82 projects abandoned

26/08/2003 The Star By Stephen Then

Miri: There are some  RM403 mil worth of abandoned housing projects in peninsular Malaysia and this situation worries the Housing and Local Government Ministry.

Its deputy minister, Datuk Peter Chin Fah Kui said these projects were causing hardship to 22,685 house-buyers who had already committed themselves to buying the properties.

"These abandoned projects are from 82 housing schemes stretching from Johor to Penang," he said.

"They involve a total of 38,049 units of houses of various categories," he told The Star.

However, he said the ministry did not know how serious the problem was in Sabah or Sarawak, as it did not have the figures on abandoned housing projects in the two states.

Housing projects in the two states are under the jurisdiction of their respective State Housing Commissions.

Chin said most of the abandoned projects are low-medium and medium cost properties as well as high-class condominiums.

Of the 82 abandoned projects, 33 are in Selangor, followed by the Federal Territory (nine) Johor (eight), Negri Sembilan (seven), Pahang (six) and five each in Penang and Kelantan.

The remaining are in other states in the peninsula.

Chin said the ministry wants the developers involved to put in more effort in reviving the projects because many house-buyers were affected.

He said many of the projects had remained abandoned for a long time, with the failure attributed to a variety of reasons, including financial reasons to structural defects.

“We have also received complaints about late delivery of houses, defects in the workmanship of houses that had been completed and alleged unfair interest charges against buyers who had given late payments,” Chin said.

“There are also complaints from buyers on late delivery of certificates of fitness for occupation, alleged deviation from approval housing plans and also alleged late approvals of loans,” he said.

Chin said many house-buyers had lodged their complaints to the Housing Tribunal, which now has 2,938 cases.