THE Housing and Local Government Ministry (KPKT) has successfully revived 704 abandoned or distressed housing projects with a gross development value (GDV) of RM58.94 bil since January 2023, according to Minister Nga Kor Ming. This initiative has facilitated over 65,000 homebuyers in acquiring their homes.

“We aim to ensure there are no more abandoned housing projects by 2030.

“KPKT will amend the law to ensure that developers found guilty of fraud will not be allowed to leave the country. KPKT will also establish escrow accounts,” said the minister in an interview with Agenda Awani.

Nga noted that this means that all money paid by homebuyers will be used exclusively for the intended project. Currently, without escrow accounts, developers can transfer funds from Project A to Project B, causing Project A to become abandoned. After this amendment, such practices will no longer be permitted.

“We must ensure that in the housing sector, the good serves as a model and the bad serves as a lesson.”

The issue of abandoned projects is significant impacting investors, developers, local economies and communities. These projects often face challenges such as financial difficulties, poor planning, legal issues, or shifts in market demand.

Property analyst Sr Samuel Tan noted that completing these projects can restore investor confidence and stimulate the economy. He stressed the importance of assessing the reasons behind the initial abandonment and ensuring robust financial planning and market demand for successful project revival.

“Reviving abandoned projects is a positive step as it can stimulate the economy. Completing these projects can generate jobs, boost local economies, and energise related industries like construction and real estate,”  NST Property quoted him as saying.

“Additionally, it can deliver long-awaited benefits to communities, such as enhanced infrastructure, housing, and public services.”

Moreover, KPKT has proposed 33 initiatives valued at nearly RM1 bil for the 2025 Budget. These initiatives include the development of 100 Madani recreational parks, the introduction of Madani Deposit to assist first-time homebuyers, and the transformation of retention ponds.

The proposal also includes the introduction of electronic property sale agreements with e-stamping.

Furthermore, he Madani Deposit initiative aims to provide up to RM30,000 to first-time homebuyers particularly within the B40 and M40 groups to ease their monthly payment commitments. This is part of the government’s Rumahku, Syurgaku (My Home, My Heaven) policy.

“This is to ease the monthly payment commitment for first-time homebuyers, especially the youth among the B40 and M40 groups, and to realise the ministry’s ‘Shelter for All’ aspiration of providing every citizen with a place to live,” added Nga.

Nga also highlighted that this year, KPKT has already implemented 12 initiatives from the 2024 Budget, with 10 achieving over 80% of their targets within six months. Successful initiatives include the installation of 12,336 LED street lights and the upgrading of 882 public toilets. - Aug 21, 2024 

https://focusmalaysia.my/kpkt-revives-abandoned-housing-projects-sets-2030-target-to-end-issues/