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Corruption so prevalent it affects English language?

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Thursday, September 26, 2013

No kidding: LLM's proposed highway Kidex is going to affect thousands of plots of private land

and those likely to be affected worry over compensations much lower than market values. I am referring to the following news report...

The Star report:
Highway to affect 3,784 plots of land Assemblyman and councillor want Kidex developer and LLM to brief residents on project
http://www.thestar.com.my/News/Community/2013/09/19/Highway-to-affect-3784-plots-of-land-Assemblyman-and-councillor-want-Kidex-developer-and-LLM-to-br.aspx

My comment:

It is going to be like the legal term 'caveat emptor' or 'let the buyer beware' for thousands of property owners, mostly ordinary house owners, especially those who have bought houses at highly inflated prices recently. At today's prices, an ordinary single-storey intermediate terrace house in Petaling Jaya with less than half of the 99-year lease remaining, could easily cost Rm500,000. At this price, which is comparatively better than a new condominium because of it being landed property, not many average first time house buyers could afford without some help from parents in the form of downpayment or buyers are of higher than average income-earners. Having chosen a property to purchase, most of them might be aware of the limited tenure of its leasehold status but never would have thought of the day when their property might be compulsorily acquired. In fact, some lawyers have even advised that from a practical point, there is no difference between freehold and leasehold because either is subject to compulsory acquisition by the government.

With this in mind, most houseowners or prospective housebuyers seek comfort in assuming that in the event of a compulsory acquisition, they would be fairly compensated according to market values. When looking at recent property transactions, the government has been wise to value properties for stamp duty purposes according to current market values despite lower prices according to Sales and Purchase Agreements.

It is therefore alarming to houseowners that they might be compensated at very much lower than market prices. Here is a comment by a resident in Section 14, Petaling Jaya:

'Apparently this highway will cut through (or evacuate) Road 14/8 and 14/10 residential houses which are just opposite Tun Hussein Onn Eye Hospital.

The residents are in despair as some understand that because it is considered “road works” they may only be compensated up to RM150,000 per house. Further pressing, I asked questions like would the Govt not compensate according to ‘market rate’ and the view is that it only will do so IF it is evacuation of houses in an area whereby a developer is ready to pay off the owners at market rate.

Pity a young couple just moving in after purchasing a house for almost RM600K and hearing this news. Also the house at the end of 14/1 by the main road is owned by a Dr. Mohan converted into 1 ½ storey and spent close to a million in renovations is poised to be demolished for the overhead bridge/highway.

I asked also about the TNB lines if the highway is going to go 8 – 10 storeys high would definitely eat into the path of the high tension wires. Apparently that would be resolved “internally”

Update: The Malaysian Insider (Bahasa Malaysia):
http://www.themalaysianinsider.com/bahasa/article/penduduk-tuntut-penjelasan-projek-lebuh-raya-kroni-umno-kidex

Meanwhile, MP for PJ Utara, Tony Pua mentions in his FB page:

'Residents of Seksyen 19 and 17 Petaling Jaya expressing grave concerns over the possible acquisition of their homes to make way for the proposed Kinrara Damansara Expressway(KIDEX). The 12km highway project is a privatized concession by the Federal Government. 


The residents and their elected representatives want greater transparency and details from the Government, especially when the Minister in Prime Minister's Department Datuk Abdul Wahid refused to provide any details on the project despite the latest development over potential land acquisition.' 
Link

11 comments:

Anonymous said...

Hi I'm a reporter with TMI. May I know where did you copy the resident's comment from? I tried clicking the link but could not connect to the site. Thank you.

KoSong Cafe said...

To be frank, I am suspicious if someone claiming to be a reporter of TMI would rather be anonymous. Anyway, there is a residents' association in Section 14 which had been active (involving the local police and ADUN) because of frequent cases of snatch and other robberies. The comment came in an email from a resident who asked me to highlight in my blog. It seems there were two RA meetings concerning the matter which involved the local ADUN. Perhaps you can check with them for more information.

Anonymous said...

What will happen to the elderly people who have been here for more than 4 decades. Compensation below market value is unfair and unethical. The lands in section 17 and 19 are freehold. So legally it can acquired by gov?

KoSong Cafe said...

Yes, even freehold properties are subject to compulsory acquisition after an amendment to the law, to enable govt to carry out development projects for the people in general. This can be subjective and those with different vested interests will have different opinions. Eg. MRT project facing stiff opposition from freehold property owners, on or near Jalan Petaling in KL. Eg. of compensation at fair market value by private developers: ex-low cost houses next to Mah Sing's project in Sungei Way are offered Rm500,000 or a condominium of same value.

It will be most unfortunate whether you are a retiree who bought your house cheap many years ago, losing its prospective sales value, or just bought one at current market price and not being compensated adequately.

There is also the trauma of having to leave a fond familiar place to a new location and start all over again. This loss can never be truly compensated.

Gregory_Porter said...

Buy a plot from the unknown person is really a risky task because in the world lots of the frauds are present so if you want to buy any property legally then about the quick house sale company I know that us really well for this.

David Yoong said...

Hi KoSong, we are a grp of PJ Residents forming a committee to say No against Kidex. Can we meet up wth you for sharing of minds?

KoSong Cafe said...

Thanks David Yoong, for your comment and invitation. I am sure the respective ADUNs of affected residents are already involved in one way or other. You should get in touch with them for more effective lobbying purposes.

David Yoong said...

"Affected Residents" are indeed many. Much more than those whose properties are acquired. The drop in property prices adjacent to or facing the highway. More traffic jams at exit points choking existing roads. Dust, noise, drops in business volumes, and last but not least, the psycho-social irks of a massive hideous concrete structure looming overhead as PJ people drive along many major existing roads.

David Yoong said...

"Affected Residents" are many. Much more than those whose properties are acquired. Drop in property prices facing or adjacent to the highway. More traffic jams at exit points from highway. Noise, dust.

David Yoong said...

Last but not least, the physical hazards and psychological discomforts of massive hideous concrete structures looming overhead as PJ Residents drive along most parts of the city.

David Yoong said...

Strangely, the ADUNs and Councillors are strangely withholding from making a stand, citing lack of detailed info at this stage. The knowledgeable and professionals among Residents have countered that MBPJ has the right to reject approvals for any works on existing roads under the Council's jurisdiction.