17 December 2015

Abang Johari brings relief to buyers of abandoned houses


A banner put up by the house buyers to express their gratitude at one of the incomplete houses during Abang Johari’s visit.
A banner put up by the house buyers to express their gratitude at one of the incomplete houses during Abang Johari’s visit.
Abang Johari (right) and Lo (second right) speaking with some of the house buyers during their visit to the site.
Abang Johari (right) and Lo (second right) speaking with some of the house buyers during their visit to the site.

KUCHING: Buyers of properties in an abandoned housing project of about 15 years – Stapok Avenue located at Jalan Stapok Utama here, can now breathe a sigh of relief following assistance from the Housing Ministry for the project to be revived.

Housing Minister Datuk Amar Abang Johari Tun Openg said a developer, who is a Sarawak Housing and Real Estate Developer’s Association (Sheda) member, has volunteered to complete the stalled project comprising 13 abandoned houses – eight units of double storey terraced houses, four units of semi-detached houses and one unit of detached lot – which have deteriorated over the years.

The Housing Ministry will allocate funds to Padawan Municipal Council (MPP) to build a road network leading to the residential area so that buyers can get the required Road Certification to enable the issuance of land titles by the Land and Survey Department.

“The contractor has gone missing, nowhere to be found and these properties have been placed under liquidation.

“In view of the fact that the project was done about 15 years ago, before the establishment of our housing tribunal, we have to find ways and means of helping the purchasers.

“MPP has decided to make good the public utilities, particularly the road leading to the residential area.

“Once the road has been built, buyers can discuss with the bank and liquidator on the commencement of this housing project, whereby the purchasers will be subjected to a new purchasing agreement,” he told reporters after visiting the site and meeting with the house buyers yesterday.

MPP chairman Lo Khere Chiang and Housing Ministry permanent secretary Dr Wan Lizozman Wan Omar were at the meeting.

Abang Johari said the road project, expected to be completed within three months, would commence immediately.

“I regret this example of irresponsible developers. That is why I introduced a new law under the Housing Ordinance to ensure there are stringent rules that developers have to observe in order to avoid this kind of abuse,” he continued.

Citing some of the issues which relate to the abandoned housing project at Stapok, Abang Johari explained: “Certain developers, after getting ‘Project A’ together with bank financing, they would use deposits paid by purchasers of that project to fund ‘Project B’.

“There is no proper management of their cash flow. When they become overburdened and cannot pay the bank, they will disappear and leave their buyers.”

To combat this particular problem, Abang Johari has introduced a new law which states that a developer must have a Housing Developer’s Account (HDA). The ruling stipulates that for every project, funding is strictly used for that particular development. This would be monitored by the housing controllers together with the bank.

A reform to the state’s Housing Ordinance will help to combat issues regarding abandoned housing projects while ensuring future house buyers are spared from similar problems.

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