Jason Lim · Johor Bahru property advisor

Unit smaller than the SPA area in Malaysia (2026): the 2% rule, how to measure and how to claim

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By Jason Lim, REN 84424 · IQI Realty · Checked on 13 November 2026

This guide is for buyers of new condos and landed homes in Johor Bahru and the rest of Peninsular Malaysia, including buyers from Singapore, Indonesia, India and China, who suspect their unit is smaller than the sale and purchase agreement (SPA) promised. The short answer: under the standard SPA for strata homes (Schedule H), if the area on your strata title is smaller than the area in the approved building plan by more than 2%, the developer must cut the price for the shortfall beyond 2%, at the rate per square metre stated in the SPA, within 30 days of the strata title being issued. If the developer does not pay, the Tribunal for Homebuyer Claims can hear the claim.

Quick answer

  • Strata units (Schedule H, clause 13): price adjusted for any shortfall beyond 2% of the building-plan area; no extra charge if the unit is bigger; paid within 30 days of the strata title.
  • Landed homes (Schedule G, clause 14): price adjusted per square metre if the land area on the final title differs from the layout plan; the developer can charge extra only up to 2% of the area.
  • Compare the right numbers: the strata title area against the SPA building-plan area, not the brochure “built-up” figure.
  • Parcel boundaries: measured to the centre of the walls, floors and ceilings (Strata Titles Act 1985, section 13(3)), so a tape measure inside the room will always read less.
  • Claim: Tribunal for Homebuyer Claims, up to RM50,000 per claim, RM10 to file, generally within 12 months of the CCC or the end of the defect liability period.
  • Older SPAs: forms signed before the 2015 amendments used a 3% threshold. Check your own agreement.

Why your unit can measure “smaller”

Most “my unit is smaller” complaints I hear in JB start with comparing two different measurements. Before assuming a shortfall, check which of these figures you are looking at:

FigureWhere you see itWhat it measures
Brochure or listing “built-up”Sales gallery, price lists, listingsA marketing figure, usually in square feet; may include balconies, AC ledges or planter boxes
Building-plan area in the SPAThe SPA’s schedules and attached plansThe parcel area from the approved building plan, in square metres; the figure clause 13 uses
Strata title areaYour strata title and the certified strata planThe surveyed parcel area, to the centre of the walls, floors and ceilings
Your own measurementLaser or tape measureClear floor space inside the walls, which is always less than the parcel area
Accessory parcelsStrata title, accessory parcel planSpaces such as a car park bay that belong to your unit but are listed separately
Sources: Strata Titles Act 1985, sections 4, 8A and 13(3); Housing Development (Control and Licensing) (Amendment) Regulations 2015, Schedule H. One square metre is about 10.76 sq ft.

Under section 13(3) of the Strata Titles Act 1985, the boundary between a parcel and the next parcel or the common property is generally taken to be the centre of the floor, wall or ceiling, unless the storey plan shows otherwise. So the title area includes half the thickness of your walls, and part of what looks like a “missing” 30 sq ft may simply be walls and columns. My guides to built-up vs land area and accessory parcels explain the terms.

What the standard SPA says

New homes sold by licensed developers in Peninsular Malaysia must use the statutory SPA forms in the Housing Development (Control and Licensing) Regulations 1989: Schedule G for landed homes and Schedule H for strata parcels. The current forms were substituted by the 2015 amendment regulations, in force from 1 July 2015.

Schedule H (strata), clause 13Schedule G (landed), clause 14
ComparesArea on the strata title vs area in the approved building planArea on the final land title vs area in the approved layout plan
If smallerPrice reduced for the shortfall beyond 2% of the building-plan area, at the SPA’s rate per m²Price adjusted at the SPA’s rate per m²
If biggerNo price increase for the developerThe developer can charge extra, but only up to 2% of the lot area
DeadlineDeveloper pays within 30 days of the strata title being issuedAdjustment paid within 30 days of the final title being issued
Can you cancel?No. A wrong area does not end the sale; it gives a right to an adjustment (clause 13(1) and (2))The clause provides for a price adjustment
Source: Housing Development (Control and Licensing) (Amendment) Regulations 2015, new Schedules G and H (Malay text published by PKNS), checked November 2026. The rate per square metre is filled in for each SPA.

If your SPA was signed under the older forms, the threshold may differ: the pre-2015 Schedule H text published by the National House Buyers Association used 3% rather than 2%. Ask your lawyer which version you signed.

A worked example

ItemFigure
Building-plan area in the SPA100 m² (about 1,076 sq ft)
Area on the strata title96 m²
Shortfall4 m² (4%)
Tolerance with no adjustment (2% of 100 m²)2 m²
Area to be adjusted2 m²
Rate stated in the SPA (assumed)RM6,500 per m²
Price reduction due from the developerRM13,000
Illustration only, with made-up figures and my calculations. Use the areas and the rate in your own SPA and title.

If you have a home loan, the bank financed the original price, so tell your lawyer and the bank how any refund will be handled.

What the clause does not cover

  • Brochures and show units. In February 2021 the Federal Court set aside a tribunal award to a Singaporean buyer of a Johor condo who had expected a covered balcony like the show unit’s. The tribunal can decide claims only on the SPA’s express terms, not on what a show unit or showroom suggested (Malay Mail, 10 February 2021).
  • The built-up area of a landed house. Clause 14 deals with land area. If the house itself was not built to the approved plans and specifications in the SPA, that is a technical (defect) claim instead.
  • Subsale buyers. The adjustment right sits with the original buyer under the SPA. If you bought from the first owner, ask a lawyer whether the right passed to you.
  • Homes outside the Housing Development Act. Commercial-titled serviced apartments and some other projects may use non-statutory SPAs with different clauses; see serviced apartments on commercial title.

Not sure your unit measures up?

Send me the SPA area and the title area. I’ll help you compare the right figures and line up the documents before you write to the developer.

WhatsApp Jason

How to check your unit’s size

  1. Find the SPA figure. Look for the parcel area in square metres in the SPA’s schedule and the attached building, floor and storey plans. Convert the brochure figure only for reference.
  2. Get the title figure. Once your strata title is issued, its area is the legal one. Your lawyer, the developer or a title search at PTG Johor or the district land office can confirm it; see land title searches.
  3. Check accessory parcels. Make sure you are not comparing a figure that includes the car park bay or a yard with one that lists it separately.
  4. Measure, but read the result carefully. A laser measure of each room helps you spot a big gap, such as a missing balcony or a room much smaller than the floor plan. It cannot prove a 2% shortfall, because walls are partly inside the parcel.
  5. Get expert help for a real dispute. A licensed land surveyor can compare the certified strata plan with the building, and an architect can compare the built unit with the approved plans.

For landed homes, compare the land area on the final title with the layout plan in the SPA. At handover, use my vacant possession inspection checklist to record room sizes and anything that differs from the plans.

How to claim the adjustment

1. Write to the developer

Send a letter citing clause 13 of your SPA (or clause 14 for landed), with copies of the SPA plans and the strata title, the areas, the shortfall beyond 2% and the amount at the SPA’s rate. Ask for payment within the 30 days the clause allows from the title’s issue, or within a short deadline if that has passed. Keep proof of delivery.

2. File at the Tribunal for Homebuyer Claims

If the developer will not pay, the tribunal (Tribunal Tuntutan Pembeli Rumah) under the housing ministry, KPKT, hears claims based on the SPA between a buyer and a licensed developer in Peninsular Malaysia and Labuan. Its Southern Zone office is in Johor Bahru (KPKT, August 2025).

PointWhat applies
LimitUp to RM50,000 per claim (section 16M of Act 118), or more if both sides agree in writing; in March 2023 the Federal Court held the cap applies to each separate claim
FeeRM10 to file Form 1
Time limitWithin 12 months of the certificate of completion and compliance (CCC), or of the end of the defect liability period in the SPA (section 16N(2)); Schedule H sets that period at 24 months from vacant possession
LawyersGenerally not allowed; you present the claim yourself
AwardBinding and enforceable as a court order; ignoring it is an offence
Sources: KPKT, Soalan Lazim Tribunal Tuntutan Pembeli Rumah, updated 20 January 2023; Housing Development (Control and Licensing) Act 1966, sections 16M and 16N; FMT, 17 March 2023. Check the current filing channel with KPKT.

Bring the SPA with its plans, the strata title, the CCC, your letters to the developer and any surveyor’s report. My guide to the Tribunal for Homebuyer Claims covers the forms and hearing step by step.

3. Court, if the tribunal is not available

If the tribunal’s window has passed, for example because the strata title came late, or the claim is too large, a court claim on the SPA is generally possible within the six years the Limitation Act 1953 (section 6) allows for contract claims. That needs a lawyer and costs more, so weigh the amount at stake.

Before you buy: avoid the problem

Where to buy if size matters to you

Compare them on my JB property map.

More Johor living guides: Tribunal for Homebuyer Claims · Built-up vs land area · Strata title explained · Late vacant possession and LAD claims

Frequently asked questions

What can I do if my condo unit is smaller than stated in the SPA?

Compare the area on your strata title with the building-plan area in the SPA. Under clause 13 of the Schedule H SPA, if the title area is smaller by more than 2%, the developer must reduce the price for the shortfall beyond 2% at the SPA’s rate, within 30 days of the title being issued.

What is the area tolerance in a Malaysian SPA?

For strata units under the 2015 Schedule H form, 2% of the building-plan area: shortfalls up to 2% bring no adjustment. For landed homes under Schedule G, the developer can charge extra for a bigger lot only up to 2% of the area. Older forms used 3% for strata units.

Why does my own measurement show a smaller area than the strata title?

Parcel boundaries are generally taken to the centre of the walls, floors and ceilings under section 13(3) of the Strata Titles Act 1985. Measuring inside the rooms leaves out half the wall thickness, columns and ducts, so it will always read less.

Can I claim if the unit is smaller than the brochure or show unit?

Usually not on that basis alone. In February 2021 the Federal Court held that the homebuyer tribunal can decide claims only on the SPA’s express terms, not on what a show unit suggested. Compare the SPA plans and the title instead.

How do I claim the price adjustment from the developer?

Write to the developer citing the area clause, with the SPA plans, the strata title and your calculation. If it does not pay, file at the Tribunal for Homebuyer Claims: up to RM50,000 per claim, RM10 to file, generally within 12 months of the CCC or the end of the defect liability period.

Does the developer charge more if my unit turns out bigger?

Not for a strata unit under Schedule H: clause 13(4) says the developer gets no adjustment if the title area is larger. For a landed lot under Schedule G, the developer can charge for extra land only up to 2% of the lot area.

Checking a unit’s size in JB?

Whether you already own the unit or are comparing new launches, send me the SPA area, the title area or the floor plan. I will help you compare like with like and organise your documents if a claim looks worthwhile; the claim itself is yours to file, or your lawyer’s. You can also book an appointment, or a Zoom consultation if you are abroad.

Sources: Housing Development (Control and Licensing) (Amendment) Regulations 2015, new Schedules G (clause 14) and H (clauses 13 and 30), in force 1 July 2015, Malay text published by PKNS, checked November 2026; Schedule H (2002 form), clause 13, as published by the National House Buyers Association, accessed November 2026; Attorney General’s Chambers, Laws of Malaysia: Strata Titles Act 1985 (sections 4, 8A and 13), Housing Development (Control and Licensing) Act 1966 (sections 16M, 16N, 16AC and 16AD) and Limitation Act 1953 (section 6), checked November 2026; Housing Developers (Control and Licensing) (Amendment) Act 2002 (Act A1142), section 16N, as published by the National House Buyers Association; KPKT, Soalan Lazim Tribunal Tuntutan Pembeli Rumah, updated 20 January 2023, checked November 2026; KPKT, Mengenai Tribunal Perumahan dan Pengurusan Strata (zone offices), updated 13 August 2025; FMT, “House buyers can split claims to stay within tribunal’s RM50,000 limit, says apex court”, 17 March 2023; Malay Mail, “Federal Court allows developer’s appeal to quash compensation awarded to Singaporean house buyer”, 10 February 2021

Jason Lim, REN 84424, IQI Realty Sdn. Bhd. E (1) 1584/6. General information checked on 13 November 2026, not legal advice. Your SPA’s own clauses, plans and rate decide your entitlement; ask your conveyancing lawyer to check them, and confirm tribunal procedures and deadlines with KPKT before you file.