THE offer of RM850 per sq foot as compensation to Kampung Baru landowners and heirs in return for the redevelopment of the area is a fair price, Federal Territories Minister Khalid Abdul Samad said.
The minister defended the price after rumblings that it was too low.
He said the amount was significantly higher than what was previously offered for two other projects in the area.
“For those two projects that are currently nearing completion, the owners were offered around RM400 per sq foot.
“Of those two projects, only one of the projects offered 200 units of affordable housing.
“With the price the Government is offering, there will be 42,000 housing units of which 50% will be affordable homes, ” he said after a key handover ceremony at Residensi Wangsamas in Wangsa Maju, Kuala Lumpur.
He added that at the current offer price, the Government would have to pay between RM6bil and RM8bil altogether for all the plots of land in Kampung Baru.
“We also have to take into consideration the future buyers and how much they would be able to afford.
“As property in Kampung Baru can only be sold to Malays, we cannot price it too high or it will not be affordable.
“It has to be at a logical price as we are buying the land from Malays for Malays, ” Khalid explained, adding that the flat rate of RM850 per sq foot was based on the highest price proposed by the Valuation and Property Services Department, which was tasked with the land valuation.
The proposed range was RM650 to RM850 per sq foot.
However, Khalid said the matter would be further discussed with Prime Minister Tun Dr Mahathir Mohamad.
On comments by former prime minister Datuk Seri Najib Razak that the price was too low, Khalid responded, “About two years ago the Barisan Nasional government offered only RM300 per sq foot. I am sure the public can evaluate for themselves which is the better price.”
During a townhall session attended by about 3,000 Kampung Baru landowners and heirs on Saturday, Khalid announced that apart from the value of the land, whatever structures or buildings on the land will also be valued for compensation.
The Government had previously announced that the redevelopment of Kampung Baru would include residential buildings in the form of high-rise dwellings as well as corporate towers and retail complexes.
Khalid said landowners could choose from four types of offers from the Government: cash; a completed apartment or condominium unit (to be constructed as part of the redevelopment); a combination of cash and a completed unit; and shares in a company which will serve as a Special Purpose Vehicle in connection with the redevelopment project.
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