Housing ministry: 303 ‘sick’ housing projects worth RM40.2b recorded as of June 2026

KUALA LUMPUR (July 30): A total of 303 private housing projects in Peninsular Malaysia have been classified as ‘sick’ projects as of June 30, involving 43,288 housing units with a gross development value (GDV) of RM40.25 billion.

The Ministry of Housing and Local Government (KPKT), in a written reply published on the Parliament website Wednesday, stated that 100 projects have been confirmed as abandoned, involving 27,998 housing units and 14,961 buyers.

According to KPKT, Selangor recorded the highest number of abandoned projects at 41, followed by Kelantan (13) and Terengganu (11), while Melaka, Perlis and Putrajaya reported no projects in that category.

The reply was in response to a question from Senator Datuk Dr Mohd Na’im Mokhtar regarding the latest figures on sick and abandoned private housing projects, the number of affected buyers, and measures to expedite their recovery.

To address the issue, the ministry is undertaking recovery efforts through the Special Task Force on Sick and Abandoned Private Housing Projects (TFST).

“As of June 2026, a total of 1,647 housing projects involving 192,912 units, valued at RM153 billion, have been successfully revived,” the reply stated.

KPKT said the TFST focuses on four approaches: identifying problematic projects, finding solutions, preventing recurrence, and formulating more effective recovery methods.

The ministry also acts as a mediator in negotiations between developers, buyers, financial institutions, and relevant agencies to reach resolutions.

The Madani Housing Reform, implemented from Jan 1 this year, aims to achieve zero new abandoned housing projects by 2030, including through the use of electronic sale and purchase agreements (eSPA).

..........

Read about emerging trends, data-backed insights, growing subsectors, and expert commentaries in EdgeProp print. Subscribe now for your free copy!