In a major win for house buyers at the Appellate Court today, housing developers must now honour liquidated and ascertained damages (LAD) or late delivery compensation to house buyers.

During the judicial review hearing, the presiding judge Datuk Hanipah Farikullah granted 104 house buyers an Order of Certiorari, quashing the Urban Wellbeing, Housing and Local Government Minister’s decision to amend the time period for vacant possession of Sri Istana condominium in Kuala Lumpur.

The Appellate Court also ruled that Regulation 11(3) is “ultra vires” the Housing Development (Control & Licensing) Act, 1966 amended 2015, which means that the extension of time (EOT) granted by the Controller of Housing to developers is irregular.

“It literally means that the Controller does not have the power to grant EOT or waive or modify the standard terms and conditions in the statutory sale and purchase agreement (SPA) under the law,” National House Buyers Association (HBA) secretary-general Chang Kim Loong said in a statement today.

“The Minister has no power under Section 24 of the Act to make regulations that allegedly empowers the Controller to waive or change any of the terms and conditions of the prescribed statutory agreement. In short, Parliament does not empower the Minister to do so,” he added.

With this decision, the EOTs issued by the Controller is now void and affected house buyers are entitled to claim for LAD from the developers who had sought EOT.

“Compensation for LAD is payable for late deliveries. The rights and entitlement to LAD cannot be taken away by the Controller or Minister with a stroke of a pen. The general principles of contract still apply,” said Chang.

He said the granting of the EOT to defaulting developers defeats the intent and objective of the Act, which is to protect house buyers.

Recall that the Minister had, in a letter dated Nov 17, 2015, extended the time period for vacant possession of Sri Istana from 36 months to 48 months, which allows BHL Construction Sdn Bhd to avoid paying LAD charges to the affected house buyers.

Under the SPA, developers must complete construction and hand over the housing project within 24 months for landed properties and 36 months for stratified homes, failing which it must pay LAD charges of 10% per annum times purchase price.

Similarly, house buyers who are late in installment payments of the purchase price, must compensate the developer for the delay at 10% per annum.

When contacted by SunBiz, Chang said that the defendants can file for an appeal at the Court of Appeal within 30 days from the receipt of grounds of decision.

“I want them to go higher to a superior court (Federal Court) so that it would be a case precedent for all to adhere,” he said.

Source: TheSunDaily.my

Dez Residence, an ongoing low-density development by OHM Group at Tanjung Bungah, Penang. Located on an approximately 10,000 sq.ft. land next to Infinity Beach Front Condominium, about 500 meters away from Dalat International School.

A 2-storey bungalow was demolished for the construction of a 10-storey building, offering only 6 units of luxury condominiums. Indicative price starts from RM2,000,000 onwards.

More details to be available upon official launch.

Project Name: Dez Residence
Location : Tanjung Bungah, Penang
Property Type : Condominium
Land Tenure : Freehold
Total Units: 6
Built-up Area: (to be confirmed)
Indicative Price : RM2,000,000 onwards
Developer : Zantalite Enterprise Sdn. Bhd. (OHM Group)

Location Map:

Property and industrial groups today backed the implementation of the RM27 billion Penang Transport Master Plan (PTMP) for the greater good.

Federation of Malaysian Manufacturers (FMM) Penang Branch vice chairman KK Hun said the state needed to move forward or risk being left behind.

He cited Malacca and Johor as examples of fast-moving economies and asked if people wanted their children to move out in search for jobs.

“Do we want our children to move out and to leave behind old city?,” he asked in a press conference today after viewing the PTMP request for proposal (RFP) documents which are on public display until today (Feb 28) at the Dewan Sri Pinang.

The PTMP is an ambitious project mooted by the state government to link Penang island and the mainland with a network of highways and rail based transport.

SRS Consortium has been appointed the Project Delivery Partner (PDP) for the project where funding hinges on reclaiming some 1,618ha of land at the south coast of Penang island.

In April last year, the state submitted plans for a light railway transit (LRT) system linking Komtar and Bayan Lepas to the Land Public Transport Commission (SPAD).

The LRT line, a Pan Island Link (PIL) highway and the proposed reclamation are the first phase of the PTMP.

Also mirroring the support was the International Real Estate Federation (FIABCI) Penang Branch chairman Datuk Khor Siang Gin who said the PTMP can bring the state to the next level of development.

He said the project was needed to attract more investments and will benefit the people by providing public transport.

“This will help make Penang livable and help the state in the long term,” he added.

On concerns and criticisms by NGOs of the project regarding the reclamation, Hun said there will be costs in whatever activities was being conducted and so balance was an important consideration.

He said there should be a “give and take” approach and pointed out land in the state was scarce.

“We have run out of land to build factories, the project is needed to have more factories to bring investments to Penang,” he said.

Source: TheSunDaily.my

A proposed mixed development by Sanbumi Sawmill Sdn. Bhd. (subsidiary of Sambumi Holdings Berhad) at Alma, Bukit Mertajam. Strategically located on a 1.62 acres land along Jalan Rozhan, about 1km away from AEON Mall and Tesco Stores.

This will see the demolition of the abandoned 5-storey building (formerly known as Taikar Plaza) for a 42-storey commercial tower, offering a mix of shop offices and serviced residence. There will be two residential towers with 260 units in each tower:

• Level 1: Retail shops (18 units)
• Level 2: Shop offices (16 units)
• Level 3-8: Multi-level car parking
• Level 9: Facilities floor
• Level 10-42: Serviced residence

This development is still pending for approval. More details to be available upon official launch.

Project Name : (to be confirmed)
Location : Alma, Bukit Mertajam, Penang
Property Type : Shop office & serviced residence
Total Units: 520 (residence), 34 (shop office)
Built-up Size: (to be confirmed)
Indicative Price: (to be confirmed)
Developer : Sanbumi Sawmill Sdn. Bhd.

Location Map:

Penang-based property developer Tambun Indah Land Bhd plans to launch three new projects worth about RM170 million for 2017, said the developer.

These projects are Pearl Saujana phase 1, Pearl 28 in Pearl City, Bandar Tasek Mutiara and Palma Residence in Alma, Penang.

“The group is optimistic that the planned launches would contribute positively to its track record and are in line with the group’s focus in the affordable landed property segment.

“As at Dec 31, 2016, Tambun Indah has achieved 80.3% take-up in on going projects of RM1.4 billion,” said the developer in a statement, adding that its balance sheet remains healthy, allowing them to not only complete its planned developments but also to acquire landbank for expansion.

Tambun Indah added that it has a pipeline gross development value of RM3.1 billion to be built over the next seven years. As at Dec 31, 2016, unbilled sales stood at RM196.9 million.

For the financial year ended Dec 31, 2016, Tambun Indah’s net profit rose 11% to RM112.2 million from RM101.1 million. This is despite revenue dipping marginally by 1.85% to RM360.8 million as compared with RM367.7 million over the same period last year.

“The enhanced profitability is attributed to progress billings being on track, as well as a favourable product mix in property development, additional rental from newly completed investment properties and a net fair value gain of RM5.2 million from investment properties,” said Tambun Indah.

The developer’s investment holdings consist of GEMS International School and the Pearl City Mall, which commenced operations in September 2015 and April 2016, respectively.

“The mall boasts a healthy occupancy rate and would contribute its first full year of revenue in the current financial year ending Dec 31, 2017,” added Tambun Indah.

Source: TheEdgeProperty.com.my