Revival of abandoned housing projects exceeds targets

MORE aggrieved buyers of abandoned residential projects can now heave a big sigh of relief.

The number of such projects that has been revived in the current year has increased from that in 2009.

As of Sept 30, 2010, 51 projects involving a total of 6,196 buyers and 10,881 housing units have been revived, according to Minister of Housing and Local Government Datuk Wira Chor Chee Heung.

Elaborating on the current status of the revival of abandoned projects in the country, he said that of the 51 revived projects, 17 have been completed with Certificates of Fitness for Occupation (CFO), 14 were cancelled with deposits refunded to buyers, and 20 involved changes to development plans.

Out of the 51 projects revived, two projects involving 860 buyers and 909 housing units were revived through efforts of Syarikat Perumahan Negara Bhd, a wholly-owned subsidiary of Minister of Finance Inc which provides affordable homes in line with the national housing objective.

As of Jan 31, 2010, there were 133 abandoned residential projects. From early January to August, seven were added to the list, bringing the total number of abandoned projects to 140 as of Sept 30, 2010.

The seven new abandoned schemes are the Casa Gemilang condominium project in Taman Midah, Cheras, and Li Garden apartment and condo project in Kepong, both in Kuala Lumpur; Putra Indah condominium in Dengkil, Sepang; Taman Bukit Riah and Taman Intan Pertama, both in Perak; Taman Senawang Jaya (phase 1C) in Senawang, Negri Sembilan; and Taman Bani in Ketereh, Kelantan.

Chor noted that with 51 projects revived, the total number of projects that need to be revived has dropped to 104 as of Sept 30, 2010.

The 104 projects involve 25,110 buyers and 38,018 housing units (see sidebar). It is a reduction of 21.80 per cent from the 133 projects as of Jan 31, 2010.

The reduction in the number of abandoned projects resulted in a decrease of 11.87 per cent or 3,358 in the number of affected buyers and 14.48 per cent or 6,431 in the number of affected housing units.

Statistics from the Ministry of Housing and Local Government (KPKT) for the nine months between Jan 1, 2010 and Oct 1, 2010 show Penang recorded the biggest reduction in the number of affected housing units (2,956).

That was followed by Negri Sembilan (977), Pahang (906), Selangor (524), Malacca (492), Johor (286), KL (244) and Kedah (231).

The states that saw an increase in abandoned housing units are Perak (149) and Kelantan (36) while there was none in Terengganu.

Last year, KPKT attained its target to revive 15 abandoned projects or about 10 per cent of the total of 148 projects that affected 31,824 buyers. Revived projects include Kulim Heights Blok D in Kulim, Taman Sri Murni in Perak and Taman Datuk Abdul Rashid Salleh in Pahang.

The targets for 2010 are part of the key performance indicators for KPKT, said Chor.

Smooth progress in revival

The revival of abandoned residential projects in Peninsular Malaysia is proceeding according to schedule, said Minister of Housing and Local Government Datuk Wira Chor Chee Heung.

As of Sept 30, 2010, the number of projects that need to be revived stood at 104 involving 25,110 buyers and 38,018 housing units.

Of the 104 projects, 57 involving 16,362 buyers and 23,428 housing units are projects whose revival process is in progress.

Of the 57 projects, four projects (551 buyers; 935 housing units) are awaiting Certificates of Fitness for Occupation (CFO), 39 projects (11,080 buyers; 17,421 housing units) are being revived by white knights, and 14 projects (4,731 buyers; 5,072 housing units) are being revived by Syarikat Perumahan Negara Bhd.

Of the other 47 projects, 14 are under planning for revival, 23 are projects whose developers have wound up, eight projects have been sold to third parties, two projects are in the process of refunding deposits to buyers, and four projects have been completed and are awaiting CFO.

By : Zoe Phoon

Source : New Straits Times Property

Date Published : 15 November 2010