hi brothers and sisters,

my name is kwai, and i'm new in the forum.

we have a small piece of land in perak, converted to housing, layout approved, paid form5A, finalizing the housing plan... to submit to the local authorities...

so shy to say, this is our first project, still blur with the progress, would like to ask sifus in this forum, how is the progress and around how long to process the developer license?






thank you in advance

you need to get the building plan approval 1st then only submit to HDA for developer license and Ad & sale Permit. Usually it'll take a month provided you submit everything accordingly.

all the best in your developemnt business!

Cheers!
Wayne Hor

Wayne, I understand that it's basically all about putting down a deposit with the authority. Do you know how much that deposit is? I know it will of course be linked to the size of the project.

Hi Asim,

If not mistaken, it's RM200k. Unless they keep on changing the requirements.

Wayne

If you want to do a RM1bn development you only need to put down RM200k?

Is that right? It can't be.

Asim

Hi Asim,

Sorry, just checked the Act, it's not less than RM250k. If big scale project, it will be determined by the Hosuing Ministry.

Hi Asim, Wayne

As far as I know of, RM200k - 250k (Can't remember the exact amount) is to be maintained in the HDA account until the project is completed and handed over.

On a separate note, taking the example of RM1 bil development above, the developer has to ensure it has sufficient cash flow to finance the development. A percentage of Capital Modal against Cost of Construction must be derived and that should not be less than 11%. Ie. if capital modal is around RM100mil and the projected construction cost is around RM500mil, it gives you 20%. It should be sufficient for the Housing Ministry to give you a go ahead. Of course, it depends on the Developer's reputation, source of funding, and etc etc.

Hope it helps.

You say it depends on the developer's brand?

Does that mean it's not all financial Based but on a very subjective basis? I would be surprised if the government authority can just say "You're a good developer so we'll give you a lower deposit".

Farin, sorry you get my implications above wrong.

The deposits remain the same for all developers. I actually meant that a certain project to be undertaken by some bad developers will be under the purview of respective authorities.

Not specifically on the brand, but the image of the developer of the project.

There are a lot of developers whom has subsidiary companies on its respective projects. Equally a lot of projects under the category of "sakit" ie. sick project of which these developers are unable to deliver on its progress stage, or have abandon its project halfway, or be undertaken by another 3rd party company that resulted in delays, or also due to financial constraints. Of course these developers if were to undertake another project, will be subjected to the purview of the respective authorities.

Hope it answers your question

Btw,some developers may have good branding, but its subsidiaries may not be. You may review "Senarai Pemaju Yang Disenarai Hitam" at KPKT website. You be amazed to see big branded developers. Of course, those are their subsidiaries.

Farin

It's a realistic world, you have a good record you are financially sound, you won't get trouble.

However, if you have bad reputation and weak financial capability, who on earth will approve your development? The authorities are human afterall, they have eyes to look at figures.

Nobody know exactly! But We need a research to answer. However, my experience tell me that the price will continue to go up as the land getting scarce, the building materials are costly, bank interest is rising, the economy is getting better, and more....

What goes up must come down? I agree but how it come down? we will never know. However, certain properties will not going down like terrace houses and medium cost apartments, if the property values really facing some correction.