KUALA LUMPUR (Jan 21): Malaysian property remains attractive to foreign buyers despite the 4% to 8% stamp duty hike, said asset and property consultancy Henry Butcher Real Estate Sdn Bhd.
This is because local property prices remain relatively cheaper compared with regional markets such as Hong Kong and Singapore, while Malaysia also offers legal protections for homebuyers, said Henry Butcher chief operating officer Tang Chee Meng at a press conference after the release of the firm’s 2026 property market outlook on Wednesday.
Citing data from the Global Property Guide on average residential prices per square metre — mainly for apartments and flats — Tang said Malaysia’s average price stands at US$2,484 (RM10,063), significantly lower than Hong Kong’s US$21,310 and Singapore’s US$19,300.
This is also cheaper than the Philippines at US$3,449 and Thailand at US$4,751, although slightly higher than Indonesia at US$2,226 and Vietnam at US$2,384.
“When people look to invest overseas, they will naturally choose markets that fit their budget. Those who are seeking very strong capital appreciation will still prefer Hong Kong, because the market there is like a casino, where property prices can rise by double digits overnight. In Malaysia, price growth is more gradual,” he said.
The higher stamp duty would have limited impact on overall property transactions, Tang said. This as the feature mainly affects developers of high-end projects targeting foreign buyers, particularly in Kuala Lumpur, Penang and Johor.
The Real Estate and Housing Developers’ Association Malaysia (Rehda) has earlier reiterated its call for the government to review the proposed stamp duty hike, warning that a sudden doubling of the rate could deter investment and undermine Malaysia’s attractiveness to foreign talent and foreign direct investment.
On whether a stronger ringgit could dampen foreign demand, Tang remained positive on the local property market, citing Malaysia’s strong protections for homebuyers, where buyers’ rights are safeguarded under a standard sale and purchase agreement and foreigners are allowed to own property.
This contrasts with markets such as Vietnam and Indonesia, where foreign buyers typically obtain only usage rights rather than full ownership, he said.
“In Malaysia, foreigners can own property, subject to minimum price thresholds and property-type restrictions. This makes it comfortable for foreign investors to come in, especially when prices are cheaper than the alternatives. More importantly, their money is placed in an environment that is legally protected,” Tang said.
“This gives foreign buyers greater assurance. Our laws are familiar to many foreigners because they are similar to those in Australia and the UK, and the system is transparent,” he added.