Based in Petaling Jaya, the Association was established on 21 May 1970 with 13 pioneer members to represent the private sector in property development in Malaysia. Today, REHDA boasts a membership of over 800 developers across the nation who are responsible for some 80% of the total real estate built.

REHDA has grown as the leading voice of development of developers in all property categories, from traditional housing projects to condominiums, townships, towering commercial complexes, shopping malls, state-of-the-art golf courses, hospitals, theme parks and industrial estates.

Being the sole national representative body for property developers, REHDA plays a pivotal role in ensuring that developers’ views are heard by the relevant authorities and government agencies. REHDA is highly respected by both the public and private sectors for its commitment to nation building and betterment of life. The Association’s quest to provide affordable and quality housing for the nation through its members has also yielded great success. These remarkable achievements reflect REHDA’s growth from strength to strength, and this record is set to continue well into the future.

Objectives

REHDA’s guiding principle is to provide responsible leadership to all property developers in building quality housing and real estate for the nation.

Specifically our objectives are :

• To promote and co-ordinate the development of land and construction of buildings for residential, commercial, industrial, tourism and other related purpose by members with a view towards contributing effectively to the economic development of the country ;
• To promote measures aimed at securing improvements pertaining to the techniques and methods of the development of land and construction of buildings for residential, commercial, industrial, tourism and other related purpose by members throughout the country;
• To study problems arising from the development of land and construction of buildings as well as to propose solutions to the government, through the relevant ministries, departments and agencies;
• To protect the legitimate interests of members, in particular, to dialogue with the government and its agencies on matters pertaining to policy, finance, legislation, technical standards and administrative procedures, affecting the development of land and construction of buildings.

Code Of Ethics

That it shall be known to all men that members of REHDA Malaysia are distinct by their integrity, reliability and fairness, this Code of Ethics shall serve to guide and inspire all developers to faithfully honour as well as observe the principles herein under stated :-

• to act in accordance with the rules and constitution of REHDA Malaysia;
• to uphold at all times the dignity and reputation of REHDA Malaysia;
• to be guided at all times in dealings with clients, fellow developers and others by a sense of honour, fairness, propriety and mutual respect; and to strive for excellence in the daily conduct of one’s business as well as maintain the dignity of the real estate and housing industry.

In cognizance and support of the nobility and worthiness of the abovementioned principles we hereby set our hand in testimony.

Contact Information

• REHDA Malaysia
  No 50G-3, 50H-3, 50I-3, Kelana Mall
  Jalan SS 6/14, Kelana Jaya
  47301 Petaling Jaya
  Selangor Darul Ehsan
  T: +603 7803 2978
  F: +603 7805 1206
  +603 7803 5285
  E: secretariat@rehda.com

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“The sales and purchase agreement was signed in June 1999 and the completion date given was June 2002, yet until today (November, 2008) there are no signs that house will be ready for occupation,” lamented Kamarolzaman Ismail to Bernama on the house that he purchased in a housing project near Puncak Alam, Selangor.

Meanwhile, in Seri Kembangan 561 buyers of single story terrace houses are in a fix. They were promised vacant possession in 2005 but construction work has stalled.

“As at November 2008, the houses are yet to be completed,” said the Buyers and Claims Committee chairman Mat Ali Hanafiah Mohamed who represented the buyers.

“We have to service the loan to avoid being sued by the banks and at the same time have to pay rental for the houses that we are occupying now,” he too lamented.

Kamarolzaman and Mat Ali are among the unfortunate house buyers who have many time met with the authorities to find ways to revive their respective housing projects but there is no solution in sight for them.

Though year after year abandoned housing projects have been widely highlighted by the local media, the authorities are yet find an effective solution to help buyers who are left in a lurch.

FRIGHTENING STATISTICS

According to the statistics provided by the Housing and Local Government Ministry, abandoned housing projects are nothing new and has been reported since the 1970s.

Even now housing projects are being abandoned and their numbers are expected to increase especially when looking at the current poor economic outlook.

According to the statistics from the Ministry, the total number of abandoned housing projects up to June, 2005 numbered 277, with 50,183 buyers, 75,356 dwellings and the projects were worth RM7.033 billion.

THE REAL SITUATION

According to a law don at Universiti Utara Malaysia (UUM), Nuarrual Hilal Md. Dahlan, the numbers provided does not represent the true picture.

This is because some of the abandoned projects are not listed in the abandoned housing projects list or the project files have been closed.

“Furthermore, the total number reported by the Ministry does not include projects undertaken by independent contractors, cooperatives and others who are not under the purview of Housing Development Act (Control and Licensing) 1966 (Act 118) and also abandoned housing projects in Sabah and Sarawak.

“Thus, if these projects are taken into consideration, definitely the actual figure is much higher. This will then send a clear message on how to avoid abandoned housing projects and ensure the rights of the buyers are protected,” he said.

REASONS WHY PROJECTS ABANDONED

According to Nuarrual Hilal, among the reasons for abandoned housing projects includes the inherent weakness in the housing development system, the loopholes in the laws and the lack of enforcement in the part of the ministry, local enforcement agencies, planning and technical authorities.

Even more lacking is the political will in implementing significant and radical changes in the housing sector where the problem has persisted since the 1970s.

He is of the opinion that if all the housing developers in Malaysia implement the build and sell’ concept, the question of abandoned housing projects will not arise.

FOLLOW THE EXAMPLE SET BY OTHER COUNTRIES

This system, for example, has been implemented in Singapore and New South Wales, Australia. In Singapore, this task was entrusted to the Housing Development Board (HDB)under the Ministry of National Development.

To emulate Singapore, the government must entrust the task to a government agency with adequate financial resources to implement housing projects all over the nation.

This agency will then carry out housing projects based on the ‘build and sell’ concept as done by HDB.

What ‘build and sell’ concept means is that the developer can only sell the houses when they are completed with Completion and Conformation Certificate (CCC) issued and the ownership can be transferred to the buyer immediately.

Nuarrual Hilal noted that insurance coverage for housing projects, as implemented in New South Wales can also be implemented in Malaysia. This is to ensure that in the event the developer defaults in his obligation they buyers still have an avenue to see their homes completed.

LEGALITY ASPECTS MUST BE REVIEWED

In a nutshell, a comprehensive review is needed on the National Land Code (1965), planning laws, building and housing laws, Town and Country Planning 1976, Street, Drainage and Building Act 1974, Building By-laws 1984 and Housing Development Act (Control and Licensing) 1966.

The review should also include provisions for special laws to regulate the rehabilitation of abandoned projects.

He opined that though there was several provision introduced in some of the legislations in 2007, it remained insufficient as it failed to address the core problems, especially those involving abandoned projects.

ADVICE TO BUYERS

Looking at the failure to prevent abandoned projects, he advised the public to only buy houses completed with CCC.

“Maybe they may cost more, but it saves the trouble for the buyers.

“The government must take effective steps, including implementing the above proposals, to prevent public and investors, local and foreign, from losing confidence on the real estate and the banking industry due to the risks from abandoned projects,” he said ending the interview.

By Mohd Najhan Azman Hamid

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