Malaysia's residential rental yields vary dramatically by state — from 3% in premium KL addresses to 7% in Perak and parts of Sarawak. The difference is not marginal. It determines whether a property generates positive monthly cashflow or bleeds money every month after mortgage, maintenance, and tax.
This page provides the definitive state-by-state rental yield data for Malaysia, sourced from NAPIC/JPPH (National Property Information Centre / Jabatan Penilaian dan Perkhidmatan Harta) price data and verified against market rental comparables. All prices reflect NAPIC Q3 2025 data (the most recent published figures). Rents are based on market comparables cross-referenced against NAPIC and iProperty/PropertyGuru listing data.
National Yield Summary
Malaysia's national average gross rental yield stood at 5.19% in Q3 2025 (NAPIC). The Malaysian House Price Index (MHPI) grew by 0.1% year-on-year to 229.1 points, with a national average house price of RM 494,384.
Key national metrics:
- Total residential transactions (Q3 2025): 66,766 units, up 9.3% quarter-on-quarter
- Transaction value: RM 28.51 billion
- Residential overhang: 28,672 unsold completed units (up 30.5% YoY)
- BNM OPR: 2.75% (held steady; expected to remain throughout 2026)
Complete State-by-State Yield Table
The following table covers all 13 states and 3 federal territories (Putrajaya is excluded as a residential investment market — no housing starts or completions were recorded in Q1–Q3 2025 per NAPIC).
| State / FT | Avg House Price (RM) | Typical Monthly Rent (RM) | Gross Yield % | Est. Net Yield % | YoY Price Trend |
|---|---|---|---|---|---|
| Kuala Lumpur | 804,642 | 2,900–5,000 | 4.3–5.0% | 2.5–3.5% | -4.3% |
| Selangor | 553,196 | 1,500–3,000 | 4.0–5.5% | 2.5–3.5% | +1.2% |
| Johor | 471,485 | 1,200–2,500 | 4.0–5.5% | 2.5–3.5% | +5.7% |
| Pulau Pinang | 504,845 | 1,300–2,800 | 3.8–5.0% | 2.0–3.0% | +2.1% |
| Perak | 280,724 | 1,000–1,800 | 5.5–7.0% | 3.5–5.0% | +3.4% |
| Negeri Sembilan | 314,652 | 1,000–1,800 | 4.5–6.0% | 3.0–4.0% | +2.8% |
| Melaka | 250,311 | 800–1,500 | 4.5–6.0% | 3.0–4.0% | +1.5% |
| Kedah | 322,890 | 800–1,400 | 3.5–5.0% | 2.0–3.0% | +1.8% |
| Pahang | 275,159 | 700–1,300 | 3.5–5.0% | 2.0–3.0% | +1.0% |
| Terengganu | 307,717 | 700–1,200 | 3.0–4.5% | 1.5–2.5% | +0.8% |
| Kelantan | 265,000 | 600–1,100 | 3.0–4.5% | 1.5–2.5% | +0.5% |
| Perlis | 246,254 | 550–900 | 3.0–4.0% | 1.5–2.5% | +7.2% |
| Sabah | 533,614 | 1,200–2,200 | 3.5–5.0% | 2.0–3.0% | +1.4% |
| Sarawak | 540,884 | 1,200–2,200 | 3.5–5.5% | 2.0–3.5% | +0.9% |
| WP Labuan | 310,000 | 800–1,400 | 4.0–5.5% | 2.5–3.5% | +1.1% |
| WP Putrajaya | 650,000 | 1,500–2,500 | 3.5–4.5% | 2.0–3.0% | +0.3% |
Notes on the table:
- Average house prices are from NAPIC Q3 2025 MHPI data. These are all-type averages (terraced, high-rise, semi-D, detached combined).
- Monthly rent ranges reflect typical 2–3 bedroom units in the state's main urban area. Actual rents vary widely within each state.
- Gross yields are calculated from the rent range against the state average price. Micro-location matters enormously — yields within a single state can vary by 3+ percentage points.
- Net yield estimates deduct maintenance, vacancy allowance, insurance, and quit rent/assessment — but not mortgage interest or income tax, which vary by investor profile.
- YoY price trends are from the NAPIC MHPI Q3 2025 report.
State-by-State Analysis
Kuala Lumpur
KL is Malaysia's most expensive residential market with a state average house price of RM 804,642. The yield story is bifurcated: city-center condos perform reasonably well, while premium landed properties yield poorly.
City-center condos (KLCC, Bukit Bintang, TRX): Gross yields of 4.0–5.5%. A 1,000 sqft 2-bedroom condo priced at RM 700,000 renting at RM 3,000/month delivers 5.1% gross. Strong tenant demand from professionals, expats, and the education sector. The TRX (Tun Razak Exchange) precinct has added new Grade A commercial space, pulling rental demand for nearby residential.
Premium addresses (Bangsar, Mont Kiara, Desa ParkCity): Gross yields of 3.0–4.0%. Prices are high (RM 800K–3M+) and rents do not scale proportionally. A RM 1.5M Mont Kiara condo renting at RM 5,000/month yields just 4.0%. These are capital appreciation plays, not cashflow investments.
Mid-ring (Cheras, Kepong, Setapak, OUG): Gross yields of 4.5–5.5%. Lower prices and solid local rental demand produce the best yields in KL. A RM 350,000 Cheras condo renting at RM 1,600/month yields 5.5%.
KL recorded a -4.3% YoY price decline in Q3 2025 and leads the nation with 2,287 unsold completed residential units worth RM 2.4 billion. The overhang is concentrated in high-rise stock above RM 500,000 — precisely the segment where foreign buyers shop. For investors, this means negotiation leverage on pricing but also a warning about resale liquidity.
Run your KL property numbers through our cashflow calculator.
Selangor
Selangor is Malaysia's most populous state and offers the widest yield spectrum. The state average house price is RM 553,196 but this masks extreme variation — from RM 200,000 Cyberjaya apartments to RM 3M+ Damansara Heights bungalows.
Petaling Jaya / Subang Jaya (mature areas): Gross yields of 4.0–5.0%. Strong demand from families, professionals, and the university belt (UM, Sunway, Taylor's, Monash). Well-maintained older condos in SS2, Kelana Jaya, and USJ offer reliable tenancy at RM 1,500–2,500/month.
Cyberjaya: The yield outlier. Gross yields of 5.5–7.0%. Low property prices (RM 200,000–400,000 for condos) combined with growing rental demand from data center workers, tech companies, and the expanding multimedia corridor workforce. A RM 280,000 condo renting at RM 1,400/month delivers 6.0% gross.
Shah Alam / Setia Alam / Klang: Gross yields of 4.5–5.5%. Growing townships with improving amenities. Entry prices of RM 250,000–500,000 keep yields healthy. Industrial zone proximity drives demand for worker accommodation.
Selangor's 2,757-unit residential overhang is spread across the state, but PJ/Subang has minimal oversupply due to land scarcity. New supply pressure is concentrated in Shah Alam corridor and Rawang/Sungai Buloh fringe.
Johor
Johor is Malaysia's most discussed residential market in 2026, driven by the RTS Link (targeting December 2026 completion) and the Johor-Singapore SEZ. The state average house price is RM 471,485 with YoY growth of 5.7% — the strongest among major states.
JB CBD (Zone A — near RTS terminal): Gross yields of 4.0–5.5%. Established area with existing amenities. Properties within walking distance of the future Bukit Chagar RTS station are seeing the strongest rental demand growth. RM 350,000–600,000 condos rent at RM 1,400–2,200/month.
Industrial zones (Pasir Gudang, Tanjung Pelepas): Genuine rental demand from port workers, petrochemical staff, and logistics employees. RM 250,000–400,000 units in Masai and Gelang Patah rent at RM 1,000–1,500/month, yielding 5.0–6.0% gross.
Oversupplied zones (Forest City, parts of Danga Bay, speculative Medini): Headline yields look attractive on paper (some list 6%+), but effective yields collapse when vacancy is factored in. Occupancy rates in some Forest City towers remain in single digits. Low effective yields of 2.0–3.5% after realistic vacancy assumptions.
Johor carries the second-largest residential overhang at 3,293 units worth RM 2.83 billion — the highest value overhang in the country. The overhang is almost entirely concentrated in Iskandar's speculative developments. Established JB suburbs and industrial corridors have healthy occupancy.
Penang
Penang is two markets: the island and the mainland. The state average house price is RM 504,845.
Penang Island (George Town, Gurney, Tanjung Tokong, Tanjung Bungah): Gross yields of 3.5–4.5%. Premium prices (RM 600K–2M+ for sea-view condos) and relatively moderate rents produce lower yields. George Town's average gross yield is approximately 3.77%. The island is a capital appreciation market — land scarcity on the island supports long-term price growth, but rental cashflow is thin.
Penang Mainland (Butterworth, Seberang Perai, Bukit Mertajam): Gross yields of 5.0–6.5%. Significantly lower prices (RM 200,000–450,000) with rents only 30–40% below island levels produce superior yields. The Penang Sentral transport hub and industrial estates along the north-south corridor drive rental demand.
Penang has 2,730 unsold completed units — primarily high-rise stock on the island. The mainland has less oversupply. Foreign buyers face the strictest rules here: RM 3M minimum for island strata, no foreign landed ownership on the island.
Perak
Perak is Malaysia's yield champion. The state average house price of RM 280,724 is 43% below the national average of RM 494,384 — yet rents are only 30–40% lower than KL levels in Ipoh, the state capital.
Ipoh city: Gross yields of 5.5–7.0%. An RM 250,000 condo renting at RM 1,300/month delivers 6.2% gross. Growing tourism (Ipoh's food scene and heritage architecture), proximity to KL (2 hours by car, improving rail connection), and affordability attract retirees, remote workers, and lifestyle tenants.
Industrial areas (Taiping, Sitiawan, Lumut): Gross yields of 5.0–6.5%. Affordable properties near industrial parks and the naval base produce solid working-class rental demand.
Perak's YoY price growth of 3.4% is healthy, and the yield premium over KL is approximately 2 percentage points gross. The trade-off: Perak's resale market is less liquid. Selling takes longer. Tenant quality requires more screening.
Perak carries the largest residential overhang nationally at 3,300 units — but these are heavily concentrated in specific oversupplied developments, not across the state broadly.
Negeri Sembilan
Negeri Sembilan is emerging as a spillover market from KL and Selangor. The state average house price of RM 314,652 is attractive, and its position along the KL–Seremban corridor benefits from commuter demand.
Seremban: Gross yields of 4.5–5.5%. The main urban area benefits from the KTM Komuter connection to KL Sentral (approximately 1 hour). New townships in Nilai and Bandar Enstek (near KLIA) attract airport workers and logistics staff.
Sendayan / Bandar Sri Sendayan: Newer township developments with yields of 5.0–6.0%. Young families priced out of Selangor are renting here as a stepping-stone.
Negeri Sembilan's 2,205-unit overhang is manageable. YoY price growth of 2.8% indicates steady demand. The state has no special restrictions on foreign buyers beyond the standard RM 1M minimum.
Other States
Kedah: State average RM 322,890. Yields of 3.5–5.0%. Langkawi's short-term rental market (Airbnb/Booking.com) can deliver higher yields of 6–8% gross but requires active management and regulatory compliance. Mainland Kedah yields are moderate.
Pahang: State average RM 275,159. Yields of 3.5–5.0%. Cameron Highlands and Genting tourism areas can produce short-term rental yields above 6%, but long-term residential demand in Kuantan and Temerloh is modest.
Terengganu and Kelantan: State averages around RM 265,000–308,000. Yields of 3.0–4.5%. Limited rental demand outside state capitals. Not typical investment destinations — local market dynamics, seasonal factors, and smaller tenant pools make these higher-risk for out-of-state investors.
Sabah: State average RM 533,614 (surprisingly high due to Kota Kinabalu's premium market). Yields of 3.5–5.0%. KK city-center condos yield 4.0–5.0%. Oil and gas industry demand in Labuan and industrial zones supports working-class rentals.
Sarawak: State average RM 540,884. Yields of 3.5–5.5%. Kuching offers 4.5–5.5% yields with low prices relative to its status as a state capital. Government sector employment provides stable tenancy. Sarawak operates under its own land code — the purchase process for foreigners is stricter and slower.
Methodology
How Gross Yield Is Calculated
Gross rental yield is the annual rental income expressed as a percentage of the property's purchase price:
Gross Yield = (Monthly Rent x 12) / Purchase Price x 100
Example: RM 2,000/month rent on an RM 450,000 property = (24,000 / 450,000) x 100 = 5.33% gross yield
How Net Yield Is Estimated
Net yield deducts recurring property costs from rental income before dividing by purchase price:
Net Yield = (Annual Rent - Annual Costs) / Purchase Price x 100
Standard deductions used in our estimates:
| Cost Item | Typical Amount |
|---|---|
| Maintenance fees + sinking fund | RM 200–500/month (condos) |
| Quit rent (cukai tanah) | RM 50–200/year |
| Assessment tax (cukai pintu) | RM 300–1,200/year |
| Fire insurance | RM 200–500/year |
| Vacancy allowance (1 month/year) | 8.3% of annual rent |
| Minor repairs/maintenance | RM 500–2,000/year |
Not included in net yield estimates: Mortgage interest (varies by LTV and rate), income tax (varies by resident/non-resident status), and property management fees (varies by whether self-managed or outsourced). These are excluded because they depend on individual investor circumstances.
Data Sources
- Property prices: NAPIC/JPPH Malaysian House Price Index (MHPI), Q3 2025 report (the most recent published data as of February 2026)
- Rental data: Cross-referenced from NAPIC rental market reports, iProperty.com.my, PropertyGuru.com.my, and Mudah.my listing data for the respective state capitals and major urban areas
- Transaction volumes and overhang data: NAPIC Q3 2025 Property Market Report
- YoY price trends: NAPIC MHPI Q3 2025 year-on-year percentage changes by state
Limitations
State-level averages mask enormous intra-state variation. The yield difference between Bangsar (3.5%) and Cheras (5.5%) — both in KL — is larger than the difference between KL's state average and Selangor's state average. Always analyse at the neighbourhood and building level, not just state level.
Rental yields are backward-looking. They reflect current rents and recent transaction prices. Future yields depend on rental growth (driven by demand), price appreciation (driven by supply and sentiment), and macro factors (OPR changes, FX, economic conditions).
Yield vs Appreciation: The Trade-Off
The inverse relationship between yield and appreciation is the fundamental tension in Malaysian property investment. The data confirms it:
High yield, lower appreciation: Perak (+3.4% YoY price, 5.5–7.0% yield), Negeri Sembilan (+2.8%, 4.5–6.0%)
Lower yield, variable appreciation: KL (-4.3% YoY price, 4.3–5.0% yield), Penang Island (+2.1%, 3.5–4.5%)
Balanced: Johor (+5.7% YoY price, 4.0–5.5% yield) — currently the outlier with both strong appreciation and reasonable yields, driven by the RTS/SEZ catalysts
The national MHPI grew only 0.1% in Q3 2025. Malaysia is not a high-appreciation market. Investors buying primarily for capital gains will likely be disappointed. The investment thesis for Malaysian property is cashflow — monthly rental income exceeding monthly costs. Target properties with gross yields above 5% and net yields above 3%.
How to Use This Data
-
Screen by state. Identify which states match your yield target. If you need 5%+ gross, focus on Perak, Negeri Sembilan, Cyberjaya (Selangor), Johor industrial zones, and Penang Mainland.
-
Drill into micro-location. State averages are starting points. Use listing portals and our cashflow calculator to model specific properties.
-
Stress-test assumptions. Assume 1 month vacancy per year. Use actual maintenance fees from the building's management corporation. Cross-check asking rents against recently transacted rents, not listing prices.
-
Compare gross yield to net yield. A property with 5.5% gross yield but RM 600/month maintenance fees nets significantly less than a property with 5.0% gross yield and RM 200/month maintenance.
-
Factor in your tax rate. Malaysian residents pay progressive income tax on rental income (0–30%). Non-residents pay a flat 30% on net rental income. This dramatically affects your after-tax return. Use our cashflow calculator to model your specific scenario.
For a deeper analysis of which specific areas offer the best risk-adjusted yields, see our best rental yield areas in Malaysia ranked. For the relationship between gross yield and actual monthly cashflow, read gross yield vs net cashflow for Malaysian property.
Data sources: NAPIC/JPPH (National Property Information Centre / Jabatan Penilaian dan Perkhidmatan Harta) — Malaysian House Price Index Q3 2025, Property Market Report Q3 2025; BNM (Bank Negara Malaysia) — OPR decisions; Global Property Guide — Malaysia Rental Yields Q3 2025. Rental figures are cross-referenced against iProperty.com.my, PropertyGuru.com.my, and Mudah.my market data. All figures are as of Q3 2025 / early 2026. Property investment involves risk — past yields do not guarantee future returns.