To avoid abuse of power, the National House Buyers Association (HBA) has called for the removal of the housing minister’s power to grant extensions of time to complete a housing project, reported Free Malaysia Today.
It also wants the new government to stop two housing policy changes that would enable developers to sell 99-year leases for homes located on freehold land and for the collective sale of housing estates.
Notably, developers are mandated to deliver the completed housing units within 36 months following the conclusion of the sale and purchase agreement.
Under the previous administration, the housing ministry has, however, granted 304 extensions to residential projects from 2014 to 2017, at the expense of buyers who should have received compensation for the developer’s failure to deliver the housing units on time, said HBA secretary-general Chang Kim Loong.
He argued that extensions of time should only be granted by the housing ministry in the event of extraordinary circumstances, like natural disasters which are beyond the control of developers.
Meanwhile, the private leasehold-sale, which is described by Chang as unfair, will see developers building houses on freehold land and selling them on a 99-year lease term. “If it is not stopped, our grandchildren will be affected,” he said.
While such scheme is adopted in Hong Kong and Singapore, Chang noted that land is limited in said countries while much land remains undeveloped in Malaysia.
The en bloc sales of housing estates, on the other hand, would allow the “forced sale” of property.
“Say a developer wants to redevelop a housing area, and 80 percent of the owners want to sell; if we allow en bloc sales, then the remaining 20 percent must sell even if they don’t want to. This is not fair to those who don’t want to sell,” explained Chang.
Image sourced from Free Malaysia Today
This article was edited by the editorial team of PropertyGuru. To contact them about this or other stories email editorialteam@propertyguru.com.my
For the latest property news, trends, resources and expert opinions, visit our Property News section. Home buyers, sellers or property renters looking for Malaysian Properties, may like to visit the New Launches or Project Reviews page.
