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Buying a home in Malaysia has always been one of life’s most significant milestones, an exciting and emotional experience, but it is also undeniably expensive. However, in 2026, with growing concerns over abandoned projects and misleading marketing, the spotlight has shifted. It’s no longer just about what you buy, but who you’re buying from.

Scroll through forums like the Property Talk forum on Lowyat.net or popular social feeds. You’ll see familiar horror stories, half-built towers left to rot, promised facilities that never materialise, and buyers left chasing refund cheques that never come. These aren’t just internet rumours; they’re real cases listed in official blacklists issued by the Ministry of Housing and Local Government (KPKT).

If you’re planning to buy or invest in property this year, understanding these risks isn’t optional; it’s essential. This guide unpacks everything you need to know about Malaysia’s blacklisted developers: how they end up on the list, what it means for you as a buyer, and the steps you can take to protect your hard-earned investment from turning into regret.

Table of Contents 1. Understanding What a “Blacklisted Developer” Means 2. Why Developers Get Blacklisted in Malaysia? 3. The Latest KPKT Blacklist for 2025 4. Real Cases and Common Warning Signs 5. How To Check a Developer’s Legitimacy? 6. What To Do if You’ve Been Misled or Scammed? 7. Trusted Ways To Buy Safely in 2025

Understanding What a “Blacklisted Developer” Means

When it comes to buying property in Malaysia, few warnings are as severe as being informed that a developer has been blacklisted. The term isn’t just a label; it’s an official sanction by the Ministry of Housing and Local Government (Kementerian Perumahan dan Kerajaan Tempatan, or KPKT) under the Housing Development (Control and Licensing) Act 1966.

A blacklisted developer has breached legal or regulatory obligations during housing development. KPKT maintains and updates this list periodically, ensuring that buyers can check whether a developer is operating within the law before committing to a purchase.

Typically, developers end up on this list for reasons such as:

• Operating without a valid Advertising Permit and Developer’s Licence (APDL): Every housing developer in Malaysia must obtain an APDL before promoting or selling residential units. Proceeding without one is a serious offence.

• Abandoning projects midway: Some developers halt construction due to financial distress or mismanagement, leaving homebuyers in limbo and developments unfinished.

• Failing to honour tribunal awards: When a developer refuses to comply with decisions made by the Homebuyer Claims Tribunal (TTPR), it reflects poorly on their credibility and commitment to consumer rights.

• Defaulting on fines or compound payments: Repeated non-payment of penalties imposed by KPKT or local authorities may also result in blacklisting.

These infractions aren’t administrative slip-ups; they’re clear signals of non-compliance that can have serious repercussions for both the company and its buyers.

Once blacklisted, a developer may be barred from launching or advertising new projects until all outstanding issues are rectified and verified by KPKT.

For the average Malaysian homebuyer, seeing a developer’s name on this list should serve as a clear warning sign. It’s a crucial cue to step back, reassess, and explore safer alternatives before investing your hard-earned money.

Why Developers Get Blacklisted in Malaysia?

Source: businesstoday

The reasons behind blacklisting range from poor management to outright fraud. Below are some of the most common triggers identified by KPKT and industry watchdogs:

• Unlicensed operations: Developers launching projects without APDL approval often bypass crucial safety and financial requirements.

• Abandoned developments: In some cases, the project runs out of funds, or the company folds, leaving half-completed structures behind.

• Failure to deliver on promises: Misleading brochures, smaller-than-promised layouts, or missing facilities all qualify as HDA violations.

• Ignored tribunal rulings: Even after buyers win legal claims, some developers refuse to pay compensation or rectify defects.

• Unsettled fines or compound payments: A tell-tale sign of disregard for regulation.

For homebuyers, recognising these signs early isn’t just about avoiding inconvenience; it’s about safeguarding years of savings and ensuring your dream home doesn’t become a cautionary tale

The Latest KPKT Blacklist for 2025

As of April 2025, KPKT’s official blacklist of developers includes 109 names nationwide. The ministry’s TEDUH portal provides an up-to-date public record of all errant developers, including their licence numbers and the reasons for blacklisting.

Below is a sample of developers currently blacklisted (verified through KPKT and 2025 news reports):

Category	Developer Name	Issue Cited by KPKT
No Developer Licence (APDL)	Aghniyak Builders Sdn Bhd	Operating without a valid APDL
	Mekar Circle Sdn Bhd	Unlicensed project advertising
	Ample Development Sdn Bhd	Non-compliance with permit law
Abandoned Projects	AGA Development Sdn Bhd	The project has been stalled since 2021
	Batu Gajah Development Sdn Bhd	Failure to complete the housing scheme
	Cosmopolitan Builders Sdn Bhd	Multiple abandoned projects
	Gunawan Hitech Sdn Bhd	Insolvency and non-delivery
Failed Tribunal Claims	Majestic Heights Sdn Bhd	Ignored court-ordered payments
	Bumi Diamond Development Sdn Bhd	Non-payment of the RM40,000 tribunal order
	CY Hitech Development (M) Sdn Bhd	Breach of HDA provisions
	Diamond Crest Sdn Bhd	Poor quality and refusal to refund
Unpaid Compounds & Fines	Happy Indah Properties Sdn Bhd	Non-payment of KPKT fines
	Bukit Tandak Development Sdn Bhd	Failure to settle penalties
	Dinding Development Sdn Bhd	Repeat violations
	Great Wall City Sdn Bhd	Ignored compound settlement notices

KPKT’s updated blacklist serves as a vital reminder that due diligence should never be an afterthought. Before signing any agreement or paying a deposit, always verify the developer’s licence status through the TEDUH portal or official KPKT channels.

A few minutes of research can spare you years of financial and emotional stress and ensure your property journey begins on solid, trustworthy ground.

Real Cases and Common Warning Signs

Red and white graphic of a 3D exclamation mark next to “ALERT”

The most chilling examples are those where buyers lose both time and life savings. Many Lowyat forum users have shared personal stories of developers disappearing overnight or handing over unlivable units.

Some tell-tale red alerts include:

• “Limited-time” discounts that seem too good to be true.

• Developers or agents who insist on quick cash deposits.

• Lack of visible construction activity on-site.

• Promises of returns or “guaranteed rental yields” with no formal contract in place.

• No APDL number displayed on marketing materials.

In a market where trust is everything, a little scepticism and due diligence can save you from years of financial and emotional strain, and help ensure your property journey stays firmly on solid ground.

How To Check a Developer’s Legitimacy?

Before signing anything or transferring a single ringgit, it’s vital to verify that the developer you’re dealing with is entirely legitimate.

In Malaysia, a few simple checks can reveal whether a company operates within the law or poses a potential risk to your investment. Here’s how to do it properly in 2026:

1. Visit the TEDUH portal: Search under “Senarai Pemaju” to confirm if the developer is licensed.

2. Check their APDL number: every legitimate advertisement must display one.

3. Confirm their company registration with the Companies Commission of Malaysia (SSM).

4. Research previous projects on credible portals, such as PropertyGuru Malaysia, to assess completion history and buyer reviews.

5. Consult LPPEH to confirm if the agent you’re dealing with is licensed.

Performing these checks may take only a few minutes, but they could save you years of regret and ensure that you have genuine, accountable professionals backing your dream home.

What To Do if You’ve Been Misled or Scammed?

Discovering that a developer or agent has deceived you can be deeply unsettling, but it’s essential to act quickly and through the proper channels.

Malaysia has several official bodies that protect buyers’ rights and can intervene when misconduct occurs.

Here’s what to do if you suspect you’ve been misled:

• File a complaint with KPKT’s Housing Enforcement Division:
  Report the issue online or in person to the Ministry of Housing and Local Government (KPKT). Provide all relevant documents, such as your Sale and Purchase Agreement (SPA), payment receipts, and communication records.

• Lodge a case with the Tribunal for Homebuyer Claims (TTPR):
  For disputes under RM50,000, you can submit a claim for as little as RM10 in filing fees. The Tribunal operates under the KPKT and has the power to summon developers, compel them to pay compensation, and issue binding decisions.

• Seek support from the National House Buyers Association (HBA):
  The HBA offers free legal guidance and advocacy for affected homeowners. They can help you prepare documentation, understand your rights, and explore mediation before going to court.

• Make a police report if fraud is involved:
  If the case involves deliberate deception, fake identities, or misappropriation of funds, lodge a report at your nearest police station. This ensures an official investigation is opened.

Remember, decisions by the Tribunal carry the same legal weight as a court order, and failure to comply can lead to further blacklisting or prosecution.

Acting promptly not only increases your chance of recovery but also helps prevent others from falling victim to the same developer or agent.

Trusted Ways To Buy Safely in 2026

In Malaysia’s increasingly digital property market, information has never been more accessible; yet, online scams have also become more sophisticated. Buyers today must go beyond glossy listings and social media ads by relying on credible, regulated platforms that verify both developers and project statuses before a single sen changes hands.

PropertyGuru Malaysia remains one of the safest and most transparent starting points for serious buyers. Every listing, whether a new launch or a resale home, is verified, with key details such as the developer’s credentials, project licence (APDL number), and HDA coverage clearly displayed. This ensures that what you see online reflects the project’s actual legal standing and progress.

For added peace of mind, you can explore reputable developers with proven track records of timely delivery and quality assurance, such as Sime Darby Property, Sunway Group, and IOI Properties, all of which are known for their substantial compliance with HDA standards and consistent performance.

If you’re purchasing a new property, the New Projects section on PropertyGuru Malaysia offers valuable tools to help you make informed decisions:

• Compare developer backgrounds side-by-side before shortlisting.

• Track construction progress and estimated handover timelines with updated project information.

• Connect directly with registered sales agents through the platform, ensuring your communications remain transparent and traceable.

Buying property in 2026 demands not just enthusiasm but vigilance, and the right platforms help you move forward with both confidence and clarity.

At the end of the day, property isn’t just bricks and mortar; it’s security, aspiration, and legacy. And that’s why you must know who’s behind the project you’re buying into.

Malaysia’s property landscape has matured, but the lessons remain the same: research, verify, and never rush into a deal that feels “too good to be true.”Explore property listings from PropertyGuru Malaysia, featuring verified and the latest listings, upcoming launches, and trusted developer profiles.