Malaysia’s National Housing Policy 2026–2035, launched on 10 August 2026, proposes moving the country from Sell Then Build to Build Then Sell (BTS) in phases between 2027 and 2035. Under Sell Then Build, you sign, pay a deposit and service progressive payments on a home that does not physically exist yet. Under Build Then Sell, the developer funds construction and you pay on or near completion. The policy also sets a target of one million affordable homes by 2035, backed by six focus areas, 17 strategies and 59 action plans.
Nothing has changed for a booking signed today. The BTS shift is a policy direction announced by the Ministry of Housing and Local Government (KPKT), not a law already in force, and the ministry has said the transition needs further study and industry engagement. What follows sets out what was actually announced, the figures behind it, and which parts affect a person choosing a new launch right now.
What the National Housing Policy 2026–2035 Actually Contains
The policy is the country’s housing blueprint for the next decade and runs alongside the 13th Malaysia Plan, which covers 2026 to 2030. It was tabled by Housing and Local Government Minister Nga Kor Ming.
| Element | What was announced |
|---|---|
| Policy period | 2026–2035, launched 10 August 2026 |
| Headline target | 1,000,000 affordable homes by 2035 |
| Progress declared | 180,000 units completed; 235,000 units under construction |
| Structure | 6 focus areas · 17 strategies · 59 action plans |
| Delivery model | Phased Build Then Sell transition proposed for 2027–2035 |
| Buyer protection | Option to Purchase and Sunset Clause mechanisms |
| Supply planning | Big data analytics system from 2027 |
| Affordability definition | Priced by locality — around RM500,000 in the Klang Valley, RM300,000 in Kelantan |
That last row is a quiet but important change. A single national affordability ceiling treated a home in the Klang Valley and a home in Kelantan as the same product. Pricing the definition by locality acknowledges that they never were.
Sell Then Build vs Build Then Sell: Where the Risk Sits
The difference between the two systems is not architectural. It is about who carries the construction risk and who is holding the debt while a building goes up.
| Sell Then Build (current) | Build Then Sell | |
|---|---|---|
| When you pay | Progressively, as construction stages are certified | On or near completion |
| Who funds the build | Largely the buyers, via progressive drawdowns | The developer, via its own capital and financing |
| If the project stalls | You may be servicing a loan on an unfinished home | Exposure is limited before handover |
| What you inspect | A show unit, a floor plan and a brochure | The finished unit itself |
| Effect on developers | Low capital requirement, wide participation | Heavy capital requirement, favours larger balance sheets |
If that trade-off sounds familiar, it is close to the one already covered in new launch vs subsale in Malaysia. Buying a completed unit has always carried less delivery risk and a higher entry price. A full BTS market would push new stock some way toward the subsale risk profile.
Why Build Then Sell Is on the Table: 303 Sick Projects
The case for BTS rests on one set of figures. As of 30 June 2026, KPKT recorded 303 sick private housing projects in Peninsular Malaysia, covering 43,288 units with a gross development value of RM40.25 billion. Of those, 100 projects were confirmed abandoned, involving 27,998 units and affecting 14,961 buyers.
Selangor carried the heaviest load with 41 abandoned projects, followed by Kelantan with 13 and Terengganu with 11. Melaka, Perlis and Putrajaya recorded none. The recovery side is substantial too: KPKT says 1,647 projects covering 192,912 units and worth RM153 billion have been revived, and the ministry is targeting zero abandoned housing projects by 2030.
Those 14,961 affected buyers are the entire argument. Under Sell Then Build, a buyer can be several years into loan repayments on a home that was never finished. Every buyer-protection mechanism in the new policy is aimed at that specific failure.
Option to Purchase, Sunset Clause and Four New Laws
Two mechanisms sit alongside the BTS proposal, and they matter sooner because they can be applied without rebuilding the whole delivery model.
The Option to Purchase (OTP) lets a developer withdraw from a project within a defined window if sales are weak and the project looks likely to fail, with buyers receiving a full refund of their deposits. It converts a slow-selling project from a future abandonment case into a clean, early exit. The Sunset Clause works on the same principle of putting a time limit on uncertainty rather than letting a stalled project drift.
Four pieces of legislation are being drafted or amended under the policy:
- A new Property Development Act, described as already in the final stage of review
- A new Building Managers Act
- A new Residential Tenancy Act
- An amendment to the Strata Management Act 2013
The strata review is the one most owners will feel. Malaysia has close to three million strata units across more than 27,000 schemes, and management quality is the difference between a building that holds its value and one that does not. If you are weighing strata stock, serviced apartment vs condominium and the freehold and leasehold comparison cover the title and tenure side of the same question.
Big Data Against Oversupply
From 2027, KPKT plans a big data analytics system pooling records from state governments, local authorities and the ministry, so that approvals can be matched against actual demand and local demographics. Developer participation is on a voluntary subscription basis.
This is the policy’s answer to the unsold stock problem set out in Malaysia’s property overhang. Overhang is not caused by too much building in the abstract — it is caused by building the wrong product, at the wrong price, in the wrong place. A shared demand dataset attacks the mismatch rather than the volume.
The context behind it is demographic. Malaysia’s urbanisation rate has gone from 28% in 1970 to about 78% today, and is projected to reach 85% by 2040. Housing demand keeps concentrating into urban corridors, which is why unit mix matters as much as unit count. Formats built for smaller urban households, such as the dual key layout, exist for exactly that reason.
Why the Industry Wants the Transition Slow
The Real Estate and Housing Developers’ Association (Rehda) welcomed the policy but asked for caution on BTS. Its president, Datuk Zaini Yusoff, flagged the effect on holding costs, financing, cash flow, housing prices and supply, and warned that small and medium-sized developers may not have the financial capacity to fund an entire development through to completion. Rehda’s position is that the existing Sell Then Build system should continue to co-exist with BTS rather than be replaced outright, with a progressive transition and appropriate financing mechanisms worked out first.
Rehda also noted that the current system has delivered around 6.5 million houses over its lifetime. That number is a fair defence of the model’s scale, and it is also a reminder that the 303 sick projects are the exception rather than the norm — which is precisely why the transition is being argued over rather than simply enacted.
The practical consequence is worth stating plainly. If BTS narrows the field to developers who can fund construction from their own balance sheets, competition may thin and prices for new stock may rise. Lower delivery risk usually costs something.
What Changes for Someone Booking a New Launch Today
Legally, nothing yet. A booking made this month is still governed by the existing Sell Then Build framework and the standard statutory sale and purchase agreement. Practically, three things are worth doing.
Check the developer’s delivery record, not just the brochure. Under Sell Then Build, that record is the single best predictor of whether your unit gets finished. The verification steps are set out in the new launch condo checklist, and the wider process is covered in how to buy a new launch property in Malaysia.
Get your financing settled before you commit. A phased BTS shift would change how banks assess new projects, and approval conditions are already the most common stumbling block — see Malaysia’s home loan approval rate.
Judge the project against what comparable stock nearby has actually achieved. Policy shifts the rules of delivery, not the value of a location. A precinct-level read like Bukit Jalil property prices shows how differently projects can perform inside a single area, and our new launch listings are organised by area for the same reason.
If waiting out a build is the part that worries you, these are already completed and can be viewed today: Goodwood Residence in Bayan Lepas, Eaton Residences at KLCC and The Conlay.
Frequently Asked Questions
What is Build Then Sell in Malaysia?
Build Then Sell is a housing delivery model where the developer completes construction before selling, so the buyer pays on or near completion rather than in progressive instalments during the build. It is the opposite of the current Sell Then Build system, where buyers fund most of the construction through staged payments on a home that has not been built yet.
When will Build Then Sell start in Malaysia?
The National Housing Policy 2026–2035 proposes a phased transition between 2027 and 2035. It is a policy direction rather than a law in force, and KPKT has said the shift requires further study and engagement with the industry. Any purchase made now still falls under the existing Sell Then Build framework.
How many housing projects are abandoned in Malaysia?
As of 30 June 2026, KPKT recorded 303 sick private housing projects in Peninsular Malaysia covering 43,288 units with a gross development value of RM40.25 billion. Of those, 100 were confirmed abandoned, involving 27,998 units and 14,961 affected buyers. Selangor had the most at 41, followed by Kelantan with 13 and Terengganu with 11.
What is the Option to Purchase clause?
The Option to Purchase allows a developer to withdraw from a project within a specified period if sales are sluggish and the project is deemed likely to fail, with buyers receiving a full refund of their deposits. It is designed to end weak projects early instead of letting them become abandoned developments.
Will Build Then Sell make houses more expensive in Malaysia?
Rehda has warned that it could. Because developers would fund construction themselves, holding and financing costs rise, and smaller developers may be unable to participate at all. That points to a thinner field of builders and upward pressure on new stock prices. No official pricing impact has been published, so this remains an industry concern rather than a measured outcome.
How many affordable homes will Malaysia build by 2035?
The policy targets one million affordable homes between 2026 and 2035, aligned with the 13th Malaysia Plan covering 2026 to 2030. As of 2025, 180,000 units had been completed and 235,000 were under construction. Affordability is now defined by locality rather than a single national ceiling, at roughly RM500,000 in the Klang Valley and RM300,000 in Kelantan.
Wondering how a specific new launch stacks up on developer track record and delivery risk? Message us on WhatsApp and we will go through it with you.