Not so majestic after all … 20-year woes of house buyers and a simply unreliable and uncaring Penang PH government

253 property projects abandoned since 2009
Wednesday, November 8th, 2017 at , News | Property
By P PREM KUMAR & D KANYAKUMARI
The government has registered 253 abandoned private housing projects in Peninsular Malaysia since 2009, involving 64,290 residential units. Urban Wellbeing, Housing and Local Government Minister Tan Sri Noh Omar (picture) said from the total uncompleted houses, 43,537 units had been sold. “Selangor has the highest number of abandoned projects’ buyers with 20,639,” he told the Dewan Rakyat yesterday. Noh said out of the 253 abandoned projects, 190 had been revived and completed between 2009 and October 2017 … for more, go to https://themalaysianreserve.com/2017/11/08/253-property-projects-abandoned-since-2009/ 

Not so majestic after all … 20-year woes of house buyers and a simply unreliable and uncaring Penang PH government

The Majestic Heights (MH) mixed township in Penang’s Paya Terubong that had been abandoned for some 20 years is a grim reminder to house buyers to be wary of unscrupulous developers and other stakeholders.

They are also adviced to not take all legal matters for granted and also not to solely rely on the authorities to monitor construction work and progress payments.

The buyers, especially first time house buyers, must take the trouble to find time to visit their housing project to inspect and monitor the work in progress.

In the case of MH, buyers paid progress payments for work not done due to unscrupulous architects and bankers who failed to inspect and establish the status of the real construction work done.

When MH went bust in 2001, there were buyers who had paid up to 90% but only 30% of work had been completed. All because certificates for work completed had been issued.

In Malaysia, the federal government had in Parliament on Nov 8 last year revealed that there were 253 abandoned private housing projects in West Malaysia since 2009 involving 64,290 residential units and that 43,537 units had been sold.

Doesn’t the statistics show that both the state and federal governments and the law do not protect or favour Malaysian house buyers?

Doesn’t it show that there had been no political will or sincerity on the governments, since Merdeka (Independence) 1958, to really protect house buyers from the unscrupulous housing industry players and stakeholders?

Has any developer and its cohorts been punished for abandoning housing projects and running away with the hard-earned savings of house buyers?

Therefore, trust no one! Trust only yourself!

In the case of MH, some 1,283 house buyers were left high and dry for about 20 years before it was revived by a so-called “White Knight” developer - PLB Land Sdn Bhd.

Construction work on MH, re-branded as The Stone and as a Penang affordable housing project, started last year after MH stakeholders, the MH liquidators, the PH state government and and PLB settled almost all encumbrances.

To make the revival of MH viable …

> PLB agreed to settle MH’s outstanding debts with financial institutions at an agreed haircut;

> The liquidators agreed to sell all three parcels of land where MH is located at RM1 per lot; and

> That the PH Penang government and its local authorities grant or waive certain approvals and conditions.

However, the woes of the house buyers, several of whom had died waiting for their dream home after investing their hard-earned life savings, continue to linger even after 20 years and the project revived.

Here are the facts:

What was offered to MH victims by PLB and the PH Penang government …

> That MH victims be given priority and automatic approval to take up The Stone units;
> That those who take up the units will have a full refund of what they paid to MH upon the completion of The Stone;
> That victims have the choice to nominate their children or relatives to take up a unit due to age and financial disability to secure housing loans; and
> Those who do not wish to take up The Stone units have two options of cash compensation (50% of payment made to MH).

What is really happening now …

> There is no priority or automatic approval for the victims to take up the units (a victim who is staying in Johor was rejected because he is not a registered voter in Penang! Others, including children or siblings who wish to take up the units, are rejected because they fail to meet the criteria to qualify for the state’s affordable housing scheme, and other obstacles …)
> That MH victims have to seek the approval of the state government if they want to sell their units after the handing over of the keys for The Stone; and
> That MH victims are bound by all the conditions under the state government’s affordable housing scheme.

Now, the Persatuan Penduduk Taman Terubong Indah (TIMH) PPM-029-07-28012016 representing 212 buyers, wishes to make it clear that it has no problems with PLB and has accepted the pricing of The Stone units as reasonable and fair.

However, TIMH is disappointed and disgusted with the many old and new problems arising from the PH Penang government that continue to frustrate MH victims.

The association had met up with the Penang executive councillor in charge of housing, Jagdeep Singh Deo, in two round tables on Jan 12, 2016 and March 11, 2016.

In the January meeting, Jagdeep had assured the association that waiving the state’s affordable housing conditions for MH victims is not a problem. (Note: Voice recording of discussion available)

Why is Jagdeep and the PH Penang government now not doing anything to end the 20-year woes of the MH victims?

What is perplexing to the victims is that waiving the affordable housing conditions will not cost the state government a single sen!

No News Is Bad News wishes to reiterate:

Did MH buyers buy MH units originally under the affordable housing scheme? If not, why are they now being treated as such?

Did MH buyers buy their units as REGISTERED PENANG VOTERS? If not, WTF!

For context, read these two previous blog postings:

https://victorlim2016.blogspot.com/2018/10/this-is-how-shitty-penang-state.html (This is how shitty the Penang state government has become!)
https://victorlim2016.blogspot.com/2018/10/a-mind-boggling-penang-ph-government.html (A mind-boggling Penang PH government and the 20-year abandoned Majestic Heights housing project

National House Buyers Association’s secretary-general Chang Kim Loong during the 'Does Greater Prosperity Come with Less Housing Affordability' forum held in Kuala Lumpur, today. Pix by Surianie Mohd Hanif
Govt urged to tackle issue of abandoned housing projects
By Seri Nor Nadiah Koris, Fairul Asmaini Mohd Pilus - May 17, 2018 @ 3:49pm
KUALA LUMPUR: The National House Buyers Association is urging the government to deal with the issue of abandoned housing projects in its plan for the housing sector. The association’s secretary-general, Chang Kim Loong, said it supported the government’s election pledge to build a million affordable homes. “We want to find solutions for affordable housing for Malaysians, said Chang, who met the Eminent Persons Council briefly this afternoon. His recommendations included a build-then-sell (BTS) system. “Under a BTS 10:90 system, house buyers pay 10 per cent when booking and 90 per cent when the housing project is completed,” he said. Chang also brought up the issue of developers being given more time to complete housing projects, which was unfair to house buyers. Referring to a case in which a developer was given a 12-month extension by the previous government, he said: “The developer was supposed to hand over vacant possession within 36 months. If not they must compensate buyers. But, they went to see the minister and got an extension, which meant that house buyers were not entitled to compensation. Its not fair.”

Here are some visuals at the previously Majestic Heights construction site that was abandoned for some 20 years and is now revived as The Stone state affordable housing scheme: