Some homeowners at Monterez Golf and Country Club (MGCC) in Shah Alam, Selangor, are selling their valuable property, fearing that if MWE Holdings Sdn Bhd's planned integrated development within the resort area, which was mooted six years ago, is approved, property values will fall.
According to a resident who asked to be identified only as Hussein, the price for some properties in MGCC have dropped by 25 per cent to 35 per cent in the last six years.
He claimed that property prices began to fall after news broke in 2016 that MWE is looking to develop 119.09 acres of land within the MGCC.
Tan Sri Surin Upatkoon, a low-key millionaire, controls MWE. The resort development was completed in 2009 by the company's indirect subsidiary Melati Mewah Sdn Bhd.
The MGCC is a high-end golf resort that includes a clubhouse, an 18-hole golf course, a driving range, bungalows, semi-detached homes, townhouses, and zero-lot land.
It was reported that Melati Mewah entered into a joint development agreement (JDA) with Pristine Primavera Sdn Bhd, which is controlled by Seow Lun Hoo (former president and CEO of Hong Leong Financial Group), to develop nine parcels of leasehold land totaling 48.2 hectares, two of which housed the golf course and clubhouse.
The proposed development entails constructing about 2,000 homes, 540 apartments, and various commercial structures, with a gross development value of more than RM1.5 billion.
The JDA with Pristine Primavera, a subsidiary of the Newfields group of companies, was announced in 2016.
According to Hussein, over 1,000 MGCC residents, along with golf course members, had objected to the development based on the masterplan approved by the local council in the early 1990s. According to the masterplan, 120 acres are designated for green lung (with golf course included).
Hussein said people paid a premium for properties or bungalow lots in MGCC in order to live on a golf course.
"When the development first launched, the bungalow lots sold for around RM30 per square foot (psf), while prices in the Sg Buloh/Bukit Cherakah area were hovering around RM10 psf to RM15 psf. Today, some 30 years later, you can't even get RM100 psf for the bungalow lot," he said.
Hussein said residents are concerned now that the golf course suspended operations since the fourth week of March.
"We have no idea what is going on or why they have closed the golf course and clubhouse, but we are all concerned that something is brewing, despite the fact that the local authorities had rejected their plan," he said.
NST Property sighted several notices at the resort informing the public that the MGCC, except for recreation facilities, will be closed effective March 21, 2023.
MWE Golf & Country Club Bhd could not be reached for comment at Press time.
The managing director of MGCC Datuk Ling Keak Ming, meanwhile, declined to comment when contacted by NST Property.
Ling, who was formerly the MD of Melati Mewah, had filed a complaint with the Securities Commission regarding the proposed development.
Adoption of Mayan civilisation, club amenities attracted buyers
Hussein said locals and several expats acquired properties within the MGCC for the concept, club amenities and services, and the opportunity to own a home with a view of the golf course.
The architecture, way of life, and culture of the MGCC are all influenced by Melati Mewah's adoption of the Mayan civilisation, resulting in an unparalleled experience in contemporary leisure living.
He told NST Property that when the MGCC was first introduced in the 1990s, the developer's bungalows sold for more than RM1 million.
He said semi-detached homes and townhouses sold at RM400,000 and RM200,000, respectively.
According to him, there were several bungalows and semi-detached homes that sold for more than RM4 million and RM3 million, respectively before the pandemic.
"You won't be able to get these prices right now. Aside from the news of the proposed development, travel into and out of MGCC is becoming increasingly congested. The road is only 50 feet wide, and there are more cars at the resort today," he explained.
A search of multiple property portals reveals that there are now several properties for sale in the MGCC.
An unfurnished bungalow with nine bedrooms and nine baths (8,300 square feet) is on the market at RM3.3 million. A 6,000-square-foot semi-furnished bungalow with a private pool is for sale for RM3.8 million.
Another website advertised a 1,500-square-foot home for RM450,000 and a bungalow lot for RM1 million.
"About three years ago, a prominent businessman sold his MGCC bungalow below market value for around RM1.8 million. He opted to sell because he couldn't find a renter and was concerned that the price might fall further if the project was approved," said Ben, another MGCC resident.
"We are unsure of the proposed development's status, but we understand from local authorities that approval has not been granted. We hope that the development is not allowed because it will harm many of us and the environment. There will be increased traffic and pollution. Residents living near the MGCC are also concerned.
"Property prices may have soared by a factor of six to eight since the development began in the 1990s, but we have no plans to sell since we want to pass it on to the next generation," he said.