Govt ups offer for Kampung baru land to RM1,000 per sq ft

Last update: 24/10/2019

KUALA LUMPUR, Oct 24 -- The government is offering RM1,000 per square foot as the final price for buying over land in Kampung Baru here for redevelopment.

Federal Territories Minister Khalid Abdul Samad said the rate was reached based on discussions with the Kampong Bharu Development Corporation and with the agreement of Prime Minister Tun Dr Mahathir Mohamad.

He said RM150 per sq ft of the purchase price would be paid in the form of stakes in a special purpose vehicle (SPV).

For the remaining amount for RM850 per sq ft, the landowners will be given a choice to be paid in cash or in terms of completed property, a combination of cash and completed units, and shares in the SPV as stipulated in the offer options during a townhall session on Sept 21 this year.

“We want to encourage the Malays to come back and reside in Kampung Baru after the area has been developed, where they have shares in it (development).

"When they (landowners) have shares, they can speak up, give suggestions (to) what we are tabling, presenting," he told a press conference here today.

He said landowners who opted to be paid in the form of completed property units would be given an additional 15 per cent deduction on the price of the property concerned.

As such, the government urged the affected Kampung Baru landowners to submit the feedback form on the redevelopment of Kampung Baru before this Nov 30, he added.

At the Sept 21 townhall session with Kampung Baru residents, Khalid announced that the government was offering Kampung Baru landowners RM850 per square foot for their land, based on valuation made by the Valuation and Property Services Department.

However, most of the residents felt that the price was unreasonable given the strategic location of the settlement and asked the government to review it.