Buying a project on the Sick list: still possible?
Legally, yes — units in a Sick-status project can still be sold while the developer's APDL is valid. But Sick status means KPKT itself records the project as more than 30% behind schedule.
The decision is yours; below are the recorded risks, the mandatory checks, and the protections you have.
What Sick status actually tells you
It is not a casual label — it is the National Housing Department's official definition: delay exceeding 30% of the progress schedule, or an expired SPA. Sick projects are under JPN monitoring. Some recover: KPKT's media release reported 178 late/sick projects rehabilitated and receiving CCC between January–June 2023. Others deteriorate into abandonment. Both directions happen — which is why the checks below matter.
Risks to weigh
| Risk | What it means for you |
|---|---|
| Prolonged delay | You may pay loan instalments and rent simultaneously for longer than planned. |
| Slide into abandonment | If the site stops for 6 consecutive months, the project can be declared abandoned — rehabilitation takes years. |
| Financing | Some financiers are more cautious about distressed-status projects — confirm with your bank before signing. |
| Compensation is not automatic | LAD (late-delivery damages) only starts after the delivery date in your SPA passes, and must be claimed. |
Mandatory checks before paying anything
- Verify the APDL is still valid at teduh.kpkt.gov.my — permit number and expiry.
- Get the revised completion schedule in writing from the developer — not a salesperson's verbal promise.
- Check the developer group's record in our Developer Group Delivery Records — one sick project in an otherwise-completing group is different from a group with half its portfolio distressed.
- Compare physical progress against sales — site completion vs units sold (sold/total figures are in our lists).
- Pay only per the SPA into the developer's HDA account — never pay any "booking" outside the agreement.
Protections you have
The Housing Development Act (Act 118) mandates HDA accounts and the statutory SPA (Schedule G/H). Late delivery entitles you to LAD at the rate in the statutory SPA. Claims up to RM50,000 can be filed at the Homebuyer Claims Tribunal without a lawyer. Project status complaints: the National Housing Department's e-aduan system.
This article is a record of facts and official channels, not legal or investment advice. For a decision this size, get advice from your own property lawyer.
Frequently asked questions
Can a sick project recover?
Yes. KPKT reported 178 late/sick projects rehabilitated and receiving CCC between January and June 2023. Others deteriorate into abandonment — monitor the status on TEDUH.
Is my deposit safe if the project has problems?
Payments made per the SPA go into the developer's HDA account, controlled under Act 118. Payments outside the SPA have no such protection — never pay outside the agreement.