Thursday, May 01, 2014

Chang Ta Kwok: Keep public land for public use

I would certainly support this particular suggestion of his:

'...any excess land cannot be converted to other use should be returned to the party that had surrendered the land in the first place. This would discourage utility companies from demanding excessive land. If the excess land had to be reverted to the original landowner, there is no avenue for any politically-linked party to apply for such land either. To me this is fair play and would automatically stop abuse.'

Excerpt of his letter to The Sun:

'I REFER to "The challenge of integrity" (Citizen Nades, April 23) and the response from Lum Weng Keong.

I am a small developer who has been in the industry for a long time. In the 1970s, developers had to surrender about 40% of their land for public and utility usage. By the 1990s, developers would have been lucky if they had to surrender less than 60% .

This hike in percentage is one major reason, among many others, that cause property prices to rise.

The underlying problem about surrendering land is that it leads to increasing demand for bigger plots and more land by the approving authorities and utility companies. Why? Because it is free.

The game is for utility companies to demand free land in excess of their needs so that they may then either sell or go into JV (joint ventures) to develop such land. The politically connected then jump onto this gravy-train and apply for land surrendered for public use, from open space, school land, suraus, kindergartens, land for food courts, river reserves, fire stations and police stations.'

Rest of his letter:
Link

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