Urban Renewal Act Explained: What It Means if You Own an Old Condo or House

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By Jason Lim, REN 84424 · IQI Realty · Checked on 14 November 2026

Malaysia does not have an Urban Renewal Act yet. The Urban Renewal Bill 2025 was tabled in the Dewan Rakyat in August 2025, but it was never debated or passed, and in January 2026 the Cabinet said it would be reworked. As of the housing minister’s written reply in Parliament on 20 October 2026, it was still only a proposal, with no new tabling date. Nothing in it applies to your old condo or house today, but it is worth understanding what was proposed and what you can already do.

Where the Urban Renewal Bill stands in November 2026

Here is the timeline from Parliament and ministry statements, as reported by the national news media:

Date	What happened
25 February 2025	The Prime Minister told the Dewan Rakyat the proposed law would not lead to forced evictions or change land status, and that the threshold would only let negotiations start.
21 August 2025	The Urban Renewal Bill 2025 (Rang Undang-Undang Pembaharuan Semula Bandar), 31 clauses, was tabled for first reading by the Housing and Local Government Minister.
27–28 August 2025	The minister announced a single 80% threshold and demographic safeguards. The second reading was not debated and was pushed to the next sitting after objections from MPs.
1 September 2025	The minister said state governments had gazetted 534 urban renewal sites, 36 of them in Johor.
23 January 2026	The Cabinet decided to withdraw the bill for improvements and bring it back as a new draft. No date was given.
20 October 2026	In a written parliamentary reply, the minister described the bill as still proposed. The Edge reported it had not been formally withdrawn and remained on the order paper.

A new version could differ from the 2025 text, so this guide describes the bill as tabled and the changes ministers announced, not rules in force.

What the 2025 bill proposed

As tabled, it covered Peninsular Malaysia and Labuan, not Sabah or Sarawak, and it did not apply to heritage sites under the National Heritage Act 2005. The main parts were:

• Three kinds of project. Redevelopment (demolish and rebuild), regeneration and revitalisation (upgrading). Revitalisation needed the owner’s own consent, with costs agreed with the local council.
• Urban renewal areas. Sites identified in development plans under the Town and Country Planning Act 1976, declared by the state authority (or the federal minister for the Federal Territories) by gazette notification.
• Committees. Federal and state executive committees would choose and supervise approved developers. In Johor the state committee would sit under the Menteri Besar, with federal advice.
• Developer duties. Consult owners with the local council, collect consent, and get a visual inspection report from a professional engineer. Work had to start within 24 months of the declaration, unless extended.
• Owner protections. Owners who joined had to be offered benefits no less favourable than before, the option to stay in the area, and progress updates on request.
• Mediation. Federal and state mediation committees with town planners and experts in law, sociology, project management or economics.

In September 2025 the minister said replacement homes would be at least 750 sq ft with three bedrooms and two bathrooms, and that Malay reserve land, customary land and heritage buildings were not involved. In October 2026 he said replacement property would be valued on future values, paid for from developer profits the government regulates.

Owner consent rules: what was proposed

Consent is the heart of the debate. Today, ending a strata scheme so a building can be sold and redeveloped needs a unanimous resolution under section 57 of the Strata Titles Act 1985, so a single owner can block it. The bill would have lowered that bar for committee-led projects.

Situation	Consent in the bill as tabled (Aug 2025)	Change announced by the minister
Owner applies voluntarily	All owners (unanimous)	No change reported
Building 30 years old or less	80%	80% for all committee-led projects, regardless of age
Building over 30 years old	75%	80%
Abandoned building, or one with a professional engineer’s visual inspection report	51%	80% reported as the single threshold

Building age was counted from the date of the certificate of fitness or certificate of completion and compliance under the Street, Drainage and Building Act 1974. The tabled text left the method of counting consent, such as per owner, per parcel or by share units, to rules the minister would make later. For a Johor owner, that open question matters as much as the percentage itself.

What happens to the owners who say no? Under clause 21(4) as tabled, the approved developer would obtain the land by purchase or by compulsory acquisition under the Land Acquisition Act 1960. My guide to government land acquisition and compensation explains how that Act works today.

The en-bloc debate: arguments on both sides

An en-bloc or collective sale is when owners in a development sell together to one buyer, usually for redevelopment. Singapore allows it with 80% consent for developments at least 10 years old and 90% for newer ones, Malay Mail noted in February 2025. Malaysia’s proposal went further because it could cover whole areas, not just one building.

The case for the bill

• Safety. The ministry presented it as a fix for dilapidated, unsafe buildings where one or two owners can stall any plan.
• Better homes. Owners of small old units would receive larger replacement homes in the same area.
• Use of urban land. Supporters argue that rebuilding old sites near town centres puts more homes where jobs and transport already are.

The objections

• Property rights. The Malaysian Bar said in August 2025 that owners who disagreed would face compulsory acquisition simply because a developer had gathered enough consent, and that this power should be kept for genuine public purposes.
• Thresholds. The Bar proposed at least 85% for older buildings and 90% for newer ones, with independent checks of consent instead of developer-collected consent.
• Compensation and tenants. Calls for relocation and disturbance allowances, a right of return, and protection for tenants and occupiers who are not on the title.
• Displacement and value. The National House Buyers Association questioned whether compensation would be adequate, and other critics feared lower-income residents could be displaced after rebuilding.
• Landed homes. A commentary in The Star in January 2026 pointed out that renewal areas are defined by location, so a well-kept terrace house could sit inside one and be offered a high-rise unit in return.

The government’s answers so far were the single 80% threshold, demographic checks by the committees, the option to stay in the area, and valuation based on future values. Whether the next draft keeps compulsory acquisition for holdouts is the question to watch.

What it could mean in Johor

Johor Bahru has many homes past the 30-year mark, from walk-up flats to terrace estates in Skudai, Tampoi and Tebrau. The 36 Johor sites the minister mentioned were gazetted by the state, and no list came with that statement. The best way to see whether your area is earmarked for renewal is the local plan (Rancangan Tempatan) on PLANMalaysia@Johor’s portal or at your council, MBJB, MBIP or MPKu. My guide to checking zoning and the local plan in Johor shows how.

If you own from overseas, keep your address current with the land office, council and management so notices reach you, and consider a power of attorney.

What owners of old strata homes can do now

Whatever happens to the bill, the condition of your building is the thing you can influence today, through the Strata Management Act 2013:

1. Find your building’s age. Ask management for the certificate of fitness date; the bill used it to set the threshold band.
2. Read the accounts. Check the sinking fund balance, arrears and any planned major works. See reading JMB and MC accounts and maintenance fees and sinking funds.
3. Attend and vote. Repairs, special levies and any approach from a redeveloper go through general meetings. See condo AGM voting and special levies for major repairs.
4. Use the formal routes. Complain to the Commissioner of Buildings at your council, or file a claim at the Strata Management Tribunal when management fails.
5. Get a written view before signing. If anyone asks you to sign a consent form or a letter of intent for an en-bloc or renewal deal, ask what it commits you to and have a lawyer read it first.

Buying into an older condo? My guide to buying an older condo covers loan tenure, lease remaining and repair risk, and JMB vs management corporation explains who runs the building.

What owners of old landed homes can do now

Step	Why it helps	Guide
Check the local plan for your lot	Shows zoning and any area marked for renewal or future roads	Zoning and local plan
Search your title	Confirms tenure, lease expiry, caveats and restrictions	Reading your geran
Plan for leasehold expiry	Older leasehold homes in Johor may need renewal sooner than owners expect	Leasehold renewal in Johor
Keep the house sound	Roof, wiring and approved extensions protect value under any scheme	Old wiring · Roof leaks
Know your value	A registered valuer’s report helps in any negotiation or acquisition	Independent valuation

Unapproved extensions can complicate a valuation, sale or compensation claim. See illegal extensions on subsale houses and renovation permits in JB.

Should you sell, hold or buy an old home because of this?

My honest view: don’t buy or sell on the bill alone. It is not law, its terms are being rewritten, and no one can say which buildings would be chosen. Judge an older home on location, condition, management, tenure and recent transaction prices. If you plan to move anyway, my guides to downsizing, selling first or buying first and what sellers pay help you plan.

Where to buy if this matters to you

• Tebrau, Setia Indah and Molek: established estates, older terraces and newer condos.
• Skudai, Tampoi and Kempas: many older homes; check condition and the local plan.
• JB Sentral and Bukit Chagar: old city blocks beside new towers near the RTS Link station.
• Mount Austin: a younger township if you prefer newer stock.
• Iskandar Puteri: mostly newer developments.

Compare them on my JB property map, or weigh subsale vs new launch.

More Johor living guides: Buying an older condo · Land acquisition and compensation · Strata title explained · Freehold vs leasehold · Abandoned housing projects

Frequently asked questions

Has the Urban Renewal Act been passed in Malaysia?

No. The Urban Renewal Bill 2025 was tabled in August 2025 but never debated or passed. The Cabinet decided in January 2026 to rework it, and in October 2026 the housing minister still described it as a proposed bill, with no new tabling date.

What consent threshold did the Urban Renewal Bill propose?

As tabled: 80% of owners for buildings up to 30 years old, 75% for older buildings and 51% for abandoned or engineer-flagged buildings. In August 2025 the minister announced a single 80% threshold. A new draft may set different rules.

Could I be forced to sell my home under the Urban Renewal Bill?

Not today. Under the 2025 text, once the threshold was met, the developer could obtain remaining land by purchase or compulsory acquisition under the Land Acquisition Act 1960. That clause drew the strongest objections, and the bill is being reworked.

Does the Urban Renewal Bill cover landed houses?

It could. Renewal areas are identified by location in development plans, not by property type. Heritage sites were excluded, and the minister said Malay reserve and customary land were not involved.

Can an old condo be sold en bloc in Malaysia today?

Only if all owners agree. Ending a strata scheme needs a unanimous resolution under section 57 of the Strata Titles Act 1985, so one owner can block a collective sale. Lowering that bar is what the bill proposed.

Are there urban renewal sites in Johor?

The housing minister said in September 2025 that Johor had gazetted 36 of 534 urban renewal sites nationwide. To see if your area is affected, check the local plan with PLANMalaysia@Johor or your city council.

Own an older condo or house in JB?

Tell me the building or taman, when it was completed and whether you plan to keep, sell or rent it out. I will share recent transaction ranges nearby and your options as the law stands today. You can also book an appointment, or a Zoom consultation if you live overseas.

Sources: Urban Renewal Bill 2025 (Rang Undang-Undang Pembaharuan Semula Bandar 2025), text as tabled in the Dewan Rakyat, 21 August 2025; The Star, “Urban Renewal Bill tabled to rejuvenate ageing buildings and spaces”, 21 August 2025; Malay Mail, on what the Urban Renewal Bill means for ageing neighbourhoods, 22 August 2025; The Edge Malaysia, “Govt to raise consent threshold to 80% for all projects”, 27 August 2025; Malaysian Bar, position on the Urban Renewal Bill 2025, 27 August 2025; The Star, “State governments gazetted 534 urban renewal sites”, 1 September 2025; The Edge Malaysia, on the Prime Minister’s assurance on evictions and land status, 25 February 2025; Malay Mail, on en-bloc sales and strata homeowners, 24 February 2025; FMT, “The Urban Renewal Act controversy explained”, 26 February 2025; The Star, “Landed property owners beware” (commentary), 4 January 2026; Malay Mail, “Urban Renewal Bill ready to be re-tabled for second reading”, 20 January 2026; Bernama, “Urban Renewal Bill withdrawn for comprehensive enhancements”, 23 January 2026; The Star, “Govt withdraws Urban Renewal Bill to make further refinements”, 23 January 2026; The Star, “Urban Renewal Bill to complement laws on dilapidated strata buildings”, 21 October 2026; The Edge Malaysia, on valuing replacement properties under the Urban Renewal Bill, 21 October 2026

Jason Lim, REN 84424, IQI Realty Sdn. Bhd. E (1) 1584/6. General information checked on 14 November 2026, not legal advice. The Urban Renewal Bill is a proposal and may change; check the latest text with Parliament and KPKT, and ask a lawyer before signing any consent or sale document.