Home National housing Ministry: Malaysia has 534 problematic housing projects nationwide

Ministry: Malaysia has 534 problematic housing projects nationwide

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A general view of an abandoned PR1MA housing project in Bandar Ekar on April 9, 2019. – Photo by Ahmad Zamzahuri

By John Bunian

Thursday July 28, 2022 09:13 MYT

KUALA LUMPUR, July 28 – The Ministry of Housing and Local Government has registered a total of 534 problematic housing projects across the country.

Of these, 417 were classified as “sick projects” and the remaining 117 considered abandoned projects.

Based on statistics of private housing projects by category up to June 30, 2020, the 417 sick projects involved 84,498 homes and 38,070 buyers, Sinar Harian reported.

“The current number of ‘sick’ housing projects shows an increase of 310 projects from the 107 projects registered in February this year according to statistics released by the National Housing Department (JPN),” the report said.

“Sick projects” are defined as projects that have delayed by more than 30% from the progress that should have been made or if the period of the sales and purchase contract (PJB) has expired.

The five states with the most sick housing projects are Selangor with 85 projects involving 19,520 homes. Next come Johor (55 projects, 11,557 housing units); Perak (52 projects, 6,335 housing units); Pahang (49 projects, 5,527 housing units) and Kelantan (42 projects, 5,124 housing units).

Of the total “sick” projects, 80 of them are high-rise strata category projects, six were land strata projects, and 270 were land projects, including houses under the Housing Program of the Malaysian People (PR1MA).

Based on the updated JPN records as of July 7, the total number of abandoned housing projects stood at 117, including 102 under the category of projects under rehabilitation, and another 15 under restoration.

The latest data on the number of abandoned housing projects also showed a 48% increase from the amount recorded on September 30 last year.

The total number of house units in the derelict housing estate category was 23,562 house units and involved 14,003 buyers.

“Of this total, 19,077 homes or 81% are projects under restoration while the remaining 19% or 5,210 homes are projects under restoration,” the report said.

For the category of abandoned housing estates under rehabilitation, the state which recorded the greatest number was Selangor which had 37 projects consisting of 15,044 housing units followed by Kelantan with (21 projects, 1,179 housing units), Terengganu (13 projects, 1,349 dwellings); Johor (eight projects, 2,595 housing units) and Pahang (six projects, 825 housing units).

Only six states have abandoned housing projects in the category under restoration, with Selangor registering the highest number of 10 projects involving 3,914 units, followed by Perak (two projects, 194 units) while Johor, Negri Sembilan and Pahang have one project respectively.

Meanwhile, a total of 1,022 developers have been blacklisted by JPN for various infractions, with the highest number involving non-payment of compounds, or around 44% involving 454 developers.