Sick and ailing property developments continue to be a problem in Malaysia, affecting thousands of frustrated buyers.
The Deputy Local Government Development Minister Akmal Nasrullah Mohd Nasir was recently quoted by Bernama stating that the Task Force on Private Housing and Abandoned Projects (TFST) has recorded 655 housing projects categorised as delayed, sick and abandoned, with a Gross Development Value (GDV) of RM79.03 billion as of Sept 30 this year.
According to him, they comprised 68 delayed projects, 476 problematic projects and 111 confirmed abandoned projects. The MP for Johor Baru also revealed that KPKT successfully restored 301 problematic housing projects, including 38,752 units, with a GDV of RM28.88 billion, by the end of September.
It involved 293 projects with 37,392 housing units in the sick category, while eight projects with 1,360 housing units are categorised as abandoned. However, some ailing developments need intervention from the public sector in the form of ‘white knights’.
This is where another developer steps in to rescue a project that is in danger of becoming abandoned. One such development was the Remix 2 in UJ 1, Subang Jaya.
Its original developer Mammoth Empire Holding Sdn Bhd’s (MEH) unit True Renaissance Development Sdn Bhd (TRDSB) had run into financial difficulties, requiring the intervention of HCK Capital Group (HCK) to save it from becoming an eyesore in the affluent and mature neighbourhood of Subang Jaya.
The development was rebranded as edumetro and is thriving today with many purchasers receiving vacant possession of their units. Part of HCK’s education cities series, the mixed integrated development has an education element as its anchor to attract continuous footfall into the area, which is the soon-to-be-opened SEGi College.
From almost becoming an abandoned project to a bustling development with huge potential, the turnaround was quite remarkable. Evidence of this reversal in fortunes can be seen with the popular franchises signing up as tenants in its retail lots.
These include 7-Eleven, KK Mart and Coffee Bean & Tea Leaf. Find out more about the investment opportunities at edumetro by visiting: https://edumetro.com.my/