The buying property in JB process for a new launch condo runs in ten steps: choose a unit, pay a booking fee, get loan approval, sign the Sale and Purchase Agreement (SPA) and pay 10%, then pay the balance in stages as the building rises under the Housing Development Act schedule. For strata projects, vacant possession is due within 36 months of the SPA date, followed by a 24-month defect liability period and transfer of the strata title. Foreign buyers also need state consent and, in most of Johor, must meet the RM1 million minimum price.
Buying a new launch condo in Johor Bahru is different from buying a completed unit. You commit years before the building exists, you pay in stages rather than all at once, and you are protected by a standard-form contract set by law. This guide walks through the buying property in JB process from booking to keys, using EXSIM’s Causewayz Square near the CIQ and The Asteriaz in Kebun Teh as running examples. It covers costs, a realistic timeline and the extra steps for foreigners. If you have been searching how to buy a new launch condo in Johor, or the buy property Johor Bahru steps in plain language, this is the checklist. Rules change, so treat this as a map and confirm details with your lawyer and bank.
The buying property in JB process at a glance
From booking to strata title, a typical new launch purchase in JB takes four to six years, but your cash outlay is spread across that period. The table below shows the main milestones.
| Step | What happens | Typical timing |
|---|---|---|
| 1. Choose project and unit | Visit the sales gallery, compare layouts and floors | Week 0 |
| 2. Booking | Pay booking fee, sign booking form | Day 1 |
| 3. Loan application | Submit documents; bank issues letter of offer | Within about 2 to 4 weeks |
| 4. SPA signing | Sign SPA, pay balance of 10% downpayment | Usually within a few weeks of booking (per developer terms) |
| 5. Loan agreement | Sign facility agreement; stamp duty on loan | Shortly after SPA |
| 6. Progressive billing | Bank pays developer in stages as construction progresses | Over the construction period |
| 7. Vacant possession (VP) | Keys handed over; water and electricity ready | Within 36 months of SPA date for strata (Schedule H) |
| 8. Defect liability period | Developer repairs defects you report | 24 months from VP |
| 9. Strata title transfer | Title and transfer documents delivered; final 2.5% paid | At or after VP |
| 10. Stakeholder release | Last 5% held by developer’s lawyer is released | 8 and 24 months after VP |
Note that large projects can have longer timelines approved by the authorities; Causewayz Square targets completion around 2030 and The Asteriaz is expected around 2029 to 2030. Always check the delivery period stated in your own SPA.
Step 1: Choose the project and the unit
Start with your purpose, own-stay, rental or a mix, then match the project and unit type to it. Location, layout and payment comfort matter more than chasing the lowest headline price.
For example, buyers who want to walk to the JB CIQ and the RTS Link often look at Causewayz Square, about 600 m from CIQ and 800 m from the RTS Bukit Chagar station, where dual-key layouts let one unit house two tenants or an owner plus a tenant. Families who prefer a calmer residential area and a lower entry ticket often look at The Asteriaz in Kebun Teh, which is around a 10-minute drive to the CIQ, with a developer-proposed shuttle to CIQ and the RTS. When you shortlist, check:
- Tenure (Causewayz Square is freehold; The Asteriaz is leasehold) and land title (both are serviced apartments on commercial title)
- Unit size, layout, number of car park bays and facing
- Maintenance fee per sq ft and sinking fund
- Target completion date and developer track record
- The SPA price, for which WhatsApp us for the latest SPA price list
Our project comparison page sets the EXSIM projects side by side.
Step 2: Pay the booking fee
The booking fee reserves your chosen unit while the paperwork is prepared. It is paid to the developer when you sign a booking or registration form at the sales gallery.
The amount is set by each developer and is usually a small fixed sum or a small percentage of the price. It is normally credited towards the 10% you pay on signing the SPA. Read the booking form for the refund terms if your loan is not approved, and keep the official receipt. Lawyers point out that under the Housing Development Act standard contract, the first 10% is payable on signing the SPA, and that the clock for vacant possession runs from the SPA date rather than the booking date.
Step 3: Get your housing loan approved
Apply for a loan immediately after booking, ideally with two or three banks, so you have a letter of offer before the SPA deadline. Most new launch buyers finance 80% to 90% of the price.
Typical documents include your identity card or passport, latest payslips or business income documents, EA form or tax returns, bank statements, the booking form and the developer’s price breakdown. Malaysian banks follow Bank Negara Malaysia rules, including a maximum 70% loan-to-value ratio for an individual’s third and subsequent housing loans, in place since 2010. Foreign buyers can usually obtain financing too, but margins, documentation and income requirements are stricter and vary by bank, so get a pre-assessment early.
Step 4: Sign the SPA and pay the 10% downpayment
Signing the Sale and Purchase Agreement is the point where the purchase becomes legally binding. You pay the balance of the 10% downpayment (after deducting the booking fee) on signing.
For residential strata projects regulated by the Housing Development (Control and Licensing) Act 1966, the SPA uses the statutory Schedule H form for subdivided buildings. Serviced apartments, including those on commercial land such as Causewayz Square and The Asteriaz, are generally covered by the Act because they are used for residential purposes. Schedule H fixes key terms in the buyer’s favour: the payment stages, the vacant possession period, late-delivery compensation and the defect liability period. The developer’s lawyer typically prepares the SPA; you may appoint your own lawyer to act for you and for the loan. Check the unit number, price, car park allocation, completion period and the common facilities list before signing.
Step 5: Progressive billing under Schedule H
With a new launch, you do not pay the full price at once. The developer bills you at fixed construction stages, and once your 10% has been paid, the bank releases loan funds directly to the developer for each stage.
The Schedule H progressive payment schedule is:
| Stage | % of price |
|---|---|
| On signing the SPA | 10% |
| Foundation work completed | 10% |
| Structural framework completed | 15% |
| Walls with door and window frames | 10% |
| Roofing, electrical wiring, plumbing, gas piping and telecom trunking | 10% |
| Internal and external finishes | 10% |
| Sewerage works | 5% |
| Drains | 2.5% |
| Roads | 2.5% |
| Vacant possession, with water and electricity ready for connection | 17.5% |
| On delivery of the strata title and instrument of transfer | 2.5% |
| Held by developer’s lawyer as stakeholder (released 2.5% at 8 months and 2.5% at 24 months after VP) | 5% |
During construction you usually pay only the interest on the amount the bank has released so far, so monthly payments start small and rise as the building nears completion. This is one reason many buyers find a new launch easier to plan than a completed unit. Keep a small buffer for the period when interest payments overlap with rent or other commitments.
Step 6: Legal fees and stamp duty
Budget for legal fees and stamp duty on both the SPA and the loan. These are the main cash costs on top of your 10% downpayment.
Legal fees
Lawyers’ fees for the sale and purchase and for the loan documents follow the Solicitors’ Remuneration Order 2023, effective 15 July 2023: 1.25% on the first RM500,000 (minimum RM500) and 1% on the next RM7 million, plus disbursements and service tax. Developers sometimes offer to bear the SPA legal fees; check what your price includes.
Stamp duty on the transfer (MOT)
For Malaysian citizens and permanent residents, stamp duty on the instrument of transfer is charged on a progressive scale:
- First RM100,000: 1%
- RM100,001 to RM500,000: 2%
- RM500,001 to RM1,000,000: 3%
- Above RM1,000,000: 4%
For a new launch, the transfer is stamped when the strata title is ready, which can be at or after vacant possession. From 1 January 2026, foreign buyers (non-citizens, excluding permanent residents) pay a flat 8% stamp duty on the transfer instrument, up from 4%, as announced in Budget 2026.
Stamp duty on the loan
The loan agreement is stamped at 0.5% of the loan amount. Check with your lawyer whether any first-home exemption applies to you.
Cost checklist for a JB new launch condo
Plan your cash in three phases: at booking and SPA, during construction, and at handover. The checklist below lists what to budget for.
| Cost item | When | How it is calculated |
|---|---|---|
| Booking fee | At booking | Set by developer; credited to the 10% |
| Downpayment balance | At SPA signing | 10% of SPA price less booking fee |
| SPA legal fee | At SPA | SRO 2023 scale: 1.25% of first RM500k, 1% of next RM7m (check if developer bears it) |
| Loan legal fee and disbursements | At loan signing | Same SRO 2023 scale on the loan amount |
| Loan stamp duty | At loan signing | 0.5% of loan amount |
| Valuation fee | Loan stage | Bank-specific; sometimes waived for new projects |
| Interest during construction | Monthly | Interest on amount disbursed so far |
| MOT stamp duty | When strata title is transferred | 1% to 4% scale for citizens/PR; 8% flat for foreigners from 2026 |
| Maintenance fee and sinking fund deposits | At VP | Per sq ft, usually a few months in advance |
| Utility deposits | At VP | Water and electricity accounts |
| Furnishing and renovation | After VP | Depends on your plan and unit size |
| Foreigner state consent levy (if applicable) | Before transfer | Johor levy, minimum RM50,000 for serviced apartments below RM1m |
For current rents to plan your cash flow after handover, see our JB condo price and rent guide.
Steps 7 to 9: Vacant possession, defects and strata title
Vacant possession is when you receive the keys. Under Schedule H, it is due within 36 months of the SPA date unless the authorities have approved a different period for that project, and the developer pays liquidated damages for late delivery as set in the SPA.
Vacant possession
The developer issues a notice of VP once the certificate of completion and compliance is issued and water and electricity are ready for connection. The 17.5% VP instalment is billed at this point. You collect the keys, settle maintenance deposits and set up utilities.
Defect liability period
The defect liability period is 24 months after vacant possession. Inspect the unit carefully on handover and list every issue, such as cracks, leaks, uneven tiles and faulty fittings, with photos. The developer must repair reported defects within the time stated in the SPA. The 5% stakeholder sum held by the developer’s lawyer is released in two halves, at 8 months and 24 months after VP, which gives the developer an incentive to complete repairs.
Strata title
For strata developments, the final 2.5% becomes payable when the developer delivers the original strata title together with the instrument of transfer. Your lawyer then stamps the transfer and registers the title in your name. A registered strata title makes future sales and refinancing straightforward.
Notes for foreign buyers in Johor
Foreigners can buy new launch condos in Johor, but they follow extra rules on price, approval and tax. Check the current rules before you book.
- Minimum price: In most of Johor, foreigners may buy residential property priced at RM1 million and above. Developers can obtain special approval to sell certain sub-RM1 million units to foreigners, and Medini in Iskandar Puteri has no minimum price, according to the New Straits Times (April 2026).
- State consent: Every foreign acquisition needs approval from the Johor state authority under the National Land Code. Your lawyer files the application.
- State levy: Johor revised its foreign acquisition levy from 1 July 2025. For serviced apartments priced below RM1 million, the minimum levy is RM50,000.
- Stamp duty: From 1 January 2026, foreigners pay a flat 8% stamp duty on the transfer instrument.
- Resale: Foreign owners of sub-RM1 million units may find the buyer pool limited mainly to Malaysians when they sell, so factor this into your holding plan.
Causewayz Square offers larger units and multiple towers that may suit foreign buyers within the threshold; ask us which units fit the current rules. See also our guide to EXSIM projects in JB.
How to make the process smooth
The smoothest purchases are the best-prepared ones. A few habits save time and money:
- Get a loan pre-assessment before you book, so you know your budget.
- Read the SPA’s completion period, car park allocation and facilities list.
- Keep every receipt and billing notice in one folder.
- Plan furnishing early if you intend to rent near the RTS Link, which is targeted to start passenger service in February 2027.
- Inspect thoroughly at handover and report defects within the 24-month window.
If you are considering Causewayz Square or The Asteriaz, WhatsApp us for the latest SPA price list, floor plans and a sample payment schedule.
Sources
- MHub: Schedule G and H progress billing stages
- Thomas Philip: Vacant possession periods under Schedules G and H
- EdgeProp: Defect liability period overview
- Conventus Law: Solicitors Remuneration Order 2023
- KPMG: Budget 2026 stamp duty for foreign buyers
- New Straits Times: Johor foreign buyer threshold and levy
- Bank Negara Malaysia: 70% LTV for third housing loan
- LTA: RTS Link service targeted for February 2027
This guide is general information, not financial advice.