Key issues and root causes in pre-project property selling: a comparative analysis between Indonesia and Malaysia

Abstract

Owning a home, whether a landed house or an apartment, is a dream for many people. Property sales continue to increase every year in line with community needs. One strategy used by property developers is pre-project marketing, in which properties are sold before completion or even before construction begins. Although it offers more competitive property prices, this practice poses various risks and challenges, making it an interesting topic to study. This study aims to investigate the key issues and root causes of recurring pre-project property-selling disputes in Indonesia and Malaysia. Using a comparative case study approach, this study identified seven key issues: abandoned/delayed projects, failed/late unit handovers, consumer financial losses, legal/licensing issues, developer bankruptcy/crisis, weak consumer protection, and government intervention. In addition, this study identified seven root causes: weak project governance, fragile financing structure, risky pre-project sales scheme, weak regulation and oversight, conflicts of interest/ethics, lack of an early warning system, and dependence on the government. The results of this study highlight the social dimension of sustainable housing, focusing on strengthening the property sector and regulatory reforms that protect consumers in both countries.