Pick good developer to avoid being victim of abandoned project: Expert

KUALA LUMPUR: A liquidator has warned prospective buyers of residential and commercial properties to look for reputable developers with good track records before committing to a purchase.

Radiant Consulting Asia Sdn Bhd managing director Yogan Kanapathipillay was commenting on a June 11 statement by Local Government Development Deputy Minister Akmal Nasrullah Mohd Nasir that the ministry has thus far identified 481 “sick” projects and 112 abandoned ones nationwide.




Ahmad Nasrullah said apart from having a task force to oversee the matter, the ministry is in talks with relevant agencies and is in direct negotiations with the National Water Services Commission and Public Works Department in efforts to revive the projects.

“Sick and abandoned projects are those which have exceeded their scheduled completion period and it takes longer to revive them as discussions over long periods are needed,” the minister had said.

Yogan revealed that since 2007, his firm has liquidated at least 50 development companies and helped more than 10,000 property owners to obtain strata titles because developers wound up their business before the strata titles were issued.

Other incomplete projects were sold and most purchasers received some returns.

“This is why it is critical to check the reputation of the developer. Otherwise, purchasers stand to lose the bulk of their hard earned money in the event the project is abandoned,” he told theSun.

Yogan said in December last year, his company finally sold the Mutiara Beach Resort serviced apartments project in Port Dickson, Seremban, which came to a halt 29 years ago.

The project was officially classified as abandoned in 2003, and Augustine T.K. James from Radiant Consulting was appointed as the official liquidator in November 2013, replacing the Insolvency Department.

“We finally sold the project to a subsidiary of Kumpulan Hamzah Kwong Hing Realty Sdn Bhd for RM20 million, thus allowing the purchasers to get part of their money back,” he said.

Giving some background on the project, Yogan said it was in a deplorable, severely derelict and disrepair state. This affected the surrounding neighbourhood and landscape as well.

But in May, the 195 owners of units there heaved a sigh of relief as they finally had closure for the project and received 20% of what they had paid.

Of the 195 owners, 53 individuals were cash purchasers who bought the units between 1994 and 1997, while the remaining 142 took housing loans from various banks before the developer wound up.

Yogan said Koperasi Jimat Cermat dan Pinjaman Mercantile Bhd was the landowner and had 36 units due to it entering into a joint venture with the developer.

He said it took 10 years for Radiant Consulting to liquidate and sell the Mutiara Beach Resort project as it had to identify the purchasers, deal with the banks that took over some of the units and carry out other due diligence work.

“Crucial project documents, including the Development Order, building plans and others had not been handed over by the developer. Hence, a lot of additional work had to be done to trace as many documents as possible. This can take years to complete.

“The sale was finalised upon obtaining a court order in December last year. The process is tedious and painstaking as legal and technical matters had to be fulfilled,” he said.

Mutiara Beach Resort unit purchaser Hermani Abdullah, 75, a former bank officer, said he paid RM477,000 in cash for his three-bedroom unit in 1997.

“I feel heartsick when I think of all the hard earned money that I have lost, but I agreed with the liquidator’s proposal to sell because at least I can get back 20% of what I had paid. It’s better than nothing since the developer has gone bankrupt.”

Another purchaser, who asked to be addressed only as Chin, 71, said he bought a two-bedroom unit in 1997 for about RM280,000.

“I am very grateful to the liquidator. The company has taken 10 years to resolve our problems and get a purchaser for the project. It (the liquidator) kept at it, despite Covid-19 and economic downturns over the years.

“Of course, like anyone else, I too feel disappointed at having lost a lot of money. It was tough.

“I had to service my bank loan while renting a place to live in Kuala Lumpur. It was financially stressful, but now at least I am getting some money back, thanks to the sale.”

Link: https://www.thesundaily.my/home/pick-good-d...pert-LB11104681

Stick to Some Darby and Sunway. Maybe IOI also.

Bodo talk about bodo. How you can guarantee reputable won’t run?

The moral of story never buy property under construction to avoid developer lari.

Government should step in to put the control and stop developers goreng price

the sure way to avoid abandoned project is to buy subsales houses.

sime darby?

you didn't read those glowing review from their buyers?

impeccable workmanship in almost all of their development you know.



ohwai

ujelly post some pictures please

I know a reputable developer, project abandoned.

They set up many subsidiaries, one subsy for one project.

so when the project failed, parent co just abandoned its ownership of the subsi, leave it to die until liquidation.

assholes.

subsale houses need a lot of $$$ to renovate.

but they will always bring back the value.

terrace houses, not condo.

this was in PD , long time ago, its popular tourist destination local and abroad.. no wonder dont think twice

back then not like now, RM is strong

Don't buy when still under construction phase. Wait about a year or so after construction then only buy. Yes, u may pay slightly more but at least the project has completed.

Like any projects, there will be flippers aiming to sell once it is fully completed.

Don't rush to buy like a cheap sale because if the developer bungkus, the bank loans and lawyer fees will kill u.

This practice is way too common. When doing marketing, kuda parent company name like mad.

Bila gone case, 'anak saya perlu pandai berdikari'.

Bodoh, all I got mostly are videos, photos don’t really convey the messages well.

Here’s some sunway’s property quality from the owners group, quality macam babi, too fuzzy developer, when take out camera suddenly the rules changed on a whim, fixing cabinets or pictures on wall need pe endorsements so don’t even think about conceal wiring. Worst they take ages to rectify it, they rush everything to avoid getting fined, exteriors are basically not completed during vp.

Nowadays every developer is the same, quality like shit because they hired bangala and no qc.
















This post has been edited by ujelly: Jun 15 2023, 10:29 AM

Fun facts, big developers are usually the most cainamen in terms of fees and payments.

cringe = some yogan consultant blame buyers for bad developers

yup this is the only 100% way.

This is common for all developers out there. Nothing new really

I got malay friend buy Hektar Residence because muslim friendly.

I kesian him now because projek terbengkalai.

developers always create a new company to build new project

you can see every project also with different developer names

just the branding they put their big company name, but not related also

u sue also sue the child company only, child company bankrupt, u can do what?

Sell house already abandoned. Get house still need renovation.

These 3 are well known for their pure awesomeness quality