Be considerate, Kayveas warns developers
12/11/2001 The Star
PETALING JAYA: Deputy Housing and Local Government Minister Datuk M. Kayveas has warned developers to be considerate when terminating the sale and
purchase agreement of house buyers in the light of the present economic slowdown.
He was commenting on an article published last week, where a developer terminated the sale and purchase agreements of 20 house buyers after their
end financier Malaysia Building Society Berhad (MBSB) failed to honour the progressive billing demanded since June.
According to the House Buyers Association (HBA), MBSB had acknowledged in its letters to several customers that it failed to release the progress
payments and had offered to bear the late payment charges imposed by the developer.
HBA secretary-general Chang Kim Loong said MBSB had also in its letters to the house buyers admitted that it was under financial constraint and
was seeking more funds from other sources.
Kayveas said the developer’s conduct was unacceptable.
“The developer should not act tough as MBSB had already promised to pay the interest. In times like this, developers should be more understanding
as the Government had often helped them by pumping money into the industry and reviving abandoned projects,” he said, adding that house buyers
would be the innocent victims.
Kayveas said his ministry was aware of the problem faced by MBSB but had assured that it’s cash flow problems were only temporary.
“We are looking into the existing laws, where the necessary action could be taken against such developers. We will go down hard on them,” he
added.
Kayveas also said that the price of low-cost houses in rural areas would remain at RM25,000 although similar dwellings in urban areas would cost
more.
“Taking into consideration the current economic situation, there will not be an increase in prices of low-cost houses.
“However, in urban areas and big towns where landprices are costly, the cost of a low-cost house will be between RM35,000 and RM42,000,” he said.
Kayveas, who is also People’s Progressive Party president, said 40,000 low-cost houses would be built under the Eighth Malaysia Plan. |
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