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10 Popular Questions about Cost of Building a Prefab House in Malaysia

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  1. What is the average cost per square foot to build a prefab house in Malaysia?
  2. What are the main factors that affect the cost of building a prefab house in Malaysia?
  3. How much cheaper is it to build a prefab house compared to a conventional house in Malaysia?
  4. What are the pros and cons of building a prefab house in Malaysia?
  5. What are the typical price ranges for different sizes of prefab houses in Malaysia?
  6. How can I get the best deal on a prefab house package in Malaysia?
  7. What financing options are available for building a prefab house in Malaysia?
  8. How long does it take to construct a prefab house in Malaysia?
  9. What are the additional costs beyond the base price I need to budget for with a prefab house?
  10. What are the top prefab home builders and suppliers in Malaysia?



What is the average cost per square foot to build a prefab house in Malaysia?

The average cost per square foot to build a prefab house in Malaysia ranges from RM200 – RM350. This means that a 1,000 sqft prefab house would cost between RM200,000 – RM350,000 to construct.

Several factors influence the final cost per square foot:

  • Location – Costs are higher in major cities like Kuala Lumpur and Johor Bahru compared to rural areas
  • Specifications – Higher end finishes, materials, and appliances raise costs
  • Customization – More custom layouts and designs are more expensive
  • Foundation – Prefab on concrete pads is cheaper than building on piling
  • Delivery – Remote delivery locations increase transportation costs

Here is a breakdown of the typical costs that factor into prefab home construction in Malaysia:

  • Modular Components – RM150-RM300 per sqft for walls, floors, roofing, etc.
  • On-Site Construction – RM20-RM100 per sqft for assembly, foundation, utilities, site work
  • Interior Finishes – RM30-RM150 per sqft for kitchens, bathrooms, lighting, painting
  • Permits & Fees – RM5-RM20 per sqft on average

Economy prefab homes with simple designs and standard materials can be built for RM200-RM250 per square foot.

Mid-range prefabs with some customization and upgrades run RM250-RM300 per square foot.

High-end customized prefab houses with premium finishes can cost RM300-RM350 per square foot and above.

Understanding these cost factors can help you budget and set realistic expectations when exploring prefab homes in Malaysia. Working with an experienced prefab builder is also key to optimizing costs for your specific needs and desires.


What are the main factors that affect the cost of building a prefab house in Malaysia?

There are several key factors that impact the overall cost of building a prefab house in Malaysia:

  • Size of the house – Costs increase for larger square footage. A 2,000 sqft home costs more than a 1,000 sqft home.
  • Customization – More complex designs, layouts, and customization raise costs through engineering time and custom manufacturing.
  • Level of finishes – Upscale kitchens, bathrooms, lighting, appliances, tiles, etc. impact materials and labor costs.
  • Foundation type – Prefab on concrete pads is cheapest. Building on piling, stilts, or slopes increases foundation costs.
  • Delivery location – Remote delivery sites farther from the factory increase transportation costs.
  • Modular volume – Building multiple units lowers per unit costs through manufacturing and material discounts.
  • Labor costs – Varies by region, complex installation adds costs.
  • Permits and fees – Costs more in high regulation areas. Simple designs reduce permitting time.
  • Site conditions – Challenging sites require additional site work and preparation.
  • Green building – Eco-friendly materials, solar power, passive homes cost more.
  • Plumbing and HVAC – More bathrooms and complex systems increase mechanical costs.
  • Vertical vs ranch style – Multi-story homes cost more due to stairs/lifts and steel reinforcement.
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Higher end custom designs can cost 50-100% more than standardized economy models. Understanding these key factors allow buyers to make informed decisions to meet their budgets. An experienced prefab builder can recommend cost-optimized solutions.


How much cheaper is it to build a prefab house compared to a conventional house in Malaysia?

Prefab houses are generally 15-30% cheaper to construct compared to building a conventional house in Malaysia. However, exact savings depend on several factors:

  • Economies of scale – Prefab leverages optimized manufacturing to lower costs by 15-20%.
  • Faster construction – Prefab assembly is 30-50% faster than conventional building, reducing labor and financing costs.
  • Standardization – Prefab relies on standardized designs vs custom site-built homes, improving efficiency.
  • Material savings – Prefab builders buy materials in bulk at discounted rates.
  • Minimal waste – Prefab maximizes material use and generates 5-10% less waste.
  • Lower site costs – Prefab requires less heavy machinery, equipment rentals, storage, and temp utilities.
  • Logistics – Prefab factories optimize material handling and workflows.
  • Permitting – Standardized prefab plans speed up permitting vs custom homes.

However, some factors can narrow the prefab savings margin:

  • Highly customized prefabs reduce efficiency advantages.
  • Luxury finishes minimize bulk purchase savings.
  • Complex foundation, site work and utilities installation add costs.
  • Far delivery distances increase transport expenses.
  • Specialized prefab labors command higher wages.

While prefab has clear efficiency benefits, prudent design choices are still required to maximize cost savings. Working with an experienced prefab builder is the best way to optimize the cost benefits of prefab construction.


What are the pros and cons of building a prefab house in Malaysia?

Prefab home construction has several benefits compared to conventional building, but also some downsides to consider:

Pros of Prefab Houses:

  • Faster construction – Prefab homes can be installed in weeks vs months for conventional homes.
  • Lower costs – Factory efficiency and bulk materials purchase result in 15-30% savings.
  • Consistent quality – Manufactured in controlled settings to high standards of quality.
  • Customization – Many prefab providers offer custom layouts and finishes.
  • Eco-friendly – Generates less waste, uses sustainable materials, energy-efficient.
  • Minimal disruption – Installation involves less noise, dust and disturbance.
  • Strong and durable – Engineered to withstand natural disasters like storms, floods and earthquakes.

Cons of Prefab Houses:

  • Transportation limits – Delivery costs are higher for remote sites far from factory.
  • Site constraints – Require flattened sites and access for cranes and trucks to install.
  • Limited resale value – Prefab homes may appreciate less than conventional homes.
  • Customization costs extra – Unique designs and features increase pricing.
  • Supply chain issues – COVID has caused delays in material availability.
  • Conservative mortgage lending – Some banks cautious about financing prefabs.
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Weighing the pros and cons allows buyers to make an informed decision on whether prefab is suitable for their needs and budget.



What are the typical price ranges for different sizes of prefab houses in Malaysia?

Here is an overview of typical price ranges for common prefab home sizes in Malaysia:

500 – 800 sqft

  • Economy Prefab: RM120,000 – RM200,000
  • Mid-range Prefab: RM170,000 – RM240,000
  • High-end Prefab: RM220,000 – RM300,000

800 – 1,200 sqft

  • Economy Prefab: RM160,000 – RM300,000
  • Mid-range Prefab: RM240,000 – RM400,000
  • High-end Prefab: RM350,000 – RM500,000

1,200 – 1,500 sqft

  • Economy Prefab: RM240,000 – RM400,000
  • Mid-range Prefab: RM360,000 – RM500,000
  • High-end Prefab: RM450,000 – RM600,000

1,500 – 2,000 sqft

  • Economy Prefab: RM300,000 – RM500,000
  • Mid-range Prefab: RM450,000 – RM650,000
  • High-end Prefab: RM600,000 – RM800,000

2,000 – 2,500 sqft

  • Economy Prefab: RM400,000 – RM650,000
  • Mid-range Prefab: RM600,000 – RM850,000
  • High-end Prefab: RM800,000 – RM1,000,000

As shown above, prefab home prices can vary significantly based on size, quality of finishes, degree of customization, and features. Consulting an experienced prefab builder is the best way to get an accurate price estimate tailored to your specific project requirements.


How can I get the best deal on a prefab house package in Malaysia?

Here are some top tips for getting the most value and best pricing on a prefab house in Malaysia:

  • Leverage package deals – Many prefab builders offer complete fixed-price packages that provide bundled pricing discounts.
  • Go for economy specs – Opt for standard layouts and finishes to take advantage of bulk manufacturing savings.
  • Minimize custom changes – Each customization adds engineering, materials and labor costs.
  • Research and compare – Get quotes from multiple prefab builders to compare pricing and find the best deal.
  • Consider size – The cost per square foot often drops with larger overall home sizes.
  • Order multiple units – Bulk orders for housing developments unlock steep volume discounts.
  • Seek sales and promotions – Builders may offer seasonal sales, holiday promotions or inventory clearance deals.
  • Discuss payment terms – Paying more upfront rather than taking financing may get a discount.
  • Inquire about overruns – Ask if they have excess inventory from other projects available at a discount.
  • Bundle additional services – Some cost savings by using the same provider for design, delivery, foundation, utility connections, etc.
  • Go for a simpler foundation – Avoid expensive piling, slope, or stilt foundations if possible.

Doing your research, getting quotes from several vendors, and negotiating intelligently can help maximize savings on your prefab home purchase.


What financing options are available for building a prefab house in Malaysia?

There are a growing number of financing options available for prefab home construction in Malaysia:

  • Bank loans – Most major banks provide housing loans and mortgages that can be used to finance prefab houses. Financing up to 90% of the property value is available.
  • Islamic bank loans – Islamic financing products like Musharakah Mutanaqisah Home Financing allow Shariah-compliant financing of prefab homes.
  • Developer financing – Some prefab builders offer in-house installment payment plans and financing options for buyers.
  • Government housing loans – Programmes like Fund for Affordable Homes provide subsidized financing assistance for first-time low and middle-income home buyers.
  • CIMB Green Loans – Features discounted interest rates for green-certified eco-friendly prefab homes.
  • Personal loans – Banks offer personal installment loans that can finance smaller prefab projects, often with quicker approval.
  • Credit cards – Pre-fab packages under RM150,000 can potentially be charged to credit cards with 0% installments.
  • Joint purchases – Co-purchasing a prefab property with family members is an affordable financing option.
  • Employee housing loans – Some companies provide employees with low-interest loans or subsidies for prefab housing.
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Research financing costs, terms, requirements and restrictions when exploring the best funding option for your prefab home. An experienced builder can often recommend banks they have worked with to finance prefab projects.


How long does it take to construct a prefab house in Malaysia?

Prefab homes can be constructed much more quickly than conventional site-built houses in Malaysia. Here are typical construction timelines:

  • Manufacturing – 4-8 weeks to manufacture and assemble the modular components in the factory, depending on customization.
  • Foundation – 1-2 weeks to prepare the site, pour concrete foundation pads and let cure.
  • Delivery – 1 day to transport prefab modules to site via trucks.
  • Crane Installation – 1-3 days for cranes to assemble sections and structurally connect the home.
  • Onsite Finishing – 1-4 weeks for finishing exterior facades, roofing, utilities, driveways, landscaping.
  • Interior Fit-out – 1-3 weeks to install kitchens, bathrooms, cabinetry, paint, trim, fixtures, depending on size.

So for a fairly standard size prefab house of 1,500 sqft, the total project can be completed in approximately 3-4 months, compared to 6-9 months or longer for conventional construction.

More customized prefab designs may take 4-6 months including:

  • Special engineering for unique layouts
  • Sourcing rare finishing materials
  • Fabricating custom modules
  • Complex utility and site work

In summary, utilizing prefab methods can cut overall construction timelines approximately in half, allowing owners to move in faster.


What are the additional costs beyond the base price I need to budget for with a prefab house?

When budgeting for a prefab home, it’s important to consider these additional costs beyond the base price:

  • Site preparation – Clearing, grading, excavation, access roads
  • Foundation – Concrete pads, stilts, piling, engineering
  • Utility connections – Power, water, septic/sewage, gas lines
  • Land survey – Surveying and staking the site
  • Permits and fees – Building permits, utility fees, inspection fees
  • Insurance – Builder’s risk, title insurance, home insurance
  • Site amenities – Landscaping, patios, fencing, driveways
  • Interior fit-out – Extra lighting, window coverings, built-in closets
  • Appliances & furniture – If not already included in base price
  • Professional fees – Architects, project managers (if needed)
  • Finance costs – Loan interest, arrangement fees
  • Shipping/transport – Far delivery locations can add transport fees
  • Warranty – Optional extended warranty coverage
  • Construction contingencies – Recommended 5-10% of total budget
  • Soft costs – Design, legal, consulting fees

Budgeting an extra 20-30% beyond the base price allows for these additional costs, avoiding budget overruns. The prefab builder should provide a detailed all-inclusive quote.


What are the top prefab home builders and suppliers in Malaysia?

Here are some of the top and most reputable prefab home builders and suppliers in Malaysia:

  • IDEA Prefab – Leading prefab provider in Malaysia with over 20 years of experience. Offer completely customizable prefab houses.
  • Eco World Development – Top developer providing luxury prefab homes across Malaysia focused on sustainable building.
  • Setia Prefab – Subsidiary of giant Setia Property Group, construct quality prefab houses.
  • Nusmetro – Popular for affordable and middle-class prefab homes. Known for speedy construction.
  • Daiwa House – Japanese company specialized in steel modular residences. Focused on durability.
  • Ken Holdings Berhad – Public listed construction firm offering prefab homes and commercial buildings.
  • Pekan Nenas Industries – Provider of economic prefab kampung (village) houses on concrete stilts.
  • Fabulous Homes – Prefab startup targeting affordable green homes for low-income buyers.
  • OurHousing – New player using container-based modular construction for compact eco-friendly prefabs.
  • Sirim Berhad – Government-owned firm providing R&D and standards for prefab industry.

Research and get quotes from multiple of these reputable prefab builders to find the right fit for your requirements, budget and location.


Key Takeaways on Cost of Building a Prefab House in Malaysia

  • Average prefab construction cost is RM200-RM350 per sqft, depending on specifications.
  • Main cost factors are size, customization, finishes, foundation, and delivery location.
  • Prefab can be 15-30% cheaper than conventional construction, but customization reduces savings.
  • Typical price range is RM120k-RM300k for 500-800 sqft prefab home.
  • Leverage package deals, standard models, and bulk orders to get the best


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