Glossary
Progressive Payment vs 10:90
Progressive payment and 10:90 are two common payment structures for new-launch properties in Malaysia. Progressive payment ties installments to construction milestones, while 10:90 requires only 10% upfront with the remaining 90% due upon completion.
In Detail
In a progressive payment scheme, you pay the developer in stages as construction progresses — typically starting with 10% upon signing the SPA, then incremental payments at each construction milestone (foundation, structure, walls, roofing, etc.) totalling 100% by completion. Your bank loan draws down progressively, meaning you start paying interest before receiving the keys. In a 10:90 scheme, you pay only 10% upfront (booking fee + SPA deposit) and the remaining 90% upon vacant possession. This means lower cash outflow during construction but a larger lump sum at handover. 10:90 is often offered by developers as a promotional incentive — it benefits buyers who want to minimize upfront costs but requires financial readiness at completion. Both schemes are regulated under the Housing Development Act (HDA) for residential properties.
Investment Impact
10:90 schemes dramatically reduce holding costs during construction — you avoid 2–4 years of progressive loan interest payments. This improves your effective yield in the early years of ownership. However, ensure you have financing confirmed before completion, as the full 90% becomes due at once. Progressive payment is safer for budget management as costs are spread over the construction period.