Woes of abandoned housing projects 
    19/06/2008 The Star Stories by Salina Khalid 
     
    TO have a home of one’s own is every person’s dream. But, for thousands of 
    families in Selangor, their dreams have turned into nightmares after the 
    houses they bought using big long-term bank loans were left incomplete and 
    the developers disappeared.Many of them have been waiting for years, some 
    even decades, for their houses to be completed, but in the end, they were 
    left with shattered dreams and in a dire financial state with huge long-term 
    loans to service. 
    The initial joy of booking and then signing the sales and purchase 
    agreement for the house, followed by the granting of a bank loan, slowly 
    turns into dreadful and dismal feeling of fear, anger and sadness as the 
    time passes and work on their dream home is stopped. 
    All that they see is an incomplete structure left to rot by the building 
    contractors on a piece of idle land overgrown with lallang and construction 
    rubbish all over the place. 
    
        
      Dengue threat: Some abandoned houses can get filled with 
      stagnant water and become a breeding ground for mosquitoes.
      
     
    According to Selangor state housing, building management and squatter 
    committee chairman Iskandar Abdul Samad, there are 141 abandoned projects in 
    the state, 108 of them housing projects. 
    “Most of the abandoned projects are located in the urban areas, with 
    Klang and Shah Alam on the top of the notorious list,” he said. 
    “We understand the financial burden the house buyers are facing and we 
    are doing our best to help them,” Iskandar said. 
    According to Iskandar, the state government has no legal ground to take 
    action against any party involved in the sales and purchase of a private 
    property. 
    
        
      Overgrown: This abandoned project in Kajang has almost been 
      reclaimed by nature. 
     
    He said the sales and purchase agreement of a property was signed between 
    a purchaser and the private developer. 
    Iskandar said that as the contract was signed between both parties, any 
    breach of the contract should be settled in court. 
    “So when a housing project is abandoned, a buyer has to take private 
    legal action to seek remedy from the court. The state government does not 
    have any locus standi to take any legal action against any parties involved 
    in the matter,” he said. 
    “But, on humanitarian grounds, the state government through the Selangor 
    Property and Housing Board has taken several measures to help ease the 
    burden of these buyers,” he said. 
    “Our top priority is to ease the financial burden faced by the affected 
    families and help them find a solution to the problem,” he said. 
    According to Iskandar, about 30 abandoned projects have great potential 
    of being revived. 
    He said the state government was closely monitoring these projects, 
    hoping to have them revived. 
    Iskandar said the Selangor Property and Housing Board would work closely 
    with the Local Government and Housing Ministry on the matter. 
    He said regular meetings had been held with the developers, contractors, 
    local councils, technical departments and representatives of the purchasers 
    to seek solutions to revive the projects. 
    
      
    
 Iskandar: Most of the abandoned 
      projects are located in the urban areas.
      
     
    “The state government is all ready to help if assistance is needed for 
    fast approval of permits or on matters pertaining to land,” he said. 
    “We will cut red tape and impose minimum conditions so that the projects 
    could be revived if the matters do not involve security and safety issues,” 
    he said. 
    Iskandar said that talks were also being held with the developers whose 
    projects were under liquidation. 
    He said regular talks were being held with the Malaysian Insolvency 
    Department to see if the Selangor Property and Housing Board could help in 
    reviving the affected projects. 
    “The state is also studying whether it is possible for it to repossess 
    the land of the abandoned or problematic projects so that it could be 
    revived by a new developer,” Iskandar said.  |