6 Checks Before Buying a New Launch: How to Avoid Abandoned Projects in Malaysia
Property Lab editorial teamPublished 11 min read
Key points
- As at 30 June 2026, KPKT counted 303 sick and 100 confirmed abandoned private housing projects in Peninsular Malaysia, with the abandoned ones involving 14,961 buyers.
- In Malaysia, a developer needs a licence and an advertising and sales permit to sell a new launch, and buyers can check both numbers on JPN's TEDUH portal.
- Under Act 118 in Malaysia, buyers' money must go into the project's Housing Development Account, and a buyer may end the SPA if work stops for 6 months in a row.
Contents
- How to check a new launch: the 6 checks before you book
- Check 1: Is the developer licensed, with a valid advertising and sales permit?
- Check 2: Does your money go into the Housing Development Account?
- Check 3: What do the land title and approvals show?
- Check 4: What is the developer's track record with KPKT?
- Check 5: Is the SPA the statutory Schedule G or H form?
- Check 6: What can you do if a new launch project is abandoned?
- Frequently Asked Questions
- References
You can lower the risk of an abandoned housing project in Malaysia by making 6 checks before you book a new launch: the developer's licence and permit, the Housing Development Account, the land and approvals, the developer's record, the statutory sale and purchase agreement, and your options if work stops. As at 30 June 2026, KPKT counted 100 confirmed abandoned private housing projects in Peninsular Malaysia, involving 14,961 buyers.
Search the developer and project on KPKT's TEDUH portal, pay only into the Housing Development Account named in a Schedule G or H agreement, and run a land search. No check removes all risk, but together they screen out unlicensed sellers and show warning signs early.
Key numbers (as at October 2026)
- Sick projects, 30 June 2026303
- Confirmed abandoned100
- Condo delivery period36 months
- Landed delivery period24 months
- Late delivery damages10% a year
- Tribunal claim limitRM50,000
Also called: projek terbengkalai (abandoned project); projek sakit (sick project); Akaun Pemajuan Perumahan (Housing Development Account, HDA); Permit Iklan dan Jualan (advertising and sales permit); Perjanjian Jual Beli (sale and purchase agreement, SPA); Tribunal Tuntutan Pembeli Rumah (TTPR, Tribunal for Homebuyer Claims); Bina Kemudian Jual (build then sell).
How to check a new launch: the 6 checks before you book
- Licence and permit: confirm the developer's licence and the advertising and sales permit on TEDUH.
- HDA account: make sure every payment goes into the project's Housing Development Account.
- Land and approvals: search the land title and confirm the building plan approval.
- Track record: look the developer up in KPKT's sick and abandoned project list.
- Statutory SPA: sign only the prescribed Schedule G or H form and pay by stage.
- Exit options: know your rights to terminate, claim and get help if work stops.
The checks follow the Housing Development (Control and Licensing) Act 1966, or Act 118, for Peninsular Malaysia; Sabah and Sarawak have their own laws.
Check 1: Is the developer licensed, with a valid advertising and sales permit?
In Malaysia, a housing developer needs a licence under section 5 of Act 118 to build homes for sale, and an advertising and sales permit under regulation 5 of the 1989 Regulations to advertise or sell them.
Regulation 6 says adverts other than radio and TV must print the licence number, the permit number and their validity dates, plus the land tenure and any encumbrance, the expected completion date and the authority that approved the building plans. Enter the project or developer name on TEDUH's licence and permit check, run by JPN, and compare the latest licence and permit numbers it lists with the brochure. If nothing matches, or the permit has expired, stop.
Since 1 July 2015, adverts may not promise free legal fees, projected rental returns, a panoramic view or travelling times to popular places, so treat such claims as a warning sign.
Check 2: Does your money go into the Housing Development Account?
Under section 7A of Act 118, a licensed developer must open a separate Housing Development Account for each project or phase and pay buyers' purchase money into it.
Regulation 7 of the Housing Development Account Regulations 1991 lists what the money may pay for, such as construction works, consultants' fees and project loan interest, with administration and marketing capped at 10% of the construction cost. Each withdrawal needs an architect's, engineer's or quantity surveyor's certificate.
- Your bank: must pay progress payments straight into the account, within 30 days of the developer's invoice.
- Cash: the developer must confirm in writing within 2 banking days that it was credited.
- Release: the balance can be taken out only after completion with a certificate of completion and compliance (CCC), title transfer and the end of the defect liability period.
The SPA names the account number and bank in its opening recitals. Match every payment notice to it, and never pay into a personal or third-party account.
Check 3: What do the land title and approvals show?
Before you book, confirm who owns the development land, whether it is charged to a lender, and that the building plans are approved, because a Malaysian sales permit depends on all three.
A land search on the master title shows the registered owner and any charge; see our guide How to Check Land Ownership in Malaysia. Then compare it with the SPA recitals, which name the landowner and any bank financing the developer.
- Landowner: no permit may be issued if the developer does not own the land, unless the owner has agreed in writing to the sale.
- Non-bank charges: nor if the land is charged for more than 50% of its market value to a lender that is not a licensed bank.
- Bridging loan: if the developer's bank is owed more than the early instalments cover, clause 3(4) of Schedule H says it must be paid off before you pay over half the price.
- Building plans: ask for the approval letter and match its reference to the advert.
Check 4: What is the developer's track record with KPKT?
The ministry publishes which private housing projects it classifies as sick or abandoned, so you can spot a developer in trouble before you commit.
According to JPN's abandoned project recovery division, a project is abandoned when it is unfinished and has had no significant site activity for 6 months in a row, or when the Minister certifies it abandoned under section 11(1)(ca) of Act 118. A sick project is running well behind schedule; a 2022 Sinar Harian report, citing the KPKT portal, put the test at more than 30% behind schedule or past the SPA completion date.
In a written reply reported by Bernama on 29 July 2026, KPKT gave 303 sick projects with 43,288 units and 100 confirmed abandoned projects with 27,998 units in Peninsular Malaysia at 30 June. Selangor had the most abandoned projects, at 41.
On TEDUH, open "Senarai Projek Sakit & Terbengkalai" and search by developer, project or state; TEDUH's FAQ says the list is updated monthly. Also ask whether the developer's earlier projects reached a CCC on time. In August 2025 KPKT told Parliament it blacklists the developer and directors of a confirmed sick or abandoned project.
Check 5: Is the SPA the statutory Schedule G or H form?
Every sale of a new home by a licensed developer in Peninsular Malaysia must use the prescribed agreement: Schedule G for landed homes and Schedule H for strata units such as condos.
- Stage payments: each is due within 30 days of a written notice backed by the architect's or engineer's certificate.
- Delivery time: 24 months from the agreement date for landed homes, 36 months for strata units.
- Late delivery: damages of 10% a year of the price, counted daily, until vacant possession.
- No side payments: regulation 11(2) says no person may collect any payment except as the contract of sale prescribes.
KPKT's TEDUH FAQ adds that developers may not collect any payment before the SPA is signed. If booking money taken before signing is not refunded, you can complain to KPKT.
Illustrative example, worked out in Python: a RM500,000 condo on the Schedule H payment schedule.
| Stage | Share | Amount | Paid so far |
|---|---|---|---|
| SPA signed | 10% | RM50,000 | Same |
| Foundation | 10% | RM50,000 | RM100,000 |
| Structural frame | 15% | RM75,000 | RM175,000 |
| Walls and frames | 10% | RM50,000 | RM225,000 |
| Roof, wiring, plumbing | 10% | RM50,000 | RM275,000 |
| Finishes | 10% | RM50,000 | RM325,000 |
| Sewerage | 5% | RM25,000 | RM350,000 |
| Drains | 2.5% | RM12,500 | RM362,500 |
| Roads | 2.5% | RM12,500 | RM375,000 |
| Vacant possession | 17.5% | RM87,500 | RM462,500 |
| Strata title delivered | 2.5% | RM12,500 | RM475,000 |
| Held by lawyer | 5% | RM25,000 | RM500,000 |
Percentages from the Third Schedule of Schedule H in P.U.(A) 106/2015, read in the gazette. Vacant possession needs water and electricity ready for connection. The last 5% is held by the developer's solicitor and released in halves, 8 and 24 months after vacant possession. Late delivery on this price costs the developer about RM136.99 a day (10% a year over 365 days).
If this project stalled after the structural frame, the buyer would have paid RM175,000, not the full price. See also Vacant Possession in Malaysia and Defect Liability Period in Malaysia.
Build-then-sell projects use Schedules I (landed) and J (strata), with 10% on signing and 90% at vacant possession with a CCC. In October 2025 the minister told Parliament the scheme stays voluntary, with incentives such as exemption from the Housing Development Account deposit.
Check 6: What can you do if a new launch project is abandoned?
If a Malaysian housing project stops, buyers have a right to terminate, a tribunal for claims up to RM50,000 and KPKT powers to step in, though none of these guarantees a finished home.
- Terminate: section 8A, as rewritten in 2012 and in force from 1 June 2015, lets you end the SPA if work stops for 6 months or more in a row, with your end financier's written consent and a Controller's certificate. The developer must refund your money, interest free, within 30 days.
- Claim: the KPKT tribunal FAQ caps each claim at RM50,000 unless both sides agree in writing; claims on an SPA ended before the CCC must be filed within 12 months of termination.
- Get a letter: JPN confirms sick or abandoned status in writing on a buyer's application, which can support a request to the bank to restructure instalments.
- Rescue: the Controller may use the Housing Development Account to complete a project. KPKT's task force says 1,726 projects were revived by August 2026, but only 37 of them had been abandoned.
- Penalty: under section 18A, abandoning a project carries a fine of RM250,000 to RM500,000, up to 3 years' jail, or both.
Section 7A(5) adds that the account's money is not the developer's property if it is wound up, so it stays tied to the project.
Key insight: the checks work best before you pay anything. Once the SPA is signed, your protection rests on the stage schedule and the Housing Development Account, so a TEDUH search and a land search cost little next to a stalled unit.
Law changes are only proposed. On 31 July 2026 the minister said a Property Development Act, planned as a replacement for Act 118, was in final drafting; in October he said Option to Purchase and Order to Build initiatives would launch soon. For costs beyond the price, see Cost of Buying a House in Malaysia 2026.
Frequently Asked Questions
What is an abandoned housing project in Malaysia?
JPN treats a private project as abandoned when it is unfinished and its site has had no significant work for six straight months, or when the housing minister certifies it abandoned under Act 118.
How do I check a developer's licence in Malaysia?
Use the "Semakan Lesen & Permit" page on teduh.kpkt.gov.my or the TEDUH app. Search by name and match the numbers with those printed on the advert.
Where can I find the abandoned project list in Malaysia?
TEDUH has a searchable list of sick and abandoned private projects by name, state and category. KPKT says it is refreshed monthly.
What is the difference between a sick and an abandoned project?
A sick project is still moving but well behind schedule. An abandoned one has stopped, with no real site activity for half a year, or has been certified abandoned by the minister.
Can a developer collect a booking fee before the SPA is signed?
KPKT says no: under regulation 11(2), payments may only be collected as the sale contract prescribes. Buyers refused a refund can lodge a complaint at aduan.kpkt.gov.my.
Can I get my money back if a project is abandoned?
Possibly. After a six-month stoppage you may terminate with your bank's consent and the Controller's certificate, and the developer must repay you within 30 days. In practice that depends on the developer's funds.
Is a build-then-sell project safer?
You pay 10% at signing and the other 90% only at vacant possession with a CCC, so far less money is at risk during construction. Developers choose it voluntarily.
What is an HDA account in Malaysia?
It is a bank account for one project or phase, required by section 7A of Act 118. Buyers' money goes into it, and withdrawals are limited to purposes the 1991 Regulations list.
References
- JPN TEDUH: Semakan Lesen & PermitUsed for the licence and permit search (read 29 October 2026).
- JPN TEDUH: Senarai Projek Sakit & TerbengkalaiUsed for the search options of the sick and abandoned list.
- JPN TEDUH: Soalan LazimUsed for the monthly update, the booking fee rule, the sick-project letter and the delivery periods.
- JPN ehome: Bahagian Pemulihan Projek TerbengkalaiUsed for the definition of an abandoned project and the confirmation letter.
- JPN ehome: Pelesenan Pemajuan PerumahanUsed for the licence, permit and account duties.
- JPN ehome: Akta, with P.U.(A) 106/2015, the 2015 account amendments, Act A1415 and JPN's 29 May 2015 statementUsed for the advert bans, regulation 11(2), Schedules G to J, the payment schedule, sections 8A and 18A and the 30-day bank payment rule.
- JPN: Soalan Lazim Sektor Pemajuan Perumahan (9 September 2021)Used for the separate laws of Sabah and Sarawak.
- HBA: Act 118, consolidated textUsed for sections 5, 7A and 11; a non-official copy, so check the official reprint.
- HBA: Control and Licensing Regulations 1989, consolidated to 2007Used for regulations 5, 6 and 11(1A); non-official copy.
- HBA: Account Regulations 1991, P.U.(A) 231/1991Used for regulations 4, 7, 8 and 11A; non-official copy, read with the 2015 amendments.
- KPKT: Tribunal Tuntutan Pembeli Rumah, Soalan LazimUsed for the RM50,000 limit and the filing deadline.
- Bernama: 303 sick housing projects worth RM40.25 billion recorded as of June (29 July 2026)Used for the counts at 30 June 2026.
- Bernama: 1,726 projects revived (14 October 2026)Used for the revival figures and the planned initiatives.
- Bernama: Proposed Property Development Act in final drafting (31 July 2026)Used for the status of the proposed law.
- The Sun (Bernama): New real property development bill to be tabled in June 2026Used for the plan to replace Act 118; no report of its tabling was found.
- Utusan Malaysia: KPKT amending Act 118 (30 October 2025)Used for the voluntary build-then-sell scheme.
- Utusan Malaysia: KPKT revives 1,127 sick projects (18 August 2025)Used for blacklisting of developers and directors.
- Sinar Harian: Projek sakit bebankan pembeli (20 June 2022)Used for the 30% sick-project test, as reported.
Official pages, the Act and its Regulations change, so check the latest wording on kpkt.gov.my, ehome.kpkt.gov.my and teduh.kpkt.gov.my before you book.
General information only, not legal or financial advice. No check guarantees that a project will be completed; ask a Malaysian conveyancing lawyer to review the SPA and the land search before you pay or sign.
Sources
- Semakan Lesen & Permit — Jabatan Perumahan Negara (TEDUH)
- Senarai Projek Sakit & Terbengkalai — Jabatan Perumahan Negara (TEDUH)
- Bahagian Pemulihan Projek Terbengkalai — Jabatan Perumahan Negara
- Akta: Act 118 amendments and Regulations 2015 — Jabatan Perumahan Negara
- Tribunal Tuntutan Pembeli Rumah: Soalan Lazim — KPKT
- 303 Sick Housing Projects Worth RM40.25 Billion Recorded As Of June — Bernama
General information only, not legal, tax or investment advice. Rules and rates change; check the official source linked below before you act.
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