KUALA LUMPUR: A proposed Option to Purchase (OTP) mechanism is being studied to give property developers greater certainty over buyer demand while protecting homebuyers from financial risks before signing sale and purchase agreements (SPAs), says Nga Kor Ming.
The Housing and Local Government Minister said under the proposed move, developers would be given a specified period to market their projects and assess buyer interest before deciding whether to proceed.
“During this period, buyers could pay up to 5% of the proposed purchase price and submit their financial information for loan assessments. Should the developer decide not to proceed, buyers would receive a full refund together with accrued interest,” he said in his speech at the Malaysia Developers Awards gala dinner co-organised by Star Media Group Bhd.
“The intention is to ensure that buyers will never have to pay for houses that they will never get,” he added.
He noted this mechanism was aimed at addressing issues such as developers struggling to distinguish genuine buyers.
“Second, collecting payments before the SPA is prohibited under existing housing regulations, exposing developers to legal risks.
“Third, homebuyers may become tied to purchases they cannot afford or risk losing their booking fees.”
Nga further noted that the government was also committed to achieving zero ailing housing projects by 2030, with 1,726 sick and abandoned housing projects worth more than RM158bil successfully revived as of the end of August this year.
Nga encouraged developers present at the MDA to take up the challenge of reviving abandoned projects, adding that the government wanted to prevent housing developments from becoming sick in the first place.
He said Budget 2027 has proposed full stamp duty exemptions for qualifying loan agreements and property transfer instruments involving rescue developers, known as white knights, and original homebuyers.
On affordable housing, he said the government aimed to deliver one million affordable homes over the next decade under the National Housing Policy 2026-2035, guided by the principle of humanising housing.
“This is particularly important as the number of completed but unsold residential units increased by 8.6% in the first half of 2026.
The minister also said that the government has secured a larger allocation in Budget 2027 to roll out Big Data Analytics to solve the longstanding issue of housing mismatch and support better housing planning.
“By better understanding local purchasing power, demographic trends and housing demand, we can help the industry make better investment decisions while reducing the risk of oversupply,” he added.
Nga explained Malaysia’s property sector remained resilient, recording more than 187,000 transactions worth RM105bil in the first half of 2026, despite a 1.8% decline from the same period last year.
He said MDA had grown into an important platform over the past four years, giving recognition to established industry leaders as well as, small and medium-sized developers.
