The Ministry of Local Government Development (KPKT) has identified 381 ‘sick’ private housing projects across the country and will be establishing a task force to find a solution to them.
A ‘sick’ project is one that has been delayed more than 30% compared to its scheduled progress or one whose sales and purchase agreement (SPA) has lapsed.
According to The Star, its minister Nga Kor Ming said the ministry views seriously these housing projects as the housing development sector plays an important role in the national economy and involves almost 200 industries.
“The taskforce is formed to look into these issues (abandoned projects) to protect the home buyers’ interest and to find a win-win formula with the developers to solve this issue and make sure the industry survives,” he said.
He added that the ministry will be reviewing the national housing policy to promote sustainable and affordable housing.
“The ministry is targeting to build 83,728 units of affordable houses throughout the implementation of the 12th Malaysia Plan whereby 22,209 units are completed, 47,637 units are under construction and the remaining are targeted to be completed by 2025,” he said.
Singaporean experts to help in crafting world-class policies
He also said that the Singapore housing development board has agreed to send experts to share their experience in providing a world-class national housing policy.
“Discussions with industry players including associations, government agencies and housing-related stakeholders will be held next year to discuss potential prospects and challenges as the country braces for an economic slowdown, heightening policy, inflation and a possibility of a recession,” he said.
Nga said that the KPKT’s statistics showed there are currently 29,534 unsold houses reported in the third quarter of this year. He added that if there is no intervention, the number will continue to rise.
He also called for the collaborative effort from all parties in the industry, especially the developers for the well-being of the community and to avoid market mismatch.