 23 October 2026; SAYS, Budget 2027 stamp duty exemption for first-time homebuyers, 9 October 2026; MyGOV, Pembiayaan Perumahan Sektor Awam (LPPSA), checked November 2026; The Star, “Gig platforms given six months’ grace for PERKESO compliance”, 1 April 2026; New Straits Times, “Foreigners hit Johor property resale wall”, 20 April 2026

Jason Lim, REN 84424, IQI Realty Sdn. Bhd. E (1) 1584/6. General information checked on 6 November 2026, not financial or legal advice. Bank policies, tax deadlines and scheme rules change; confirm with your bank, LHDN, SJKP and a lawyer before you commit.