Buying guide
Buying new property in Malaysia: the developer purchase, step by step
How buying from a developer works under the Housing Development Act: the checks before you book, the statutory SPA, progress payments, delivery deadlines, late-delivery compensation and the 24-month defect period.
The process
From booking to keys
Before you pay anything
Five checks on the developer and the project
- Developer licence and advertising permit. A housing developer needs a licence and an advertising and sales permit (APDL) from the Ministry of Housing and Local Government (KPKT). Both numbers must appear on the brochure and adverts. No permit, no sale: be wary of “registration of interest” schemes that take money before the permit exists.
- Land title and tenure. Freehold or leasehold, how many years are left, residential or commercial land, and whether some units are bumiputera lots. Ask for the title details or have your lawyer search the title.
- The developer’s record. Look at their completed projects: were they delivered on time, and how have they held their value and rents? Each project page here lists what is on record.
- The price you will really pay. Developer packages, such as legal-fee or furniture offers, change what you actually pay. Ask the bank what price it will lend on before you book.
- Foreign-buyer eligibility. If you are not Malaysian, confirm that the specific unit is above the state minimum price and not a restricted unit before you book.
The legal frame
What the Housing Development Act protects
Sales of new homes by licensed developers are governed by the Housing Development (Control and Licensing) Act 1966 and its regulations. The sale and purchase agreement is a fixed statutory form that the developer cannot rewrite in its own favour:
- Schedule G for landed homes on an individual title and Schedule H for strata units such as condominiums and serviced apartments.
- Payments in stages. You pay a deposit on signing, then progress payments as each construction stage is certified by the architect. Money goes into a Housing Development Account that the bank releases for the project.
- Delivery deadlines. 24 months from the SPA for Schedule G, 36 months for Schedule H, unless a longer period was approved for that project.
- Late delivery. Liquidated ascertained damages at 10% a year of the purchase price, day by day, for each day of delay. In PJD Regency (Federal Court, 2021) the period was held to run from the date the booking fee was paid.
- Booking fees. Regulation 11(2) says a developer may not collect any payment before the SPA is signed, whatever it is called. In practice booking fees of a few percent are common; keep the receipt, as it matters for the LAD date and any refund.
- Defects. 24 months of defect liability from vacant possession; the developer must repair notified defects within 30 days.
- Disputes. The Tribunal for Homebuyer Claims hears claims up to RM50,000 at low cost.
Compare with a subsale purchase, where the SPA is negotiated between buyer and seller and there is no defect cover.
New launch or completed?
Which suits you
New launch suits you if…
You can wait three or four years, want a statutory SPA with delivery deadlines and defect cover, and prefer to pay in stages rather than all at once.
Completed suits you if…
You want to see the finished building, check real rents and recorded prices, and move in or rent out straight away. See completed projects.
The main risk of buying new
Delay or, rarely, abandonment. LAD compensates late delivery but not a project that stops. The developer’s record and financing matter as much as the brochure.
Compare the price honestly
Set the price you would actually pay per sq ft against recent transactions for completed units nearby. A new unit costing far more than the completed building next door needs a good reason.
Straight answers
Frequently asked questions
How long does a developer have to hand over a new home?
Under the statutory sale and purchase agreements, 24 months from the SPA date for a landed home on an individual title (Schedule G) and 36 months for a strata unit such as a condominium (Schedule H), unless the agreement was approved with a longer period.
What if the developer delivers late?
The buyer is entitled to liquidated ascertained damages (LAD) at 10% a year of the purchase price, calculated day by day. In PJD Regency (Federal Court, 2021) the court held that the delivery period runs from the date the booking fee was paid, not the SPA date.
What is the defect liability period?
24 months from vacant possession. Report defects in writing during that time; the developer must repair them within 30 days of receiving the notice, or the buyer may claim the cost.
Where do I complain if something goes wrong?
The Tribunal for Homebuyer Claims hears claims up to RM50,000 against licensed developers, usually within 12 months of the CCC, the end of the defect liability period or termination of the SPA, for a small filing fee.
Can foreigners buy a new launch?
Yes, above the state minimum price for foreigners and with state consent. Many projects set aside units as bumiputera lots or below the foreign threshold; check which units qualify before you book.
General information, not legal advice. Sources: Housing Development (Control and Licensing) Act 1966 and Regulations; PJD Regency Sdn Bhd v Tribunal Tuntutan Pembeli Rumah [2021] 2 MLJ 60; KPKT. Checked October 2026; confirm the current position with a lawyer.
Video
Watch Jason explain
From the Smart Asset with Jason YouTube channel.
Keys late? The developer may owe you
Defect period over? You may still claim
Can you get your booking fee back?
Looking at a new launch?
Send me the project name. I will check the developer’s record, the permit, the title and how the price compares with completed units nearby.