Experts question 30-year threshold in urban renewal proposal

The proposed Urban Renewal Act (URA), set to be tabled in June, has sparked concerns among property owners and industry experts. The Housing and Local Government Ministry’s bill sets the consent threshold for redevelopment at 80% for buildings aged 30 years, 75% for those older than 30 years, and 51% for abandoned buildings.

At the “Civic Lens: Urban Renewal Act Forum” held on Tuesday, Datuk Chang Kim Loong, secretary-general of the National House Buyers Association (HBA), questioned why 30 years was chosen as the threshold for redevelopment eligibility. He pointed out that the Public Works Department (JKR) estimates a building’s lifespan at 70 to 80 years. “If I had a bank loan of 35 years, I wouldn’t even have paid it off yet, and then you want to take my property — that’s the issue here,” he argued.

Chang also suggested that the government could more efficiently redevelop buildings owned by a single entity, such as Kuala Lumpur City Hall (DBKL), rather than focusing on privately-owned properties that require high consent levels. He further raised concerns about the URA potentially conflicting with Article 13 of the Malaysian Federal Constitution, which safeguards property rights, as well as Section 57 of the Strata Titles Act 1985, which mandates unanimous resolutions for redevelopment.

Another key issue highlighted was compensation. Prof Dr Ismail Omar, president of the Land Professionals Association of Malaysia (PERTAMA), noted that land acquisition compensation has historically been inadequate, with payouts often falling below market value. He emphasized the need for a comprehensive review of land valuation principles and legal frameworks to ensure fair compensation for affected homeowners.

While urban renewal is necessary for sustainable city development, stakeholders stress that any new law must balance redevelopment needs with property rights and fair compensation to prevent potential social unrest. As the URA moves forward, public engagement and careful revisions will be crucial to ensuring its success and acceptance.