Factory & Warehouse FAQ
What drives factory prices in Malaysia?
Factory prices depend on built-up size, lot frontage, ceiling height, power capacity, dock-leveller and crane availability, road access (especially for trailer turning), and proximity to ports, airports, and highways. Title category (freehold versus leasehold) and zoning class (light, medium, heavy industrial) also materially affect value. Use the filters to compare comparable units before benchmarking your offer.
Should I buy freehold or leasehold factory?
Freehold factories cost more but hold value long-term with no renewal hassle. Leasehold (30 to 99 years) is cheaper and often in strategic industrial zones. For owner-occupiers, freehold is ideal. For investors, leasehold near ports can yield better rental returns.
What legal fees and stamp duty do I pay when buying a factory?
Stamp duty is progressive: 1% up to RM100K, 2% on RM100K to 500K, 3% on RM500K to 1M, and 4% above RM1M for Malaysian buyers; foreign buyers pay a flat 4% since 1 January 2024. Legal fees follow the SRO 2023 scale (Sale & Transfer): 1.25% on the first RM500K and 1% on the next RM7M (negotiable above RM7.5M). Note that property transactions typically incur three sets of legal fees, SPA (Sale & Purchase Agreement), Loan Agreement, and MOT (Memorandum of Transfer), each calculated separately, plus valuation fees, disbursements and 8% SST on professional fees. Total all-in transaction cost for a standard sub-sale industrial deal generally lands at 4 to 6% of purchase price.
Can foreigners buy factories in Malaysia?
Yes, subject to state-level approval and minimum-price thresholds, and these are notably HIGHER than residential. In Selangor the minimum for foreigners buying industrial buildings is RM3M in all zones (state circular of 28 August 2014), and the buyer usually needs a MITI licence; Kuala Lumpur approves industrial purchases case by case, and other states set their own thresholds. Many foreign investors instead set up a Malaysian Sdn Bhd company to simplify purchase, financing, and ongoing tax/licensing, a Malaysia-incorporated company is treated as a local entity for property acquisition. Note: the flat 8% foreign-buyer stamp duty (effective 1 January 2026) applies to residential; industrial/commercial stamp duty rules should be verified state by state for the latest position.
