Still hope for abandoned
13/04/2006 The Sun
KUALA LUMPUR: Some 1,364 homebuyers are "stuck" with their investments in
nine housing projects which have been abandoned and deemed as "cannot be
revived" by the Ministry of Housing and Local Government.
Construction of one of the nine projects has not started while work on the
other eight have reached between 10% and 20% before things came to a halt.
In total, the nine projects involve a total of 2,866 units worth RM335.29
A breakdown obtained from the ministry shows that two are located in
Selangor (Ampang and Klang) and one each in Ipoh (Perak), Sri Hartamas
(Kuala Lumpur); Senawang (Negri Sembilan), Klebang (Melaka), Muar (Johor),
Bt Mengkebang (Kelantan) and Jerantut (Pahang)
The types of homes in the projects vary and these include condominiums,
bungalows, 2-storey links, low-cost homes and shop apartments. In terms of
value, the Klebang project is the highest at RM125 million, followed by Sri
Hartamas (RM123 million) and the two projects in Selangor (RM38.5 million).
The sales performance of these projects varies from 1. 7% to 100%. The
Jerantut project (260 units) has all been sold while the project in
Kelantan-1-storey bungalows - has only two of the 118 units sold. Meanwhile,
the Ipoh project has seen 93.5% sales (404 out of the 432 units).
Housing and Local Government Ministry director of monitoring and enforcement
Dr G Parameswaran(pix) told theSun that they have "not completely given up"
on reviving these projects. "Our doors are still open," he said when asked
on the recourse of the affected buyers.
He explained that these were among the abandoned project cases that they
have difficulty in finding "white knights" to revive the projects. Even
Syarikat Perumahan Negara Bhd (SPNB) found these projects not viable for
revival. Among the problems faced, he explained, are difficulty in locating
the developers and landowners. Other parties involved include bankers and
The nine projects are among the total of261 (involving 88,410 units valued
at RM8.043 billion and 58,685 buyers) abandoned from January 1990 to
Of these, 93 projects (17,450 units valued at RM1.879 billion; 12,541
buyers) have since been rehabilitated. Ten projects (4,191 units valued at
RM426.2 million; 2,074 buyers) have since been taken over by white knights.
The remaining 149 projects (63,894 units valued at RM5.4 billion; 42,706
buyers) have the potential of being revived, based on the feasibility
studies carried out so far.
It is important to note that the development licenses for all the 261
projects were issued before the amendment to the Housing Development Act in
December 2002. "With the amendment, we have tightened the law," said
A project is classified as abandoned when there's no work ongoing on site
for at least six months continuously or when the company has been wound up
and placed under receivership for a period of six months.