Short answer: A new launch bought from a licensed developer comes with a standard Sale and Purchase Agreement under the Housing Development (Control and Licensing) Act 1966, staged payments tied to construction progress, and a defect liability period, but you wait years for the keys and carry delay risk. A subsale is already built, so you can inspect it and rent or move in within months, but you get far fewer legal protections and pay your own legal and stamp costs. Neither is automatically safer; the right choice depends on your cash, your timeline and how carefully you check the paperwork. Foreign buyers face the same Johor price floor and state consent either way.
Last verified: 6 October 2026. This is a planning guide, not legal, tax or financial advice. Rules and prices change, so check the official sources.
What is the difference between a new launch and a subsale in Johor Bahru?
A new launch (developer sale) means you buy directly from the developer, usually before or during construction. A subsale (secondary sale) means you buy from an existing owner, usually a completed unit with a strata title issued or on the way.
The practical differences:
- Contract: developer sales use a prescribed agreement form; subsale agreements are normally drafted by lawyers for that deal and are more flexible, with less statutory protection (Low & Partners; EdgeProp).
- Condition: a new unit is brand new and covered by a defect liability period; a subsale unit is generally sold “as is” with no developer warranty (Low & Partners).
- Waiting time: new launches involve a multi-year build; subsales can complete in a few months.
How does the Housing Development Act protect new-launch buyers?
Developer sales of residential property in Malaysia fall under the Housing Development (Control and Licensing) Act 1966, which prescribes the standard SPA. Landed homes typically use Schedule G and condos, apartments and other strata units use Schedule H (EdgeProp). Key protections described by law firms and consumer sources:
- Staged payments. You do not pay the full price upfront. One consumer guide describes a schedule that starts with a 10% payment on signing, then releases the balance in stages as the developer completes defined construction milestones, with a small retention sum held back until after vacant possession (FMT/MyPF).
- Fixed delivery deadline. One law firm summary states vacant possession is due within 24 months for land and building and 36 months for subdivided parcels, counted from the date of the agreement (Mondaq, MA MahWengKwai & Associates, 2020).
- Late delivery compensation. The same summary describes liquidated damages of 10% per annum of the purchase price, calculated daily until possession is delivered.
- Defect liability. Developer sales include a defect liability period for faults in construction (Low & Partners). One consumer source cites 24 months; confirm the exact period in your agreement.
- A tribunal for disputes. The Ministry of Housing and Local Government runs the Homebuyer Claims Tribunal (TTPR), which says it aims to decide claims within 100 working days (KPKT). Claims there are capped at RM50,000 (LHAG, 2024).
Caveat: these are standard terms. Always read the actual SPA with your own lawyer, and note that the protections only help if the developer is licensed and able to complete.
What are the risks of buying a new launch?
Be honest about the downsides:
- Delay and abandonment. Compensation exists on paper, but a delayed or stalled project can mean years of waiting. The Ministry has been pursuing tougher penalties for developers of abandoned projects, but an amendment to the Act announced in May 2024 was still described as pending in the source we read (Sinar Harian).
- Pay before you can use it. With a loan, you usually pay interest on each drawdown during construction while earning no rent. One agent-blog estimate puts that at tens of thousands of ringgit over a three-year build at a RM500,000 price, which is an example, not a quote (PropCashflow, 2026).
- Price transparency. New launch prices are set by the developer and are not tested by past transactions in that building. Subsale prices can be checked against asking prices and recent deals nearby.
- Oversupply. A July 2026 CIMB Research analysis reported 108,863 serviced apartment units in JB as of Q1 2026 with 41,832 more coming (see our JS-SEZ guide). More competing supply can weigh on both resale and rental.
Read our project due diligence guide before committing to any launch.
What should I check before buying a subsale?
A subsale shifts the checking work to you and your lawyer:
- Title. A land search confirms ownership, caveats and encumbrances. An individual strata title is preferred over a master title, because a master title can slow the transfer and add costs (PropCashflow, February 2026).
- Strata title and completion papers. Developer units come with a Certificate of Completion and Compliance; subsale units may be sold without one, which is a risk (Low & Partners).
- Arrears. Ask the management body for a statement of account. Maintenance arrears can become the buyer’s problem.
- Valuation. The bank’s valuation can differ from the agreed price. One source says by 5 to 15%, so apply for financing early (PropCashflow, February 2026).
- Loan margin. The same source states 90% financing for the first two residential properties for typical buyers. Banks decide case by case, and foreign buyers should get written confirmation from the bank.
- Physical inspection. There is no developer warranty, so inspect plumbing, leaks and finishing yourself.
How do stamp duty and legal costs compare?
- Developer sale: developers often absorb or waive legal fees and stamp duty as a launch incentive (Low & Partners). That is a promotion, not a right, so ask for it in writing.
- Subsale: the buyer pays their own legal fees and stamp duty (Low & Partners).
- Transfer stamp duty scale for Malaysians: 1% on the first RM100,000, 2% on RM100,001 to RM500,000, 3% on RM500,001 to RM1 million and 4% above that, with loan agreement stamp duty of about 0.5% (iProperty, 2026). On RM500,000 that works out to RM9,000 for the transfer, matching the example in PropCashflow’s February 2026 guide.
- First-home exemption: Malaysian citizens buying a first home up to RM500,000 can get full stamp duty exemption on the transfer and the loan agreement, for agreements signed by 31 December 2027 (Skrine, January 2026). Foreign buyers are not eligible.
- Foreign buyers: NST reports federal stamp duty on foreigners doubled to 8% from 1 January 2026. See foreign buyer costs in Johor and general buying costs.
Which suits me: cash buyer, loan buyer, Singapore commuter or investor?
- Cash buyer: subsale gives faster ownership and no staged-payment tracking. A new launch ties up less cash early but not forever.
- Loan buyer: a new launch spreads drawdowns, but you pay interest while waiting; a subsale needs the full loan approved sooner and the valuation to hold.
- Singapore commuter living in the unit: a completed unit lets you test the route to the checkpoint before you commit. See commuting from JB to Singapore and the CIQ and RTS area guide.
- Investor: a completed unit can be rented sooner, but renting is not guaranteed. See rental yield and renting out as a foreign owner.
JOHOME lists new projects and completed units. For example, Danga Bay Luxury Apartments is a completed project, while others such as Exsim Causewayz Square or Eco Tropics have their own build and handover stages. Ask us for the current status and see the current price list on WhatsApp.
Is there anything different for foreign buyers in Johor?
The foreign rules apply to both routes. Johor requires state consent for non-citizen purchases, and the reported minimum is RM1 million for condominiums and serviced apartments, with some developer-approved exceptions below that (NST, April 2026). Those sub-RM1 million exceptions were described as tied to developer stock, so do not assume a cheaper subsale is open to a foreigner. NST also reports that foreigners who bought below the threshold can only resell to Malaysians at below RM1 million. The state levy structure changed from 1 July 2025 and sources differ on rates, so confirm the current figure (HHQ, October 2025). Read the full foreign buyer guide first.
Related reading
- How to buy a new launch in Johor Bahru: booking fee to vacant possession
- Johor property red flags: 10 checks before you pay
Frequently asked questions
Is a new launch safer than a subsale in Johor Bahru?
It is safer on paper because the Housing Development Act sets the contract form, staged payments and delay compensation. In practice it still carries completion and delay risk. A subsale removes construction risk but offers little statutory protection.
How long does a new launch take to complete in Johor?
One law-firm summary says vacant possession is due within 24 months for land and building and 36 months for subdivided parcels from the agreement date. Your own SPA states the exact deadline.
What compensation do I get if the developer is late?
A law-firm summary describes liquidated damages of 10% per annum of the purchase price, calculated daily from the due date until vacant possession. Check the clause in your own agreement.
What should I check before buying a subsale unit?
Check the title and caveats, whether an individual strata title has been issued, maintenance arrears, the Certificate of Completion and Compliance, the bank valuation and the physical condition. Use a lawyer.
Do I pay less stamp duty on a new launch?
Not by law. Developers sometimes cover stamp duty and legal fees as a promotion. Malaysian first-home buyers up to RM500,000 can be exempt on either route until 31 December 2027, and foreign buyers pay a higher federal rate.
Can a foreigner buy a subsale in Johor Bahru?
Yes, with state consent, and subject to the Johor minimum price. Below-threshold exceptions reported by NST relate to developer stock, so confirm with a lawyer whether a specific subsale unit qualifies.
Sources
- Mondaq / MA MahWengKwai & Associates, FAQ on liquidated damages for late delivery of properties by developer, 5 October 2020 (https://www.mondaq.com/Article/991048)
- Free Malaysia Today / MyPF, The progressive payment schedule for property in Malaysia, 2019 (https://fmtv5.freemalaysiatoday.com/category/leisure/2019/04/19/the-progressive-payment-schedule-for-property-in-malaysia)
- EdgeProp, What is a Sales and Purchase Agreement (SPA) in Malaysia, updated 30 September 2026 (https://www.edgeprop.my/guides/buying/what-sales-and-purchase-agreement-spa-malaysia)
- Low & Partners, The Differences between Developer Sales and Sub-Sales in Malaysia (https://www.lowpartners.com/the-differences-between-developer-sales-and-sub-sales-in-malaysia/)
- KPKT, Tribunal Perumahan dan Pengurusan Strata (TPPS) (https://www.kpkt.gov.my/index.php/pages/view/429?mid=543)
- Lee Hishammuddin Allen & Gledhill, Insights, 8 February 2024 (https://lh-ag.com/wp-content/uploads/2024/02/LHAG-Insights-20240208.pdf)
- Sinar Harian, Pindaan akta lebih tegas, heret pemaju projek rumah terbengkalai di mahkamah, 31 May 2024 (https://www.sinarharian.com.my/article/667724/berita/nasional/pindaan-akta-lebih-tegas-heret-pemaju-projek-rumah-terbengkalai-di-mahkamah)
- PropCashflow, New launch vs subsale condo Malaysia 2026, updated 11 September 2026 (https://propcashflow.my/blog/new-launch-vs-subsale-condo-malaysia-2026/)
- PropCashflow, Sub-sale property process Malaysia, 23 February 2026 (https://propcashflow.my/blog/subsale-property-process-malaysia/)
- iProperty, Stamp duty in Malaysia 2026 (https://www.iproperty.com.my/guides/stamp-duty-in-malaysia-2026-how-much-is-it-and-who-may-be-exempt-pjx-103708)
- Skrine, Five Stamp Duty Exemption Orders Extended, 2 January 2026 (https://www.skrine.com/insights/alerts/january-2026-1/five-stamp-duty-exemption-orders-extended)
- New Straits Times, Foreigners hit Johor property resale wall, April 2026 (https://www.nst.com.my/amp/news/regional/2026/04/1421638/foreigners-hit-johor-property-resale-wall)
- HHQ, Johor property boom: the new property legal tax framework for foreign acquisitions, 6 October 2025 (https://hhq.com.my/posts/johor-property-boom-the-new-property-legal-tax-framework-for-foreign-acquisitions/)
- JOHOME, Foreign property buyer guide for Johor (https://johome.my/articles/foreigners-buy-property-johor/)
- JOHOME, JS-SEZ and Johor property (https://johome.my/articles/js-sez-johor-property-buyers-guide/)


