PETALING JAYA – Folks here claim that Petaling Jaya is becoming obsolete due to prolonged leasehold complications causing uncertainties over commercial and residential property ownerships.
Long-time residents of Petaling Jaya allege that many people have ditched the established neighbourhood after becoming unable to sustain the high premiums to extend leases.
“Each day, older parts of the city are looking more and more outmoded, with rundown or deserted properties,” said Section 6 Rukun Tetangga chairman Rajesh Mansukhlal.
The group is appealing to Prime Minister Datuk Seri Anwar Ibrahim and Selangor caretaker menteri besar Datuk Amiruddin Shari to resolve the issues and convert the land here under leasehold terms to freeholds.
“We are not asking for free conversions. We are merely requesting affordable premiums,” said Rajesh.
He said that federal government assistance was necessary to solve the complicated leasehold issues surrounding Petaling Jaya.
“The National Land Council, which is headed by the prime minister and members consisting of menteris besar and chief ministers from the peninsula, should be able to decide on this,” he added.
Petaling Jaya was first developed in 1952 as a satellite town to support the growth of Kuala Lumpur, with rubber and oil palm plantations turned into a systematic settlement that began with the construction of 1,000 houses, divided into “sections” of residential and commercial areas.
As at July last year, the city recorded a population of 620,000 in the Petaling Jaya City Council’s administrative area of 97.2sq km, with a property holding of 278,800.
“The older sections such as Sections 1 to 18 were originally part of the Effingham and Pataling estates and later acquired by the government.
“In fact, we bought our properties from the developer. It was never the government’s land in the first place,” said Rajesh, who has been residing in Petaling Jaya since 1966.
He pointed out that Penang, Perak, and Negri Sembilan had launched freehold conversions for some parcels of land in their respective states four years ago.
“It was interesting that the Penang government offered owners of residential properties discounts up to 90% for (leasehold) extensions, while it is sad to note that Selangor has only offered a 30% discount.”
Petaling Jaya residents’ quandary
Rajesh, who spent his childhood in Petaling Jaya, claimed that many early settlers here, including some prominent personalities and retired civil servants, have decided not to pay hundreds of thousands of ringgit in premiums once their leases expire.
“There are house owners who have been living here since the beginning of Petaling Jaya’s development in the ‘60s, leading stressful lives because they cannot afford to pay the premium.”
He explained that the leasehold areas are largely in the south and north segments of Petaling Jaya from Section 1 to Section 16, including Bandar Utama’s south sector.
“Residential areas such as Sea Park, Damansara Utama, Kelana Jaya, Sea Park, SS1 to SS7, and Bandar Utama are freehold, and these places currently have far higher market values.”
He said that the high premiums put the residents in a more complicated situation than freehold owners.
“Why are we still remaining leasehold and being put in a disadvantageous situation?” said Rajesh, adding that banks have been reluctant to finance land titles with less than 25 years left on the lease.
Based on the Petaling Jaya City Council website, 66-year-old engineering firm director Jason Tay reckoned that there are 160,000 leasehold properties of 99 years.
“Say, for example, that a landed property in Petaling Jaya is valued at RM500,000 and the premium for a 55-year (lease) extension is RM55,000. That’s simply a huge sum for a property owner, especially a senior citizen,” he said.
He opined that should the federal and state governments agree to their proposals, “the conversion and reasonable premiums set for the conversion may create a win-win situation for the state and its people”.
Retired oil and gas engineer Datuk Lokman Awang said that the slump in the property market could trigger a social issue in the long run.
“Petaling Jaya is fast becoming archaic and we could also burden our children when the (lease) terms expire.
“If we pass our properties to them, it may be a huge financial burden (for them). They may experience a property market plunge and this will have a negative impact on the state.
“We also have many homes or landowners who are clueless about the next course of action. This has led to a (property) market crash in these older (section) areas, which will negatively impact the state,” said the 67-year-old Section 16 resident. – The Vibes, August 5, 2023
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