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By Jason Lim, REN 84424 · IQI Realty · Checked on 4 November 2026
For anyone buying an under-construction home in Johor Bahru, from Malaysia or abroad, the short answer: for most residential new launches you pay 10% when you sign the sale and purchase agreement (SPA), 65% in eight construction stages, 17.5% at handover, 2.5% when title is delivered and a final 5% that the developer’s lawyer holds for up to 24 months. The law fixes these percentages, the delivery deadline (24 months for landed homes, 36 months for strata) and the late-delivery damages.
Quick answer
- Two statutory forms: Schedule G (landed) and Schedule H (strata), under the Housing Development Regulations 1989 as amended from 1 July 2015.
- Each bill: payable within 30 days of the developer’s written notice; late payment costs 10% a year.
- Loan interest: during construction you pay interest only on the amount your bank has released so far.
- Late delivery: after 24 months (G) or 36 months (H) from the SPA, the developer owes damages at 10% a year of the price, counted daily.
- Defects: a 24-month defect liability period from handover, with repairs due within 30 days of your written notice.
Which agreement applies: Schedule G, Schedule H or neither
In Peninsular Malaysia, Johor included, residential developers are licensed under the Housing Development (Control and Licensing) Act 1966 (Act 118), and its 1989 Regulations prescribe the SPA they must use. The current forms came in with an amendment gazetted on 1 June 2015 (P.U.(A) 106/2015), in force from 1 July 2015.
- Schedule G covers land and building: terraces, semi-detached and bungalows with an individual title.
- Schedule H covers buildings or land to be subdivided into parcels: condos, apartments and landed schemes sold with strata title.
- The terms cannot be bargained away. In Ang Ming Lee (26 November 2019), the Federal Court held that the Controller of Housing could not change the statutory Schedule H contract to extend a developer’s deadline.
- Commercial projects are different. In August 2025 the housing minister told Parliament that Act 118 does not cover commercial projects such as shop lots and offices. Some JB units marketed as homes, such as SOHOs, sit on commercial land. Ask which SPA form the project uses; if it is not Schedule G or H, the contract alone sets the stages, deadlines and damages.
On 31 July 2026 the minister said a draft Real Property Development Act, which would also cover certain commercial developments, was at its final drafting stage. Until a new law is in force, the 2015 schedules apply.
The stage-by-stage payment schedule
Since 2015 both agreements use the same percentages; some stage wording differs because one is a house and the other a parcel in a building.
| Stage | Schedule G (landed) | Schedule H (strata) | Share of price | On a RM1,000,000 home |
|---|---|---|---|---|
| 1. On signing the SPA | On signing | On signing | 10% | RM100,000 |
| 2(a) Foundation | Foundation and platform works | Work below ground level, including foundation | 10% | RM100,000 |
| 2(b) Structure | Reinforced concrete frame | Structural framework of the parcel | 15% | RM150,000 |
| 2(c) Walls | Walls with door and window frames in place | 10% | RM100,000 | |
| 2(d) Roof and services | Roof, wiring, plumbing (without fittings), gas piping, telecom cabling | Roofing or ceiling, plus the same services | 10% | RM100,000 |
| 2(e) Finishes | Internal and external finishes, including wall finishes | 10% | RM100,000 | |
| 2(f) Sewerage | Sewerage works serving the building | 5% | RM50,000 | |
| 2(g) Drains | Drains serving the building | 2.5% | RM25,000 | |
| 2(h) Roads | Roads serving the building | 2.5% | RM25,000 | |
| 3. Vacant possession | Handover with water and electricity ready for connection | Same, with strata title meant to be issued | 17.5% | RM175,000 |
| 4. Title | Original title in your name delivered | Transfer instrument and strata title delivered | 2.5% | RM25,000 |
| 5. Stakeholder sum | Held by the developer’s lawyer from handover: 2.5% released after 8 months, 2.5% after 24 months | 5% | RM50,000 | |
| Total | 100% | RM1,000,000 | ||
Stage 2 totals 65%; how fast bills arrive depends on construction progress.
How each progress bill works
- Certificate. The developer’s architect or engineer certifies that the stage is complete.
- Written notice. The developer sends you (or your bank) a notice with the certificate.
- 30 days to pay. The clock runs from when you receive the notice. After that, the SPA charges late payment interest at 10% a year, counted daily on the unpaid amount.
- Pay the right account. Payments go into the project’s Housing Development Account named in the SPA and bill, from which the developer can only withdraw for permitted purposes.
The booking fee and the 10% on signing
Under the statutory form, the first payment is the 10% on signing. Regulation 11(2), as amended in 2015, bars anyone, stakeholders included, from collecting any payment the contract does not prescribe. Many developers still ask for a booking amount, and the National House Buyers Association wrote in June 2026 that enforcement has been weak.
- It moves the delivery clock. In PJD Regency (Federal Court, 19 January 2021), late-delivery damages were counted from the date the booking fee was paid, not from the later SPA date.
- Reform is being studied. EdgeProp reported in May 2026 that the housing ministry was studying an “option to purchase” mechanism that would allow a regulated booking payment. It was not in force when I checked in November 2026.
- Protect yourself. Pay any booking amount only to the developer’s company account, keep the receipt, get the refund terms in writing and note the date.
Before you book, check the developer licence and advertising permit on KPKT’s TEDUH portal, as the ministry urged again in September 2026. My page on how I verify projects lists the checks I run, and my legal steps for buying in Johor guide covers what your lawyer does at signing.
Looking at a JB new launch?
Send me the project and price. I’ll tell you its SPA form, delivery deadline and the cash you need before a loan starts.
WhatsApp JasonHow your bank loan pays the stages
With a loan, you pay your own share first. This “differential sum” is the price minus the approved loan; once it is settled, every later bill goes to the bank, which pays the developer directly. Many banks lend foreigners a smaller share than locals (see my home loans for foreigners guide).
| Stage | Bill | You pay | Bank releases | Bank total so far |
|---|---|---|---|---|
| Signing (10%) | RM100,000 | RM100,000 | – | – |
| Foundation (10%) | RM100,000 | RM100,000 | – | – |
| Structure (15%) | RM150,000 | RM100,000 | RM50,000 | RM50,000 |
| Walls (10%) | RM100,000 | – | RM100,000 | RM150,000 |
| Roof and services (10%) | RM100,000 | – | RM100,000 | RM250,000 |
| Finishes (10%) | RM100,000 | – | RM100,000 | RM350,000 |
| Sewerage, drains, roads (10%) | RM100,000 | – | RM100,000 | RM450,000 |
| Vacant possession (17.5%) | RM175,000 | – | RM175,000 | RM625,000 |
| Title (2.5%) and stakeholder sum (5%) | RM75,000 | – | RM75,000 | RM700,000 |
Interest during construction (progressive interest)
During construction you pay interest each month only on the amount the bank has released. One bank’s disclosure sheet gives the formula: amount disbursed × rate × days in the month ÷ 365, and another bank charges interest on the daily outstanding amount from the first disbursement until repayments begin. This interest is normally paid by the buyer under the loan.
- Small at first, bigger later. At an assumed 4% a year (illustration only, not a quote), RM150,000 disbursed costs about RM493 for a 30-day month; RM625,000 costs about RM2,055.
- Full instalments start later, on the date in your letter of offer. My home loan calculator shows the full instalment.
Delivery deadline and late-delivery damages (LAD)
The statutory forms set the deadline for handing over vacant possession: 24 months from the SPA date under Schedule G and 36 months under Schedule H. If the developer is late, it owes liquidated ascertained damages (LAD) at 10% a year of the purchase price, calculated from day to day until you take vacant possession.
| Purchase price | LAD per day | LAD for 30 days late | LAD for 90 days late |
|---|---|---|---|
| RM600,000 | About RM164 | About RM4,932 | About RM14,795 |
| RM1,000,000 | About RM274 | About RM8,219 | About RM24,658 |
| RM1,500,000 | About RM411 | About RM12,329 | About RM36,986 |
- When the clock starts. Normally the SPA date, but from the booking fee date if one was collected earlier (PJD Regency, 2021).
- No ministry extensions. After Ang Ming Lee, extensions of time granted by the Controller are invalid. Take legal advice before signing any variation that extends the deadline.
- Set-off. The 2015 Schedule H added a clause letting buyers set LAD off against instalments owed to the developer, the National House Buyers Association noted in 2021.
- Claims. Buyers can claim through the Tribunal for Homebuyer Claims or the courts, within time limits; ask your lawyer.
Vacant possession and the defect liability period
Handover (vacant possession) triggers the 17.5% bill. After you take the keys:
- 24 months of defect liability. Defects that appear within 24 months of handover must be repaired by the developer at its cost within 30 days of receiving your written notice.
- If the developer does not repair. The agreement lets you carry out the repairs after notifying the developer and recover the cost, including from the 5% stakeholder sum held by the developer’s lawyer.
- Act early. The 5% is released in halves at 8 and 24 months, so report defects in writing, with dated photos.
My vacant possession and defect inspection checklist covers what to test on handover day.
Paying from abroad: what foreign buyers should plan for
The schedule is the same for foreigners, but paying bills from abroad over several years needs planning:
- Price floor and consent. Foreigners can generally buy Johor homes only from RM1 million, with exceptions such as designated zones (New Straits Times, April 2026), and need state consent. Ask whether your loan release waits for consent.
- The 30-day clock. Transfers from abroad take time, so keep a ringgit balance in Malaysia. Bank Negara’s Foreign Exchange Policy Notices (in force 1 October 2025) allow non-residents to open ringgit and foreign currency accounts, subject to each bank’s checks.
- Currency. Bills are fixed in ringgit while your currency moves, so budget with a margin.
- Loan size. If the bank approves less than you planned, your differential sum rises. Get loan approval in principle before you sign.
- Costs outside the schedule. Since 1 January 2026 foreign buyers pay 8% stamp duty on residential transfers, plus Johor’s state levy and legal fees. My buying costs calculator and stamp duty guide add these up.
- Notices and handover. Keep your SPA address current and arrange someone to inspect at handover if you cannot fly in; see managing JB property from overseas.
- Home-country rules. Indonesia, India and China have their own transfer rules. See paying for Johor property from abroad and, for Indian residents, the LRS and TCS guide.
This is general information, not legal advice. Read your own SPA, ask your lawyer to explain the payment, delivery and defect clauses before you sign, and ask your bank about drawdown and interest terms.
Where to buy if this matters to you
See my Johor Bahru new launch guide, or start by area:
- Iskandar Puteri: Medini, Puteri Harbour and EduCity, with the Second Link to Tuas.
- JB Sentral and Bukit Chagar: high-rise launches near the CIQ and the RTS Link station.
- Mount Austin: an established family area with condo and landed launches.
- Permas Jaya and Senibong: waterfront strata and landed projects on the east side.
- Bukit Indah and Gelang Patah: landed and strata launches towards the Second Link.
Compare areas on the JB property map.
More Johor guides: Condo vs landed vs SOHO in JB · Avoiding property scams in JB · Selling JB property as a foreigner · Flood risk in Johor Bahru
More Johor living guides: New launches in Johor Bahru · Legal steps to buy in Johor · Paying for JB property from abroad · Property scams in JB
Frequently asked questions
What is the progressive payment schedule for a new condo in Malaysia?
Under the statutory Schedule H agreement you pay 10% on signing, 65% over eight construction stages, 17.5% at vacant possession, 2.5% when the strata title is delivered and 5% held by the developer’s lawyer, released 8 and 24 months after handover.
Is a booking fee allowed for new launches in Malaysia?
Regulation 11(2) of the Housing Development Regulations bars collecting any payment the sale contract does not prescribe. In PJD Regency (2021) the Federal Court counted late-delivery damages from the booking fee date. The housing ministry was studying a regulated option-to-purchase system in 2026.
Do I pay interest while the property is under construction?
Yes, if you take a loan. You normally pay interest each month only on the amount the bank has released, until full instalments start on the date in your letter of offer.
How is LAD for late delivery calculated?
At 10% a year of the purchase price, from day to day, from the end of the 24-month (Schedule G) or 36-month (Schedule H) delivery period until you take vacant possession. On a RM1,000,000 home that is about RM274 a day.
How long is the defect liability period for a new home?
24 months from the date you take vacant possession. The developer must repair defects within 30 days of your written notice; if it does not, the agreement lets you repair them and recover the cost, including from the stakeholder sum.
Can a foreigner buy a new launch in Johor and pay from abroad?
Generally yes, from RM1 million for most residential property and with Johor state consent. Each bill is due 30 days after the developer’s notice, so many foreign buyers keep a ringgit balance in a Malaysian account to pay on time.
Buying a new launch in JB?
Tell me the project or area, your budget, whether you need a loan and where you are paying from. I will show you the SPA type, delivery deadline and a stage-by-stage cash plan. You can also book an appointment for a showroom or site visit, or a Zoom consultation if you are abroad.
Sources: Housing Development (Control and Licensing) (Amendment) Regulations 2015, P.U.(A) 106/2015, gazetted 1 June 2015, in force 1 July 2015; Board of Architects Malaysia, General Circular 2/2017 on the Third Schedule of Schedules G and H, 25 May 2017; MHub, vacant possession and handover billing handbook, last reviewed August 2026; MHub, how progress billing works in Malaysia, last reviewed August 2026; National House Buyers Association in EdgeProp, “New law: strata titles should come with vacant possession”, 6 May 2021; National House Buyers Association in EdgeProp, “Booking fees: legalising the prohibited?”, August 2021; AskLegal, LAD and the booking fee date after PJD Regency, accessed November 2026; EdgeProp, “Legalising booking fees: a case for reform and its limits”, 14 May 2026; The Star, “Time to legalise booking fees?”, 7 June 2026; EdgeProp, Housing Development Act to be amended to cover sick commercial projects, 18 August 2025; Utusan Malaysia, KPKT studying a bill to protect buyers of commercial premises, 27 August 2025; Bernama, “Draft Real Property Development Act in final stage, says Nga”, 31 July 2026; PropertySifu, what the Housing Development Act (Act 118) covers, updated September 2026; Bank Negara Malaysia, Consolidated Foreign Exchange Policy Notices, in force 1 October 2025; New Straits Times, “Foreigners hit Johor property resale wall”, 20 April 2026; LHDN, Garis Panduan Pengenaan Duti Setem, First Schedule, Stamp Act 1949, 30 June 2026; Malay Mail, KPKT urges buyers to check TEDUH, 7 September 2026
Jason Lim, REN 84424, IQI Realty Sdn. Bhd. E (1) 1584/6. General information checked on 4 November 2026, not legal, tax or financial advice. The statutory forms, court rulings, bank terms and state rules can change; your own SPA, letter of offer and lawyer’s advice govern your purchase.