A villager set fire to a house and danced while it burnt to the ground at Kampung Beting Lintang in Besut, Terengganu.
An eyewitness shouted for help before dragging the man away and later handing him over to the police on Saturday.
The owner of the house, Mat Jusoh Daud, 35, said he was repairing the vacant 10-year-old wooden house and was looking forward to moving in with his wife and four children.
They are currently staying at his father's house in the same village.
Besut district police chief Supt Khaled Che Lah said the suspect was under investigation.