Homebuyers Group Slams Move For Easier Sale Of Apartment Blocks

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Under a budget proposal, 100% approval of apartment owners may no longer be needed for the apartment block to be redeveloped.PETALING JAYA: The National House Buyers Association (HBA) has criticised the government’s proposal to remove a requirement for 100% consent of apartment and flat owners before a strata property scheme can be redeveloped.
HBA secretary-general Chang Kim Loong said the proposal to lower the consent threshold was “a shame”. He said any plan to redevelop, rejuvenate or renew strata schemes must receive the consent of all homeowners rather than via “en bloc sale”.
Chang said the proposal would breach Article 13 of the Federal Constitution, which deals with the right to own property.
The proposal was included in the 2024 budget tabled by Prime Minister Anwar Ibrahim today. He said the “consent threshold” would be reduced, to allow for the redevelopment of strata schemes, from 100% to “a level consistent with international practice, like Singapore”.
The threshold is between 80% to 90% in Singapore, according to the Real Estate and Housing Developers’ Association of Malaysia.
Chang said allowing en-bloc redevelopment proposals to be approved by a majority vote would deprive some homeowners of their properties, he said.
“We hope the present government will not emulate its predecessors who tried to ignore the unconstitutional impact such a law would have on homeowners. If we are not careful, the potential redevelopment law could be extended to non-strata schemes,” he said.
The Real Estate and Housing Developers’ Association of Malaysia said that although en-bloc sales are arguably a necessary evil in Singapore and Hong Kong due to the pressing need for urban redevelopment, the argument does not apply to Malaysia, which possesses a greater amount of land and is not as densely populated.
However, Rehda president NK Tong expressed “cautious optimism” over the move, saying this will better reflect the voice of homeowners holding strata titles.
He said this move would lead to a reformed urban landscape that will see Malaysia “on par with other nations in terms of urban sustainability”. However, he added that more details on the announcement were needed.
On other budget announcements, Tong said the proposed 4% stamp duty on property purchases by foreigners might discourage homeownership and applications for MM2H residency permits.
He applauded the RM10 billion in housing credit guarantees for 40,000 borrowers, and the RM2.47 billion allocated to build various government housing projects nationwide. - FMT

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