KUALA LUMPUR: The government’s plan to introduce a new law safeguarding buyers of abandoned commercial shoplot projects has received mixed responses from industry experts.
Henry Butcher director Lim Eng Chong said such legislation may be unnecessary, saying that commercial property investors are already covered by existing laws, and have the financial means to take errant developers to court.
“The government protection of house buyers and promotion of homeownership are laudable and necessary, especially for affordable housing and lower income groups.
“However, purchase of commercial premises is a different proposition altogether. More often than not, it is a financial decision driven by investment, returns and wealth accumulation.
“Most decisions are based on an analysis of financial parameters, unlike the purchase of basic housing accommodation, which is a necessity.
“The purchasers, or more appropriately the investors, are financially well-informed and sound,” he told the New Straits Times.
Lim said buyers have a thorough understanding of the risk-return equation and make choices based on financial principles.
However, CCO and Associates (KL) Sdn Bhd executive director Chan Wai Seen welcomed the plan.
He said the responsibility of developers to complete projects, as the current sell-then-build concept creates significant problems for buyers.
On Wednesday, Housing and Local Government Minister Nga Kor Ming had said the government plans to introduce a new bill to protect buyers of abandoned commercial shoplot projects.
He had said the current Housing Development (Control and Licensing) Act only applies to house buyers, not those who purchase commercial premises.
© New Straits Times Press (M) Bhd
