KUALA LUMPUR: Industry observers called on the Ministry of Housing and Local Government (KPKT) to focus on solutions for abandoned housing projects, which have left many buyers stranded, instead of introducing a new Urban Redevelopment Act (URA).
A non-governmental organisation (NGO) member stressed that KPKT should concentrate on improving coordination strategies and programmes in order to guarantee that joint management bodies and management companies of strata properties can operate more efficiently.
The proposed URA, set to be tabled in Parliament for its first reading in either October or November, aims to regenerate old and abandoned buildings.
Reports indicate that Kuala Lumpur City Hall (DBKL) has identified 139 sites in Kuala Lumpur for redevelopment.
Director of the Town and Country Planning Department (PLANMalaysia), Zamirzan Puji, disclosed new approval levels from homeowners to enable complete project redevelopment during a recent forum on the planned URA.
The thresholds are 80 per cent for buildings 30 years old and below, 75 per cent for those older than 30 years, and 51 per cent for abandoned projects or unsafe buildings.
During the Q&A session, he noted that the terms suggested by the Act have not yet been finalised.
Concerning the percentage of owners' approval required for important redevelopment projects, Zamirzan said that the government would lawfully proceed with land purchases even in the event that owners did not provide their entire consent.
He said that under the proposed Act, customers with sales and purchase agreements who have not yet received their strata titles will be given consideration for redevelopments involving sick or abandoned projects.
Speaking of redevelopment projects that go sick or are shelved, Zamirzan said that KPKT will make sure that the best developers are selected for these tasks.
"Over time, as tenants move out, these buildings will become eyesores. We can see this happening in Penang, Johor, and Kuala Lumpur. If nothing is done, the buildings will continue to dilapidate, bringing down the value of the surrounding infrastructure," said Zamirzan.
National House Buyers Association (HBA) honorary secretary-general Datuk Chang Kim Loong said that the association strongly opposes any setting of a consent threshold as it would disadvantage those who do not wish to move.
"Any redevelopment project must have 100 percent approval from the owners. Our stance is that any rejuvenation or renewal plan must have the consent of all because every owner is important," said Chang.
He argued that property owners' right to refuse should not be taken away by enacting a redevelopment law favouring developers.
"We should not emulate countries like Singapore or Hong Kong, which have set a 90 per cent consent threshold for redevelopment projects, as these countries have limited land resources. We can anticipate scenarios where 100 per cent owners' approval is no longer needed," he added.
Chang also questioned whether KPKT was willing to underwrite projects where the original owners were promised units in exchange for their properties.
"What if the redevelopment project becomes a sick one? What guarantee does the original owner have?" he asked.