The Housing and Local Government Ministry (KPKT) is currently studying an Option to Purchase (OTP) mechanism to be introduced under the proposed Real Property Development Bill, to reduce the risk of sick, delayed, and abandoned housing projects.
The proposed mechanism would provide greater flexibility for both homebuyers and developers to withdraw before the execution of the Sales and Purchase Agreement (SPA), thereby reducing unnecessary financial and legal commitments at an early stage.
At the same time, the OTP mechanism would enable developers to better assess actual market demand and project feasibility before construction progresses further. This would help reduce the risk of projects facing financial bottleneck midway through development due to weak sales performance, while also preventing a high number of unsold units caused by insufficient buyer demand.
Since December 2022, KPKT’s special taskforce has successfully revived more than 1,500 sick and abandoned housing projects nationwide, with a gross development value (GDV) exceeding RM140 billion, bringing renewed hope to over 176,000 homebuyers across the country.
KPKT remains committed to strengthening the housing ecosystem and protecting the interests of homebuyers through more sustainable and responsible development policies.
Our goal is simple: to achieve zero sick projects by 2030.
