Forging a win-win deal
26/05/2008 The Star By Teh Eng
TWO blocks of condominiums in a prime area sat abandoned for eight years
until the intervention of Housing and Local Government Ministry
Secretary-General Datuk Ahmad Fuad Ismail.
Ahmad Fuad said the condominiums in Taman Tun Dr Ismail were already 80%
complete when the developer stopped work.
“The units were priced at about RM300,000 each. I told the buyers that the
project was 80% complete and by paying an extra RM39,000, it could be
finished,” he said.
“Finally the buyers relented and paid up. The project is now completed, the
buyers have moved in and they are happy.”
Ahmad Fuad said both house buyers and developers have to sacrifice a bit for
a project to be revived.
Abandoned projects can be revived if both developers and buyers make a
“Many people think we take the side of the developers. We always put the
“But buyers don’t care what happens. They want to be compensated if the
project is not delivered. The developer had already been wound up. So who
will compensate them?” he asked.
Ahmad Fuad wants house buyers to change their mindset and understand that it
is better to fork out a bit more to get a completed property than be stuck
with an abandoned one.
Many developers, he said, were reluctant to take over abandoned projects as
it was usually not profitable.
He said a project was considered abandoned if the units could not be
delivered after six months of the scheduled date of completion and when
there was no onsite activity during this period.
“Usually, a court order is obtained to wind up the company. The court will
then appoint a liquidator, who will try to salvage the project,” he said.
Ahmad Fuad said buyers would have to fork out a bit more, as the developer
who takes over the abandoned project would naturally need to make a small
profit to get the project going.
“In the case of the project in Taman Tun, I asked buyers whether they wanted
the project to be completed. If not, they would not get to see their
houses,” he said.
The new developer sold the few remaining unsold units to make up for the
cost of reviving the project.