Mohd Jafni: ‘The state government is taking a firm stance against developers who fail to build affordable housing.’
Developers’ lands under caveat for not building affordable homes
ISKANDAR PUTERI: Three housing developers in Johor have had some of their lands put under caveat for failing to build affordable housing says Datuk Mohd Jafni Md Shukor.
The caveat was issued by the state’s Plan, Design and Review Committee (PDRC) since last year after the three developers failed to fulfil these obligations despite extended discussions, said the state housing and local government committee chairman.
“The state government is taking a firm stance against developers who fail to build affordable housing.
“This is a pioneering move in Johor, where the caveat prevents the land from being sold or further developed until the developers comply with affordable housing requirements.
“This measure is not limited to a single project; it applies to all lands owned by the companies,” he said when met by reporters at the sidelines of the state assembly meeting yesterday.
The state began implementing this policy last year due to repeated failure by developers to meet their obligations to build affordable housing, he added.
“Developers who reach agreements during PDRC meetings and have their plans approved by the state government but fail to act within a year are summoned for further discussions.
“Persistent inaction results in strict enforcement of the caveat,” he said.
Mohd Jafni added that companies affected by the caveat cannot sell properties within the designated areas until they renegotiate with the government and commit to a timeline for completing affordable housing projects.
“The Johor Housing Development Corporation (PKPJ) will oversee these cases to ensure they comply with the state’s affordable housing policies.
“Over the past two and a half years, the government has engaged with more than 100 developers, with over half committing to assist in building affordable homes,” he said.
To further ensure compliance, Mohd Jafni added that local councils cannot approve projects from developers who have not fulfilled all their affordable housing obligations.
Meanwhile, he said the launch of the Forest City Special Financial Zone (SFZ) and the Johor-Singapore Special Economic Zone (JS-SEZ), have significantly boosted sales of unsold service apartments which make up the bulk of unsold properties in Johor.
“Some developers have sold up to 70% of their service apartments in just two years,” he said.
He added that four major developers account for more than 50% of the property overhang in Johor, with half of the service apartments priced above RM300,000 now purchased by foreigners based in the state.
“The outlook for the service apartment market is optimistic, with sales expected to improve further in 2025, supported by collaborative initiatives with Singapore and incentives from the Federal Government,” he added.
More than 70% of landed properties like double-storey terrace houses and bungalows in Johor that are up for sale have been sold, he added.
Recently, the National Property Information Centre (Napic), said that Johor had a property overhang involving houses priced between RM300,000 and RM500,000,
On Nov 15, Sinar Harian reported Napic as saying that houses priced between RM300,000 and RM500,000 make up the bulk of unsold properties valued at RM2.7bil, as of the third quarter of 2024.
