HOT TOPIC | SHAREDA 2014 Property Development Annual Report & Market Outlook 2015
SHAREDA
PROPOSES
CHANGES TO
BOOST PROPERTY
DEVELOPMENT
MARKET
In the 2014 Annual Property Market
Report, SHAREDA highlighted
several pressing issues that have
yet to be resolved. There have been
some positive signs of resolution to
these issues from the local housing
ministry but a sense of urgency is
still evident as property developers
continue to overcome surmounting
challenges to keep property prices
within affordable range for the
public.
In his paper for the annual report, Ar
Ronnie Ang wrote:
Proposal to Expedite
Development Plan Approval
Back in year 2005, Development
Plan for residential development
was approved within a period of
6 months with anticipated time of
additional 2 to 3 months to obtain
Developer’s Licence from Ministry
of Local Government and Housing.
Later, more stringent measures were
introduced from various government
agencies for more technical studies
like JKR Traffic Impact Assessment
(TIA) or Traffic Site Plan (TSP), DID
MASMA studies, Environmental
Impact Assessment (EIA), and DBKK
High risk committee on Hill Slope
Development.
The Health Department has also now
enforced that the “Health Impact
Assessment” must be submitted by
developers to mitigate the spread of
“dengue disease” at construction sites.
These additional procedures have
deterred the approval process as the
studies take a longer time to complete
and they must be done simultaneously
before reaching a final decision by the
local councils before sending over to
Central Board for final decision.
SHAREDA’S Survey
Recent survey amongst SHAREDA’s
members has shown that most of
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www.PropertyHunter.com.my
the Development Plans have taken
between 30 to 36 months to obtain
a Development Plan’s approval. It
is indeed welcoming news when
it was announced by YB Datuk
Seri Panglima Haji Hajiji Bin Haji
Mohd Noor, Minister of the Local
Government and Housing at the
recent State Legislative Assembly
that the Government is setting up
a one stop centre to streamline the
process of approving developments,
building plans and issuance of
Occupational Certificates.
SHAREDA fully concurs and is
supportive of the proposal by the
minister as it will definitely expedite
the approving process and reduce the
unnecessary red tape in all aspects.
SEVERAL PROPOSALS BY SHAREDA
TO EXPEDITE THE APPROVAL OF
DEVELOPMENT PLAN (DP)
(i) Submission of DP to Central
Board First for Principal Approval
The role of Central Board is to
deliberate the zoning and rezoning
issue, to ascertain the Development
Plan is in line with Government’s
policies as well as to consider
the social impacts created by the
proposed development apart from
traffic impacts and environment
impacts issue. Central Board has no
sufficient technical support such as
qualified engineers and architects to
review the technical aspects of the
proposed development. Thus, local
authorities still need to circulate the
proposed Development Plan to the
respective advisory departments for
technical comments.
This has caused distressful
experience to the developers due
to heavy capital investment cost on
land, resources and fee payments for
consultants’ services. Inevitably, this
would delay the approval process
which will further exacerbate the
cash flow problems and service
higher bank loan interest. Hence,
SHAREDA hereby recommends to
the Central Board under the Ministry
of Local Government and Housing
to accept all development plans to
be submitted to Central Board for
approval ahead of the development
plans before being circulated to all
relevant advisory departments for
technical comments. The “Top Down”
procedure is more appropriate
as Central Board is the highest
authority to approve DP prior to the
gazettement of Draft Local Plan as a
short term solution.
The above “Top Down” procedures
would save a lot of development risks
for developers and many hopes that
the Central Board would recommend
a Development Planning Approval
(DPA) stage to be arranged within 2
months from the date of submission by
a qualified architect. With this order in
place, the developers would have the
confidence to pay up the balance of the
land price within the 6 months grace
period to prevent huge loss in securing
unsuitable land for development.
(ii) To expedite the gazette of all
Draft Local Plan by MLGH
The Ministry of Local Government &
Housing (MLGH) through its Town
Planning Department must expedite
the gazette of all draft local plans
so that Development Plans do not
need to be submitted to Central
Board as a long term solution.
The Central Board’s role should
only then focus on the issues of
rezoning applications and to regulate
appropriate development policy.
(iii) To set up “One Stop Centre” to
gather technical comments in all
District Council
After the principal approval has
been obtained from Central Board,
the Development Plan will be
submitted to the respective councils
for technical comments for final
approval. In order to expedite the
process of technical comments, it
is recommended that the District
Council set up a One Stop meeting
every month to involve all relevant
advisory departments to give their
comments on the spot in accordance
to what has been suggested by YB
Datuk Seri Panglima Haji Hajiji Bin
Haji Mohd Noor in his winding up
speech in the recently concl VFV@