Housing Ministry to Table Real Property Development Bill in June 2026, Says Nga Kor Ming

The Ministry of Housing and Local Government (KPKT) is preparing to table the Real Property Development Bill in June 2026, marking one of the most significant regulatory updates to Malaysia’s property sector in decades. Minister Nga Kor Ming said the new legislation will replace the long-standing Housing Development (Control and Licensing) Act 1966 (Act 118) with a broader and more modern framework.

Speaking at the Madani Housing Reform event in Putrajaya, Nga said the updated bill is designed to strengthen buyer protection while ensuring that the property industry remains flexible and responsive to market changes.

A Broader, Modern Regulatory Framework

Nga outlined two core objectives of the upcoming bill:

1. Wider Regulatory Scope

The new law will no longer regulate only residential housing but will also include commercial developments, ensuring more comprehensive oversight of Malaysia’s real estate sector.

2. Contemporary Legal Provisions

The bill will incorporate updated legal mechanisms aligned with today’s market realities, including varied land types, new development trends, and evolving buyer expectations.

“We want a more modern, flexible legislative framework capable of accommodating changes in the industry,” Nga emphasised.

Part of Five Major Housing Reforms by 2026

The Real Property Development Bill is one of five key reforms being rolled out under KPKT:

1. Real Property Development Bill

2. Electronic Sales & Purchase Agreement (eSPA)

3. Housing Integrated Management System (HIMS)

4. Teduh – Digital Transformation & Data Reform

5. Audit upgrades for Housing Development Accounts (HDA)

These initiatives are intended to improve transparency, data governance, enforcement capability, and overall industry efficiency.

Key Proposals Under the Bill

Several significant improvements are already under consideration:

• Higher and standardised penalties for critical and repeat offences

• Stronger safeguards for homebuyers relating to payment structures, workmanship quality, and maintenance obligations

• Clearer authority for technical audits and investigations to identify distressed projects earlier

• A more structured ecosystem aligned with Malaysia Madani and national housing reforms

Nga said the bill aims to ensure that “every housing project in Malaysia operates within a more organised, transparent and resilient development ecosystem.”

eSPA to Boost Efficiency and Government Revenue

Nga highlighted the electronic Sales & Purchase Agreement (eSPA) as a breakthrough initiative that will improve the homebuying experience. Benefits include:

• Remote digital signing

• eKYC-secured identity verification

• Automatic integration with LHDN’s eStamping system

• Faster processing with improved security and reduced risk of document tampering

Nga added that efficient implementation of the eSPA could raise government revenue by up to RM8 billion next year, driven by digitalisation and faster, more accurate transaction processing.

Relevance to KL–Selangor Property Markets

Stronger and more transparent regulations are expected to influence key property markets across the Klang Valley, particularly in high-growth corridors such as:

• Commercial property in KL

• Office space in Bukit Jalil

• Industrial land in Selangor

• Factory hubs in Puchong

• Industrial property in the Subang area

With increasingly digitalised transactions and clearer compliance requirements, developers and buyers in these segments are likely to benefit from greater confidence, reduced risks, and improved market stability.