News & Articles KPKT is looking for ways to bring abandoned housing projects back to life
KPKT is looking for ways to bring abandoned housing projects back to life
11 Oct 2021
The Ministry of Housing and Local Government (KPKT) is looking for solutions to resurrect the country's abandoned housing projects.
KPKT Minister Datuk Reezal Merican Naina Merican said, there are 79 abandoned housing projects in Peninsular Malaysia totaling 17,724 houses as of September 30.
The projects have a combined gross development value (GDV) of RM5.57 billion, before depreciation and arrangements with liquidators.
According to Reezal Merican, who spoke at the Dewan Rakyat yesterday, the abandoned projects impacted 11,824 homebuyers.
Reezal Merican stated that the ministry has taken steps to restore and complete abandoned projects in order to relieve the buyers' burden, including mediation and a settlement arrangement with the buyers through the resale of the unit to a liquidator.
He gave the example of a project that was successfully restored through mediation in Sepang, Selangor.
The project, Taman Salak Maju, was completed last month with the help of KPKT, local councils and agencies, he said.
According to Reezal Merican, the government spent RM219 million in direct involvement over previously abandoned projects between 2009 and September 2021, where the cases were addressed.
There were 215 abandoned developments with 59,090 units and 39,247 buyers in all.
Reezal Merican said, 15 of the country's 79 abandoned projects are now being rehabilitated, totalling 2,830 units for 2,699 customers.
He said 38 projects totalling 11,515 units with 6,319 buyers are in the process of identifying the right mechanism to save the projects through a solution agreed upon by the developer and buyer, while another 26 projects totalling 3,383 units with 2,806 buyers are stuck in the resolving legal issues stage.
Selangor has the most abandoned developments, with 33 totalling 10,974 units, followed by Johor, which has nine totalling 285 units.
Kelantan has 12 abandoned projects, totalling 946 units.
According to Reezal Merican, 65 projects have been abandoned as a result of the companies' weak balance balances, failure to meet requirements, and poor project management.
The non-viability of the projects, contractor inefficiency, and the inability to locate developers were among the other causes.
Reezal Merican, in response to a follow-up question from Fong Kui Lun (Pakatan Harapan-Bukit Bintang), indicated that only four developers had the financial means to build first and sell subsequently.
KPKT Minister Datuk Reezal Merican Naina Merican said, there are 79 abandoned housing projects in Peninsular Malaysia totaling 17,724 houses as of September 30.
The projects have a combined gross development value (GDV) of RM5.57 billion, before depreciation and arrangements with liquidators.
According to Reezal Merican, who spoke at the Dewan Rakyat yesterday, the abandoned projects impacted 11,824 homebuyers.
Reezal Merican stated that the ministry has taken steps to restore and complete abandoned projects in order to relieve the buyers' burden, including mediation and a settlement arrangement with the buyers through the resale of the unit to a liquidator.
He gave the example of a project that was successfully restored through mediation in Sepang, Selangor.
The project, Taman Salak Maju, was completed last month with the help of KPKT, local councils and agencies, he said.
According to Reezal Merican, the government spent RM219 million in direct involvement over previously abandoned projects between 2009 and September 2021, where the cases were addressed.
There were 215 abandoned developments with 59,090 units and 39,247 buyers in all.
Reezal Merican said, 15 of the country's 79 abandoned projects are now being rehabilitated, totalling 2,830 units for 2,699 customers.
He said 38 projects totalling 11,515 units with 6,319 buyers are in the process of identifying the right mechanism to save the projects through a solution agreed upon by the developer and buyer, while another 26 projects totalling 3,383 units with 2,806 buyers are stuck in the resolving legal issues stage.
Selangor has the most abandoned developments, with 33 totalling 10,974 units, followed by Johor, which has nine totalling 285 units.
Kelantan has 12 abandoned projects, totalling 946 units.
According to Reezal Merican, 65 projects have been abandoned as a result of the companies' weak balance balances, failure to meet requirements, and poor project management.
The non-viability of the projects, contractor inefficiency, and the inability to locate developers were among the other causes.
Reezal Merican, in response to a follow-up question from Fong Kui Lun (Pakatan Harapan-Bukit Bintang), indicated that only four developers had the financial means to build first and sell subsequently.
Source: NST.com.my