KPKT studying Option to Purchase to allow buyers to withdraw before signing SPA, curb abandoned housing

PETALING JAYA (May 8): The Ministry of Housing and Local Government (KPKT) is studying the introduction of an Option to Purchase (OTP) clause under the proposed Real Property Development Bill as part of wider efforts to reduce sick, delayed and abandoned housing projects.

Minister Nga Kor Ming said the proposal would allow both buyers and developers to withdraw their commitment before signing the Sales and Purchase Agreement (SPA), reducing early financial and legal risks.

He said the move is part of the Reformasi Perumahan Madani agenda to modernise Malaysia's housing regulatory framework and ensure long-term industry sustainability.

"Through this bill, we are currently studying a key policy shift to introduce an OTP clause, which provides both parties the flexibility to withdraw before executing the SPA," he said at the StarProperty Awards 2026 in Petaling Jaya last night.

Nga said the mechanism would help developers better assess actual market demand and project feasibility before construction progresses further.

"This move lowers unnecessary financial and legal commitments at an early stage, while allowing developers to assess a project's feasibility by understanding realistic, on-the-ground buyer demand.

"Consequently, it helps avoid scenarios where developers face financial bottlenecks if sales are not optimistic halfway through construction," he said.

He added that the proposal could proactively help reduce sick and abandoned projects, and also tackle the issue of unsold housing units due to insufficient buyer demand.

Nga also highlighted that Malaysia's property market recorded transactions exceeding RM240 billion in 2025 — the highest level in a decade — reflecting robust market confidence amid political stability and favourable economic conditions.

He also revealed that KPKT's special task force on sick and abandoned housing projects has successfully revived more than 1,500 projects since December 2022, with a total gross development value of over RM140 billion, benefiting more than 176,000 homebuyers nationwide.

Beyond legislative reforms, the ministry is also accelerating digital transformation initiatives through platforms such as e-SPA, TEDUH (Transforming and Empowering Data Usage in Housing) and the HIMS (Housing Integrated Management System) to strengthen efficiency across the housing ecosystem.

"We have one simple goal: to achieve zero sick projects by 2030. This requires a collective effort from everyone in the ecosystem, including industry players, to achieve it," he said.

Nga reaffirmed the Madani government's commitment to ensuring the continued delivery of quality, sustainable and affordable housing for Malaysians through close cooperation between the public and private sectors.

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