KL Luxury Property Prices Going Up Because of Foreign Buyers?

KL Luxury Property Prices Going Up Because of Foreign Buyers?

When I first wrote about this topic, I asked a rather simple question:

Are luxury property prices in Kuala Lumpur going up because foreigners are buying them?

My answer today would be:

Yes, foreign buyers are helping. But I don’t think they are the whole story.

And actually, I think this distinction is important.

I like property. I have properties in different cities and towns in Malaysia. But I have never believed that simply seeing foreigners buying a particular property automatically means:

“Buy now before the price goes up!”

Aiyoh.

Property is never that simple.

WHAT IS “LUXURY” ANYWAY?

This was already one of my questions in the original article.

When someone says “luxury property”, what price are we talking about?

RM1 million?

RM2 million?

Today, I would say that even RM1 million doesn’t necessarily sound like luxury anymore, especially in Kuala Lumpur and its surrounding areas.

And that’s before we talk about KLCC.

The latest data shows that Kuala Lumpur’s prime residential market remains relatively resilient. Knight Frank’s Prime Global Cities Index recorded a 1.1% increase in KL prime residential prices in 2025. 

But 1.1% is hardly a property boom.

And that’s where I think we need to be careful.

FOREIGNERS ARE BUYING — BUT THEY ARE SELECTIVE

There is definitely foreign interest.

Knight Frank highlighted KLCC, Bukit Bintang and Mont Kiara as areas attracting renewed foreign investment, particularly in the prime segment. 

And we have actual examples.

E&O said that more than 70% of buyers at its Conlay development were international purchasers, led by buyers from Taiwan, China, Singapore, Japan and Western countries. 

A 2025 property-sector outlook also reported that around 60% of buyers at Clouthaus in KLCC were foreigners, while 65% of buyers for the premium Conlay Signature Suites were foreigners. 

So yes.

Foreigners are clearly part of the demand for some of Kuala Lumpur’s most expensive residential properties.

But here’s the interesting part.

That doesn’t mean foreigners are pushing up the price of every KL property.

They aren’t.

WHY WOULD FOREIGNERS WANT KL PROPERTY?

This is where I can understand the attraction.

Imagine someone from Singapore looking at a luxury condominium in Singapore.

Then compare that with KL.

Or someone from Hong Kong.

Or Shanghai.

Or Taipei.

Or Tokyo.

They may look at a RM3 million or RM5 million property in KL and think:

“This is actually quite affordable compared with what I’m used to.”

I know, some will say aiya… all these buyers can buy elsewhere if they are rich. I guess these ‘some people’ have forgotten that not everyone has US$10 million in reserves. For those who have SGD1 million, they are NOT going to be able to buy anything in Singapore or even for those having HK$10 million, they will only be able some properties which are smaller or less desirable. Convert those into RM and you should see why… Else, please do read some other media and skip kopiandproperty.com please.

Malaysia offers international buyers a combination of relatively affordable prime property, good food, established infrastructure, international schools, healthcare, lifestyle and connectivity.

And Kuala Lumpur has something particularly important:

You can actually live here.

It isn’t merely an investment market.

There are restaurants. (really delicious yeah, not some claims…)

Shopping malls. (crazy sizes too…)

Hospitals. (World class yet affordable versus many of the developed countries)

Airports. (more flights in total than Singapore)

International schools. (I just learnt it’s so cheap versus even Bangkok…)

MRT and other public transport.

And, of course, lots and lots of good food.

Haha.

For someone who wants a second home, investment property or a place for their children studying here, KL can make a lot of sense.

BUT THERE IS A BIG CHANGE: 8% STAMP DUTY

Here’s something my original article obviously could not have discussed.

From 1 January 2026, Malaysia increased the stamp duty on residential property acquired by foreign buyers from 4% to 8%.

That is significant. And it changes the calculation.

Suppose a foreign buyer buys a RM2 million property.

An 8% stamp duty is RM160,000.

That’s not small money.

The result?

Foreign buyers are still interested, but they have become more selective. Knight Frank has said that foreign demand remained active heading into 2026, although buyers were increasingly focused on pricing discipline and whether the property actually justified its price. 

And I think that is healthy.

Because ultimately, foreign buyers are still buyers.

They also ask:

“Is this worth the money?”

SO, ARE FOREIGNERS PUSHING UP KL PRICES?

Maybe in certain pockets. But I wouldn’t generalise.

The prime market is a very small part of the entire Malaysian property market.

And even within KL’s luxury market, there is a huge difference between:

KLCC. Bukit Bintang. Mont Kiara. Bangsar. TRX.

And the many other neighbourhoods around Kuala Lumpur.

One interesting thing about the latest data is that Kuala Lumpur’s overall average residential price was not exactly racing ahead.

In Q3 2025, average KL residential prices were reported at around RM1.16 million, with a slight 0.2% year-on-year decline. 

At the same time, prime property prices increased.

That tells us something.

The luxury market and the overall KL residential market are not necessarily moving together.

AND HERE’S WHY I WOULD BE CAREFUL

There is another side to this story.

In June 2025, Rahim & Co warned that prices of some KLCC condominiums could potentially fall by 25% to 30% in a worst-case scenario, citing weakening demand and significant existing and incoming supply. 

So imagine someone telling you:

“Foreigners are buying KL luxury property. Prices will definitely go up!”

My response would be:

“Okay. Show me the numbers.”

How many foreigners?

Which project?

What price?

How many units?

What is the existing supply?

What is the rental?

How many units are actually occupied?

And perhaps most importantly:

What happens when those foreign buyers want to sell?

Because someone has to buy from them too.

MY VIEW TODAY

I still like Kuala Lumpur luxury property.

I like good property in good locations at sensible prices.

If foreigners are also interested, that’s a bonus.

The latest market evidence actually gives us a more interesting picture.

KL’s prime residential market has been relatively resilient, with prices rising modestly in 2025. Foreign buyers remain active, particularly in selected high-end developments. But higher transaction costs and plenty of existing luxury supply mean buyers are becoming more selective. 

That’s a much healthier market than one where everyone simply buys because:

“Foreigners are coming!”

I have been investing in property for many years, and one thing I have learnt is that the story around a property can be very attractive.

But the numbers still matter.

So yes, foreign buyers may help support Kuala Lumpur’s luxury property prices.

They may even push up prices in certain projects and locations.

But I wouldn’t buy a KL luxury property simply because foreigners are buying.

I would buy because:

I understand the location.

I understand the price.

I understand the rental.

I understand the supply.

And I can imagine someone wanting to buy it from me in the future.

Foreigners or Malaysians.

Because ultimately, property doesn’t care where the buyer comes from.

A good property is a good property.

Happy property hunting.

Stay updated at all time for free. Sign up for daily investment news updates (FREE since Nov 2013 and FOREVER). 

Please LIKE kopiandproperty.com FB page to get daily updates about the property market beyond kopiandproperty.com articles.

Sources

• Original Kopiandproperty article — “KL luxury property prices going up due to foreign buyers?” — the original article and starting point for this refresh. Original Kopiandproperty article
• Knight Frank — Kuala Lumpur and Asia-Pacific prime residential market — foreign investment interest in KLCC, Bukit Bintang and Mont Kiara. 
• The Sun — E&O Conlay Signature Suites — international buyer participation in the Conlay development. 
• DFG / sector outlook — KL high-end residential — foreign-buyer proportions and pricing at selected KL luxury developments. 
• EdgeProp — Foreign buyers in Malaysia in 2026 — impact of the 8% foreign-buyer stamp duty and continued but more selective foreign demand. 
• The Edge Malaysia — KLCC luxury condominium outlook — risks from supply and weakening demand in parts of the luxury market. 
• NAPIC — National Property Information Centre — latest official Malaysian property-market publications, including Q1 2026 transaction and house-price data. NAPIC