Bumi Lot vs Non-Bumi Lot: What Property Buyers Should Know

When you look at a new project's price list, you may see some units marked as Bumi lots, often with a lower price. Here is what that means, and what to think about before you buy one.

What is a Bumi lot?

A Bumi lot is a unit reserved for Bumiputera buyers. Under state housing policies, developers must set aside a share of units in a residential project for Bumiputera buyers. The exact share depends on the state and the type of project.

All other units are non-Bumi lots (sometimes called open market units), which anyone eligible can buy.

The Bumi discount

Bumi lots usually come with a discount, commonly around 5% to 15% off the listed price. The rate depends on the state's policy and the property's price range, so always check the project's price list.

Can a non-Bumi buyer buy a Bumi lot?

Not directly. Bumi lots are meant for Bumiputera buyers. However, if Bumi lots remain unsold for a long time, developers can apply to the state authorities to release them to the open market. Released units may need a release fee and approval, which takes time.

Selling a Bumi lot later

This is the part many buyers forget. A Bumi lot that is restricted on its title can usually only be sold to another Bumiputera buyer, unless the state approves a sale to a non-Bumi buyer.

• Smaller pool of buyers can mean a longer selling time
• State consent and fees may apply if you sell to a non-Bumi buyer
• Resale price can be affected by these restrictions

Rules differ between states, so ask your lawyer to check the title restrictions before you sign.

Renting out a Bumi lot

Restrictions usually apply to ownership, not tenancy. In most cases you can rent a Bumi lot to anyone. Still, check the title and any project-specific rules.

Bumi lot or non-Bumi lot: which should you buy?

• Buying to live in for the long term? A Bumi lot discount can be good value.
• Buying to sell in a few years? Consider how the resale restriction affects who can buy from you.
• Buying to rent out? Rent is usually not affected, so the discount improves your rental yield.

Frequently asked questions

Is the Bumi discount the same in every state?

No. Each state sets its own policy, and the discount can also depend on the property price.

Does the Bumi restriction apply to subsale properties?

It depends on what is endorsed on the title. Some properties carry a Bumi restriction, many do not. Your lawyer can check the title.

Can a Bumi buyer buy a non-Bumi lot?

Yes. Non-Bumi lots are open to all eligible buyers, but no Bumi discount applies.

Need help comparing units?

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