En-Bloc Sales for redevelopment projects. Malaysia’s proposing for a lower % than Singapore.
Redevelopment is very important
Someone told me some weeks back that if redevelopment is allowed when there are just agreement from just 80 percent of the owners, it is unfair to the remaining owners who do not want the redevelopment to take place. Before I answer my point of view, we should also take a look at the law and what does it say when it comes to national interest.
Source: researchgate.net “Hence, compulsory acquisition of land is inserted as part of the law to safeguard the sustainable development of the country. This right gave the government power to acquire land from private landowners, for any public purpose or for a purpose deems beneficial to the economic development of the state.” Read the full explanation here: Source: researchgate.net
If it’s unfair to the 20 percent who may not agree, then its also unfair to the 80 percent who has agreed. It is also unfair to the whole neighbourhood which could have also benefited from the development. It is also unfair to the city where the redevelopment could help it to rejuvenate the city because there is just no more new land to develop and redevelopment is the only way. Anyway, let’s now listen to what KPKT has to say and share.
Article in edgeprop.my The Local Government Development Ministry (KPKT) Minister Nga Kor Ming said, “According to our findings for urban redevelopment consent threshold, in many developed nations, including Tokyo, it only requires 66.7%, while Shanghai is a two-thirds majority. The highest now is Singapore. For Singapore, the benchmark under the Urban Renewal Authority (URA), buildings less than 10 years old [is based on] 90% consent threshold, and buildings above 10 years old [is based on] 80% consent threshold.”
“Therefore, Malaysia will take the middle path. We are proposing 75%, but this is subject to discussion. We welcome learned opinions from various sectors to give us a fair and balanced view,” he said.
Nga also explained that the new Urban Renewal Act will be more comprehensive compared to other countries because it will also cover abandoned projects. KPKT is proposing a consent threshold of a simple majority, which is 51% for abandoned projects to be redeveloped. Do read the full article here: Article in edgeprop.my
This is just proposal yeah, not yet a law
It is said that this will be drafted and presented in 2024. Info source: thestar.com.my Local Government Development MinisterNga said, He said the Cabinet had decided for the Act to be expedited and be tabled as soon as possible, with a target for it to be presented next year.”
This is the view of House Buyers Association. Article in kopiandproperty.com. “No rightful homeowner should be disadvantaged in any scheme in the name of redevelopment, rejuvenation or revitalisation when there are plenty of reasons such a move is unnecessary..” Do read the full article for more explanation.
Will be following this closely as I think this is of national and home owners’ interest too.
Please feel free to share this article too. (links are all below) Thank you!
Sign up for daily investment news updates (FREE since Nov 2013 and FOREVER).
Alternatively, Follow me on Telegram here.
Please LIKE kopiandproperty.com FB page to get daily updates about the property market beyond kopiandproperty.com articles.
Else, follow me on Twitter here.
Discover more from kopiandproperty.com
Subscribe to get the latest posts sent to your email.
