Valuation Dept says not all Kampung Baru lots worth RM850 per sq ft

SHAH ALAM, Oct 4 — The Valuation and Property Service Department (JPPH) said today it will not price every lot in Kampung Baru at RM850 per square feet, but would rather conduct individual evaluations to determine their proper market value.

In a Sinar Harian forum, JPPH senior director Abdul Razak Yusak said a proper evaluation would take into consideration the location of the plots and the ease of accessing them.

“Before I answer the question about the MRT’s land takeover, I want to elaborate a little. YB said he will pay RM850 price for all the land in the Kampung Baru,” he said, referring to Federal Territories Minister Khalid Samad.

“However, if JPPH is asked to evaluate the plots in Kampung Baru, we won’t value the price at RM850, because the RM850 that is being offered, is for plots along main roads, and when we evaluate later, it will be based on individual lots, meaning if it’s located deeper, it will be cheaper.

“But that’s in the future, if Kampung Baru [Development Corporation] asks us to do an evaluation, then we will inform everyone, and we will provide the available range to [Khalid], that is between RM650 and RM850. That is the actual situation,” he added.

Khalid also agreed with Razak, adding that should an in-depth evaluation been conducted, many residents in Kampung Baru would not be entitled to the RM850 per square feet offer.

“Just now, I feel that what Razak said about the evaluation process is very accurate, and rightfully, during the townhall session, I already mentioned that when we offered RM850, we offered a flat rate, and we didn’t take into account whether the land is a first tier or second tier and all that, and we offered the highest price.

“And this should be seen as proof of our sincerity, because if we want to do an evaluation as mentioned by Razak, many will not get the offer of RM850, and maybe less than that to a minimum of RM650,” he said.

Last month, the government announced that it has offered Kampung Baru landowners the maximum value of RM850 per square feet for their land, which amounts to over RM6 million for each available plot said to average around 8,000 square feet.

Putrajaya said landowners with properties on the land plots will also be paid an additional amount based on the value of the property.

Khalid had, at the time, in a townhall session with Kampung Baru residents, said that the amount offered was based on the best value of the land considering its status as Malay Agriculture Land.

The valuation was done by JPPH, which is a federal agency.

Land with such status is often capped at a much lower price even if the location is deemed premium.

However, land and property consultants said land where the KLCC Twin Towers sits is worth at least RM3,000 per square feet. Kampung Baru sits adjacent to the towers.

The land that Kampung Baru sits on was initially designated for plantations but was later re-purposed as a social project aimed at balancing the city’s racial composition, after the deadly 1969 race riots.

This is the first offer that the federal government has laid out in real numbers since the idea to redevelop the 220-acre land was first mooted in the 1980s.

Previous administrations’ attempts at convincing residents to sell their land have either stalled or failed, often due to both parties being unable to agree on the right price.

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