New launches are sold in show galleries, and show galleries are built to make the maths feel easy. Attractive rebates, "free" legal fees, a booking fee you can pay by card, and a monthly figure that sounds manageable. What's rarely on the brochure is that buying an under-construction property costs money in a completely different shape from buying a completed one.
The big difference is that you start paying for a home you can't live in yet, sometimes for three years. This guide explains how new launch purchases actually work in Malaysia, where the hidden money goes, and how to plan it properly with PropGo's New Launch Calculator.
How do new-launch and subsale costs differ?
When you buy a completed subsale property, you pay your deposit, complete in three to six months, and start full repayments once you own it.
A new launch works differently. You sign a Sale and Purchase Agreement governed by the Housing Development (Control and Licensing) Regulations 1989, using the standard Schedule G for landed titles or Schedule H for strata. The bank then releases your loan progressively, paying the developer in instalments as construction hits agreed stages.
That progressive release is the whole story, because you pay interest on each portion from the moment it's released.
How much can progressive interest cost?
Here's what catches buyers out. During construction you don't pay a full monthly instalment. You pay interest only on the amount the bank has disbursed so far. It starts tiny, maybe a hundred ringgit or two, and grows every time the developer hits a milestone.
By the final year of construction the bank has released most of the loan, and your monthly interest is approaching a real instalment, for a home you still can't move into. If you're renting at the same time, you're paying twice.
Take a RM600,000 unit with a 90% loan (RM540,000) at 3.9%, built over 36 months. If the loan is released steadily across that period, you'll be carrying an average outstanding balance of roughly RM270,000 across three years:
Progressive interest paid during construction: roughly RM31,600.
That averages about RM878 a month, rising from near zero at the start to well over RM1,500 near completion.
Once you get vacant possession, the full instalment on a 30-year loan kicks in at about RM2,547 a month.
RM31,600 is not a rounding error. It's money spent before you hold a single key, and it appears on no brochure. Plan for it or it becomes debt you didn't budget for.
How do developer rebates affect your loan?
Developers compete on packages, not just price. You'll see rebates, absorbed legal fees, free MOT stamp duty, free air-conditioning, and cash-back arrangements.
These are genuinely worth money, but read them carefully:
A rebate reduces what you effectively pay, but the SPA price often stays at the headline figure. Banks generally lend against the net price after rebates, so a big rebate can mean a smaller loan and more cash needed from you.
Absorbed legal fees usually cover the SPA only, not the loan agreement. You may still pay for the facility agreement. Our legal fees guide explains which is which.
Free stamp duty offers may overlap with an exemption you'd get anyway. First-time buyers purchasing at RM500,000 or below already get full exemption on both the transfer and the loan agreement, extended until 31 December 2027. If you qualify, a developer "absorbing" it is giving you nothing.
What do you pay, and when?
Booking fee on reservation, commonly a few thousand ringgit.
Differential sum to make up your 10% of the purchase price, due around SPA signing. On a RM600,000 unit that's RM60,000, less any rebate arrangement.
Legal fees and stamp duty, unless absorbed, estimated with the Stamp Duty Calculator.
Progressive interest throughout construction.
Full monthly instalments from vacant possession onward.
Renovation, furnishing and moving costs at handover, plus maintenance and sinking fund for strata.
How to use PropGo's New Launch Calculator
Open the New Launch Calculator.
Enter the property price from the developer's price list.
Enter your loan margin and interest rate.
Enter the expected construction period, which the SPA states as 24 months for landed or 36 months for strata.
Read your upfront cash, progressive payment schedule, and estimated interest during construction.
Compare that total against what you'd pay for a completed unit in the same area. Sometimes the new launch still wins on price, location or specification. Sometimes it doesn't once you count three years of progressive interest. The point is to make the comparison with real numbers instead of a show gallery feeling.
What should you check before committing?
Confirm your borrowing capacity with the DSR Calculator and your realistic price band with the Affordability Calculator.
Compare bank offers with the Loan Comparison Calculator, since progressive-release loans differ in how they handle interest during construction.
Track rates on the OPR hub. Bank Negara held the OPR at 2.75% on 9 July 2026, but on a 36-month build your rate can move well before you move in.
Check the developer's track record on delivery. A late project extends your progressive interest and your rent at the same time.
What documents should you keep from booking to handover?
Keep the booking form, rebate schedule, SPA, loan letter of offer, progressive billing notices, bank disbursement records, payment receipts and every written promise about included items. Near vacant possession, add the completion notice, keys and access-card inventory, defect list, photographs and rectification correspondence. Check that verbal sales claims appear in an enforceable document before relying on them. A folder arranged by date lets you reconcile the calculator estimate against actual progressive interest and spot missing payments or inconsistent charges early, while there is still time to ask the developer, bank or lawyer for clarification.
Where PropGo fits in
Show galleries only ever show you one project. That's the structural problem with shopping for a new launch. On PropGo.my you post a request describing your location, budget, and property type, and verified agents come back with options that match, both new launches and completed units. You get to compare across developers and against the subsale market instead of deciding inside one sales gallery.
Frequently asked questions
Do I pay a full monthly instalment during construction? No. You pay interest only on what the bank has disbursed so far, which grows as construction progresses. Full instalments start after vacant possession.
Can I avoid progressive interest? Not if you're financing the purchase. Some buyers reduce it by paying a larger deposit so less of the loan is disbursed, but the interest itself is unavoidable with a progressive release.
Are developer rebates worth taking? Often yes, but check how the bank treats them. Lending is usually based on the net price after rebates, which can reduce your loan and increase the cash you need upfront.
How long until I get my keys? The SPA sets the delivery period, 24 months for landed under Schedule G and 36 months for strata under Schedule H, counted from the SPA date. Late delivery entitles you to liquidated damages.
What is the defect liability period? Standard HDA agreements give you 24 months from vacant possession to report defects for the developer to rectify. Inspect properly and submit your list early.
