Seven KL housing projects abandoned, 12 sick as at Aug 31, Parliament told

Seven private housing projects in Kuala Lumpur remained abandoned as at Aug 31, while 12 others involving 6,102 housebuyers were classified as sick, the Dewan Rakyat was told. Housing and Local Government Minister Nga Kor Ming said five abandoned projects are in the planning stage for rehabilitation

PETALING JAYA (Oct 14): Seven private housing projects in Kuala Lumpur remained classified as abandoned as at Aug 31, while another 12 involving 6,102 housebuyers were classified as sick, Housing and Local Government Minister Nga Kor Ming told the Dewan Rakyat on Wednesday (Oct 14).

Of the seven abandoned projects, five were in the planning stage for rehabilitation, one was undergoing rehabilitation and one was classified as static, The Edge Malaysia reported, citing his reply during the oral question-and-answer session. Efforts to rehabilitate the sick projects included negotiations with relevant parties, the preparation of rehabilitation agreements and assessments of options to restart the developments.

Nga said completion timelines would depend on progress and the resolution of issues affecting each project. On the 1,120-unit Residensi Wilayah Pangsapuri Salak Selatan development, Nga said rehabilitation remained subject to legal proceedings, according to Bernama.

The New Straits Times reported Nga as saying that a court had ruled on Sept 30 in favour of Potensi Mestika Construction Sdn Bhd’s bid to terminate its joint venture agreement with the project’s developer, citing failure to complete the development within the stipulated period. Nga said the developer’s judicial managers had informed the ministry of their intention to appeal against the ruling, Bernama reported. The project was classified as a sick private housing development on Aug 22, 2021, when construction was 87.5% complete.

Nationwide, the ministry’s task force for sick and abandoned private housing projects had revived 1,726 developments involving 199,643 homes as at August, Nga said, according to Bernama. The Edge Malaysia reported their combined gross development value at RM158.16 billion. The revival figures covered several outcomes, including completion and a return to normal construction progress.

It was reported that 1,542 projects involving 163,621 homes had been completed and issued with certificates of completion and compliance, while 147 projects involving 29,900 homes had moved from sick status to normal progress. Another 37 abandoned projects involving 6,122 homes had either been physically completed or resolved through arrangements benefiting housebuyers, Nga said.