The government needs RM6 billion to RM10 billion to kick off the redevelopment plans for Kampung Baru. In addition to emphasising that no plan gets executed without any funds, Federal Territories Minister Khalid Samad said the money “will be used to buy-out the landowners and develop it as a whole.”
“The figure is derived from an estimated cost if all the landowners settled for cash pay-outs but we are also looking at offering cash with apartments,” he added.
Khalid noted that 80 percent of the landowners surveyed agreed to sell their land, reported The Star.
“But the people prefer that the government buy their land instead of private developers because the latter can change their terms once they have taken over the land,” he said.
Once funding has been sorted out, the government will look at the various master plans and revised versions.
Kampung Baru Corporation chief executive officer Zulkurnain Hassan has reportedly said that the land to be bought was more than 61.1ha out of the 89ha covered by the Malay Agricultural Settlement.
He revealed that the government is offering RM1,300 to RM1,600 per sq ft for the MRT project, and estimates that “the value will be lower if the government chooses to buy-out the landowners, which is about RM1,000 per sq ft”.
“The value is still higher compared to ‘willing seller, willing buyer’ range of RM650 per sq ft. There are also landowners that have advertised online to sell their land for RM300 per sq ft,” he added.
Image source from The Star