MM2H in Malaysia: 744 Foreign Buyers Purchased Homes, and What the Urban Renewal Act Could Mean for Property Owners

Malaysia continues to attract attention from overseas homebuyers, especially through the Malaysia My Second Home (MM2H) programme. According to Bernama, 744 MM2H participants had purchased homes in Malaysia as of 31 December 2025, while another 2,637 participants were still in the process of buying properties.

This is an important signal for international investors, because it shows that MM2H is not only a residency programme, but also a real property demand driver in Malaysia. The top homebuyer nationalities under the programme include China, Taiwan, Singapore, the United States, the United Kingdom, Hong Kong, Australia, Bangladesh, South Korea, Indonesia and Japan.

At the same time, property owners and buyers are watching the proposed Urban Renewal Act (URA) closely. A reader’s letter published by EdgeProp raised concerns that URA-style redevelopment could affect MM2H property owners, especially if a building is placed inside an urban renewal zone and redevelopment proceeds based on majority consent rather than unanimous approval.

For international buyers, the key question is simple: is Malaysia still a good market for long-term home ownership? The answer is yes, but the market now demands better due diligence, stronger legal understanding, and smarter property selection than ever before.

Why MM2H Matters

MM2H has long been one of Malaysia’s strongest branding tools for attracting retirees, investors, and lifestyle buyers from overseas. Bernama reported that the programme is a long-term social visit pass with multiple-entry visa facilities, and participants can reside in Malaysia for periods ranging from five to 20 years depending on category.

That makes MM2H especially relevant to buyers who want more than short-term tourism. They want a base in Kuala Lumpur, Penang, Johor, or other well-connected areas, and many also view Malaysian real estate as a lifestyle asset rather than a speculative one.

For real estate agents, this means MM2H buyers are not just asking about price. They are also asking about ownership security, rental potential, future resale value, healthcare access, schooling, and whether the area is stable for long-term living.

What The New Numbers Tell Us

The fact that 744 participants already bought homes and 2,637 more are in the pipeline suggests continued confidence in Malaysia’s property market among foreign applicants.

The nationality breakdown is also useful for market positioning. Chinese buyers led the list with 304 purchases, followed by Taiwan, Singapore, the US, the UK, Hong Kong, and other markets. This indicates that Malaysia remains appealing across both nearby Asian and long-haul international markets.

For property marketers, this is a reminder that content should be multilingual, trust-based, and tailored to different buyer motivations. Some buyers want capital preservation, some want retirement convenience, and others want a family base in Southeast Asia.

Why URA Matters To Buyers

The proposed Urban Renewal Act has become a sensitive issue because it touches on redevelopment, consent thresholds, compensation, and ownership continuity. The EdgeProp reader’s letter argued that MM2H owners may be especially exposed if a property is included in a renewal zone and redevelopment is approved by a supermajority of owners.

However, government statements reported elsewhere have emphasized that URA is intended to protect owners, with assurances such as fair compensation and “house for a house” principles in redevelopment cases. That means the policy debate is not simply about whether redevelopment will happen, but about how ownership rights are protected during the process.

For buyers, the lesson is clear: do not buy only based on location and price. Also check the building’s age, redevelopment potential, strata governance, market liquidity, and whether the asset could become a URA candidate in the future.

Practical Advice For International Buyers

If you are buying under MM2H or considering Malaysia as your second-home destination, focus on three things:

• Buy in locations with strong long-term demand, not only short-term yield.
• Prefer developments with clear title, healthy management, and strong owner-occupier demand.
• Get legal advice on strata rights, consent rules, and redevelopment risk before signing.

In Kuala Lumpur, many international buyers still prefer projects with good connectivity, medical access, international schools, and stable rental demand. For this audience, the best property is usually the one that balances lifestyle, preservation, and exit strategy.

If you are educating overseas buyers, your content should explain not just how to buy in Malaysia, but why certain assets are safer than others in the face of policy changes. That is how trust is built, and trust is what converts serious buyers.