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Here's How Much Salary You Need to Buy a Condo in Malaysia (2024)

PROPERTY GUIDE

Written by Fazrina Fezili

Curious about the income needed to purchase a condominium in Malaysia? We've got you covered! Many consider owning a condo in Malaysia as a essential step towards their dream home, complete with all the amenities and facilities they desire. So, whether you're upgrading from a public housing flat or diving straight into condo ownership, having a solid financial plan is essential. (We will talk more about the home loan information as well).

In this guide, we'll delve into the price ranges of high-rise properties in key regions like Kuala Lumpur, Selangor, Negeri Sembilan Penang, Johor, and East Malaysia. By shedding light on the financial aspects involved, we aim to provide you with a clear understanding of what it takes to afford a condo in these areas. So, if you're eager to learn about the income requirements for condo ownership in Malaysia, keep reading—we've got all the details you need to make a well-prepared investment decision.

How Much Does A Condominium in Malaysia Actually Cost?

You're probably aware that condominium prices can vary significantly based on factors such as property location. For this article, we'll be referring to median property prices from the National Property Information Centre (NAPIC) as published in their Residential Prices 2023 report. Alternatively, you can always check the median price in our Transaction Property tool.

Below is the Malaysia condominium 2024 median price we've compiled based on data from NAPIC's report:

  1. Kuala Lumpur
    • Median price: RM 560,000
  2. Selangor
    • Median price: RM 450,000
  3. Melaka
    • Median price: RM 279,800
  4. Pulau Pinang
    • Median price: RM 380,000
  5. Johor
    • Median price: RM 450,000
  6. Sarawak
    • Median price: RM 380,000
  7. Sabah
    • Median price: RM 335,000

How Much Should You Earn Monthly to Afford a Condominium in Malaysia?

Now it’s time to take a look at the financial end of things. To determine the income needed for purchasing a condominium in various Malaysian states, let's simplify things by making some straightforward assumptions about your financial situation:

Assumptions:

  • Your total monthly debt amounts to RM2,000.
  • Your loan tenure spans 35 years.
  • The interest rate for your loan stands at a manageable 4.5% per year.
  • Your loan will cover a substantial 90% of the condominium's price.
  • The condominium's price matches the median price in its respective state, keeping it in line with the local market.
  • You're budgeting 35% of your income to repay this loan.

Now, with these basic parameters set, let's find out how much you need to earn each month to afford a condo/apartment in different states:

  1. Kuala Lumpur
    • Median price: RM 560,000
    • Loan Amount: RM 504,000
    • Monthly loan payment: RM 2,342.63 
    • Monthly Income Needed: ≈ RM 12,406
  2. Selangor
    • Median price: RM 450,000
    • Loan Amount: RM 405,000
    • Monthly loan payment: RM 1,916.69
    • Monthly Income Needed: ≈ RM 11,191 
  3. Melaka
    • Median price: RM 279,800
    • Loan Amount: RM 251,820
    • Monthly loan payment:  RM 1,191.76 
    • Monthly Income Needed: ≈ RM 9,117
  4. Pulau Pinang
    • Median price: RM 380,000
    • Loan Amount: RM 342,000
    • Monthly loan payment: RM 1,618.54
    • Monthly Income Needed: ≈ RM 10,337
  5. Johor
    • Median price: RM 450,000
    • Loan Amount: RM 405,000
    • Monthly loan payment: RM 1,916.69
    • Monthly Income Needed: ≈ RM 11,191
  6. Sarawak
    • Median price: RM 380,000
    • Loan Amount: RM 342,000
    • Monthly loan payment: RM 1,618.54
    • Monthly Income Needed: ≈ RM 10,337
  7. Sabah
    • Median price: RM 335,000
    • Loan Amount: RM 301,500
    • Monthly loan payment: RM 1,426.87 
    • Monthly Income Needed: ≈ RM 9,788

Here's a handy rule: Your monthly instalments shouldn't surpass 35% of your total income. If you can bring that percentage down to 30% or lower, even better!

We've made several assumptions to standardize our calculations, considering the multitude of factors involved. Factors such as age and credit score were not included in these calculations. Your Debt Service Ratio (DSR) is particularly crucial for increase your home loan approval – the lower it is, the better!

To estimate these figures, we utilized our free Home Loan Calculator, which provides a convenient way to gauge your affordability. For a more precise estimate, input your own details into the calculator!

Let's explore each of these states more closely!

Kuala Lumpur

  • Condominium/Apartment: You might be able to buy one with ≈ RM 12,406

In Kuala Lumpur, Malaysia's bustling capital, there are plenty of job opportunities and lots of fancy homes, especially near TRX and popular areas like Ampang and Bangsar. Even the cheaper homes in KL are still pretty upscale. 

Selangor

  • Condominium/Apartment: You might be able to buy one with ≈ RM 11,191

Following Kuala Lumpur, we have its neighboring state, Selangor, which boasts some of the priciest condominiums after KL. With a median price of RM 450,000, Selangor is a bustling hub with a thriving economy and a growing foreign population, making it an attractive place to live and invest.

If the prime addresses of Kuala Lumpur seem out of reach, consider exploring areas like Gombak and Puchong, just a stone's throw away, for more affordable options!

Melaka

  • Condominium/Apartment: You might be able to buy one with ≈ RM 9,117

In Melaka, condominiums and apartments offer an appealing option for property buyers, with a median price of RM 279,800, these properties provide an attractive entry point into the real estate market. Beyond its affordable property options, Melaka boasts a rich tapestry of cultural heritage, blending influences from its historical past as a trading port.

Visitors and residents alike can explore iconic landmarks such as the UNESCO-listed Melaka City and immerse themselves in the city's vibrant cultural scene. From strolling along the picturesque Melaka River to savoring the local delicacies at Jonker Street's bustling night market, Melaka offers a charming blend of history, culture, and

Pulau Pinang

  • Condominium/Apartment: You might be able to buy one with ≈  RM 10,337

In Penang, condominiums and apartments present an enticing opportunity for prospective homeowners. With an estimated median price of RM 380,000, these properties offer affordability without compromising on comfort and convenience. 

enang is a captivating destination that promises a vibrant lifestyle for residents. From exploring historical sites like Georgetown's UNESCO World Heritage area to indulging in mouthwatering street food along Gurney Drive, there's no shortage of attractions to discover and enjoy in Penang.

Johor

  • Condominium/Apartment: You might be able to buy one with ≈ RM 11,191

Johor is also home to some of the priciest condominiums, ranking second after KL with a median price of RM 450,000. The state is rapidly developing into a sophisticated tourism and business hub, owing to its close proximity to Singapore and initiatives like the RTS link project. 

 If you're considering living in Johor, places like Iskandar Puteri are worth exploring, especially for their tourism attractions.

East Malaysia

  • Condominium/Apartment: You might be able to buy one with ≈ RM 10,337 (Sarawak)  and RM 9,788 (sabah)

Property in East Malaysia tends to be more affordable compared to the peninsular states. However, even in prime locations like Kota Kinabalu, prices remain relatively reasonable. In Sarawak, the median price of terrace homes is around RM380,000, while in Sabah, it's slightly lower at RM335,000.


But wait, there's more to consider! Affording a house, regardless of location, involves more than just the factors we've discussed so far. While we've used NAPIC's median house prices as a gauge for owning a terrace or condo in these states, it's important to note that these prices may not necessarily reflect the cost of homes you're eyeing in your particular area. 

For starters,  it's crucial to be aware of the hidden costs associated with homeownership. Additionally, factors beyond your salary, such as your credit score, play a significant role in the affordability equation. So, before making any decisions, be sure to thoroughly assess all aspects involved in owning a home.

 

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Article Highlights

Condominium prices in Malaysia

Condo affordability Malaysia

Salary needed for condo in Malaysia

Condo loan affordability

Condo purchase financial plan

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