Forest City SFZ Issues Updated Property Purchasing Guide for Buyers in 2026

Johor has established itself as Malaysia's second-largest residential market in 2025, based on both transaction volume and value, according to JLL.

JOHOR, MALAYSIA – Media OutReach Newswire – 31 July 2026 – From 1 January 2026, foreign purchasers of residential property in Malaysia are subject to a flat 8% stamp duty rate on the transfer , replacing the previous fixed 4% rate. Meanwhile, a separate stamp duty remission continues to apply within the Forest City Special Financial Zone (SFZ), subject to defined eligibility conditions. Forest City has published a property verification guide for prospective foreign buyers, providing a detailed overview of the ownership framework, foreign-purchaser requirements and applicable tax treatment for property acquisitions within Forest City in Johor.

Forest City is a master-planned development in Iskandar Puteri, Johor, with many residential units held under freehold tenure. Foreign buyers may purchase residential property in Forest City subject to Malaysia's foreign-ownership rules. Under the Forest City Special Financial Zone framework, eligible individual purchasers who buy completed residential or commercial units directly from the developer may receive a 50% stamp duty remission on the instrument of transfer and the loan or financing agreement. To qualify, the sale and purchase agreement (SPA) must be executed between 1 September 2024 and 31 December 2034, and construction must have been completed before 1 September 2024.

Foreign Ownership and Title Structure in Forest City
Foreign buyers are permitted to purchase residential units in Forest City, provided the transaction meets Malaysia's applicable foreign ownership rules , including any state authority approval required for the acquisition.

Foreign buyers should distinguish between Malaysia's general state-level minimum purchase-price rules and the Forest City SFZ-linked route, as the applicable threshold may depend on the buyer's intended purchase and residency pathway. Johor's general minimum threshold for foreign residential acquisition is generally set at RM1 million. The Forest City SFZ MM2H-linked route generally starts at RM500,000 for qualifying purchases from the developer, but buyers should confirm the current threshold, timing and source-of-purchase requirements with a licensed Malaysia My Second Home (MM2H) agent and Malaysian conveyancing lawyer.

The majority of residential units at Forest City are held on freehold tenure, meaning the tenure is not subject to a fixed lease-expiry period. Upon conducting a land title search, the buyer's lawyer will obtain the title document, which clearly indicates the tenure type, whether freehold or leasehold. Marketing materials, project descriptions and buyer summaries should not be treated as substitutes for title verification.

Forest City SFZ Stamp Duty Remission
Within the Forest City SFZ, eligible individual purchasers buying completed residential or commercial units directly from the developer may claim a 50% remission on stamp duty payable on the instrument of transfer and on the instrument of loan or financing agreement.

The remission is subject to gazetted eligibility conditions, including purchaser type, source of purchase, SPA execution period and construction completion date. Sub-sale and resale transactions do not fall within the stated scope of this individual-purchaser remission. Corporate purchasers should assess any applicable SFZ treatment separately against the relevant remission order and professional tax advice.

In practical terms, the remission may reduce two key transaction costs: stamp duty on the property transfer and stamp duty on the loan or financing agreement. The actual saving will depend on the property price, financing amount, buyer category and applicable stamp duty rate. EY Malaysia and Lexology provide additional details from a third-party perspective.

Forest City SFZ Stamp Duty Remission vs Standard Rules for Foreign Buyers:

Element	Forest City SFZ Stamp Duty Remission	Standard Stamp Duty Rules for Foreign Buyers (from 1 Jan 2026)
Stamp duty on transfer	50% remission under the gazetted order	Flat 8% on residential property
Stamp duty on loan/financing	50% remission under the gazetted order	0.5% of loan amount, standard
SPA execution period	1 Sep 2024 – 31 Dec 2034	No specified expiry date
Construction completion required	Before 1 Sep 2024	Not applicable
Eligible buyer type	Individual purchasers only	Applicable to all buyers, subject to the relevant rules
Eligible purchase source	Direct purchase from the developer only	Developer purchase or sub-sale transaction

What the Forest City SFZ Adds Beyond Stamp Duty
The Forest City SFZ offers benefits beyond the stamp duty remission described above. For property buyers, the designation provides three key considerations for property buyers: the 50% stamp duty remission for eligible direct purchases, the SFZ-tier MM2H pathway for qualifying buyers purchasing a Forest City property valued at RM500,000 or above, and the broader policy support associated with Forest City's role within Johor's cross-border growth strategy.

While the SFZ MM2H requires applicants to purchase property in Forest City, they are not required to live in it. Approved holders can rent out the property and are free to live anywhere in Malaysia, including Kuala Lumpur, Penang, and other cities. In other words, the SFZ MM2H not only offers a convenient pathway to long-term residency but also gives holders considerable flexibility in where they live. Even without long-term residency in Johor, the SFZ MM2H may offer a comparatively accessible pathway to long-term residency, subject to the applicable eligibility requirements, with lower entry requirements and a clearer approval process, balancing affordability, policy stability, and proximity to Singapore.

Under the Johor-Singapore Special Economic Zone (JS-SEZ) framework, policy consultations and commitments are turning into approved projects, investment, and employment opportunities, while cross-border facilitation measures continue to improve, supporting greater cross-border mobility between Johor and Singapore. Forest City itself has built a comprehensive ecosystem of amenities, combining daily convenience, residential safety, and international connectivity. Residents can reach Singapore via the Second Link, and Forest City is only about two kilometres from Singapore across the Johor Strait. The upcoming Johor-Singapore Rapid Transit System (RTS Link) is expected to further improve cross-border connectivity once passenger service begins.

The area is home to residents from over 20 countries, forming a diverse international community. Forest City features international schools and convenient access to a range of healthcare facilities, making it ideal for long-term family residence. Even for those not residing long-term, Forest City's comprehensive planning, 24-hour property management, and dedicated security system ensure that owners' assets are well protected. Furthermore, two championship-level golf courses and waterfront facilities offer high-quality leisure options.

These amenities, combined with the MM2H residency status, present a viable solution that balances quality of life and residency planning. More importantly, the financial district is rapidly evolving into a leading financial and digital economy hub, having already attracted 260 investment enquiries and being on track to exceed its RM2 billion investment target this year, as financial institutions and businesses progressively establish a presence there. At the same time, Forest City has secured Malaysian Digital Status and duty‑free island status, contributing to the continued growth of its resident population and consumer market. These policies and infrastructure enhancements significantly reinforce Forest City's attractiveness and cross‑border connectivity. In particular, the economic activity and population growth supported by SFZ's tax incentives, industrial clustering, Digital Status, and duty‑free island policies provide robust structural support for the long‑term value of its properties.

Key Considerations Before Entering an SPA in 2026

• Title and tenure : Confirm the title type and tenure of the selected unit through a current land title search conducted by a Malaysian conveyancing lawyer.
• SFZ stamp duty remission : Review eligibility for the 50% remission, including purchaser type, source of purchase, SPA execution period and unit completion date.
• Foreign-buyer threshold : Confirm the applicable minimum purchase, including whether the general Johor threshold or the Forest City SFZ MM2H-linked pathway applies.
• Stamp duty treatment : Request a written breakdown of stamp duty on the property transfer and any loan or financing agreement, before and after the SFZ remission.
• MM2H linkage, if applicable : Where the purchase is linked to an SFZ MM2H application, confirm the current deposit, age, minimum-stay and property-purchase timing requirements with a licensed MM2H agent.

Is Forest City Worth Buying in 2026? Three Buyer Profiles
Forest City properties may serve different purposes for cross-border homeowners, MM2H applicants and institutional or corporate investors.

• Singapore-based foreign buyers : For buyers seeking a freehold cross-border base, the SFZ stamp duty remission is relevant where the unit qualifies. Together with the upcoming RTS Link, Forest City's cross-border accessibility is expected to improve further.
• MM2H-route buyers : For buyers using the Forest City SFZ MM2H pathway, the RM500,000 entry point for qualifying developer purchases is a key consideration. The property purchase requirement is part of the route, and buyers should confirm the applicable 90-day post-approval purchase timeline with a licensed MM2H agent.
• Institutional and business-linked investors : The SFZ incentives are primarily designed for financial institutions, family offices, fintech operators and related business activity. For this segment, residential investment considerations should be assessed alongside broader SFZ-related economic activity, including family-office activity, the potential inflow of skilled professionals and JSSEZ-related demand.

What Buyers Should Confirm Separately
This guide does not provide fixed price quotations, guarantee rental yields or project future capital appreciation, as these depend on unit type, launch phase, vacancy assumptions, financing terms and market conditions.

Prospective buyers should confirm current pricing with recent market listings and current prices provided by the developer's sales gallery. They should also verify foreign-buyer rules, unit-level tenure, and title procedures with a Malaysian conveyancing lawyer . A current title search can help confirm the registered owner, tenure, encumbrances and other legal particulars of the selected unit before the buyer signs an SPA or makes a deposit.

Financing should also be assessed separately with Malaysian banks or a mortgage broker, as foreign-buyer loan-to-value ratios, rates and approval conditions vary by borrower profile and lender. Forest City's investment overview provides broader context, but transaction-specific pricing, financing, title status and yield assumptions should be verified independently.

Conclusion
While no property guide can replace advice from a Malaysian conveyancing lawyer, tax adviser or licensed property consultant, Forest City's 2026 proposition is now supported by clearer reference points: unit-level title verification, a gazetted 50% SFZ stamp duty remission, and the RTS Link's expected five-minute Johor Bahru–Singapore rail crossing once passenger service begins.

With the SFZ remission window running until 31 December 2034, 2026 should therefore be viewed not as a deadline, but as an appropriate time for careful due diligence. Purchasers should assess unit-level eligibility, transaction costs and long-term objectives with appropriate professional support. The key consideration for Forest City property buyers in 2026 is that the legal and tax framework for eligible transactions is now sufficiently defined to allow detailed verification before an SPA is signed.

Hashtag: #ForestCity

The issuer is solely responsible for the content of this announcement.

About Forest City Special Financial Zone

Located in Iskandar Puteri, Johor, Forest City Special Financial Zone (FCSFZ) is Malaysia's first designated special financial zone and a key financial-services component of the Johor–Singapore Special Economic Zone. It is positioned to attract financial institutions, multinational corporations, high-net-worth individuals and businesses operating in wealth management, financial technology and global business services.

Its incentive framework includes a 0% income tax rate for qualifying Single Family Office Vehicles for up to 20 years, a preferential 5% corporate tax rate for approved qualifying activities, and a special 15% personal income tax rate for eligible knowledge workers, subject to the applicable conditions, regulatory approvals and prevailing legislation. Forest City also holds duty-free island status, further strengthening its appeal as a regional investment, business and wealth-management destination near Singapore.