Top 5 Reasons sellers sell a property lower than the price they purchased

Top 5 Reasons sellers sell a property lower than the price they purchased

One of the questions I get quite often about property is this:

“Charles, if I buy a property at RM500,000, surely I should be able to sell it for more than RM500,000 later, right?”

Well…

Not necessarily.

Property prices generally go up over the long term. But that doesn’t mean every property, every location and every owner will make money.

In fact, there are plenty of situations where someone sells a property below what they originally paid for it.

And sometimes, that’s actually the right decision.

#1 – First, let’s look at what has happened to Malaysian property prices

Before we talk about losing money, let’s put things into perspective.

Malaysia’s overall house price index has actually increased significantly over the long term.

NAPIC uses 2010 as the base year of 100. By 2025P, the national index had reached 233.1.

That means the national house price index was more than twice its 2010 level. The average Malaysian house price increased from about RM217,857 in 2010 to RM502,922 in 2025P. 

Chart 1: Malaysia House Price Index, 2010–2025P

Year	Index
2010	100.0
2011	110.9
2012	125.8
2013	140.0
2014	153.2
2015	164.5
2016	176.1
2017	187.6
2018	193.7
2019	198.0
2020	200.3
2021	202.7
2022	209.8
2023	218.3
2024	227.3
2025P	233.1

Source: NAPIC, Malaysian House Price Index 2025. 2010 = 100.

If you look at this trend, you might say:

“See, Charles! Property prices go up!”

Yes.

But look more carefully. The growth wasn’t the same every year.

At one point, annual growth was more than 13%.

In 2025P, it was just 2.6%.

So the better statement isn’t:

“Property prices always go up.”

It is:

“Property prices have generally gone up over the long term, but individual properties can perform very differently.”

And that’s an important difference.

#2 – You bought at the wrong price

This is probably the most painful reason. Sometimes the property isn’t bad.

You simply paid too much.

Maybe you bought because the salesperson said:

“Buy now, price will definitely go up.”

Maybe everyone around you was buying. Maybe there was a “limited time” promotion.

Maybe you thought:

“If I don’t buy now, I will regret it.”

Then three years later, you discover that similar units are selling for less than what you paid.

This is why I have always believed that buying price matters.

A good property bought at the wrong price can become a bad investment.

A reasonably priced property in a good location gives you a much better starting point.

Don’t confuse:

“I like this property.”

with

“This is a good investment at this price.”

They are two completely different statements.

#3 – The property market has changed

Malaysia doesn’t have one single property market.

There are good locations. Average locations.

And locations where supply is simply too much.

Even within the same city, two properties five kilometres apart can perform very differently.

Look at the latest NAPIC numbers.

In 2025P, terrace houses increased 3.3%, semi-detached homes increased 2.8%, detached homes increased 2.4%, while high-rise properties increased only 0.6%. 

Chart 2: Malaysia House Price Growth by Property Type, 2025P

Property type	2025P price growth
Terrace	3.3%
Semi-detached	2.8%
Detached	2.4%
High-rise	0.6%

Source: NAPIC, Malaysian House Price Index 2025.

That’s quite revealing.

Someone who bought a terrace house and someone who bought a high-rise unit could both say:

“I bought Malaysian property.”

But their investment experience could be very different.

And this is why I don’t like general statements such as:

“Property is going up.”

Which property? Where? At what price? With what rental? With how much supply?

These questions matter.

#4 – You need to sell quickly

This is probably the most common reason for a loss that has nothing to do with the property’s long-term potential.

Imagine you bought a property for RM600,000.

You still owe the bank RM500,000.

Then suddenly you need cash.

Maybe you lost your job.

Maybe your business needs money.

Maybe you bought another property and now have too many commitments.

Maybe there is a family emergency.

You don’t have the luxury of waiting three years for the market to recover.

You need to sell.

Now.

And when you need to sell quickly, you may have to price below comparable properties.

This is why I always say:

Property is a long-term game.

If you might need the money next year, perhaps you shouldn’t put all of it into an illiquid asset.

Cash gives you flexibility.

Property doesn’t.

#5 – The cost of buying and selling is real

Here’s another mistake people make.

They say:

“I bought for RM500,000 and sold for RM520,000. I made RM20,000!”

Hmm…

Did you really?

You had legal fees.

Stamp duty.

Loan-related costs.

Renovation.

Maintenance.

Quit rent.

Assessment.

Agent’s commission when you sell.

Potential RPGT depending on the circumstances.

And, of course, interest paid to the bank.

So the selling price needs to be significantly higher than the purchase price before we can confidently say:

“Yes, I actually made money.”

This is especially important for investors who buy and sell frequently.

Property transaction costs can eat into returns very quickly.

That’s why I don’t get too excited when someone tells me:

“My property went up RM50,000!”

My next question is:

“After all costs, how much did you actually make?”

Aiyoh.

Sometimes the answer becomes much smaller.

#6 – The property is no longer suitable for you

This is one reason I understand very well.

A property can be a good property and still become the wrong property for you.

Your children grow up.

Your parents may need to stay with you.

Your job moves.

You want to move to another city.

You want to downsize.

Or perhaps you simply want to simplify your life.

I have properties in different cities and towns in Malaysia, so I have also learnt that property isn’t only about capital appreciation.

Sometimes the question is:

“Does this property still fit my life?”

If the answer is no, selling may make sense.

Even if you make a small loss.

Because there is an opportunity cost to keeping a property that no longer works for you.

So, is selling below purchase price always a bad thing?

No.

This is probably the most important point.

If you bought for RM500,000 and sell for RM480,000, it looks like a RM20,000 loss.

But what if holding the property would cost you another RM50,000 over the next two years?

Then selling at RM480,000 may actually be the better financial decision.

Or perhaps you can take the RM480,000 and put it into a much better investment.

Sometimes realising a loss is actually part of making a better decision.

I know this sounds strange.

But investors need to understand something:

The price you paid is history.

It cannot be changed.

The only thing you can decide is:

“What should I do with this asset today?”

And this is why I still like property

I know some people will read this article and say:

“Charles, after all that, why do you still invest in property?”

Haha.

Because despite all the risks, I still believe property can be a very useful long-term asset.

I like having something tangible.

I like rental income.

I like the ability to leverage.

I like owning properties in different locations.

And I like the fact that, if chosen carefully, property can become part of a diversified portfolio.

But I don’t believe:

“Property prices always go up.”

That’s simply not true.

What I believe is:

Good properties, in good locations, bought at sensible prices and held for the right reasons have a much better chance of doing well over time.

And the latest NAPIC data actually supports this more nuanced view.

The national market is still growing, but growth is much slower than during the boom years. Meanwhile, different property types and locations are behaving differently. 

That’s exactly why we need to look beyond headlines.

SO, WHAT SHOULD WE DO?

Before buying your next property, perhaps ask yourself three simple questions:

WHY am I buying?

HOW much am I really paying?

WHAT happens if I need to sell?

Because the biggest mistake isn’t selling below your purchase price.

The biggest mistake may be buying something without thinking about how you will eventually get out.

Property investment isn’t about being right every single time.

It’s about making enough good decisions that the overall journey works.

And yes, sometimes we will get it wrong.

When that happens, don’t let ego make the decision for you.

The market doesn’t care about our purchase price.

It only tells us what someone is willing to pay today.

And perhaps that’s the most important lesson from the latest chart.

Yes, Malaysian property prices have risen significantly over 15 years.

But the chart also tells us something else:

The journey wasn’t a straight line.

And your property doesn’t have to follow the national average either.

Happy investing.

Happy property hunting.

And as always, make your own decision yeah.

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Sources

• Original Kopiandproperty article — “Top 5 Reasons for Selling Property Below Purchase Price” — the original article and the basis for this refreshed discussion on why property owners may eventually sell below their purchase price. Original Kopiandproperty article
• NAPIC — Malaysian House Price Index 2025 — official national house-price index, historical index values, average prices and annual changes by property type. The latest report was updated on 21 August 2026. 
• NAPIC — Malaysia House Price Index data visualisation — official source for MHPI index points, annual changes and quarterly/yearly comparisons by property type and state. NAPIC MHPI Data Visualisation
• NAPIC — Residential Prices Quarterly / Yearly Update — official latest residential-price data, including Q1 2026 publications. NAPIC Residential Prices
• NAPIC — Property Market Report 2025 — broader official Malaysian property-market data and market trends. NAPIC Property Market Report 2025