Buying Guide

Buying a New Launch, Step by Step

Buying from a developer is not like buying a finished house. You pay in stages while it is built, and the contract is fixed by law to protect you. Here is the whole path from booking to keys, checked against the statutory contract.

Quick answer. Book the unit, get the loan approved, sign the SPA, pay in stages as it is built, collect the keys at vacant possession, then get defects fixed within the 24-month defect liability period. A landed house must be handed over within 24 months of the SPA (36 for a condo), or the developer pays you 10% a year in compensation.

The six steps

  1. Choose and book. Pick the unit and pay the booking fee. Get an official receipt in the developer’s name and ask in writing how the fee is treated if your loan fails — see booking fee below.
  2. Get the loan approved. Apply within 30 days of the stamped SPA at the latest — ideally before you sign. Check what you can borrow first with the loan calculator.
  3. Sign the SPA and the loan agreement. The 10% first payment is due on signing (less any booking fee credited). Budget the other costs with the upfront cost calculator.
  4. Pay by progress stages. The bank releases each stage directly to the developer as the architect certifies it; you pay interest only on what has been released so far.
  5. Vacant possession. You get the keys once the Certificate of Completion and Compliance (CCC) is issued and water and electricity are connected.
  6. Defect liability period. 24 months to report defects; each must be repaired within 30 days of your written notice.

The progress payment schedule (Schedule G, landed)

Every landed SPA uses the same statutory schedule, so you can see exactly how much is due at each stage. Each payment is due within 30 days of the developer’s notice; paying late costs 10% a year on the amount overdue.

Stage% of price
On signing the SPA10%
Foundation10%
Structural framework15%
Walls, with door and window frames10%
Roofing, electrical wiring, plumbing10%
Internal and external finishes10%
Sewerage5%
Drains2.5%
Roads2.5%
Vacant possession, with water and electricity17.5%
Transfer of the individual title2.5%
Held by the developer’s lawyer 2.5% released 8 months and 2.5% 24 months after vacant possession5%

Your rights in the statutory contract

  • Handover on time. 24 months from the SPA for landed homes (Schedule G), 36 months for strata homes (Schedule H).
  • Late-delivery compensation. 10% a year of the purchase price, calculated daily, for every day the handover is late.
  • Keys only when it is ready. Vacant possession needs the CCC plus water and electricity — not just a finished shell.
  • If your loan is rejected. When the loan is refused because your income does not qualify, and you provide proof, the developer may keep no more than 1% of the price; the rest must be refunded within 30 days.
  • Defects fixed at the developer’s cost for 24 months after vacant possession.

The booking fee

The housing regulations say no one may collect any payment except as provided by the sale contract — yet a booking fee before the SPA is standard practice. A proposal to formalise it as an option-to-purchase was still only a proposal in May 2026. Until that changes, protect yourself: pay the developer, never an individual; keep the official receipt; and ask in writing whether it counts towards the 10% and when it is refunded.

Ready or under construction in Ipoh

Of the 41 Ipoh projects on my list, 12 are completed, so there is no construction wait, and 29 are still being built or launching, where the schedule above applies. Filter them on the projects page.

First-time buyer guide Ask about the process

Sources: Housing Development (Control and Licensing) Regulations 1989, Schedule G (landed) and Schedule H (strata), and Regulation 11; EdgeProp (14 May 2026) on the option-to-purchase proposal. This is a summary of the standard contract, not legal advice — your lawyer will explain your own SPA.
Compiled and reviewed by MaSk Chan, REN 49335 · IQI Global.

Common questions

What are the steps to buy a new launch property in Malaysia?

Choose the unit and pay the booking fee; get your loan approved; sign the Sale and Purchase Agreement (SPA) and the loan agreement; pay by progress stages as the house is built; collect the keys at vacant possession; then use the 24-month defect liability period to get defects fixed.

How long does a developer have to hand over a landed house?

24 months from the date of the SPA under the statutory Schedule G contract, and 36 months for a strata home (condo or apartment) under Schedule H. If the developer is late, it must pay liquidated damages at 10% a year of the purchase price, calculated day by day.

What is the progress payment schedule for a new house?

Under Schedule G: 10% on signing, then by construction stage — foundation 10%, structure 15%, walls 10%, roof and wiring 10%, finishes 10%, sewerage 5%, drains 2.5%, roads 2.5% — 17.5% at vacant possession, 2.5% on transfer of title, and 5% held by the developer’s lawyer and released in two halves at 8 and 24 months after vacant possession.

What happens if my loan is rejected after I sign the SPA?

If your loan is turned down because your income does not qualify, and you show the bank’s rejection, the statutory contract lets the developer keep no more than 1% of the price; the rest of what you paid must be refunded within 30 days. Apply for the loan within 30 days of the stamped SPA — better still, get approval before you sign.

Is the booking fee refundable?

Ask before you pay. The regulations say no payment may be collected except as provided by the sale contract, yet developers routinely take a booking fee before the SPA. Get an official receipt in the developer’s name, and ask in writing whether it counts towards the 10% and whether it is refunded if your loan is not approved.

How long is the defect liability period for a new house?

24 months from vacant possession under Schedule G. Report defects in writing; the developer must repair them within 30 days of receiving your notice.