Buying a new launch — a unit you're purchasing directly from the developer, usually before or during construction — works differently from buying a completed sub-sale unit. There's no immediate move-in, but there's also no negotiating with a previous owner, no existing wear and tear to inspect, and a payment structure that spreads out over the construction period instead of landing as one lump sum. Here's what actually happens, in the order it happens.
Step 1: The booking fee
When you decide on a unit at a sales gallery or showroom, you'll usually pay a booking fee — commonly somewhere between RM1,000 and RM5,000, though it varies by developer and project — to reserve that specific unit and lock in the price. This is typically deducted from your total downpayment later, not an extra cost on top.
Step 2: Signing the Sale and Purchase Agreement (SPA)
Within a set period after booking (commonly around 14 to 30 days, depending on the developer), you'll sign the SPA — the legal contract between you and the developer. At this point you'll typically pay the remainder of your 10% downpayment, and your lawyer (usually appointed from the developer's panel, though you can request your own) will handle the stamping and registration.
Step 3: Applying for your loan
You'll apply for end-financing around the same time as signing the SPA. Most banks offer up to 90% margin of financing for a buyer's first residential property under a certain value, though this drops for higher-value properties, subsequent properties, or depending on your income and credit profile. It's worth getting a loan pre-approval or at least an informal assessment before you book a unit, so the price range you're looking at is realistic for your financing.
Step 4: Progressive payments as construction proceeds
This is the part that surprises first-time new launch buyers most: you don't pay the remaining 90% in one go. Under Schedule H of the Housing Development (Control and Licensing) Act, payments are released in stages tied to construction milestones — roughly: foundation works, structural framework, brick walls and roofing, internal fittings, and infrastructure and common facilities — with a final portion due on vacant possession and a smaller retention released after the defect liability period. Each SPA sets out the exact percentages for that project, so treat this as the general shape, not an exact figure to rely on.
In practice, this means your loan is also disbursed progressively — you only pay interest on the amount that's actually been released so far, not the full loan amount from day one.
Step 5: Legal fees and stamp duty
Two separate stamp duties apply: one on the SPA (calculated on a tiered scale based on purchase price) and one on the Loan Agreement (typically 0.5% of the loan amount, though exemptions have periodically been introduced for eligible first-time buyers — check current rates when you're ready to sign, as these do change). Legal fees for the SPA and loan documentation follow a regulated fee scale, so they're broadly similar between law firms for the same property value.
Step 6: Vacant possession and the defect liability period
Once the project receives its Certificate of Completion and Compliance, the developer hands over vacant possession — this is when you get your keys. From that date, a defect liability period (commonly 24 months for the structure, as set out in the SPA) begins, during which the developer is obligated to fix defects you report at no cost to you.
Before you book: what actually matters
Beyond the unit itself, three things are worth checking before you commit: the developer's own delivery track record on previous projects (did past projects hand over roughly on schedule?), whether the project has secured bridging finance from a recognised bank (a sign lenders have done their own due diligence on the project), and whether the end-financing panel includes banks you'd realistically qualify with. A project's own indexed listing on PropertyIndexMY is a reasonable starting point for verified facts on tenure, pricing and completion timeline before you go further.
Frequently asked questions
What is the minimum downpayment for a new launch condo in Malaysia?
Most buyers put down 10% of the purchase price, made up of the initial booking fee plus the balance paid on signing the SPA. Banks commonly finance up to 90% margin of financing for a first residential property, though this varies by bank, borrower profile and property value.
How long does it take to get vacant possession after booking a new launch?
Under a standard SPA, developers are typically required to deliver vacant possession within 36 months (3 years) of the SPA date for high-rise property, though the actual timeline is stated in each project's own SPA and can run longer or shorter.
Can foreigners buy new launch property in Malaysia?
Yes, subject to a minimum purchase price threshold set by each state government (commonly RM1 million and above, though this varies by state and property type) and excluding certain categories such as Malay Reserve land and low-cost housing.