ABANDONED OF TAMAN MENGKIBOL ,

KLUANG DISTRICT
GROUP 11

1.
2.
3.
4.
5.

ANDIK MOHD AZRIL BIN MOHD NASIR DF140098

NUR IZZATY BINTI AZNI (SECRETARY) DF140090
MUHAMMAD HAZIQ BIN SAIPOLBAHRI DF140034
MOHAMAD IKHWAN BIN MISSNON CF150253
SYAZWANI BINTI ZAMZAM DF140009

INTRODUCTION
ABANDONED HOUSING PROJECT ARE DEFINE AS CONSTRUCTION WORK IN A
PROJECT SITE HAS BEEN CONTINUOUSLY STALLED FOR 6 MONTHS OR MORE
WHETHER DURING THE PROJECT COMPLETION PERIOD OR BEYOND THE
SCHEDULED DATE OF COMPLETION, ACCORDING TO THE SALES AND
PURCHASE AGREEMENT.
A DEVELOPER IS NOT ABLE TO COMPLETE THE PROJECT, OR WHEN THE
HOUSING CONTROLLER VIEWS THAT THE DEVELOPER CAN NO LONGER
CARRY OUT THEIR RESPONSIBILITIES AS A DEVELOPER

BACKGROUND OF HOUSING
PROJECT
TAMAN MENGKIBOL IS A LOWER MIDDLE CLASS RESIDENTIAL AREA WITH
SOME COMMERCIAL DEVELOPMENT.
IT IS A PROJECT REVIVED BY KSL HOLDINGS BERHAD GROUP AFTER IT WAS
ABANDONED BY SUCCESS VILLA SDN BHD IN 2003.
IT CONSISTS OF 190 UNITS SINGLE STOREY TERRACE HOUSE, 80 UNITS
DOUBLE STOREY TERRACE HOUSE AND 22 UNITS DOUBLE STOREY SHOPPE
OFFICE.
THE FIRST PHASE OF DEVELOPMENT FOCUSED MAINLY ON THE
CONSTRUCTION OF SINGLE STOREY TERRACE HOUSES.

CAUSES OF ABANDONED HOUSING

PROJECT
FINANCIAL PROBLEM

THE MAJOR REASON LEADING TO THE ABANDONMENT OF THE PROJECT WAS THE
FINANCIAL DIFFICULTIES FACED BY SUCCESS VILLA SDN BHD.
LACK OF SKILLS, EXPERIENCE, AND EXPERTISE OF THE DEFAULTING HOUSING
DEVELOPER COMPANY AND THE INAPPROPRIATE SELLING PRICES FOR THE UNITS
COMPARED TO THE COSTS OF CONSTRUCTION.
MISMANAGEMENT OR UNFAVOURABLE ECONOMIC CONDITIONS; AND, THE LACK OF
PROPER FEASIBILITY STUDY

MISMANAGEMENT :
HAPPEN DUE TO THE LACK OF EXPERIENCE OF DEVELOPERS.
THAT LEAD TO ABANDONED HOUSING PROJECTS INCLUDE LACK OF PROPER
FEASIBILITY STUDIES.
INACCURATE MARKET RESEARCH, UNATTRACTIVE MARKETING STRATEGIES,
CONFLICT AMONG PROJECT PARTICIPANTS AND INCOMPETENT AND POOR
FINANCIAL MANAGEMENT BY THE DEVELOPERS.

ECONOMIC CONDITION

UNEXPECTED BAD ECONOMIC CONDITIONS AFFECT A PROJECT IN MANY

WAYS SUCH AS MATERIAL PRICES, INCREASE IN THE COST OF FINANCING DUE
TO HIGHER INTEREST RATE AND LOWER RETURNS OF INVESTMENT ONCE THE
PROJECT IS COMPLETED.
FINANCIAL PROBLEM FACED BY THE DEVELOPER OF SUCCESS VILLA SDN BHD
GOT THE PROBLEMS TO BEAR THE COST OF DEVELOPMENT.
THE COURSE OF THE DEVELOPMENT OF THE PROJECT, THE PROJECT FAILED
AND WAS ABANDONED DUE THEIR INABILITY TO MEET THE DEVELOPMENT
AND CONSTRUCTION COSTS.

PARTIES INVOLVED IN ABANDONED

HOUSING PROJECT
DEVELOPER : - DEVELOPERS ARE OFTEN A MAJOR SOURCE CONTRIBUTOR TO
ABANDONED HOUSING PROJECTS.
CONSULTANTS : - CONSULTANTS IN A CONSTRUCTION PROJECT TYPICALLY
CONSIST OF ARCHITECTS, CIVIL ENGINEERS, AND MECHANICAL AND ELECTRICAL
(M&E) ENGINEERS.
CONTRACTORS : - THE CONTRACTOR ALSO CONTRIBUTE TO RESULT IN STOPPING
THE PROJECT BECAUSE OF THE FINANCIAL AND MANAGEMENT PROBLEMS.
FINANCIAL INSTITUTIONS : - THIS IS REASONABLE, AS IN THE ECONOMIC
RECESSION, BANKS WOULD BE RELUCTANT TO GRANT HOUSING LOANS TO THE
DEVELOPERS AND HOUSE BUYER AS THEY ARE MANY BANKRUPTCY IN THE
COUNTRY.

EFFECTS THAT CAUSED BY ABANDONED

HOUSING PROJECT
PERSONAL AND COMPANY : THE VERY FIRST IMPACT; PERSONAL AND
COMPANY WHERE THE PERSONAL HERE REFERRED TO THE INDIVIDUAL
PARTY THAT HAVE INFLUENCED BY THE ABANDONED PROJECT.
SOCIAL AND ECONOMIC : THE SOCIAL LIFE OF PUBLIC ALSO BEING AFFECTED
WHERE THE ABANDONED PROJECT BECOME THE ABANDONED PLACE FOR
ILLEGAL GAMBLING, DRUG ADDICT, AND HOMELESSNESS CAMPSITE.
ENVIRONMENTAL : IT PROMOTE THE HABITAT FOR THE DANGEROUS ANIMALS
SUCH AS REPTILES LIKE SNAKE AND RAT, MAMMALS LIKE LION AND INSECT
LIKE FLIES AND MOSQUITO
COUNTRY : IT MAY DESTROY THE IMAGE OF OUR COUNTRY TOWARD OTHER
COUNTRY WHERE THE POOR MANAGEMENT SKILL OF OUR COUNTRY LEAD TO
A LOT OF ABANDONED PROJECT.

CONCLUSION
IN CONCLUSION, IT CAN BE SAID HERE THAT THE PROBLEM OF ABANDONED
HOUSING CAN GIVE THE IMPRESSION OF THE ECONOMIC AND SOCIAL
ASPECTS.
OVERALL, BASICALLY THE CAUSES OF ABANDONED HOUSING PROJECT CAN
BE CLASSIFIED INTO FIVE ASPECT WHERE ARE :
1. MISMANAGEMENT
2. UNFAVOURABLE GOVERNMENT POLICIES.
3. INEFFICIENT PUBLIC DELIVERY SYSTEM.
4. UNFAVOURABLE ECONOMIC CONDITION.
5. FINANCIAL PROBLEMS.