KPKT is studying an OTP clause under the Real Property Development Bill to reduce sick, delayed and abandoned housing projects nationwide.
PETALING JAYA: The Housing and Local Government Ministry (KPKT) is considering introducing an Option to Purchase (OTP) clause under the proposed Real Property Development Bill to help curb sick, delayed and abandoned housing projects.
In a statement today, Minister Nga Kor Ming said the proposed measure would give both homebuyers and developers the flexibility to withdraw before signing the Sale and Purchase Agreement (SPA), thereby reducing early financial and legal commitments.
He said the proposal forms part of the broader “Reformasi Perumahan Madani” agenda aimed at modernising the country’s housing regulations and supporting long-term industry growth.
“Through this bill, we are studying a key policy reform to introduce an OTP clause, which allows both parties the option to withdraw before the SPA is executed.”
He added that the OTP mechanism would help developers gauge actual market demand and better assess project viability before construction progresses further.
“By doing so, developers can avoid taking on unnecessary financial and legal commitments too early, while gaining a clearer picture of genuine buyer demand on the ground.
“This can help prevent situations where developers encounter financial difficulties midway through construction due to weak sales,” he said.
Nga added that the initiative could help reduce the likelihood of projects becoming delayed, abandoned or unsold due to insufficient market demand.
He also said Malaysia’s property market recorded transactions worth more than RM240 billion in 2025, the highest in the past 10 years, driven by stronger investor confidence amid political stability and positive economic conditions.
“Meanwhile, KPKT’s special taskforce on sick and abandoned housing projects has revived more than 1,500 projects since December 2022, involving a gross development value (GDV) of more than RM140 billion and benefiting over 176,000 homebuyers nationwide.”
Nga highlighted that the ministry is also pushing ahead with digitalisation efforts within the housing sector through initiatives such as e-SPA, TEDUH and the Housing Integrated Management System (HIMS).
“Our target is simple, zero sick projects by 2030. Achieving this will require cooperation from all parties within the housing ecosystem, including industry players,” he said.
Nga also reaffirmed the Madani government’s commitment to delivering quality, sustainable and affordable housing through strong collaboration between the government and the private sector.
