Consumers and industry stakeholders have voiced strong support for the proposed Real Property Development Act (RPDA), urging the government to clearly define mixed developments and extend legal safeguards to protect buyers of commercial properties like Soho, Sofo, and Sovo.

Currently, these types of developments fall outside the scope of the Housing Development Act (HDA), leaving buyers exposed to risks such as abandoned projects and unfair treatment. Federation of Malaysian Consumers Associations (Fomca) CEO Saravanan Thambirajah said the RPDA must provide a clear definition of mixed developments and ensure full regulatory oversight.

“We need mandatory licensing, financial checks on developers, regulated accounts, and transparent sales processes,” he said. Saravanan also called for a dedicated tribunal to address buyer grievances and stressed that strong enforcement is vital for the law to be effective.

He welcomed the ministry’s move but cautioned against rushing the law without proper stakeholder engagement to avoid unintended market disruptions.

Paul Puah Chee Keong, CEO of PMC Facilities & Real Estate, added that many mixed-use properties with commercial titles are used as residences, yet buyers are charged higher commercial taxes and rates. “It’s only fair that Soho and Sovo units used for living should be charged residential rates,” he said.

Puah also recommended aligning the RPDA with the Strata Management Act to streamline property management and called for standardized service charge regulations.

Strata Property Owners Association advisor Law Hock Hua supported the proposed Building Managers Act to address poor property management. He suggested structured certification and bonding requirements for licensed managers to raise professional standards.

Housing Minister Nga Kor Ming confirmed that the RPDA is being developed to protect commercial property buyers and address abandoned projects. He also revealed plans for the Building Managers Act to fix management gaps and the Urban Renewal Act to rejuvenate old buildings.

The RPDA is expected to close a longstanding legal loophole and restore buyer confidence in Malaysia’s evolving property landscape.