Basic of property type in Malaysia

Before you make your major decision to buy a property, make sure you are familiar with the types of property available in Malaysia. With so many land for sale in Selangor, you need to take some time off to do your research on which type of property best suits your needs and wants. 

Afterall, buying a property is a huge commitment and it involves a huge sum as well. You definitely do not want to end up regretting over your wrong decision that you have made due to lack of research. That will then be too late. Fret not, this article will explain to you the basics of property type in Malaysia.

First of all, you ought to know the key market segments in Malaysia, namely:

1.  Developer or new

First of all, there are new developments that you can purchase directly from the property developers after viewing the floor plan or show unit. New developments are also property that you could purchase before it is built.

There are also the build then sell properties that you could check out as the Malaysian government is now encouraging the developers to change into a build then sell policy, where construction will be completed before the sales begin. 

2.  Sub sale or secondary

Next, there is the sub sale or secondary property where buyer purchases existing properties directly from the seller and not the developer. In addition, the buying process of a subsale property is almost similar to purchasing a brand new property. 

3.  Auction

Properties under the auction market segments are properties that are priced below a market price. However, do note that properties under the auction segments are sold on an ‘as is where is’ basis and there is no guarantee given on the titles and vacant possession. 

4.  Commercial

As the name suggests, commercial property is for commercial use. Commercial properties are properties that people buy mainly for businesses purposes, such as offices and retail malls. 

After you understand the key market segments in Malaysia, it is time to know the three common property types in Malaysia, which are:

1.  Land

One of the most common property types in Malaysia is landed properties. You can check out the land status from the State Land Registrar of the Land Office. There are also three types of landed property that you need to check before deciding which property to buy: Freehold land, leasehold land and the Malay reserve land. 

2.  Commercial

Next, there is also the commercial property type. A commercial property typically refers to retail buildings, shopping centers, office buildings, factories or warehouses, industrial buildings, apartment buildings and mixed building where it can be a mixture of retail, office building or apartment. 

3.  Residential

A house (terrace), condominium (studio, penthouse, duplex or standard) unit, townhouses, bungalows or an apartment unit that is meant for residential purpose or to rent out to private tenants are considered as residential property.

Lastly, you will need to understand the 3 land types in Malaysia,

1.  Freehold

A freehold property is having the outright ownership of the property and land on which it stands. That also means the owner of the land has no time limit to the ownership period. Most developers build bungalows, condominiums and private housing on a freehold land. 

2.  Leasehold

With a leasehold title, it means that you own the property and the land with a certain period of the lease agreement with the freeholder. Most leasehold properties in Malaysia have a leasehold period of 30 years, 60 years, 99 years, with some that have a longer period of 999 years.

As the name mentioned, property with a leasehold title will have to be responsible for the land and maintenance need to be done. If the land is not well taken of, the state will deem the tenant as unfit and the tenure might be compromised. The state could also forfeit your lease if the land is not in a good condition. 

3.  Malay Reserve Land

The Malay Reserve Land is a land that is reserved exclusively for the Malays or the Bumiputeras in Malaysia. That being said, the Malay Reserve Land is strictly for the Malays and Bumiputeras and the lands are not allowed to be sold to other races and also the foreigners.


In conclusion, whether to invest in a freehold property or leasehold property will still depend on your budget and how much you can afford. You should take these factors into consideration as well before deciding which to buy, such as monthly income, purpose of buying (own stay or investment), cash available, and loan amount. 

As buying property is a huge commitment that involves a huge sum of money, make sure you do your research and plan ahead to make the best decision out of it, as you definitely do not want to get caught in a debt.