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REHDA’s appeal to DBKL’s gazetting decision

Every major city must have a city development plan to guide it.For example, Singapore has their Urban Redevelopment Authority which has actually shown a very good example how to best maximise the usage of space in the tiny city state. Recently, DBKL decided to gazette plot ratios in KL so that it follows the Kuala Lumpur City Plan (KLCP2020). Earlier article here: Fresh approvals for above permissible plot ratios Briefly, this meant that even for plots where approval was given earlier, they will have to reapply for a new approval, unless of course work has commenced earlier. We now have a response from Real Estate Housing Developers Association of Kuala Lumpur (REHDA KL).

Article in here. Rehda KL chairman Datuk Wan Hashimi Albakri Wan Ahmad Amin Jaffri said DBKL’s move to gazette the plot ratio is unfair to those who have invested in land with approved high density or plot ratio. He said, “We appeal to the authorities to consider putting back the earlier approved plot ratios in the new KL City Plan 2040. This will help restore investor confidence in the city’s administration.”

He added, “Most developers are unlikely to resubmit plans that satisfy the gazetted lower density and plot ratio as that would mean losses. Developments in KL will be stifled by (the) lower plot ratio. They should be more compact and vertical as land is getting scarce.” He also said that this cap will cause property prices to rise in KL.

“Developments should be built with density that would be supportive of productivity. Plot ratios should not be so low that they cause sprawling effects and pollution. With the MRT, transit-oriented developments should be given higher plot ratios for greater productivity. Plot ratios should not be capped so low that they hinder KL’s growth as a global city,” Wan Hashimi explained. Article in here.

I personally do not think property prices rise or fall simply because of development density. However, I do think plot ratios must depend on whether or not the development is connected to the public transport. If it is, I think we should look at Hong Kong and Singapore to know that when people walk instead of drive, it does not cause jams within the city centre but we are able to build more homes for more people within the city centre for them. I would think by building more units, the prices MUST be lower.

A very good example? Let’s say we have a development of 2,000 units but it’s connected to a MRT station versus another one which is 1,000 unit but the residents need to drive to the nearest MRT station instead. Imagine 2,000 people walking out from the development within an hour versus 1,000 cars driving out from the development within an hour. The former meant everything is still smooth while the latter meant traffic queues. No prizes to guess which project should get the go-ahead for higher number of units to allow for lower prices. Perhaps there will be some different circumstances case by case basis for all those earlier approved plans. Happy understanding.

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Article written and edited by Charles. News article summarised by Dina Batrisyia.

written on 26 Feb 2019

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Charles Tan The Founder The Writer Kopiandproperty
Charles Tan

Charles is Founder of He writes from his investment experience for the the past 20 years in investments including property, stock, unit trust and more as well as readings and conversations with many property gurus in the industry. is an independent property blog which is not affiliated to any media company, property developer or even real estate agencies.


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