Property Valuation in Malaysia
Market Value, Process & Fees (2026)

General guidance for 2026 — not legal advice. Rules vary and change; confirm with a lawyer or the relevant authority. Renovating? Ask us →

Property valuation in Malaysia is a regulated profession governed by the Valuers, Appraisers, Estate Agents and Property Managers Act 1981 (Act 242). Only a person registered with LPPEH may provide valuations for statutory and professional purposes — including bank financing, stamp duty assessment, auction, compulsory acquisition, and estate administration. An informal opinion from a property agent is not a legally recognised valuation.

Who can value property in Malaysia?

Only registered valuers on the LPPEH roll may sign statutory valuation reports. They must be:

• Graduates in valuation or a related discipline.
• Holders of a Certificate of Practice from LPPEH after practical training and examination.
• Practising under a licensed firm (Valuation & Property Services Firm).

You can verify a valuer’s registration on the LPPEH website (lppeh.gov.my). Valuation reports from unregistered persons are not accepted by banks, Land Offices or courts.

Market value vs forced-sale value

Forced-sale value in a property auction is typically set at 10–20% below market value as the starting bid. For auction-property buyers, see our auction property guide →.

When is a property valuation required?

• Bank home loan or refinancing — the bank commissions a panel valuer to determine the lending value. The fee is borne by the borrower.
• Property purchase or sale — the buyer or conveyancing lawyer orders a valuation to confirm fair value and for stamp duty → assessment (stamp duty is on market value if higher than purchase price).
• Auction (lelong) — the auctioneer uses a registered valuer’s report to set the reserve price.
• Estate administration and probate — a valuation as at the date of death is required for estate duty purposes (if any) and to distribute the estate fairly.
• Compulsory acquisition — the Land Administrator uses a government valuer; the affected owner should commission an independent valuation for the public inquiry. See our land acquisition guide →.
• Legal proceedings — matrimonial asset division, partnership disputes, and court-ordered sales.

How a property valuation is conducted

1. Instruction and inspection: the valuer inspects the property, noting condition, size, fittings, tenure, and location.
2. Comparable sales analysis: recent transactions of similar properties in the vicinity are identified from the Valuation and Property Services Department (JPPH) database and other sources.
3. Adjustment: differences in size, condition, floor, and amenities are adjusted to arrive at the subject property’s value.
4. Report: a formal written report is issued, signed by the registered valuer, stating market value and the methodology used.

Valuation fee scale (under LPPEH)

Valuation fees for private sector work are regulated under the Valuers, Appraisers and Estate Agents (Scale of Fees) Rules 2018:

For a RM500,000 property the fee is roughly: (0.25% × RM100,000) + (0.20% × RM400,000) = RM250 + RM800 = RM1,050 (plus GST/SST if applicable, and disbursements). Bank panel valuations may be slightly different — confirm the exact fee with the valuer.

Bank panel valuer vs independent valuer

Tips for owners and buyers

• Always verify that your valuer is on the LPPEH roll at lppeh.gov.my before engaging them — only registered valuers can provide legally recognised reports.
• For a loan valuation, the bank appoints its own panel valuer — you pay the fee but the report is the bank’s property. Request a copy for your records; it contains useful information about comparable transactions.
• If the bank valuation comes in below the purchase price, your loan margin drops and you must fund the gap in cash. You can commission a second independent valuation to challenge it, though the bank is not obliged to accept it for lending purposes.
• For compulsory acquisition →, commission an independent valuation immediately after receiving Form A — the government’s valuer uses the Gazette date as the reference, and so must yours.
• Keep your property in good condition — presentation and quality of fittings at inspection affects the comparable selection and upward adjustments the valuer makes. A renovated unit generally achieves a higher valuation. See our value-add renovation guide →.
• For estate administration, obtain the valuation as soon as possible after the date of death — the valuation date is the death date, and comparable evidence from that period is easier to gather soon after.

Worked example: valuation fee calculation

For a property valued at RM750,000 (under the Scale of Fees Rules 2018):

Add disbursements (travel, search fees, administrative costs) and any applicable service tax. For a RM500,000 property the fee is approximately RM1,050 (as shown in the scale section above). Bank panel valuations may be negotiated at slightly different rates by the bank.