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Freehold vs leasehold in Malaysia: what's the difference?

Simon Wang San Teik · Licensed real estate negotiator, REN 56506 · Johor Bahru · Last verified 2026-09-25

Freehold land has no expiry date. Leasehold land has a term of up to 99 years, printed on the title. In Johor, land is granted by the state government under the National Land Code, and the Code allows only these two forms.

What is the difference between freehold and leasehold?

FreeholdLeasehold
TermNo expiry dateUp to 99 years, as stated on the title
When the term endsNot applicableLand reverts to the state
Can the term be extended?Not neededThe owner can apply to the state
Annual quit rentYesYes
Can the government acquire it?Yes, at market valueYes, at market value
Johor Bahru projects on this site596

Project counts as at 24 September 2026. Of the 76 projects, 7 more are still being verified and 4 have no tenure recorded yet.

If you own an HDB flat, the idea is familiar

HDB flats are sold on 99-year leases, and HDB has said publicly that the land reverts to the State at the end of the lease. Malaysian leasehold works on the same principle. Malaysian law also lets the owner apply to the state government to extend the term.

What does the law say?

Section 76 of the National Land Code allows a state to alienate land either for a term not exceeding 99 years or in perpetuity. The Malay text of the Code uses selama-lamanya for perpetuity. Section 5 defines "alienate" as disposing of State land in perpetuity or for a term of years, in return for the payment of rent.

Do freehold owners pay quit rent?

Yes. Because land is alienated in return for rent, every title pays quit rent (cukai tanah) each year, freehold and leasehold alike. Freehold means the title has no end date. It does not mean the land has no annual charges.

What happens when a leasehold ends? Can it be extended?

Under section 46(1)(a), land reverts to the State Authority when the term on its title expires.

Before that, you can apply to extend. Section 90A of the Code provides for an application to the state to extend the term of a holding; the Federal Territory land office's form for it is titled Permohonan Lanjut Tempoh Pegangan (Seksyen 90A). Whether it is approved, and at what cost, is for the state government to decide.

Can the government take back freehold land?

Only under the Land Acquisition Act 1960, and only with compensation. Section 3 sets out the purposes for which a state may acquire land, including public purposes. Section 14 and the First Schedule require compensation to be assessed at market value. The same rules apply to both tenures.

Real examples from this site

  • Amberwood Larkin JB: 99-year leasehold expiring 3 June 2119, about 93 years remaining as at 2026, per the developer's published permit details.
  • The Eclipse Johor Bahru: 99-year leasehold expiring 7 March 2120, per stock exchange filings.

Every project page shows its tenure and where that information came from. Where a developer hasn't published a leasehold expiry date, we get a copy of the title before you sign and read the start and end dates together.

See every Johor Bahru project →

What should you ask about a leasehold unit?

  1. What expiry date is on the title, and how many years remain?
  2. How long do you plan to hold the property?
  3. When you apply for a loan, what is the longest tenure the bank will give against that remaining term?

Which tenure suits you depends on how long you plan to hold and how you plan to finance. Send me the project you're looking at. I'll check its title against the documents and work the numbers through with you.

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SOURCES

  1. National Land Code, section 76: quoted in Pelupusan Tanah di Bawah Kanun Tanah Negara 1965, National Institute of Land and Survey (INSTUN). Document
  2. National Land Code, sections 5 and 46(1)(a): reference text published by the Department of Director General of Lands and Mines (JKPTG). Document
  3. National Land Code, section 90A: Federal Territory Land and Mines Office form Permohonan Lanjut Tempoh Pegangan (Seksyen 90A). Form
  4. Land Acquisition Act 1960 (Act 486), sections 3 and 14 and the First Schedule: JKPTG reprint (2006). Document
  5. HDB, "Leaseholds confer ownership rights for finite term", letter to the media, 14 August 2018. Letter
  6. Project terms: see the sources on each project page. Project counts: this site's project database, counted 2026-09-24.

General information only, not legal, tax or financial advice. Official documents prevail; see the verification date above.

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