Urban Renewal Bill Valuation: KL Auction Buyer Guide

Housing and Local Government Minister Nga Kor Ming has given the clearest hint yet of how owners would be compensated under the proposed Urban Renewal Bill. In a written parliamentary reply on 20 October 2026, reported by EdgeProp and The Star the next day, he said replacement properties would be valued with reference to the future values developers expect to realise, based on projected profits that the government would regulate and agree on.

The reply answered Bukit Bintang MP Fong Kui Lun, who asked what legal tools exist to acquire abandoned strata buildings that endanger public health and safety, and whether new provisions are planned for ageing blocks such as Hicks Mansion. According to The Star, Nga said owners would receive terms "no less favourable" than their current position, including a suitable new property reflecting the value of the existing one, with developers bearing the cost.

Where the bill stands

The bill is still not law. EdgeProp notes it was tabled in August 2025 and presented for second reading on 28 August 2025, but debate was postponed after objections to its consent thresholds. Bernama reported on 23 January 2026 that Cabinet had agreed to withdraw it for amendments and re-table it as a new bill, with drafting by the Attorney General's Chambers expected to take time. EdgeProp says it has not yet been formally withdrawn and remains on the order paper. For now, the existing tools Nga cited still apply: the Land Acquisition Act 1960 and the Strata Titles Act 1985, which only covers acquisitions within strata schemes.

What it means for auction buyers in Kuala Lumpur

Most older strata blocks and pre-war shop rows that could one day be considered for renewal sit in the city centre and established suburbs. If you are bidding on an older condo, apartment or shop office among the bank auction properties in Kuala Lumpur, three points matter.

First, a renewal scheme is not a reason to overpay today. There is no final bill, no gazetted area and no confirmed valuation formula, so any "redevelopment upside" in a sales pitch is speculation. Price the lot on its current use, rental and condition.

Second, the direction of the policy is to protect owners' value rather than to buy them out cheaply. The minister's statement that replacement units would reflect existing values and developers' projected gains is reassuring for owners of ageing buildings, but the details will only be known when a new bill is tabled.

Third, older buildings carry real risks now: weak management, maintenance arrears and costly repairs. These affect resale and financing long before any renewal plan arrives.

Practical steps before you bid

Check the building's age, title status and whether it has a functioning joint management body or management corporation. Nga said the right mechanism for a building like Hicks Mansion depends on its title status and condition.
Ask the management office for service charge arrears and any planned special levies.
Inspect the exterior and common areas, and look at the condition of lifts, roof and facade.
Compare the reserve with the round number: older stock often clears in later rounds. BidNest's market report shows a 47.1% clearance rate for Kuala Lumpur and 42.3% for apartments across its tracked auctions.
Browse current auction condos and apartments to compare older and newer blocks in the same area.

This is general information, not legal or financial advice.

Frequently Asked Questions

Is the Urban Renewal Bill law in Malaysia?

No. It was tabled in August 2025 but its second reading debate was postponed. Cabinet agreed in January 2026 to withdraw and redraft it, and as of October 2026 it remains on the Dewan Rakyat order paper without being passed.

How would owners be compensated under the proposed bill?

According to Nga Kor Ming's written reply of 20 October 2026, owners would get terms no less favourable than their current position. Replacement properties would reflect the value of existing homes and take into account developers' projected profits, which the government would regulate.

Should I pay more for an old KL auction unit because of urban renewal?

It is safer not to. No renewal area, formula or timeline is final, so value the lot on its present condition, rental demand and building management. Treat any future redevelopment as a possible bonus, not part of the price.

What laws apply to dilapidated buildings today?

The minister cited the Land Acquisition Act 1960 and the Strata Titles Act 1985, as amended in 2016. The Strata Titles Act mechanism only covers acquisitions within strata schemes, which is the gap the new bill is meant to fill.