THE Government is preparing a major reform of its property sector with the introduction of the Real Property Development Bill in June 2026, signalling the end of the Housing Development (Control and Licensing) Act 1966, which has governed the nation’s housing market for nearly sixty years.
The landmark legislation seeks to strengthen buyer protections, enhance regulatory oversight, and foster sustainable, modern development practices.
Minister of Housing and Local Government Nga Kor Ming stated that the reform is designed to provide a “more modern, flexible legislative framework capable of accommodating changes in the industry.”
Speaking at the Madani Housing Reform event, Nga outlined the Bill’s two principal objectives: extending regulatory oversight beyond residential projects to include commercial developments, and updating legal provisions to reflect contemporary market practices, consumer expectations, and land classifications.
“The Real Property Development Bill will ensure every housing project in Malaysia operates within a more organised, transparent and resilient development ecosystem, aligned with the Malaysia MADANI aspiration and structural reform of the nation's housing sector,” New Straits Times cited Nga addiing.
The Bill is part of a broader five-pronged modernisation agenda under the Ministry of Local Government Development, which also encompasses the introduction of an electronic Sale and Purchase Agreement (eSPA), the Housing Integrated Management System (HIMS), the Transforming and Empowering Data Usage in Housing (TEDUH) initiative, and tighter audit requirements for Housing Development Accounts.
The eSPA system is set to revolutionise the homebuying experience, enabling buyers to sign agreements digitally from any location, complete secure electronic Know Your Customer (eKYC) verification, and integrate automatically with the Inland Revenue Board’s eStamping system.
Nga noted the anticipated economic benefits, observing, “We anticipate that if everything proceeds smoothly, next year's eSPA implementation could increase government revenue by up to RM8 billion.”
Analysts point to improved compliance, faster collections, and reduced transactional leakages as the main factors behind the projected revenue boost.
Deputy Minister Datuk Aiman Athirah Sabu reaffirmed the government’s commitment to holding developers accountable for abandoned housing projects.
Since December 2022, 26 such projects have been resolved, though 107 remain, affecting over 15,500 homebuyers.
She explained that developers responsible for abandoned projects are blacklisted, barred from applying for new licences, and have their Housing Development Accounts frozen.
“We are also considering travel bans on developers and board members involved in abandoned projects as part of broader reforms,” she said.
Aiman Athirah also outlined further safeguards for homebuyers, including rigorous enforcement of transparent project specifications in Sale and Purchase Agreements, adherence to a 24-month defect liability period after handover, and legal recourse through the courts or the Homebuyers’ Claims Tribunal.
She emphasised that developers must comply fully with all statutory obligations, and that any false claims or misleading statements are punishable offences.
The ministry is additionally working to improve housing access through strengthened rent-to-own schemes under the People’s Housing Programme and Residensi Rakyat Programme across seven states.
It is also exploring risk-sharing frameworks to implement the 10:90 build-then-sell model sustainably, particularly for affordable housing. - November 21, 2025
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