Policy revision to curb abandoned projects

25/05/2008 New Straits Times

KUALA LUMPUR: The National Housing Policy will be revised in a bid to reduce the number of abandoned housing projects.

Housing and Local Government Deputy Minister Datuk Hamzah Zainuddin said the move was necessary to stop developers who defaulted on their projects.

"We want housing development in the country to be carried out in accordance with the law. With the policy, victims would be better protected too," Hamzah said at the Casa Idaman condominium ground-breaking ceremony in Jalan Ipoh yesterday.

Representatives from the ministry will meet with key players in the housing industry next week to discuss the policy.

Hamzah said the ministry is now formulating a way to charge a percentage-based fee of the projected sales value of the total development for all proposed projects.

"A percentage-based fee will ensure that only financially sound developers will be able to carry out projects."

Hamzah said the sales and purchase agreement would be looked into as it must be fair to both parties. "We also want regular reports from the developers. Currently, they're only required to submit reports bi-annually."

The detailed changes will be announced next month.