Having won the case at the Tribunal for Home Buyer Claims, commonly known as the Housing Tribunal, and having been granted an award of RM7,500 as compensation for late delivery, the defaulting developer has refused to abide by the award.
The developer wants to challenge the award by filing for judicial review (JR) at the High Court.
I checked with several lawyers and they say the legal fees and expenses to represent the client would be approximately RM20,000 at the level of the appellate division of the High Court.
The lawyer is uncertain whether he would be able to win the case. Thus, why take a risk?
The completion of the building has been delayed because of several factors beyond the scheduled completion date.
But we must fight the case for the sake of delaying tactics.
We can’t afford to pay all the 350 apartment buyers.
We will go bankrupt when each unit’s compensation (for late delivery) costs us RM7,500. It will run into the millions.
We will get our lawyers to adopt delaying tactics, by whatever means, to frustrate the awards by filing for judicial review (JR) proceedings.
With the judicial review (JR) proceedings, the owners will drop their claims and “beg” to settle out-of-court.
It will not be worth their while to pursue the matter. It’s an expensive game and time-consuming at the High Court stage.
This comes as a whopping 100,000 units of high-rise apartments – many of them from the China developers, and many of them on the waterfront – are set to flood the market, data from real estate consultants shows.
Buyers can opt for the promotion price, which in some instances adds up to a 40% discount, provided they pay for the property in cash over several transactions. Doing so will shave RM300,000 off the price of a single-room unit measuring between 400 to 500 sq ft, which would normally cost RM800,000.
Pity those who bought..... At the end of the day, whether it is stocks or properties, it is supply & demand that will determine prices... Investors are best to watch supply very carefully as supply is usually easier to quantify than demand. For more on supply and demand, do also read: pertama.freeforums.net/post/5861/thread
Also, one has to be aware of the development of the Singapore-KL high speed rail. Once this is in place, KL is likely to be a preferred second home location compared to Johor Bahru. Just like highways, the creation of this high speed rail will benefit the connected cities at the expense of towns and cities in between. If I ever wanted to buy a property in Malaysia, I will only consider buying in KL.
Pity those who bought..... At the end of the day, whether it is stocks or properties, it is supply & demand that will determine prices... Investors are best to watch supply very carefully as supply is usually easier to quantify than demand.