HOUSING developers cannot force buyers to take up renovation packages, says Chief Minister Chow Kon Yeow.
Chow was responding to a reporter’s question regarding certain developers allegedly hiking up the price of low-cost housing in the state through backdoor practices.
He emphasised that additional packages should remain optional and must not be a prerequisite for buyers of affordable homes.
When the government establishes the price for affordable housing units, he said that price is binding on the developers.
Acknowledging that low-cost housing units are heavily subsidised and priced way below construction costs, Chow noted that some developers took it upon themselves to provide renovations.
“Sometimes if the cost of a car park is included, it will exceed the selling price of RM72,000. It may go over RM100,000 when renovation packages are factored in.
“But it should be optional and not a condition for the developer to accept or not to accept that successful applicant from signing a purchase agreement.
“The actual cost for an LMC (low medium-cost) unit is already more than RM150,000. It is heavily subsidised.
“Any additional package, like renovation work to enhance the bathroom, kitchen or furniture, should be the subject of a separate agreement between the buyer and the developer.
“From time to time, we receive complaints, but it should be mutual agreement between a willing buyer and seller. Buyers can choose to add on any item, or undertake their own renovation,” Chow stressed.
Story by K.H. Ong
Pix by Alissala Thian
Video by Siew Chia En