More incentives needed to help buyers of abandoned projects

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KUALA LUMPUR: Property developer, Allstones Group Asia Sdn Bhd, has hailed the proposed amendments to the Housing Development Act, 1966.

In a statement yerterday, its chairman, K H Sim, said the government should look into more measures that would help existing property buyers who were already caught in abandoned projects.

“The proposed amendments to the Act are all well and good for future buyers, but what about people who have already invested their hard-earned money in properties that have been abandoned?,” he said.

Sim hoped the government would consider incentives in the coming Budget for ‘white knights’ that rescued distressed properties.

“To help alleviate the financial burden of existing buyers already affected by abandoned projects, the government should consider motivating ‘white knights’ to undertake revitalisation of distressed projects,” he said.

He said these could include mandatory quota of project financing by local banks and the government taking the lead by setting up a special fund to provide project financing to ‘white knights’ at preferential rate with an element of mutual profit-sharing.

“The government should also consider tax incentives for consultants and parties involved in rescuing abandoned projects, passing of an Act similar to the Danaharta Act for the government to take over abandoned projects and appointing prequalified ‘white knights’ and consultants to revive these projects,” he said.

In addition, Sim said, a one-stop agency should be created to resolve planning and building issues, speedy approvals and licences from the relevant authorities.

Allstones Group Asia Sdn Bhd has long been involved in reviving distressed and abandoned projects.

The group has successfully revived and completed distressed projects, turning them into successful developments such as Taragon Puteri YKS, Taragon Puteri Cheras and Taragon Puteri Bintang. — Bernama