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Government urged to blacklist, prosecute developers over abandoned housing projects, Home prices to increase amid significant hike in building material prices and more

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The government has been urged to blacklist and take legal action against developers who failed to complete housing projects on time.

 

Meanwhile, Knight Frank Malaysia expects prices for residential properties, especially new launches, to increase amid the significant increases in building material prices.

 

1) Government urged to blacklist, prosecute developers over abandoned housing projects

 

The government has been urged to blacklist and take legal action against developers who failed to complete housing projects on time.

 

“These companies need to be brought to face justice and must refund the money paid by the house buyers. Blacklist (them) and bring them to court,” said Ahmad Maslan (BN-Pontian) as quoted by Free Malaysia Today.

 

He noted that such companies may be considered to have cheated the buyers since their advertisements had stated that the projects would be completed in three years or so, but failed to live up to their promise.

 

His statement was made in response to Azizah Mohd Dun’s (PN-Beaufort) question on the efforts taken by the Housing and Local Government Ministry to resolve the issue of abandoned housing projects post-pandemic.

 

Ismail Abd Muttalib, Deputy Housing and Local Government Minister, shared that they had already taken action against such companies.

 

Aside from affecting buyers, the action of such companies also impacted the government as it had to fork out funds for the rehabilitation of the abandoned projects, he said.

 

2) Home prices to increase amid significant hike in building material prices

Knight Frank Malaysia expects prices for residential properties, especially new launches, to increase amid the significant increases in building material prices.

 

This, along with higher borrowing costs due to the recent hikes in overnight policy rate (OPR), may dampen interest in property, said Knight Frank Malaysia’s Group Managing Director Sarkunan Subramaniam.

 

The OPR, which was raised from 1.75% to 2% and then to 2.25%, is expected to further increase in the near future, reported the New Straits Times.

 

Despite this, Sarkunan sees the residential property market recovering in 2H 2022 as a result of the other economic stimuli.

 

Notably, the recently announced 100% stamp duty waiver for first-time homeowners of properties that are priced RM500,000 and below via the Keluarga Malaysia Home Ownership Initiative (i-MILIKI) will help drive recovery.

 

With the end of the Home Ownership Campaign (HOC) on 31 December 2021, Sarkunan expects more developers to launch appealing campaigns to boost sales.

 

3) Government eyes new PPRT budget

The government eyes to set a new budget for the development of public housing units under Program Perumahan Rakyat Termiskin (PPRT) as contractors are unwilling to build such units at the current price.

 

Notably, one PRT unit has a construction budget of up to RM56,000, while the maintenance rate is set at RM13,000 per unit, reported Free Malaysia Today.

 

The cost of building for one PPRT unit, however, has now risen to at least RM67,000, said Deputy Rural Development Minister Abdul Rahman Mohamad.

 

“Contractors are not willing to build these units. The ministry is discussing a new pricing guideline which will be presented to the Cabinet so we will be able to implement it by this year,” said the minister in response to Salim Sharif’s (BN-Jempol) question.

 

“The ministry has tried its best to persuade (the contractors) but without any success. That is why we are discussing how we are going to get a new rate for the construction of the PPRT units,” he added.

 

4) Kepong house owners issued freehold land titles

House owners at Taman Bukit Maluri in Kepong saw their 99-year leasehold titles converted to freehold titles.

 

This comes after the High Court granted them the right to freehold titles in March, with judge Evrol Mariette Peters ruling that the 99-year leasehold condition imposed on their land was invalid, reported Free Malaysia Today.

 

She noted that the owners can not be denied their constitutional right to property.

 

The homeowners revealed that the 1903 master title belonged to a rubber plantation that was owned by Edinburgh Rubber Estates. In 1973, the land was transferred to Sharikat Permodalan Kebangsan Bhd for a residential project developed by Syarikat Maluri Sdn Bhd.

 

During the transfer, however, the land’s status was converted to leasehold.

 

Pretam Singh, the lawyer of the house owners, shared that new titles were issued by the land and mines department to those who had their old titles with them.

 

Meanwhile, some of the houses had their titles with the banks since the owners were servicing their loans. With this, the banks were requested to surrender the old titles for the replacement of new ones.

 

Check out properties for sale in Kepong now!

 

5) Condo residents concerned over landslip at riverbank

Residents at Shineville Park condominium in Ayer Itam, Penang have urged the state Public Works Department (JKR), Drainage and Irrigation Department (DID) and Penang Island Municipal Council (MBPP) to look into a landslip at a nearby riverbank.

 

This comes as land subsidence there had already reached a depth of 0.91m on 25 July, reported The Star.

 

“Besides the condominium residents, those staying at several three-storey bungalows nearby are also worried about the situation,” Paya Terubong MCA constituency coordinator Chooi Foo Cheong.

 

He urged JKR, DID and MBPP to resolve the landslip first before proceeding with the RM700,000 bicycle lane project, noting that the project may be affected by the landslip.

 

“The construction of the bicycle lane started last year and was expected to be completed by September,” he said.

 

“However, the project might not be completed as scheduled because repairs and restoration work may take a long time,” added Chooi.

 

6) Residents say no to overdevelopment

The growing number of high-rise developments in Cheras, Kuala Lumpur has forced residents to launch an online petition in a bid to stop the township from being overrun with condominiums and apartments.

 

Titled “Stop overflooding/suffocating Old Cheras Township with High Rise Condominiums”, the petition on Change.org underscores seven ongoing projects that are yet to be completed within 4km radius of their neighbourhood, reported The Star.

 

Once all existing projects are ready, the area will see an additional 9,187 housing units.

“As it is, the present infrastructure cannot cope with the increased population where demand for infrastructure and amenities services, traffic congestion, pollution and all sorts of problems are affecting the quality of life and liveability of the existing residents,” said Cheras MP Tan Kok Wai.

 

With this, he urged DBKL to review all housing projects in Cheras as well as other affected areas in Kuala Lumpur.

 

“We hope DBKL can plan development in accordance with the Sustainable Cities and Communities, one of the 17 Sustainable Development Goals established by the United Nations,” added Tan.