A buyer's guide
Buying a new launch
in KL.
What actually happens between the sales gallery and your keys — step by step, in plain terms, for Kuala Lumpur and Klang Valley buyers.
From signing the SPA to vacant possession
Of the price, in cash, needed before keys
Defect liability period after vacant possession
Price cap for the 2026 first-home stamp duty exemption
The process
Ten steps,
booking to keys.
Most of it is handled for you by the developer's panel, your lawyer and your bank. This is so you know what is coming at each stage.
-
Check what you can borrow
- Ask a bank or a mortgage adviser to pre-assess your loan before you like a unit.
- In early 2026 fewer than 4 in 10 housing-loan applications were approved.
- Rejections are driven by your Debt Service Ratio, credit record and income papers — not the interest rate.
-
Visit the sales gallery
- See the show unit, the real floor plans, the price list and the payment package.
- Ask exactly which costs the developer absorbs (SPA legal fees, MOT, part of the down payment).
-
Check the developer — before you pay anything
- Find the APDL licence number on the brochure and verify it on the government's TEDUH portal.
- Check the KPKT blacklist and visit two or three of the developer's completed buildings.
- Full checklist is in the questions below.
-
Pay the booking fee
- Usually RM1,000 to RM10,000.
- You get a booking form stating the unit, price, package and the deadline to sign the SPA.
- This amount counts toward your 10%.
-
Appoint your lawyer
- The developer's panel lawyer prepares the Sale and Purchase Agreement on the statutory form.
- You may use them, or appoint your own solicitor for the loan side.
-
Sign the SPA and pay the 10%
- Usually within about 21 days of booking.
- You pay 10% of the price — less the booking fee, less any rebate in the package.
-
Get the loan approved
- Submit payslips, EPF statement, bank statements, tax receipt and the booking form.
- Compare offers, then sign the letter of offer and the loan agreement.
-
Progressive payments during construction
- You do not pay these yourself — the bank releases each slice as a building stage is certified.
- The timetable is fixed by law (Schedule H); your monthly repayment rises as more of the loan is drawn.
-
Vacant possession
- The developer issues a notice of vacant possession with the Certificate of Completion and Compliance (CCC).
- You inspect and list defects, pay the balance plus about four months' maintenance and utility deposits, and collect the keys.
-
Defect liability, then title
- For 24 months the developer must fix defects you report in writing.
- The strata title and the transfer into your name usually follow one to three years later.
Timeline: booking to vacant possession is commonly 2–4 years for a KL high-rise. Landed homes follow the near-identical Schedule G.
The money
What you pay,
and roughly when.
The 10% down payment is only part of it. Plan for 10–16% of the price in cash before you get the keys — the line-by-line breakdown is in the questions below.
Of the price, minus your booking fee and any rebate in the package.
Banded: 1% first RM100k, 2% to RM500k, 3% to RM1m, 4% above. Often absorbed or deferred on a new launch.
Each on the SPA and the loan (SRO 2023 scale, first RM500k), plus 8% SST. A statutory discount applies to new launches.
Everything together — deposit, fees, stamp duty, mortgage insurance, advance maintenance.
The process
Step by step,
question by question.
The buying journey for a new launch, in the order it actually happens.
How do I book a unit?+
Visit the developer's sales gallery (or register online), choose a unit, and pay the booking fee — usually RM1,000 to RM10,000. You receive a booking form that states the unit, the price, the package and the deadline to sign the SPA. That fee counts toward your 10%.
Do I need my own lawyer, or can I use the developer's?+
You need a lawyer for the SPA and for the loan agreement. The developer's panel lawyer prepares the SPA on the government's statutory form and you may use them. Many buyers appoint their own solicitor to act for them on the loan side.
When do I sign the SPA and pay the 10%?+
Usually within about 21 days of paying the booking fee. At signing you pay 10% of the price — less the booking fee already paid, and less any rebate built into the package.
Do I pay the progressive instalments myself?+
No. Once your loan is in place, your bank releases each instalment straight to the developer as the architect certifies each stage complete. The timetable is fixed by law (Schedule H) and runs roughly:
- 10% on signing the SPA
- 10% foundation · 15% concrete frame · 10% walls
- 10% roof and services · 10% plastering · 5% + 5% + 5% sewerage, drains, roads
- 17.5% when water and electricity are ready for connection
- 2.5% on vacant possession · 5% held by the solicitor and released 8 and 24 months later
Your monthly repayment starts small and rises through construction as more of the loan is drawn down.
How long until I get my keys?+
Commonly two to four years from signing the SPA to vacant possession for a Kuala Lumpur high-rise. The strata title is transferred into your name later still — often one to three years after you move in.
What is vacant possession (VP) and CCC?+
Vacant possession is the handover — you get the keys. The Certificate of Completion and Compliance (CCC) is the professional's sign-off that the building is safe and lawful to occupy; a developer cannot deliver VP without it.
At VP you inspect the unit, list every defect in writing, pay the balance plus about four months' maintenance in advance and the utility deposits, and collect the keys.
What is the defect liability period?+
For 24 months from vacant possession, the developer must repair defects you report in writing — cracks, leaks, faulty fittings. Report early and keep copies.
What does the bank want to see for the loan?+
Typically your NRIC, three to six months of payslips, your EPF statement, bank statements, the latest tax receipt (LHDN) and the booking form. Self-employed buyers usually need two years of tax filings and business bank statements.
How much can I actually borrow?+
- Debt Service Ratio: banks want your total monthly commitments, new loan included, inside roughly 60–70% of net income.
- Margin of finance: up to 90% on your first and second housing loans; capped at 70% from the third outstanding housing loan.
- Tenure: up to 35 years, or to age 70 — whichever is shorter.
- Lock-in: settling the loan in full within the first 3–5 years usually costs a 2–3% penalty.
Costs & protection
Costs, rules,
and what protects you.
The money side, the title questions, and the safeguards the law gives you.
How much cash do I really need before keys?+
Plan for 10–16% of the price in cash, not 10%. The down payment is the largest piece; legal fees and stamp duty add roughly 3–4% before any developer absorption, and you pay about four months' maintenance plus deposits at vacant possession.
What are all the upfront costs, line by line?+
- Booking fee — RM1k–RM10k (counts toward the 10%)
- Down payment — 10%, minus booking fee, minus rebate
- SPA legal fees — SRO 2023 scale (1.25% first RM500k, then 1%), less the new-launch discount, + 8% SST — often absorbed
- Loan agreement legal fees — same scale, on the loan amount
- Transfer stamp duty (MOT) — 1% / 2% / 3% / 4% bands — often absorbed or deferred to title
- Loan agreement stamp duty — 0.5% of the loan
- Valuation fee — usually waived on a developer-panel loan
- MRTA / MLTA mortgage insurance — RM5k–RM20k, can be financed into the loan
- Advance maintenance + sinking fund + utility deposits — paid at vacant possession
Is there a first-home stamp duty exemption in 2026?+
Yes for homes priced RM500,000 or below: a full exemption on both the transfer instrument and the loan agreement, for SPAs executed up to 31 December 2027. You must be a Malaysian citizen who has never owned any residential property, including by inheritance or gift. Whether a partial exemption still applies to the RM500,001–RM1,000,000 band is unsettled in 2026 — confirm with LHDN or your SPA lawyer.
What do “free legal fee” and “free MOT” packages really mean?+
The developer pays those costs on your behalf — genuinely useful for your cash-before-keys. But the value is usually already built into the list price, so compare the net position across projects, not the size of the rebate.
Serviced apartment or condominium — what's the difference?+
A condominium sits on residential-titled land; a serviced apartment sits on commercial-titled land, though you live in it the same way. Most city-centre “residences” in KL are serviced apartments. The commercial title means:
- Higher electricity, water and assessment rates
- Some projects sit outside the Housing Development Act, so the HDA protections may not apply
- Financing terms and margin can differ
- Short-stay letting is usually allowed (and usually restricted for residential condos)
Not a reason to avoid a project — just price the higher monthly outgoings in.
Freehold or leasehold — which should I pick?+
No universal winner. Leasehold is typically 15–25% cheaper and can put you in a location freehold cannot. Against that: banks value leasehold more conservatively (and financing tightens once the remaining lease drops under about 60 years), and selling needs state consent, which takes time. For most buyers, location and the specific development matter more than tenure.
New launch or subsale?+
- New launch: rebates, staged payments, new facilities, a 24-month warranty — but a 2–4 year wait and you buy off a show unit.
- Subsale: see the actual unit and neighbourhood, move in now, negotiate the price — but more cash upfront and an older building.
How do I check the developer before I book?+
- APDL licence number on the brochure — verify it on TEDUH (teduh.kpkt.gov.my). No valid APDL, walk away.
- Check the KPKT blacklist of developers.
- Visit their completed projects; talk to residents; look for long delays.
- Confirm it is governed by the Housing Development Act (statutory SPA, stakeholder sum, late-delivery damages).
- Land: freehold or leasehold (and years left), master title, land-use category.
- Building: density, units per floor, lifts per unit, car-park ratio, and whether your bay is on your title.
- Check how the developer's other buildings are maintained years on.
- Count the competing units launching nearby — the 2026 overhang is real.
What protects me if the project is late or defective?+
For projects under the Housing Development Act 1966:
- A statutory SPA the developer cannot rewrite
- Late-delivery damages of 10% per annum of the price, counted from the booking-fee date
- A 24-month defect liability period
- A 5% stakeholder sum released only 8 and 24 months after VP — leverage to get defects fixed
- The Tribunal for Homebuyer Claims for claims up to RM50,000 — cheaper and faster than court
Is 2026 a good time to buy a new launch?+
It is a buyer's market with real risks. National overhang was about 28,700 completed unsold units in Q3 2025 (up around 30% year-on-year); loan approvals are near 39%; the KL and Johor serviced-apartment segments are oversupplied.
So negotiate harder, be selective on location and developer, and don't count on quick capital gains. If it's a home you'll actually live in and the monthly numbers work on an ordinary weekday, the cycle matters far less than the unit.
Do I need a property agent for a new launch?+
No — and it costs you nothing either way. Walk into the sales gallery yourself and the price is identical. If an agent brings you, the developer pays them from its marketing budget.
What a good adviser adds is comparison without a bias — weighing several projects on layout, connectivity, outgoings and the developer's record, without being paid more to steer you to one.
Will I pay tax when I sell? (RPGT)+
Real Property Gains Tax is charged on the gain, by holding period. For Malaysian citizens and PRs it is 30% in years 1–3, 20% in year 4, 15% in year 5, and 0% from year 6 (since 2022). A once-in-a-lifetime exemption is available on one private residence.
Plain terms
The words on
the booking form.
The abbreviations you will meet, in one place.
- APDL
- Advertising Permit and Developer's Licence — required under the Housing Development Act 1966 to market and sell a housing project.
- SPA
- Sale and Purchase Agreement. For HDA projects it follows the statutory Schedule G (landed) or Schedule H (strata) form.
- Booking fee
- The small sum that reserves your unit; it counts toward the 10% and is documented on the booking form.
- Progressive payment
- Instalments tied to certified construction stages, with the percentages fixed by Schedule G or H.
- VP — vacant possession
- The point the completed, CCC-certified unit is handed over and you get the keys.
- CCC
- Certificate of Completion and Compliance — the sign-off that the building is safe and lawful to occupy. Required before VP.
- DLP — defect liability period
- The 24 months after VP during which the developer must fix defects you report in writing.
- LAD
- Liquidated Ascertained Damages — compensation for late delivery, at 10% per annum of the price, from the booking-fee date.
- MOT
- Memorandum of Transfer — the instrument that transfers the title into your name; it attracts transfer stamp duty.
- Stakeholder sum
- 5% of the price held by the developer's solicitor and released 8 and 24 months after VP.
- DSR — Debt Service Ratio
- Your total monthly debt repayments as a share of net income.
- Margin of Finance
- The share of the price a bank will lend — up to 90% on your first two housing loans, 70% from the third.
- MRTA / MLTA
- Reducing-term and level-term mortgage insurance.
- Strata / master title
- Your individual parcel title, carved out of the development's single master title after completion.
- Sinking fund
- A reserve for major future repairs, at least 10% of the maintenance charge, held by the JMB or MC.
- RPGT
- Real Property Gains Tax, charged on the gain when you sell — 0% for citizens after holding six years or more.
- TEDUH
- teduh.kpkt.gov.my — the housing ministry's portal to check any registered developer or project.
A better place to begin
Comparing new launches
in KL?
Tell me what matters to you — budget, commute, the way you want to live — and I’ll build a shortlist around it.
Start a private conversationLast reviewed September 2026 by Low Wai Kit, attached to FLP Realty Sdn Bhd. General information for Kuala Lumpur and Klang Valley buyers, not legal or financial advice — verify every figure against your Sale and Purchase Agreement, your solicitor and the developer’s current sales pack.