What if you do not wish to sell your unit but majority wanted to sell theirs?

What if you do not wish to sell your unit but majority wanted to sell theirs?

If you are an owner of a strata high-rise unit and you have owned the same unit for the past 30 years or so, you may already be earning a pretty decent return on investment from your rental since the price you paid for 30 years ago is by far lower than the rental you will obtain today. So, do you want to sell your unit? Maybe not.

At the same time, there are owners who have moved away and may not prefer to keep the unit and may have decided to sell the unit instead. These owners may have even decided to sell their units to a potential new owner who would like to redevelop the whole building. Today, as long as you refuse to sell, no one can take over the building and redevelop. In other words, even if just 1 owner out of a few hundreds said no, then it’s a no. This may change.

Article in nst.com.my The government will draft a new bill on urban development, which will among others set “consent thresholds” for redevelopment.

Presently, redeveloping a building requires a hundred per cent approval from residents.

Housing and Local Government Minister Nga Kor Ming said this requirement could lead to unfairness if the majority of a building’s residents want it redeveloped, while the minority do not.

Nga said the ministry plans to establish a threshold of 80 per cent approval for buildings which are less than 30 years old and 75 per cent for buildings older than 30 years.

“We are several decades behind other countries in urban renewal, compared to countries like Singapore and Australia,” Nga said in a statement. Do read here for the full article: Article in nst.com.my

There’s no perfect model in my opinion

Redevelopment is necessary. Instead of 20 levels, when time comes, perhaps a 40 level building will be better. Number of units can also be doubled or even tripled depending on the size of the unit. It also depends on how ‘TOD’ (Transit Oriented Development) is this building too. Truth is always true yeah. People will prefer to stay at places where everyone wants to stay while the not popular places are shunned upon. This is why demand will price, prices will rise and well, redevelopment would then have to happen. All the best to whatever happens next.

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