How to buy a new launch property in Malaysia

Before you pay anything, look the project up on TEDUH, the Housing Ministry’s portal and app. It shows whether the developer’s licence and the project’s advertising and sales permit (APDL) are valid, how far construction has progressed, whether the project is classed as late, sick or abandoned, any extensions of time granted, and the approved selling prices.

As of 30 June 2026 there were 100 abandoned and 303 sick private housing projects in Peninsular Malaysia, so this check matters.

Many developers ask for a “booking fee” to reserve a unit. The Housing Development Regulations do not allow anyone to collect payment other than what the SPA sets out, and the SPA makes the first 10% payable on signing. In practice booking fees are still common, and enforcement is rare.

If you do pay one, pay the developer directly (never an agent’s personal account) and keep the receipt. The Federal Court has held that the late-delivery clock runs from the date you paid the booking fee, not the SPA date.

Developers must use the statutory SPA forms: Schedule G for landed homes and Schedule H for strata (condos, apartments and serviced residences). Build-then-sell projects use Schedules I and J. Key terms such as the delivery period and late-delivery compensation can’t be changed in the developer’s favour.

You pay 10% of the price when you sign. Read the SPA, not just the brochure: only what is in the SPA is enforceable. Check the unit specifications, the common facilities, the delivery date and the Housing Development Account number your payments must go to.

Apply for financing before or right after signing, so the loan agreement is ready before the first progress bill. If the developer gives a rebate, the bank finances a share of the net price after the rebate, not the advertised price.

During construction the bank releases the loan in stages as the developer bills. Banks usually charge interest only on the amount released so far, and full instalments usually start once the loan is fully released or the property is handed over.

For sell-then-build projects you pay in stages as the building goes up. Each bill is due within 30 days of the developer’s notice, and late payment carries interest of 10% a year.

All your payments go into the project’s Housing Development Account. The law ring-fences this money: it isn’t the developer’s property if the developer is wound up.

The developer must hand over within 24 months for landed homes and 36 months for strata homes. Handover needs a Certificate of Completion and Compliance (CCC) and working water and electricity.

If the developer is late, you are entitled to liquidated ascertained damages (LAD) of 10% of the price a year, calculated daily until handover. Check TEDUH for any extension of time granted for your project.

After handover you have 24 months to report defects, and the developer must fix them at its cost. Report in writing, with photos, and keep copies.

For strata homes, you pay maintenance charges and a sinking fund (at least 10% of the maintenance charge) from handover. The developer runs the building at first, then calls the first meeting that forms the Joint Management Body. The last 2.5% payment is tied to delivering your title.

Stamp duty is charged on the transfer (memorandum of transfer) and on the loan agreement. Malaysian citizens buying their first home at RM500,000 or below pay no stamp duty on either, for SPAs signed up to 31 December 2027. Budget 2027 proposes extending this to 2030 with a partial exemption up to RM750,000; that becomes law only when the Finance Bill passes.

Lawyers’ fees follow the Solicitors’ Remuneration Order 2023: 1.25% of the first RM500,000 and 1% of the next RM7 million, for the SPA and again for the loan. Unlike subsales, the scale for developer sales can’t be discounted. Some developers offer “free legal fees” as a promotion, but you can still appoint your own lawyer.

The Tribunal for Homebuyer Claims hears claims against developers up to RM50,000, such as unpaid LAD or defect repair costs. You file within 12 months of the CCC, the end of the defect period or the SPA’s termination, and the filing fee is RM10. No lawyer is needed.

If work stops for six months or more, the law lets you end the SPA and get your money back, with your bank’s consent and the Controller of Housing’s certification. Build-then-sell projects (10% on signing, 90% on completion) avoid most of this risk, but they aren’t compulsory and are less common.