The remaining 20% will be returned after the defects and liability period effective from 11 November, said Minister of Urban Wellbeing, Housing and Local Government, Tan Sri Noh Omar at the Real Estate and Housing Developers’ Association (REHDA) annual dinner last night.
Previously, developers would only be returned the 3% deposit after the defects and liability period.
The 3% deposit is the estimated cost of construction of a housing development of the developer's respective project in order to obtain a developer's licence.
Meanwhile, REHDA president, Datuk Seri Fateh Iskandar Mohamed Mansor also noted in his speech that the past months have been challenging for the industry as it has has been adversely affected by global economic instability, a falling Ringgit and crash of crude oil prices.
"Negative growth was registered in terms of volume and value of property transactions in 2015 and continued to prolong until 3Q2016.
"NAPIC (the National Property Information Centre) recorded a 13.91% and 12% drop y-o-y in volume and value, respectively," said Fateh Iskandar.
However, he noted that the grey clouds will not be there forever and the industry will be able to overcome these challenging times.
News Source: The Edge Property, 30 November 2016