Buying a new launch property in Malaysia: the complete 2026 guide
When you buy a new launch from a developer in Peninsular Malaysia, the contract is not the developer's own document. It is a standard sale and purchase agreement (SPA) set out in the Housing Development (Control and Licensing) Regulations 1989, as amended in 2015: Schedule G for landed homes and Schedule H for high-rise units. That standard form fixes when you pay, when you get the keys and what the developer owes you if it is late.
Buying new launch property in Malaysia follows the same order for every buyer, whatever the project. You check the developer's licence, book a unit, sign the SPA, take a loan, pay in stages as the building goes up, collect the keys and then report defects.
This guide walks through each step from showroom to keys, with the rules that protect you, a worked example on a RM1m unit, and a checklist of costs.
Quick answer: Check the developer's licence and permit on KPKT's TEDUH portal, then book and sign the standard SPA (Schedule G or H). Under that standard SPA, you pay 10% on signing and the rest in stages as construction progresses. Keys are due within 24 months (landed) or 36 months (high-rise) of the SPA date, late delivery earns you damages at 10% a year of the price, and defects found in the 24 months after handover are the developer's to fix.
Before you book: budget, loan and the project's licence
The most useful work happens before you pay anything. A new launch takes years to finish, so you need to know three things first: what you can afford, whether a bank will lend to you, and whether the project is properly licensed.
Set your budget and get a loan in principle
Start with the price, then add the costs that sit on top of it: stamp duty, legal fees and the down payment the bank will not cover. Many buyers fund the 10% due on signing the SPA themselves and borrow the rest. Ask two or three banks for an indication of how much they will lend before you visit a showroom, because the time between booking and signing the SPA can be short.
Banks look at your income, existing debts and credit record. The loan amount and tenure are your bank's decision. A calculator gives a rough idea of the instalment on a given loan; the bank's letter of offer has the final figure.
Check the developer's licence and the sales permit
A developer selling homes in Peninsular Malaysia needs a housing developer's licence and an advertising and sales permit for the project, issued by the National Housing Department under KPKT (the Ministry of Local Government Development). You can look up both, along with the project's status, on KPKT's TEDUH portal. Ask the sales team for both numbers and match them against the portal.
The same regulations limit what a licensed developer may put in an advertisement. Since the 2015 amendment, ads must not offer free legal fees, projected returns or rental income, claims of a panoramic view, or travelling times to popular destinations (regulation 8(1A)). If a brochure leans on any of these, treat it as a reason to read the rest of the paperwork more carefully.
The booking fee and what it secures
Most showrooms ask for a booking fee to hold a unit while the SPA is prepared. The regulations do not set a booking fee amount. The 2015 amendment to regulation 11(2) says that no person, including anyone acting as a stakeholder, may collect any payment by whatever name called except as prescribed by the contract of sale, and the standard SPA's first payment is the 10% due on signing.
Booking fees are still common in practice, so read the booking form closely. Before you pay, check:
- Who receives the money. It should be the developer or its lawyer as stakeholder, against an official receipt in your name.
- Whether it counts towards the 10%. It normally does, and the form should say so.
- The refund terms. What happens if your loan is rejected, or if you decide not to sign.
- Any deadline. The standard SPA does not set a time to sign after booking. Any deadline comes from the developer's booking form, so read it and note the date.
Keep the receipt with the date on it. If something goes wrong later, your lawyer will want to see exactly what you paid and when.
The sale and purchase agreement: Schedule G or H
The SPA is where your rights are set. For a licensed housing development in Peninsular Malaysia, it must follow the statutory form: Schedule G for a house on its own lot and Schedule H for a unit in a subdivided building, such as a condominium or serviced residence. The developer cannot write its own terms on payments, delivery or damages. Your lawyer's job is to check that the document you sign matches the form and that the schedules (unit, floor plan, building description, price) are right.
The clauses that matter most to a buyer:
| Clause (Schedule H numbering) | What it says |
|---|---|
| Payment of the price (clause 5, Third Schedule) | 10% on signing, then stage payments within 30 days of the developer's written notice |
| Late payment charges (clause 10) | 10% a year, day to day, on any instalment you leave unpaid past 30 days |
| Time for vacant possession (clause 25) | Keys within 36 months of the SPA date; damages at 10% a year of the price if late |
| Manner of vacant possession (clause 27) | Requires a certificate of completion and compliance (CCC), the separate strata title, and water and electricity ready for connection |
| Common facilities (clause 29) | Completed within 36 months, or damages at 10% a year on the last 20% of the price |
| Defect liability period (clause 30) | Defects appearing within 24 months of vacant possession repaired by the developer within 30 days of your written notice |
Source: Housing Development (Control and Licensing) Regulations 1989, Schedule H, as amended by P.U. (A) 106/2015 (as of 26 Oct 2026)
Schedule G works the same way for landed homes, with one big difference: keys are due within 24 months of the SPA date, not 36. Both forms make time "of the essence", so the dates in them are firm commitments on both sides.
Your lawyer will also explain the purchaser's right to bring a claim in your own name, how the developer's lawyer holds part of the price as stakeholder, and what happens if either side terminates. Ask your questions before you sign.
Down payment and the progressive payment schedule
The statutory schedule decides when each part of the price is due, and you cannot be asked to pay ahead of it. You pay 10% on signing. After that, the developer bills each construction stage once its architect certifies the work is done, and each bill is due within 30 days of the written notice.
Example: You buy a RM1,000,000 high-rise unit under Schedule H. You pay RM100,000 on signing. The construction stages are billed one by one: foundation and below-ground work 10% (RM100,000), structural framework 15% (RM150,000), walls with door and window frames 10% (RM100,000), roof or ceiling, wiring and plumbing 10% (RM100,000), internal and external finishes 10% (RM100,000), then sewerage 5%, drains 2.5% and roads 2.5% (RM100,000 together). That is 65%, or RM650,000. You pay RM175,000 (17.5%) when you take vacant possession, RM25,000 (2.5%) when the developer delivers the transfer with your strata title, and the last RM50,000 (5%) is held by the developer's lawyer and released in two halves, 8 months and 24 months after vacant possession.
The schedule protects you in two ways. First, most of the price is paid only as work is finished, so your money follows the construction. Second, 25% of the price is tied to handover, the title and the defect period, which gives the developer a reason to finish properly.
If you pay a bill late, the developer can charge late payment interest at 10% a year, day to day, unless the delay comes from an incomplete or non-compliant progress notice. Forward every notice to your bank the day it arrives.
The loan agreement and how the bank pays the developer
Once the SPA is signed, you sign a loan agreement with your bank, prepared by the bank's lawyer. From then on, the developer sends each progress notice to you and to your bank, and the bank pays its share directly to the developer. You usually start paying interest only on the amount the bank has released so far, so your monthly payments rise as the building goes up. Ask your bank how it charges during construction and when full instalments begin.
The loan agreement is stamped separately from the transfer. Under the Stamp Act 1949, a loan agreement that is the main security for a loan pays RM5 for every RM1,000 of the loan, which is 0.5%. On a RM900,000 loan, that is RM4,500.
Interest rates move with the Overnight Policy Rate (OPR). Bank Negara Malaysia has held the OPR at 2.75% since 9 Jul 2025, most recently on 3 Sep 2026. Your rate depends on your bank's base rate and the spread in your offer letter, so compare the rates in actual offer letters.
Construction, late delivery and liquidated ascertained damages
Construction is the longest stage, and the one you control least. The SPA fixes the delivery date from the date of the agreement: 24 months for Schedule G and 36 months for Schedule H. If the developer misses it, it must pay you liquidated ascertained damages (LAD) calculated day to day at 10% a year of the purchase price, from the deadline until you take vacant possession.
Example: Your RM1,000,000 unit is handed over six months late. LAD at 10% a year is RM100,000 a year, or about RM274 a day. Six months of delay comes to about RM50,000.
The developer must pay LAD as soon as it gives notice to take possession. If it does not, the SPA lets you deduct the amount from any instalment still due. For high-rise projects, Schedule H adds separate damages if the common facilities are not ready within 36 months, at 10% a year on the last 20% of the price.
While the building goes up, keep every progress notice, receipt and letter in one place. Check the project's status on TEDUH from time to time. If a developer tells you the delivery date has been extended, ask your lawyer what that means for your SPA before you agree to anything.
If you have a dispute about LAD or defects, you can take a claim to the Tribunal for Homebuyer Claims under KPKT instead of going to court. Claims of up to RM50,000 can be heard, filing costs RM10, and the claim must be filed within 12 months of the CCC or the end of the defect liability period, depending on the claim (KPKT Tribunal FAQ). Confirm the current rules with KPKT or your lawyer before you file.
Vacant possession, the defect liability period and strata title
Vacant possession (VP) is the day you get the keys. Under Schedule H, the developer can hand over only when the certificate of completion and compliance has been issued, the separate strata title for your unit has been issued, and water and electricity are ready for connection. KPKT's notice on the 2015 amendments explains that strata title at VP was brought in to line up with the Strata Titles Act. If the title is delayed for reasons outside the developer's control, it can ask the Controller for written approval to hand over without it.
Thirty days after the developer's notice to take possession, you are treated as having taken VP whether or not you collect the keys. That date starts the defect liability period, so arrange your inspection quickly.
The defect liability period lasts 24 months from VP. Any defect, shrinkage or other fault caused by poor workmanship or materials, or by the building not matching the approved plans, must be repaired by the developer within 30 days of your written notice. If it is not, you may get the work done yourself after notifying the developer of the cost and giving it a further 30 days, then claim the cost from the 5% held by the developer's lawyer. For Schedule H units, the period covers the common property too.
A short handover routine helps:
- Inspect the unit with the SPA's floor plan and building description in hand.
- List every defect in writing, with photos, and send it to the developer.
- Send a copy to the developer's lawyer before the 8-month and 24-month release dates, so the stakeholder sum is held until repairs are certified.
- Keep the developer's replies and the architect's certificates.
Costs and checklist
The purchase price is only part of what you pay. Here are the costs to plan for on a RM1,000,000 high-rise unit with a 90% loan (an assumption for this example), and when each falls due.
| Cost | When it is due | Example on RM1,000,000 |
|---|---|---|
| Booking fee | At the showroom | Set by the developer's form; usually part of the 10% |
| 10% on signing the SPA | On signing | RM100,000 |
| Stamp duty on the transfer (MOT) | When the transfer is stamped | RM24,000 |
| Stamp duty on the loan agreement | When the loan agreement is stamped | RM4,500 on a RM900,000 loan |
| Legal fees for the SPA and loan agreement | On signing each document | Set by the solicitors' fee scale; work it out with a calculator |
| Interest during construction | Monthly, as the bank releases payments | Depends on your loan |
| Utility deposits, maintenance charges and sinking fund | At or after VP | Set by the developer and utility companies |
Source: Stamp Act 1949, First Schedule items 27 and 32, updated text as at 1 Jan 2024 (as of 26 Oct 2026)
Example: Stamp duty on the transfer of a RM1,000,000 home under the Stamp Act's scale is 1% on the first RM100,000 (RM1,000), 2% on the next RM400,000 (RM8,000) and 3% on the next RM500,000 (RM15,000). Total: RM24,000. Above RM1,000,000, the rate is 4%.
First-home buyers on lower prices may pay less. In the Budget 2027 speech on 9 Oct 2026, the government proposed a full stamp duty exemption on the loan agreement and transfer for first homes up to RM500,000, and a 50% exemption on the part of the price above RM500,000 for first homes up to RM750,000, for SPAs signed from 1 Jan 2027 to 31 Dec 2030. This is a proposal until it is gazetted, so confirm with LHDN or your lawyer whether it applies when you sign.
Your checklist from showroom to keys
- Loan indication from at least one bank
- Developer's licence and the project's advertising and sales permit confirmed on TEDUH
- Booking form read: who receives the money, refund terms, any signing deadline
- Official receipt for the booking fee
- SPA checked by your lawyer against Schedule G or H, with the correct unit and price
- Loan agreement signed and every progress notice forwarded to your bank
- Delivery date noted, and LAD worked out if handover is late
- Defects listed in writing within the 24-month defect liability period
Where PropLaunch helps
Comparing projects is easier when the numbers sit side by side. As of 26 Oct 2026, PropLaunch lists 771 projects launched in 2026 and 478 upcoming projects with no sales recorded yet, each with list-price ranges and units left. Before you commit, you can work out your stamp duty and legal fees for a given price. PropLaunch is an information site, not an estate agency: a registered estate agency arranges viewings and price lists.
Frequently asked questions
How much is the booking fee for a new launch in Malaysia?
There is no fixed amount in the regulations. The housing regulations say no one may collect any payment except as the SPA prescribes, and the SPA's first payment is 10% on signing. If a developer asks for a booking fee, check that it counts towards the 10%, get an official receipt and read the refund terms.
How long do I have to sign the SPA after booking?
The standard SPA does not set a period between booking and signing. Any deadline is in the developer's booking form, so read it before you pay and agree a date with your lawyer and bank.
What is the difference between Schedule G and Schedule H?
Schedule G is the standard SPA for a house on its own lot, and Schedule H is for a unit in a building that will be subdivided into strata parcels, such as a condominium. Schedule G gives 24 months to deliver vacant possession and Schedule H gives 36 months. Both pay damages at 10% a year of the price for late delivery and give a 24-month defect liability period.
When does the bank start paying the developer?
After you sign the loan agreement, the bank pays each progress bill as the developer issues it, usually once you have paid the 10% on signing. Each bill is due within 30 days of the developer's notice, so send it to your bank straight away.
What happens if my new launch is delivered late?
The developer owes you liquidated ascertained damages at 10% a year of the purchase price, calculated day to day from the delivery deadline until you take vacant possession. It must pay when it gives notice to take possession, or you can deduct the amount from instalments still due.
How long is the defect liability period?
It is 24 months from the date you take vacant possession. The developer must repair reported defects within 30 days of your written notice, and part of the price is held by its lawyer until then.
Do I get the strata title when I collect the keys?
Under Schedule H, the separate strata title must be issued before vacant possession, unless the Controller has certified that the developer may hand over without it for reasons outside its control. The last 2.5% of the price is linked to the developer delivering the transfer and the strata title.
Can I pay a progress bill late?
You can, but the developer may charge late payment interest at 10% a year, day to day, on the unpaid amount once the 30 days have passed. It cannot charge it if the delay is caused by an incomplete or non-compliant notice.
Before you book
Check the developer's licence and permit on TEDUH, read the booking form line by line and ask your lawyer to compare the SPA with Schedule G or H. Then work out the full cost on top of the price, so the 10% on signing and the stamp duty are ready on the day.
Work out your stamp duty and legal fees
This guide is general information, not financial, legal or tax advice. Rules and rates change; confirm the figures that apply to you with your bank, your lawyer or LHDN before you commit. PropLaunch is not a real estate agency.
Related guides
More on buying a new launch
LAD for property in Malaysia: how late delivery compensation works and how to claim
The 24 and 36 month rules, the 10% rate, extensions and the Tribunal.
Freehold vs leasehold in Malaysia: what it means for you
How tenure affects price, financing and resale, and when leasehold is fine.
How to read an advertising and sales permit in Malaysia, and the completion date
What the developer's licence and permit tell you before you book.