Short answer: Buying a new launch in Johor Bahru follows a fixed sequence: pay a booking fee, get your loan approved, sign the Sale and Purchase Agreement (SPA) with the developer, pay in stages as the building progresses, then receive vacant possession and use the defect liability period to fix problems. The whole journey usually takes about three to four years from booking to keys, depending on the project.
Last verified: 17 October 2026. This is a planning guide, not legal or financial advice. Percentages and timelines differ by project and by the SPA you sign, so confirm every figure with the developer and your lawyer.
The process at a glance
| Step | What happens | What to check |
|---|---|---|
| 1. Choose the unit | Pick a project, unit and payment scheme | Developer licence, advertising permit, title and approvals (see the project due diligence checklist) |
| 2. Pay the booking fee | A small deposit holds the unit | Whether it is refundable if your loan is rejected |
| 3. Loan approval | The bank assesses your income and the unit | See the home loan guide |
| 4. Sign the SPA | The legal contract with the developer | Use your own lawyer; read the payment schedule and delivery date |
| 5. Progress billing | You pay in stages as construction advances | Each bill should match a real construction stage |
| 6. Vacant possession | The developer hands over the unit | Delivery date in the SPA and late-delivery compensation |
| 7. Defect liability period | The developer repairs defects you report | Report in writing and keep records |
Step by step
1. Booking and the booking fee
At a new launch you reserve a unit by paying a booking fee, usually a small percentage of the price. Ask whether it can be refunded if your loan is rejected, because this differs by developer. Foreign buyers should also read foreigners buying property in Johor before booking, since state consent and a minimum price apply.
2. Loan approval
Apply for the loan early. The bank will value the unit and check your income and commitments. Singapore-based buyers can compare options in the CPF and loan guide.
3. Signing the SPA
Developers selling units before completion use a standard form of agreement set under the Housing Development (Control and Licensing) Act 1966. It sets out the payment stages, delivery date and your rights. Have a lawyer you trust review it. The one-off costs around this step are explained in the stamp duty and legal fees guide and the buying costs guide.
4. Progress billing
Under the standard agreement, you pay the balance in stages as each construction milestone is certified, rather than all at once. Until then the bank usually releases the loan in the same stages, so your monthly repayment rises gradually. Check that every bill comes with the architect’s certificate for that stage.
5. Vacant possession
The standard agreement sets a delivery period, commonly 36 months for strata units such as condos, counted from the date of the SPA. If the developer is late, the agreement provides for liquidated damages calculated daily on the purchase price. Confirm the exact period and rate in your own SPA.
6. Defect liability period
After vacant possession, the standard agreement gives a defect liability period, commonly 24 months, during which the developer must repair defects you report. Inspect the unit carefully at handover, list the defects in writing and follow up with dates.
Common mistakes
- Paying a larger deposit than the standard schedule requires.
- Signing without a lawyer because the developer offers a panel lawyer.
- Ignoring the delivery date and the late-delivery compensation clause.
- Assuming the quoted price is the total cost. Add stamp duty, legal fees and the yearly costs described in the guide to holding costs.
For a comparison with buying a completed unit, read new launch vs subsale.
FAQ
How long does it take from booking to getting the keys?
For a project still under construction, usually about three to four years, because the standard agreement allows a delivery period of commonly 36 months from the SPA date for strata units. A completed project can be handed over much sooner.
Is the booking fee refundable?
It depends on the developer and the booking terms. Ask in writing before you pay, especially if you need a loan.
When do I start paying the bank?
Usually when the bank starts releasing the loan in stages. Your repayment grows as more of the loan is released, so you start with a small amount.
Do I need my own lawyer for a new launch?
It is strongly advisable. The developer’s panel lawyer is paid to prepare the paperwork, but your own lawyer protects your interests when you review the SPA.
What happens if the developer delivers late?
The standard agreement provides for liquidated damages from the delivery date until vacant possession. Check the exact wording in your SPA.
Can foreigners use the same process?
Yes, with extra steps such as state consent and a minimum purchase price. Our team can walk you through it on WhatsApp.
Sources: Housing Development (Control and Licensing) Act 1966 and its regulations (standard forms of sale and purchase agreement); Bank Negara Malaysia and developer SPA terms. Always confirm with your lawyer.
