Tips To Choose A Reliable Property Developer

If you are not aware, the Malaysian Ministry of Housing and Local Government compiles and releases a regular list of problematic and blacklisted property developers in Malaysia every year.

Under the list, the blacklisted developers are divided into four categories, namely property developers operating without license, property developers that did not honor buyers’ tribunal claims, property developers who failed to pay their compounds and property developers that were involved in abandoned projects.

No matter which category that a developer falls under, you should try to stay away from them to avoid any possible losses in your property investment. Here is the complete list of the latest blacklisted property developers in Malaysia for your reference.

However, it does not mean that if a developer is not in the blacklist, it equates them to a reputable and responsible developer. In fact, a good developer is never solely determined just by this list. Below we have listed out the five indicators on how you can choose a good property developer.

1. Solid track record

If you are in doubt on the developer’s promises of a new project, especially on the building quality or common facilities, always utilise the power of the Internet to research the feedback and comments of the developer’s previously completed projects. If possible, pay a physical visit to these projects to see it with your own eyes.

2. The reputation

While the property quality and the capability to deliver the project are important, do not ignore the overall performance of the developer, such as the efficiency in handling the purchasing process and the after sales service. One useful indication is the developer’s award achievement and professional building or operating recognition.

3. Financial background

Abandoned projects are every buyers’ nightmare. In most of the abandoned project cases, the root problem has always been that the developer ran into some financial problems. Therefore, it is recommended to buy with a public listed developer as you can easily access the financial report before making the final decision.

4. The business scale

As property development is a business that involves big upfront investment and detailed planning, it is not easy to obtain the authority’s approval to develop a big project such as a township development. One good way to measure the ability of a developer is through the past and current project scale. 

5. The website of the developer

If you are able to get legit information of a developer such as the company history, organization chart, completed and ongoing projects, as well as awards and recognitions from the official website, it shows the transparency of business and confidence of the developer, which is not likely to happen to a dodgy developer.


[Image source: Photo by Aleksandar Pasaric from Pexels]

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