Government Intervenes to Support Buyers of Ailing Residensi Hektar Gombak Project

Madani Budget2024 development

In a decisive move to alleviate the financial strain on buyers of the troubled Residensi Hektar Gombak project, the Ministry of Housing and Local Government (KPKT) has announced that it will issue a confirmation letter detailing several supportive measures. Deputy Minister Datuk Aiman Athirah Sabu disclosed that the letter would urge financial institutions to consider a raft of relief options, such as reducing or waiving interest rates and restructuring housing loans for the project’s buyers.

The proposed measures are comprehensive, offering a range of financial relief options to address the unique circumstances of each buyer. These include deferring housing loan payments, full settlement with an interest rate exemption facilitated by withdrawals from the Employees Provident Fund’s second account, and even the cancellation of existing loans with opportunities for new ones under favorable conditions typically reserved for first-time loans or an exemption from the 4% interest rate. These suggestions are particularly geared towards buyers with loans associated with the Public Sector Home Financing Board (LPPSA).

The initiative comes in response to a question posed by Zahir Hassan (PH-Wangsa Maju) during a Dewan Rakyat session, where he inquired about the government’s plans to assist Residensi Hektar Gombak buyers, many of whom are currently burdened with full loan repayments alongside their rental expenses.


Datuk Aiman Athirah Sabu further elaborated that the Residensi Hektar Gombak project remains classified as “sick” due to the original housing developer’s failure to secure financial assistance from banking institutions. She also noted that discussions regarding the criteria and mechanisms of the Special Guarantee Fund, announced in the 2024 Budget as a RM1 billion initiative, are ongoing at the Ministry of Finance.

To ensure that the issues faced by the buyers are addressed effectively, KPKT has been actively involved, holding monthly meetings aimed at finding solutions and assisting the affected individuals. These efforts underline the government’s commitment to supporting the completion of the Residensi Hektar Gombak housing project, a mixed-development initiative that includes five 46-story apartment blocks with 2,400 units, located in Jalan Gombak, Setapak.

This government intervention represents a crucial step towards resolving the challenges faced by the buyers of Residensi Hektar Gombak and underscores the commitment to ensuring the welfare and rights of homeowners in Malaysia.

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