As of September 30, 2023, the Task Force on Private Housing and Abandoned Projects (TFST) has revealed a concerning situation in Malaysia’s real estate landscape. They have identified a total of 655 housing projects that fall into the categories of delayed, sick, or abandoned, collectively valued at RM79.03 billion.
These projects have been broken down into the following categories:
- Delayed Projects: There are 68 projects classified as delayed. These are developments where construction has not progressed as planned, leaving buyers in limbo and developers facing challenges in meeting their commitments.
- Problematic Projects: The majority of the projects, totaling 476, are categorized as problematic. These developments face various issues that hinder their completion, creating uncertainty for both buyers and developers.
- Confirmed Abandoned Projects: A total of 111 projects have been confirmed as abandoned. These are developments where construction has ceased entirely, often leaving buyers in a difficult situation with an unfinished property.
The TFST’s primary focus is to safeguard the interests of affected buyers while assisting developers in resolving the issues that have plagued these projects. To this end, the TFST is considering recommending that projects under government or state authority housing programs receive benefits from the Special Guarantee Fund, as announced in the Budget 2024.
The Ministry of Local Government Development is taking proactive steps to address this issue. They plan to organize a seminar on November 16, 2023, to facilitate collaboration and shared experiences among stakeholders involved in the effort to revive abandoned private housing projects. Developers, rescuers, and liquidators will have the opportunity to exchange experiences, propose innovative solutions, and offer insights into the revitalization efforts.
By the end of September 2023, the ministry has successfully restored 301 problematic housing projects, comprising 38,752 units with a combined GDV of RM28.88 billion. This achievement includes 293 projects categorized as “sick” and 8 projects categorized as “abandoned.”
The TFST and the Ministry of Local Government Development remain committed to the national agenda of assisting in the recovery of troubled private housing projects, providing relief to affected parties, and ensuring a more stable housing market in Malaysia.
The real estate sector in Malaysia continues to face challenges, and stakeholders are actively working together to find solutions and promote transparency and accountability in the industry.
This comprehensive approach aims to protect both buyers and developers, creating a more secure and reliable environment for the property market.