News: Home Buyers Of Abandoned Project Seek Help

Jan 20, 2020

A group of more than 50 first-time home buyers has called on the government for help as the housing project, where they bought units and which was endorsed by the Selangor state government, had been abandoned.

In fact, the developer of the project had already been declared bankrupt in October – ruining the buyers’ hopes of owning their first homes.

“We ask the state government to help us settle this matter,” said Helmi Hamid, the group’s representative.

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A part of the Rumah Selangorku scheme for affordable housing, the Residensi Jaya project was set for completion in 2021, but is actually yet to get off the ground, reported Free Malaysia Today.

The project comprises two 11-storey blocks, featuring 394 flats and nine shops. The housing units were sold from RM210,000 to RM250,000.

Helmi revealed that while the developer promised to start construction on the project once half of the units were snapped up, works had yet to start as of late 2018.

“The owners just see bushes whenever they pass by the project site,” he said.

Meanwhile, the Selangor housing board, Lembaga Perumahan Hartanah Selangor, has distanced itself from the matter saying that they “only choose the buyers and issue letters to successful buyers”; hence, cannot give any guarantees.

However, the buyers discovered that Residensi Jaya flats were still offered for sale by LPHS in December even as the developer had already been declared bankrupt.

According to Helmi, 221 buyers paid a 10% deposit for their respective units.

“A 10% deposit on a RM250,000 house is RM25,000. We want to know where did the money go,” he said. “Did the developer take the money or is it with other parties? Please give it back to us.”

Meanwhile, 38-year old buyer Siti Normadiana Ahmad shared that she acquired a flat with confidence since the project was backed by the state government.

“I am a first-time buyer and we got the offer (to buy units) from LPHS, not from any private developer. I did not dare to buy houses elsewhere because my friend was cheated by a private developer, which is why I bought into this Rumah Selangorku scheme,” she said.

“We placed our trust in the Selangor government, but this is what we get in return.”

Normadiana called on Housing and Local Government Minister Zuraida Kamaruddin to look into the matter.

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Nadia Razali
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