His warning: Beware of Malaysian property

May 6, 2007

His warning: Beware of Malaysian property

By Melissa Sim


WHERE the Malaysian Property Exhibition goes, Mr Jackson Chia, 63, follows with his own mobile exhibition - a collection of newspaper articles stuck onto his grey Toyota.

From 10am to noon yesterday, he stationed himself at the Suntec City Tower Three bus stop, 50m from the Malaysian Property Exhibition.

The show featured a group of developers selling property in Malaysia, and Mr Chia was warning the public of the pitfalls of investing in Malaysian property.

When people stopped to look at his newspaper cuttings, he encouraged them to read the articles and handed out fliers summarising his experience at Anjung Seri Condominium in Johor Baru.

Mr Chia, a copywriter at a design firm, is one of 37 Singaporean buyers who paid between RM150,000 (S$66,800) and RM400,000 for units in the Anjung Seri Condominium.

Problems soon followed. Two of the five blocks were left uncompleted because the developer ran into funding problems. Maintenance was poor and as time passed, residents started to move out.

In December 2005, the place was looted. Even fixtures like windows, grilles and doors were stolen. The group lodged police reports and wrote to the Malaysian authorities.

In January this year, some of the owners went to the Malaysian High Commission here to seek redress. They have yet to hear from the authorities.

This is somewhat like the problem faced by the Singaporean owners of the Taman Permata residential estate, also in Johor Baru. As reported in The Sunday Times last month, the estate's developer went bankrupt and the homes might be taken away by the bank.

Mr Chia said he hopes proper channels can be set up to safeguard future investors. He also wants to educate the public on the dangers of investing in Malaysian property.

As part of his efforts to educate the public, Mr Chia will put together a book titled Malaysian Property: A Painful Experience.

The book will be ready by the end of this year.

'Now it's not just a campaign for personal compensation, but a campaign to educate other Singaporeans,' said Mr Chia.

'I think it's a good idea,' said Mr Ahmad.

'It would be educational for people who have not read about the dangers of property investment in Malaysia.'

i dont disagree.caveat emptor.Buy at your peril.

I was unfortunate enough to buy a project at Bukit OUG by MBF property prior to the crisis. Same story.

My advice to those looking to buy into malaysian properties for investment:

(1) good developer if project uncompleted
(2) pay more for a more expensive unit in a good location
(3) completed units if possible

If a Malaysian minister can face similar problems (I believe Trade Mnister Rafidah also bought a house in which the developer ran into problems - I stand to be corrected as I vaguely remember this), then yes buyer beware...be very aware.