Where to invest in property in Malaysia: eight cities compared on official 2026 data

Short answer. There is no single place to invest in Malaysian property: each of the eight cities leads on a different measure, and we do not say where to buy. On the latest official data (NAPIC, first half of 2026), Selangor and Johor have the most residential sales and the least unsold stock for their size. Kuala Lumpur has the highest prices and the densest rail network, and it is the only one of the four main markets (KL, Selangor, Johor, Penang) where sales rose. Melaka and Ipoh have the lowest prices and the highest observed rental yields on condominiums. Penang island has flat prices and the lowest observed yields, and Kota Kinabalu and Kuching are the smallest markets of the eight. Every figure below has a date and a source.

Who leads on each measure among the eight (NAPIC, 2026): highest median sale price, Kuala Lumpur (RM510,000, Q2 2026); most residential sales, Selangor (22,389, H1 2026); fastest price rise in a year, Melaka (+4.6%, Q2 2026); highest median condo gross yield, Melaka Tengah (5.3%, H1 2026); lowest foreign-buyer floor for a strata unit among the four main markets, Kuala Lumpur, Johor and Penang (RM1m each). Sources are listed below the main table.

How we compared the cities

We used the same official sources for every city, and the latest figure each one had published by 29 October 2026.

• Prices. We use the NAPIC Malaysian House Price Index for Q2 2026, which is still preliminary. The index is based at 100 in 2010. We also give NAPIC’s median sale price for the same quarter.
• Sales and unsold homes. NAPIC’s Property Market Report and Property Market Status Report for H1 2026 give residential transactions and completed homes still unsold.
• Rents. NAPIC’s H1 2026 rental tables publish a gross yield for each housing scheme they sample. We give the middle 50% range and the median for condominiums and apartments.
• Foreign-buyer floors. These come from our foreign buyers guide, which was checked on the same day.
• People and income. Population is the DOSM estimate for 2026. Household income is the median from DOSM’s 2024 Household Income Survey.

NAPIC reports by state. So “Selangor” stands in for most of the Klang Valley outside KL, and the Penang and Johor figures cover the whole state unless a row says “district”.

The eight cities at a glance

City	Price index Q2 2026 (yr change)	Median sale price Q2 2026	Residential sales H1 2026 (yr change)	Unsold completed homes H1 2026	Condo gross yield, median (middle 50%)	Foreign floor, strata / landed
Kuala Lumpur	207.8 (+2.7%)	RM510,000	6,618 (+2.4%)	3,687	4.6% (3.9-5.3%)	RM1m / RM1m
Selangor (Klang Valley)	231.4 (-1.1%)	RM470,000	22,389 (-10.5%)	4,185	3.7% (3.4-4.4%), Petaling	RM2m / RM2m
Penang (island)	224.5 (+0.2%)	RM345,000	6,979 (-13.1%)	3,114	3.5% (2.9-3.9%), island	RM1m / RM3m
Johor Bahru	313.9 (+3.6%)	RM420,000	17,871 (-15.1%)	4,222	4.5% (4.2-4.7%), JB district	RM1m / RM1m
Melaka	236.9 (+4.6%)	RM280,000	5,479 (-5.3%)	2,213	5.3% (4.7-6.2%), Melaka Tengah	RM500,000 / RM1m
Kota Kinabalu	217.7 (+2.9%)	RM370,000	2,731 (-1.5%)	1,887	3.7% (3.4-4.5%), KK district	RM600,000 / RM1m
Kuching	225.1 (+2.7%)	RM420,000	5,109 (+2.4%)	1,704	3.7% (3.2-4.4%), 16 schemes	RM500,000 / RM600,000 (Kuching division)
Ipoh	247.4 (-2.2%)	RM270,000	11,604 (-11.1%)	4,075	5.1% (4.1-5.5%), Kinta	New leasehold only, from RM500,000 / RM700,000

Prices, sales and unsold homes are state figures, and the yield area is named in each row. Sources: NAPIC MHPI Q2 2026P (Tables I-II), NAPIC Residential Prices Quarterly Update Q2 2026, NAPIC Property Market Report H1 2026 (Tables III and VII), NAPIC Property Market Status Report H1 2026 (pp. 7-8), and NAPIC H1 2026 rental tables. All were read on 29 October 2026.

Across the whole country, NAPIC recorded 33,094 unsold completed homes worth RM17.78 billion in H1 2026. That is 23.0% more than a year earlier. NAPIC also counts 23,375 unsold serviced apartments separately, and most of them are in Johor (9,946) and Kuala Lumpur (6,343). The national price index stood at 234.7, up 0.9% on a year.

City	Population 2026 (DOSM)	Median household income 2024 (DOSM)	Rail in passenger service	Under construction or approved
Kuala Lumpur	2.08m	RM10,802	LRT, MRT (2 lines), Monorail, KTM Komuter, ERL	MRT3 Circle Line (land acquisition)
Selangor	7.45m (Petaling 2.38m)	RM10,726 (Petaling RM10,688)	Klang Valley network, LRT3 Shah Alam line (June 2026)	ECRL, MRT3
Penang island	0.82m	RM7,745 (Timur Laut)	None on the island; KTM at Butterworth	Mutiara Line LRT
Johor Bahru	1.83m	RM8,977	KTM ETS to JB Sentral, Shuttle Tebrau	RTS Link to Singapore
Melaka	0.64m (Melaka Tengah)	RM7,415	None in the city	None found
Kota Kinabalu	0.56m	RM5,896	Sabah State Railway	None found
Kuching	0.63m	RM6,741	None	Hydrogen ART (pilot runs planned for Q4 2026)
Ipoh	0.93m (Kinta)	RM5,136	KTM ETS, KTM Komuter	None found

The SIM city score

The score uses five measured criteria, each worth 0 to 2 points, for a total out of 10. It shows what the data says today. It is not a forecast, and it is not a view on where to buy.

Criterion	2 points	1 point	0 points
Market depth (residential sales, H1 2026)	10,000 or more	5,000-9,999	Under 5,000
Unsold completed homes per 100 sales	Under 25	25-45	Over 45
Median condo gross yield (NAPIC)	4.5% or more	3.75-4.49%	Under 3.75%
Rail in service in the city	Urban network	Intercity or single line	None
Median household income	RM8,500 or more	RM6,500-8,499	Under RM6,500

City	Depth	Unsold	Yield	Rail	Income	Score
Selangor	2	2 (18.7)	0	2	2	8
Johor Bahru	2	2 (23.6)	1	1	2	8
Kuala Lumpur	1	0 (55.7)	2	2	2	7
Ipoh	2	1 (35.1)	2	1	0	6
Melaka	1	1 (40.4)	2	0	1	5
Penang island	1	1 (44.6)	0	0	1	3
Kuching	1	1 (33.4)	0	0	1	3
Kota Kinabalu	0	0 (69.1)	0	1	0	1

The figure in brackets is the number of unsold completed homes for every 100 residential sales in H1 2026. Change one threshold and the order changes. The full data and method are in the table above, so you can weight the criteria yourself.

Kuala Lumpur

KL’s average price in the index is RM825,282 and its median sale price is RM510,000, both the highest of the eight. The index rose 2.7% in the year to Q2 2026. Residential sales rose 2.4% to 6,618 in H1 2026 (RM6.11 billion), while Selangor, Johor and Penang all fell. The unsold picture is less comfortable. KL has 3,687 unsold completed homes and 6,343 unsold serviced apartments, the second-highest serviced apartment count after Johor.

In NAPIC’s rental sample of 300 condominium and apartment schemes, the median gross yield is 4.6%, and half of the schemes sit between 3.9% and 5.3%. Serviced apartments give a median of 4.3% across 125 schemes. Foreign buyers must pay at least RM1m. KL has the densest rail network in the country. The MRT3 Circle Line was approved in July 2025 and is still at the land acquisition stage, and we found no construction contract as of October 2026. Inside the city the spread is wide, and our rental yield guide gives published ranges for KLCC, Mont Kiara, Bangsar and Cheras. For projects, see our KL new launches top 10, KLCC top 10 and Mont Kiara top 10.

Selangor (Klang Valley)

Selangor is the biggest market. It recorded 22,389 residential sales in H1 2026 (RM13.10 billion), but that is 10.5% fewer than a year earlier. The index slipped 1.1% in the year to Q2 2026, and the average price is RM561,187. Selangor has 4,185 unsold completed homes, only 18.7 for every 100 sales, the lowest ratio of the eight.

Petaling district covers Petaling Jaya, Subang Jaya and Shah Alam. Its condominium yield in NAPIC’s sample is 3.7% (37 schemes), and serviced apartments give 4.1%. For most of the state, foreigners face a RM2m floor, and only strata or landed strata titles are open to them. The LRT3 Shah Alam line, from Bandar Utama to Johan Setia (37.8 km, 20 stations), was launched on 28 June 2026. The ECRL’s Kota Bharu-Gombak section is officially targeted to start operating in January 2027.

Penang island

Prices in Penang are flat. The state index rose only 0.2% on a year, and NAPIC’s average high-rise price on the island is RM401,059 (Q2 2026P). Residential sales fell 13.1% to 6,979 in H1 2026. In the same period, NAPIC counted 2,878 new homes launched in the state, the third-highest number after Selangor and Johor. There are 3,114 unsold completed homes.

The island has the lowest observed condominium yield of the eight, with a median of 3.5% across 66 schemes and a middle range of 2.9% to 3.9%. Foreigners must pay at least RM1m for a strata unit and RM3m for a house on the island. There is no urban rail on the island yet. The Mutiara Line LRT is under construction, and operation is targeted for December 2031. For projects, see our Penang new launches top 10.

Johor Bahru (Iskandar Malaysia)

Johor has the highest index level in the country, at 313.9, up 3.6% on a year, with an average price of RM489,881. Sales nevertheless fell 15.1% to 17,871 in H1 2026 (RM9.10 billion). Johor also holds the most unsold completed homes of any state (4,222) and the most unsold serviced apartments (9,946).

In Johor Bahru district, the condominium yield is 4.5% (52 schemes) and the serviced apartment yield is 4.7% (47 schemes). The foreign floor is RM1m, whether you buy from a developer or on the resale market. Medini is exempt, and some unsold units approved below RM1m can only be resold to Malaysians. ETS trains have run from KL to JB Sentral since 12 December 2025. The RTS Link to Woodlands is now expected to open in February 2027, subject to independent safety certification (joint statement, 2 October 2026). See our RTS Link explainer and JB near RTS top 10.

Melaka

Melaka has the lowest average price of the eight (RM261,234) and the fastest index rise (+4.6% on a year). Sales fell 5.3% to 5,479 in H1 2026, and 2,213 completed homes remain unsold. In NAPIC’s sample for Melaka Tengah, the median condominium yield is 5.3% (68 schemes, middle range 4.7% to 6.2%), the highest of the eight.

Foreigners face a RM500,000 floor for strata units and RM1m for landed homes. They can buy at most two homes, and they cannot transfer or let the property for five years after registration. The heritage zone is off limits. There is no rail station in the city: the nearest KTM station is Pulau Sebang/Tampin, outside the city.

Kota Kinabalu

This is the smallest market in the comparison. Sabah recorded 2,731 residential sales in H1 2026 (down 1.5%) and has 1,887 unsold completed homes, which is 69 for every 100 sales. The Sabah index rose 2.9% on a year, and the average price is RM558,358. In NAPIC’s sample for Kota Kinabalu district, the condominium yield is 3.7% (87 schemes). The median household income in the district is RM5,896.

Sabah’s 2022 guideline (State Secretary’s circular of 6 April 2022, in force from 1 April 2022) sets RM1m as the general floor for foreigners, with RM600,000 per unit for high-rise flats, condominiums and commercial suites in mixed developments until the state reviews the figure. The Sabah State Railway runs from Tanjung Aru to Tenom.

Kuching

Kuching is one of only two markets in this list where sales rose. Sarawak recorded 5,109 residential sales in H1 2026, up 2.4%. The Sarawak average price of RM574,099 is the highest here outside KL, and the index rose 2.7% on a year. There are 1,704 unsold completed homes. The condominium yield sample is small, at 16 schemes with a median of 3.7%.

The Bar Council table (Circular 444/2024, December 2024) gives a RM500,000 floor for foreigners. For a house, the 2019 market-value direction under the Sarawak Land Code sets RM600,000 in Kuching division and RM500,000 elsewhere, according to the law firm Azmi & Associates (23 January 2024). There is no rail in service. Sarawak’s transport minister said pilot runs of the hydrogen ART, from the Rembus depot to Northbank, are planned for the fourth quarter of 2026 (The Star, 18 May 2026).

Ipoh

Prices in Perak are low and falling. The average is RM283,162, and the index fell 2.2% on a year. Sales fell 11.1% to 11,604 in H1 2026, and 4,075 completed homes remain unsold, the third-highest count of any state. In NAPIC’s sample for Kinta and Ipoh City, the median condominium yield is 5.1% (58 schemes).

Since September 2023, foreigners in Perak can only buy new 60-year leasehold units from a developer, and they cannot buy freehold or resale homes. In Ipoh, the floor is RM500,000 for strata units and RM700,000 for landed homes, according to the Bar Council table (Circular 444/2024, December 2024). Ipoh is on the KTM ETS and Komuter lines.

How this page is checked

Smart Invest Malaysia’s property desk compiled this page from NAPIC, DOSM and the other official sources named above. Every figure was read from the source on 29 October 2026, and the page was last updated on that date. The method is in “How we compared the cities” and the score thresholds are in “The SIM city score”. If you find a figure that differs from its source, tell us and we will correct it.

FAQ

What is the best place to buy property in Malaysia? We do not name one: it depends on your budget, your use and whether you are a foreigner. On the official data, Kuala Lumpur has the highest prices and the most rail, Selangor and Johor the most sales, and Melaka and Ipoh the lowest prices and the highest observed condo yields (NAPIC, H1 2026 and Q2 2026). The SIM city score above adds up five of these measures.

Johor Bahru or Kuala Lumpur: how do they compare? In Q2 2026 the median sale price was RM510,000 in Kuala Lumpur and RM420,000 in Johor. Johor’s price index rose 3.6% in a year, Kuala Lumpur’s 2.7%. Median condo gross yields were 4.6% in KL and 4.5% in Johor Bahru district (H1 2026). Johor had more unsold completed homes (4,222 against 3,687). The foreign-buyer floor for a strata unit is RM1m in both (NAPIC; state rules as listed in our foreign buyers guide).

Kuala Lumpur or Penang: how do they compare? KL’s median sale price was RM510,000 against RM345,000 for Penang in Q2 2026. KL’s index rose 2.7% in a year, Penang’s 0.2%. The median condo gross yield was 4.6% in KL and 3.5% on Penang island (H1 2026). A foreigner pays at least RM1m for a strata unit in both, but RM3m for a house on Penang island (NAPIC; our foreign buyers guide).

Which Malaysian city has the highest property prices? Kuala Lumpur does. NAPIC’s index-based average is RM825,282 and the median sale price is RM510,000 (Q2 2026).

Which city had the most property sales in 2026? Selangor, with 22,389 residential transactions in H1 2026, followed by Johor with 17,871 (NAPIC).

Where are rental yields highest? In NAPIC’s H1 2026 sample, Melaka Tengah has the highest median condominium gross yield (5.3%), followed by Ipoh/Kinta (5.1%) and KL (4.6%). These are gross yields, before costs and tax.

KL, Penang or Johor: which is cheaper for a foreigner? The minimum price is RM1m for a strata unit in all three. A landed home costs at least RM1m in KL and Johor, but RM3m on Penang island. In most of Selangor, both strata and landed strata start at RM2m.

How many homes are unsold in Malaysia? NAPIC counted 33,094 unsold completed homes in H1 2026, plus 23,375 serviced apartments. Johor has the most of both.

Does the SIM city score tell me where to invest? No. It adds up five measured indicators so you can compare the cities. It does not predict prices or rents.

Is it worth investing in property in Malaysia? We cannot say whether it is worth it for you. The official data show a mixed market. The national price index was 234.7, up 0.9% on a year, and unsold completed homes rose 23.0% to 33,094 (NAPIC, H1 2026). Median condo gross yields in NAPIC’s sample run from 3.5% to 5.3%, before costs and tax. Results differ by city, and a gross yield is not a return.

What we do not cover

• Forecasts. We give no price, rent or growth projections, and no opening dates beyond those stated by operators or governments.
• Where to buy. We do not recommend any city, district or project.
• Payment methods and costs of ownership. These are not covered here. Stamp duty, RPGT and fees are in our foreign buyers guide and stamp duty calculator.
• Districts inside each city. NAPIC’s state figures hide large differences between neighbourhoods.
• Developer sales without titles. NAPIC’s transaction counts leave out new homes whose titles have not been issued.

Data checked on 29 October 2026. Sources: NAPIC (napic.jpph.gov.my), DOSM (storage.dosm.gov.my), the Malaysian Bar, the Johor land office, LTA, the Malaysia Rail Link, the Sabah State Secretary’s office and the press reports cited above.