Malaysia’s proposed Real Property Development Act is in its final drafting stage to strengthen regulation of the property sector, Housing and Local Government Minister Nga Kor Ming confirmed on July 31 during the AREC Forum 2026: Rethinking Real Estate: Housing With Hearts [1, 2, 3, 4]. Nga said, "We are aiming to have this Real Property Development Act, which is now at the final stage of drafting" [1].
The Act will extend regulation beyond housing developments to selected commercial property projects. It aims to balance industry growth with consumer protection [1, 2, 3, 4]. Nga emphasized the importance of housing, saying, "A home is not only a shelter, but also a place of refuge for families and a means of wealth creation and wealth preservation" [2].
This legislation is part of five housing reforms introduced by the ministry to improve governance and transparency in the property sector [1, 2, 3, 4]. Additional reforms include the rollout of electronic sale and purchase agreements (eSPA), a Housing Integrated Management System (HIMS), a National Property Data System, and regulated housing development accounts [1, 2, 3, 4].
One key goal is to eliminate sick or abandoned housing projects in Malaysia by 2030 [1, 2, 3, 4]. The ministry also continues to support first-time homebuyers through the Housing Credit Guarantee Scheme (SJKP). More than 95,000 buyers have benefited to date, with RM22 billion of the RM40 billion allocated already utilized [1, 2, 3, 4].
Over 17 financial institutions now participate in the scheme, which targets 100,000 beneficiaries [1, 2, 3, 4]. Malaysia's current home ownership rate stands at 77 percent, with government plans to increase it above 80 percent [1, 2, 3, 4].
The ministry is expected to complete the Act's drafting soon, marking a key step before its formal introduction and implementation in the Malaysian property market.
