Bought a House in Pasir Gudang? Understand Vacant Possession & the Costs of Home Ownership

Written by meridinOctober 10, 2022

There was once a house for sale in Pasir Gudang, and now you’ve bought it. Or finally found the home of your dreams, and you’re gearing up for the day you can decorate your new space. Finally, you’ve reached Vacant Possession (VP).

But before you go shopping for home furniture and other goods, there are a few things you’ll need to fork out first. This includes setting up items such as electricity and sewage, among others.

So, if you are thinking of buying a property whether in Pasir Gudang, or other districts, it’s best you read up on VP first. After all, that’s when you’ll finally have the keys to your new home. 

Bought a House in Pasir Gudang? Understand Vacant Possession First

When opting to buy a house in Pasir Gudang or elsewhere, you’ll definitely hear this term being thrown around. There could also be homes that are labelled as “sold with VP” but what does it mean? Well, VP comes after the purchase is complete, once the Sales and Purchase Agreement (SPA) is signed. It is the time when it is handed over to the buyer as an empty bare property. 

Costs Incurred After VP of a Pasir Gudang House for Sale

But there are a few costs incurred after the VP of your Pasir Gudang house or house in general – at times, these might be taken care of by the developer. However, here are some general costs that you may need to sort out. 


Set up your electricity by:

  • Engaging with an electrical contractor from the Energy Commission (TNB), they will carry out an assessment. 
  • You’ll need to pay charges such as the deposit, stamp duty and connection fee once you fill in your form. 


  • Applying for water supply may differ based on the state.
  • For houses in Pasir Gudang, you must apply to SAJ Ranhill.    


  • If you bought a new property, then you don’t have to worry because new properties come with sewerage being taken care of. 
  • If you bought a sub-sale property, you have to make an application at the Indah Water Konsortium (IWK) online or physically in the office. 
  • Fee will be included, but that depends on your property type.

What Comes After Buying a House in Pasir Gudang? Here Are the Yearly Costs of Home Ownership  

While you fork out money for your monthly instalment and bills, there are a few things you’ll need to pay on a yearly basis. Here’s what you need to prepare for. 


Assessment is also known as ‘Cukai Pintu’, which is basically for the upkeep of your neighbourhood – this can include street cleaning, street lights, collecting municipal waste and so on. This is applicable to any property you own. The assessment rate is usually based on the annual rental value of your property – you are charged a certain percentage of that as your assessment.

The value of your assessment rate depends on the annual rental value of your property. It is also different according to the size and type of your property. This also means that the smaller your property, the lower your charges would be. Below is the example of how the assessment rate is calculated for a monthly rental of RM4,000 for single storey house:

Annual rental: RM4,000 x 12 = RM48,000

Assessment rate (may vary from state to state): 4%

The amount of assessment you need to pay annually = RM48,000 x 4%

= RM1,920 

Quit rent

If you own any landed property in Malaysia, for example, a two-storey house in Pasir Gudang, you’ll need to pay quit rent, regardless if your property is leasehold or freehold. Also known as ‘cukai tanah’, it is essentially a land tax collected by the state government. Your quit rent amount depends on your property’s square footage and the price per square foot. 

You can check your quit rent rates with the relevant Land Office or your state government. Below is the example of calculating the quit rent for an RM0.035 rate per square foot:

Square foot of property x Price per square foot = Quit rent

2,500 sq ft x RM0.035 psf = RM87.50

Ready to Get Your Dream Home? View Property for Sale in Pasir Gudang, Johor  

If you haven’t found the house of your dreams, try checking out houses for sale in Pasir Gudang, Johor, specifically Meridin East. 

Meridin East, a 1,313-acre gated lake garden community, is strategically located in the Eastern Gateway of Iskandar Malaysia. Connected to modern highways, its residents enjoy easy access to Johor Bahru and other key landmarks. 

Meanwhile, the direct-access road which is set for completion in 2022, will give residents even better access to their house in Pasir Gudang. 

Other than that, properties in Pasir Gudang, Meridin East, have ample outdoor activity spaces – great for families! 

So, if you are keen, here are a few houses for sale in Pasir Gudang at Meridin East to check out.

Check out all properties for sale in Pasir Gudang, Johor by Meridin East here, and find your dream home now. 

Submit your interest today

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