The island’s idyllic pace of life and natural beauty drew him in, and he found the purchase process relatively straightforward.
Rahman, a professional manager, had always wanted to own a second property as a holiday home and source of rental income. He had previously lived in Malaysia, renting a unit at Danga Bay in Johor Bahru, but chose Langkawi for its unique charm.
The Tropicana Cenang project, located on Pantai Cenang beach, is a 5.28-acre freehold site and the island’s first green-certified integrated development.
Langkawi’s Appeal
Langkawi is renowned for its ecology and nature, with the island being designated Southeast Asia’s first UNESCO Global Geopark in 2007. The 99-island archipelago comprises several parks, including Machinchang Cambrian Geoforest Park and Kilim Karst Geoforest Park.
Rahman felt that Langkawi reminded him of Singapore in the late 1980s, with its rustic charm and slower pace of life. He also believed that the island’s rental market was less competitive than those in Johor and Kuala Lumpur.
Rahman initially considered purchasing a four-bedroom unit but ultimately decided on an 829 sq ft two-bedder (Type C2) on the 13th floor, which he bought for RM1 million (S$312,143). He was drawn to the unit’s good view of the sea and the nearby shops and water activities.
Compared to similarly priced options in other states, Rahman felt that Langkawi was better suited to accommodate his holiday home needs. The add-on option to sign up for a fully managed rental by the developer also alleviated the burden of managing the property himself.
Buying in Malaysia as a Foreigner
In Malaysia, foreigners pay a higher tax amount, with state approval needed for any property purchase. Each state sets a minimum purchase price, and foreigners should be aware of the various costs and risks involved, including stamp duty, income tax, and Real Property Gains Tax (RPGT).
Rahman’s purchase price of RM1 million (S$312,143) was less than what he had expected to pay for a brand new coastal property, and he believes that the location and developer’s reputation made it a worthwhile investment. The development’s proximity to the beach and nearby amenities also made it an attractive option for rental income.
As a foreign buyer, Rahman had to deal with the complexities of the Malaysian property market, including the need for state approval and the payment of various fees, such as stamp duty and legal fees. He notes that it is essential to choose a location that matches one’s personal interest and to carefully consider the costs and risks involved in buying a property in Malaysia.
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The Tropicana Cenang project’s developer, Tropicana Corporation, has a strong track record of high-quality completed projects in Malaysia, which gave Rahman confidence in his purchase decision. The project’s green-certified status and unique features, such as the private rooftop bar, also made it stand out from other developments in the area.
The unit’s sale price of RM1 million (S$312,143) works out to approximately RM1,206 per sq ft.
The current stamp duty rate for foreigners should be confirmed, as it has recently changed.
Non-resident foreigners are taxed at a flat rate of 30% on their net rental income. The Real Property Gains Tax rate for non-citizens is around 30% of the gains, especially if the property is sold within five years.
Additional Costs and Considerations
Legal fees, including the state consent fee, sale and purchase agreement, and loan documentation fees, should also be taken into account. The state consent fee is typically 2% of the property price or RM25,000, whichever is higher.
It is essential for foreigners to ask for the Memorandum of Transfer as proof of ownership and to clarify the rental pool, management, and service charge terms. For cash buyers, 10% of the sales and purchase agreement price must be paid in full, with rebates offset from Stage 2a onwards.
The rules for foreign buyers in Malaysia change frequently, so it is key to confirm the current position with the developer’s sales team and consult a lawyer before paying any booking fee.
The development’s unique features, such as the private rooftop bar on the 40th floor, made it an attractive option for Rahman.
With at least 20% of the project sold as of August 2026, the Tropicana Cenang project is gaining popularity among buyers.
