Buying Under-Construction Property in Malaysia: What KPKT Data Says About the Risk, and How the Law Protects You
Buying under-construction property in Malaysia means signing the sale and purchase agreement (SPA) before the building is finished, then paying in stages as construction progresses. On TEDUH, the public housing project register of the Ministry of Housing and Local Government (KPKT), as at 14 October 2026, Kuala Lumpur and Selangor have 1,195 unfinished housing projects with about 399,000 units; 199 of those projects, about 75,000 units, are late, troubled (Sakit, meaning more than 30% behind schedule) or abandoned, roughly 19 in every 100 units under construction. About one in three unfinished projects has also had its delivery period extended.
The risk is real, but so are the protections. For projects under the Housing Development Act, buyers' money goes into a dedicated developer account, the contract follows a government-set standard form, landed homes must be delivered within 24 months and strata homes within 36, late delivery earns compensation (LAD) of 10% of the price a year, and there is a 24-month defect period after handover. Checking the project's status and the developer's record on TEDUH before booking avoids most problem projects.
How is buying under construction different from buying completed?
| Under construction | Completed | |
|---|---|---|
| When you pay | In stages as work progresses; interest only on the amount released until handover | Full loan released at once; principal and interest start immediately |
| Can you see it? | No, only a show unit and plans | Yes |
| When you can move in | About 2 years for landed, about 3 for strata | After transfer |
| Main risks | Delay, abandonment, finished product differs from plans | Condition and hidden repairs |
| Legal protection | Standard contract, LAD, 24-month defect period | As per the SPA, no developer warranty |
The biggest advantage is lighter early payments: interest only during construction, and a price fixed on the day you sign. The process: buying a new launch in 8 steps; how construction-period interest works: progressive interest.
How many under-construction projects in KL and Selangor have problems?
| KPKT status | Meaning | Projects | Units |
|---|---|---|---|
| Lancar (on track) | Progress on schedule | 801 | 262,207 |
| Belum Mula (not started) | Registered, work not yet begun | 195 | 61,287 |
| Lewat (late) | Behind schedule, not yet at the Sakit threshold | 48 | 23,935 |
| Sakit (troubled) | More than 30% behind, or the SPA delivery period has passed | 78 | 23,201 |
| Terbengkalai (abandoned) | Meets the legal test, confirmed abandoned by the Minister | 73 | 28,063 |
| Total | 1,195 | 398,693 |
Put simply, of every 10 units under construction, about 8 are in projects on track or not yet started, and about 2 are in late, troubled or abandoned projects. That is not a small share, but it also means most projects do deliver.
A less-known figure: of the 1,122 unfinished projects that are not abandoned, 396 (about 35%) have had their delivery period extended, mostly by 7 to 12 months. Kuala Lumpur stands out with 158 of 204 projects; Selangor has 238 of 918. Check whether the delivery date in your contract already includes an extension.
What protections do under-construction buyers have?
| Protection | What it does | Details |
|---|---|---|
| Dedicated developer account | Buyers' money goes into a housing development account that can only be used for that project | HDA (Act 118) |
| Standard SPA | Schedule G for landed, Schedule H for strata, with price and payment stages fixed | Schedule H payment stages |
| Delivery deadline | 24 months for landed, 36 for strata, from the SPA date | completion vs handover |
| Late delivery compensation (LAD) | Counted daily at 10% of the price a year | how to claim LAD |
| Defect period | 24 months after handover, developer repairs defects free | defect inspection and DLP |
| Tribunal | Disputes up to RM50,000, RM10 filing fee, no lawyer needed | HDA (Act 118) |
Six things to check before you book
- The project's KPKT status. Look it up on TEDUH: Lancar, Lewat or Sakit, and the recorded progress. How: what TEDUH is.
- The developer's record. Did its past projects deliver on time, and has any been on the problem list? See how to check a developer's track record.
- Licence and permit validity. The developer licence (APDL) and advertising and sales permit dates are on the TEDUH record.
- Is the contract Schedule G or H? If not, most of the protections above do not apply.
- Is the booking fee refundable? When you get back money paid before signing the SPA: booking fee refunds.
- Has the delivery period been extended? Ask for the contract delivery date and whether KPKT approved an extension.
A Sakit status does not mean you cannot buy, but know what you are buying. See buying a project on the Sick list.
Our view: the risk in under-construction property is in choosing, not in buying at all
About 19 in every 100 units under construction sit in problem projects. That deserves attention, but it mostly shows that problems are concentrated in a minority of projects and developers. In the same area and price band there are often on-track and lagging projects side by side; the difference is whether you checked before buying.
So our advice is not "avoid off-plan", but: choose projects on track from developers with clean records, sign a Schedule G or H contract, and keep every payment and progress notice. Do that, and the lighter early payments and locked-in price of under-construction property genuinely work in your favour.
Frequently asked questions
What does off-plan mean?
Off-plan is under-construction property: you sign the SPA before the building is finished, or even started, pay in stages as it is built, and get the keys when it is completed.
How much do I pay during construction?
The bank releases the loan in stages, and during construction you pay interest only on the amount released, so early monthly payments are lower; principal and interest start after handover.
What compensation do I get if the project is late?
For projects under the Housing Development Act, once the contract delivery date passes, the developer pays LAD at 10% of the price a year, counted daily. Claims up to RM50,000 can go to the Tribunal for Homebuyer Claims.
How do I know if a project has problems?
Search the project on KPKT's TEDUH register and check whether its status is Lancar (on track), Lewat (late), Sakit (troubled) or Terbengkalai (abandoned), plus its recorded progress.
Is under-construction property cheaper than completed?
Not necessarily. The price is locked in when you sign and you pay interest only during construction, but completed subsale homes in the same area are sometimes cheaper per square foot; compare project by project.
Project statuses and unit counts are from KPKT's TEDUH register (Kuala Lumpur and Selangor, our mirror as at 14 October 2026), unfinished housing projects only; units are approved units, not units sold. Extensions are TEDUH's "delivery period amended" flag and approved extension months. Legal protections apply only to projects under the Housing Development Act. This is general information, not legal advice. Compiled by Affirm Plus Research.
Send us the project name. We will check its KPKT status, the developer's past delivery record and whether the delivery period has been extended, and tell you what to watch for.