This 🧵 is a summary of what's going on in Kg Sg Baru and why it matters.
(It's a long thread, so bear with me)
📸 Lancelot Theseira/THE VIBES https://t.co/Tuipoj30sk
It all began in 2016 when developer Ritzy Gloss Sdn Bhd signed an MoU with a residents association to develop the area.
They planned to build the altogether too familiar combination of luxury condos, malls, and commercial units. https://t.co/nodxX7NGIE
So Ritzy Gloss began offering residents a deal.
Give us your land and we'll give you:
- A flat (or 2) in the new development;
- Moving out $;
- Temporary housing in Residensi Kerinchi OR a monthly stipend for you to rent elsewhere; and
- In some cases, a lump sum of money. https://t.co/4v1XTAJ71K
Some residents took the deal, but after five years Ritzy Gloss had failed to convince over 100 landowners.
Why didn't they take the deal?
These are some of the answers I've gotten:
1) One resident with elderly parents asked how long construction would take.
“Maybe, I will get to enjoy the money ... but what about my parents? They worked hard to buy this house, they should be able to enjoy it.”
2) A man that runs a small biz out of his ground floor flat asked where he'll do biz if he moves to Residensi Kerinchi.
3) A 78 y/o with mobility issues fears that both Residensi Kerinchi and the new flats will not be disabled friendly.
But the answer that really struck me was from a 65 y/o resident whose father "buka tanah" in Kg Baru.
"This is my house. I own it. So I decide if I want to sell it."
Them owning their land is important because it means that if they refuse the deal, the project cannot proceed.
Being fully aware of this, Ritzy Gloss in 2021 applied to the govt to acquire the land under the Land Acquisition Act (LAA) 1960.
The govt said okay sure, we'll take the land for you. https://t.co/EzaSpVhHzB
Bonus fact:
A Section 4 gazette (we might take your land) was issued on Friday, June 18, 2021.
A Section 8 gazette (we will definitely take your land) was issued on Monday, June 21, 2021.
That's one (1) working day plus one (1) civil service Friday. https://t.co/DzQWhDc9x1
Come back later my fingers hurt
Ok soz for the delay, I'm back.
So after the Section 8 gazette was issued, the deal is sealed, the govt is going to take their land and give it to the developers.
This then leads us into the realm of compensation.
As per Art. 13 of the Federal Constitution, no one shall be deprived of their property save in accordance with the law, and if one's property is being taken away, they must be given "adequate compensation".
So this is how the compensation process goes:
1) You appoint a private valuer (that's paid for by the developer)
2) At the same time, the Dept of Valuation values your land
3) Both valuations are then presented to the Land Administrator
4) The Land Admin. then decides on how much compensation the developer has to give you
There's a teeny bit of space for negotiation here and there, but at the end of the day it boils down to the above.
Sounds straightforward enough right?
This is how it ended up for a flat resident named Musa, whose unit has a panoramic view of KLCC:
A private assessor said his property was worth RM1480/sqft and after factoring in miscellaneous costs he should receive almost RM700k
At the end of the day, the Land Administrator said his property was worth RM480/sqft and awarded him RM240k.
That's 310% lower than an accredited private valuer's assessment.
Okay sit's Friday night and I can no longer brain so I'll wrap it up (for now) with this:
All of the above shows that if someone wants your land and won't give you what you want for it, they'll ask the govt to take it from you and the govt can say yes ...
... leaving you, the legal and rightful owner of a piece of property, no longer the owner of said property.
Tomorrow (or Sunday), I'll tell you about the developer behind the Kg Sg Baru redevelopment project: Ritzy Gloss Sdn Bhd