IN the second part of the article, I wish to issue a caution to buyers and the Government that “housing project abandonment” cases will rise due to COVID-19 triggered economic downturn, which will exacerbate the already high number of abandoned housing projects in Malaysia.
One abandoned project too many
One of the greatest injustices is to end up being a victim of an abandoned housing project. It is a traumatic experience having to endure a situation where you place your entire savings to own a home, only to discover the house never gets completed and, worse, you still have to service the bank loan.
A total of 198 abandoned private housing projects were recorded in Peninsula Malaysia. Some are as old as 1997.
You may want to visit the Housing & Local Government Ministry website at www.kpkt.gov.my and look for “Senarai Pemaju Projek Perumahan Swasta terbengkalai sehingga 31 Ogos, 2021″. These statistics do not even include projects by the Government or their agencies that have been abandoned.
It should be pointed out that these statistics did not even include those “not declared” by the minister, which are still left idle under the categories of projek sakit (sick projects) and projek lewat (delayed projects), which are nearly three times the figures of abandoned ones.
Stories of developers falling “problematic” and becoming incapable of continuing with their housing projects are not something new.
The havoc created to victims of failed house housing projects is a widespread national issue. Look at the number of abandoned housing projects and its number of buyers affected and left in the lurch to fend for themselves.
This is not only utterly unfair; it is downright unacceptable and disgusting. How do we expect those who are directly facing such a situation to stomach it whilst those developers go scot-free?
Yet, we pride ourselves as a caring society with a caring Government. Always blaming the “lack” of laws and not themselves.
Risk of abandoned projects amid COVID-19
The prolonged pandemic has forestalled the property industry and continues to beset stakeholders with massive problems that could run to billions of ringgit.
The number of abandoned projects is expected to rise due to the economic slowdown and cash-strapped property developers. The possibility of a spike in distressed projects post-pandemic cannot be discounted.
Not only developers will experience cash hiccups; buyers too will be affected especially the M40 and B40 groups, who have become more vulnerable with many facing job losses and salary cuts.
At the same time, new graduates are finding it tough to secure full-time jobs.
Conclusion
The public relying on the law is often let down by the enforcers. It is only good on paper and it will continue to remain in our archives unless the existing laws are enforced to the letter.
The problem of abandoned housing projects is not because the lack of laws. Do we honestly need new laws to purportedly “offer more protection” for house buyers when the existing ones are adequate? Or is the Government blaming the “insufficient tools” vis-à-vis housing laws?
Let us face it. There is no solution to abandonment. We just have to prevent it from happening. Could pre-emptive measures be adopted and enforcement organised to avoid future abandonments? Your guess is as good as mine!
As the saying goes: “Prevention is better than cure”, because it is too late to close the stable doors after the horses have bolted.
With that said, I urge future buyers to seriously consider the following:
- Buying a home is a serious investment that must work right on the first try with no mistakes. Do not be impulsive. Patience and planning are key.
- Buy completed property. What you see is what you get
- Do not get fooled by “pie in the sky” projects – Feb 13, 2022
Datuk Chang Kim Loong is the honorary secretary general of the National House Buyers Association (HBA).
The views expressed are solely of the author and do not necessarily reflect those of Focus Malaysia.
