Subsale vs new launch: which should you buy?
Facts checked 22 October 2026 · 7 sources
A subsale is a property bought from its current owner; a new launch is bought from a developer, usually before it is built. Both can be good buys. The right choice depends on when you need to move in, how much cash you have now, and how much risk you can take.
- Move in: subsale
- About 3–4 months after the SPA
- Move in: new launch
- Up to 24 months landed, 36 months strata
- Deposit for both
- 10% at the SPA
On this page
At a glance
Who you buy from
Subsale: The current owner
New launch: A licensed developer
What you see before buying
Subsale: The actual home, neighbourhood and building upkeep
New launch: A show unit, brochure and plans
Contract
Subsale: Private SPA: terms are negotiated
New launch: Statutory SPA (Schedules G–J) that the developer can’t vary
Deposit
Subsale: Usually 2–3% with the offer, 10% total at the SPA
New launch: 10% at the SPA; booking fees are not provided for in the rules
Paying the balance
Subsale: In full at completion, usually within 3 + 1 months
New launch: In stages as construction progresses (or 90% at completion for build-then-sell)
Move-in
Subsale: Within months
New launch: Up to 24 months landed or 36 months strata, with 10% a year compensation if late
Defects
Subsale: Sold as it is; you inspect before buying
New launch: 24 months of developer repairs after handover
Price
Subsale: Negotiable; bank values it against recent sales
New launch: Developer price; rebates lower the amount the bank finances
Legal fees
Subsale: Scale fee, discount up to 25% allowed
New launch: Scale fee, no discount; developers sometimes pay as a promotion
Stamp duty
Subsale: Same scale and first-home exemption for both
New launch: Same scale and first-home exemption for both
Main risks
Subsale: Valuation shortfall, title issues, unpaid maintenance
New launch: Late or abandoned project, finishes not as shown
Choose a subsale if…
- You need to move in or rent it out soon.
- You want to see the actual unit, the building’s upkeep and the neighbours before you commit.
- You want an established area with mature amenities and a track record of prices and rents.
- You can fund a gap if the bank’s valuation comes in below your price.
Choose a new launch if…
- You can wait 2–3 years and want to spread payments over the construction period.
- You want new facilities, a modern layout and two years of free defect repairs.
- You value the standard SPA protections: late-delivery compensation and a ring-fenced Housing Development Account.
- The developer has a strong delivery record, and the project checks out on the Housing Ministry’s TEDUH portal.
How the money works
For a subsale you pay the full balance at completion, so loan instalments start within months. For a sell-then-build new launch, the bank releases the loan in stages and you usually pay interest only on what has been released, but you may be paying rent and loan interest at the same time until handover.
Stamp duty is the same for both: 1–4% of the price by band, plus 0.5% of the loan, and Malaysian first-home buyers at RM500,000 or below pay none for SPAs signed up to 31 December 2027.
Questions people ask
Is it better to buy a subsale or a new launch in Malaysia?
Neither is always better. A subsale suits buyers who need to move in soon and want to see what they are buying; a new launch suits buyers who can wait, want to spread payments over construction and want the statutory SPA protections.
Is a new launch cheaper than a subsale?
Not necessarily. Compare the price per square foot with recent subsale transactions nearby. Developer rebates lower the price the bank finances, and a new launch has no rental income or track record yet.
Which is faster to move into?
A subsale: usually 3 to 4 months after signing the SPA. A new launch can take up to 24 months for landed homes and 36 months for strata homes.
Is stamp duty different for subsale and new launch?
No. The same scale applies (1% to 4% by band, plus 0.5% of the loan), and so does the first-home exemption for Malaysian citizens buying at RM500,000 or below.
Sources
- LHDN guideline on stamp duty under the First Schedule, Stamp Act 1949 (30 Jun 2026)
- Budget 2027 tax measures (Ministry of Finance), appendix 16: first-home exemption (tabled Oct 2026)
- Housing Development (Control and Licensing) Act 1966 (Act 118) (text as at 2 Mar 2016)
- KPKT: check TEDUH before you buy (Bernama) (7 Sep 2026)
- Solicitors’ Remuneration Order 2023 (Bar Council circular 185/2023) (13 Jul 2023)
- LAD and vacant possession periods (Thomas Philip, law firm) (undated)
- Subsale cash flow and deposits (DNH, law firm) (undated)
General information, not legal or financial advice. Rules and rates change; confirm with your lawyer, bank or the relevant authority before you commit.