Kuala lumpur: The dream was sold before the keys were handed over - a home "walking distance and just five minutes from the city" and 'an exclusive low-density living environment". But for some homeowners, the truth only emerged after they moved in. What looked like convenience on paper felt different in reality. The short walk became a longer journey through crowded roads, the promised exclusivity gave way to congestion, and the lifestyle buyers imagined was replaced by daily struggles with traffic, long waits for lifts and overcrowded facilities.
According to BERNAMA News Agency, National House Buyers Association of Malaysia (HBA) honorary secretary-general Datuk Chang Kim Loong highlighted that in line with Regulation 8(1A) of the Housing Development (Control and Licensing) (Amendment) Regulations 2015, any advertisement by a licensed housing developer shall not contain claims, including panoramic views, traveling time from housing projects to popular destinations, or any other particulars that the developer cannot genuinely substantiate. Chang noted that developers found guilty of breaching the regulations may face a fine of up to RM50,000, imprisonment for up to five years, or both.
The Housing Development (Control and Licensing) Regulations 1989 specifies the types of information that developers can and cannot include in property advertisements. To prevent such misrepresentations, developers are required to submit their brochures and promotional materials to the National Housing Department for approval before distributing them to potential buyers. However, despite known violations, there have been no prosecutions to date. Without legal action, there will be no strong deterrent effect, and irresponsible parties may continue repeating such practices.
Meanwhile, National House Rental Association (NHRA) chairman Prakash Kalivanan pointed out that misleading advertisements can affect buyers for decades as many remain tied to long-term housing commitments. Phrases commonly used in property advertisements can create expectations that may not reflect reality after a development is completed and fully occupied. A project may be advertised as being 'walking distance or just five minutes from the city,' but once thousands more residents move into the area, experiences can differ significantly.
The concerns raised by consumer groups are not merely theoretical. In the case of Toh Shu Hua and Ors v Wawasan Rajawali Sdn Bhd (2023), 122 apartment buyers successfully sued the developer for misrepresentation. The Kuala Lumpur High Court held that the brochure was not mere marketing hype and awarded RM50,000 in damages to each buyer, as well as RM2 million in aggravated damages to be shared among them.
Datuk J Shamesh, managing partner of Jeeva Partnership, emphasized that Regulation 8(1A) of the Housing Development (Control and Licensing) Regulations 1989 specifically prohibits developers from making misleading claims. According to him, most developers generally comply with these requirements, but where representations made in advertisements or promotional materials are inaccurate or misleading, buyers may have legal recourse against developers.
Shamesh advises that buyers who believe they were misled may pursue civil action against developers and seek remedies, including damages or, in certain circumstances, the invalidation of the sale and purchase agreement (SPA). Buyers are encouraged to preserve crucial evidence, including original brochures and photographs, as legal action heavily depends on evidence.
Meanwhile, the president of the Real Estate and Housing Developers' Association (Rehda) Malaysia, Datuk Zaini Yusoff, contended that property developers must uphold the highest standards of transparency, accuracy, and integrity in marketing their products. He further said that developers remain responsible for ensuring all parties acting on their behalf market their projects accurately and in compliance with applicable legal and regulatory requirements.