Over RM62m in compensation paid to Kg Sungai Baru homeowners, says developer

• “Through the joint venture offer, flat owners are offered a replacement house valued between RM884,000 and RM1 million.”

PUTRAJAYA (Sept 12): The developer of the Kampung Sungai Baru redevelopment project in Kuala Lumpur has paid out RM62.57 million in compensation to the owners and stakeholders so far, said Dr Khairul Nizam Othman, chief executive officer of the Kampong Bharu Development Corporation.

He stated that the compensation sum was determined by the Federal Territory Department of the Director-General of Land and Mines (JKPTG) based on the First Schedule of the Land Acquisition Act 1960.

“Through the joint venture offer, flat owners are offered a replacement house valued between RM884,000 and RM1 million.

“Terrace house owners will obtain between three to nine replacement house units with an estimated value of between RM2.7 million and RM8.1 million,” he said when delivering a briefing on the development of Kampung Sungai Baru here on Friday.

He said the compensation payment covers the property value (valuation), maintenance cost, repairs, relocation expenses, rental cost, temporary rental, loss of income cost, attendance at court (hearings) cost and valuation fees.

Khairul Nizam said flat owners are also offered a reasonably priced house unit, with an area of ​​900 square feet, worth RM300,000 which can be purchased at half-price (of the compensation sum received).

“For example, the owner who receives RM250,000 in compensation can purchase the unit under a Harmoni Package for RM125,000,” he said.

He said the offers were made by the developer to owner/applicants on May 16, 2022, with 11 flat owners accepting the offer.

He said that to date, 72%, or 236 out of 328 homeowners, have agreed to the redevelopment plan, while 28% remain opposed.

According to him, the remaining owners who have not yet expressed their agreement are due to dissatisfaction with the compensation provided by the developer.

The Kampung Sungai Baru redevelopment project is expected to provide residents with an opportunity to own more comfortable and modern housing, with some homeowners receiving compensation estimated to run into millions of ringgit.

As Penang girds itself towards the last lap of its Penang2030 vision, check out how the residential segment is keeping pace in EdgeProp’s special report: PENANG Investing Towards 2030.