Some 17,724 abandoned property units as at September

pic by TMR FILE

A TOTAL of 79 private property projects involving 17,724 units have been classified as abandoned as of Sept 30 in the Peninsular, according to Housing Development Act (Control and Licensing) 1966 [Act 118].

Housing and Local Government (KPKT) Minister Datuk Seri Reezal Merican Naina Merican said all of the projects involved 11,824 buyers.

A bulk of the projects are located in Selangor where 33 or 10,974 units have been built with 6,308 sold.

“The 79 projects are categorised in three stages. 38 projects or 11,511 property units involving 6,319 buyers are in the planning stage to identify methods and mechanisms to restore the projects through a solution agreed upon by developer and buyer.

“A total of 26 projects or 3,383 units involving 2,806 buyers are in the static stage where they are resolving legal issues.

“Lastly, 15 projects or 2,830 houses involving 2,699 buyers are in the restoration stage,” he told the Dewan Rakyat yesterday in a response to a question from Machang MP Datuk Ahmad Jazlan Yaakub.

Johor has the second highest number of abandoned properties with 2,785 developed units under nine projects involving 2,508 buyers while Kelantan has 946 units under 12 projects with 918 buyers.

For the restoration of private properties in Sabah and Sarawak, Reezal Merican said the matter is being observed by the state governments in accordance to the Housing Development Enactment (Control and Licensing) 1978 for Sabah and the Housing Development Ordinance (Control and Licensing 1993 as well as the Housing Developers Rules (Control and Licensing) 1998 for Sarawak.

“From 2009 until September 2021, KPKT has succeeded in resolving 215 abandoned private property project issues involving 59,090 units and 39,247 buyers,” he said.

He added that based on research done by KPKT, the main factor that led to the abandoned projects was due to the company’s weak financial standing which is a struggle faced by 65 of the total projects.

Other factors include inability to track the initial developer, non-viability of projects and inefficiency of contractors, among others.

Reezal Merican said KPKT has taken measures for restoration and completion of the abandoned projects to lessen the buyers’ burden, among which include mediation and settlement agreement with the buyers via reselling the unit to a liquidator.

“An example of a project that has been restored via mediation is Taman Salak Maju in Sepang, Selangor, that was completed on Sept 23, 2021, with the cooperation from the ministry along with local councils and agencies,” he said.