GEORGE TOWN, Sept 5 — More property buyers have stepped forward with complaints against developers making them pay between RM30,000 and RM90,000 extra in packaged deals for units under the low-cost housing scheme.

Their complaints were strikingly similar: The developers would tell them the additional payments were part of the renovation or carpark packages tied to each unit and could not be separated.

The buyers claimed they were told to take it or leave it, as the units would be offered to others.

Customer service coordinator K. Letchumi at a press conference in George Town September 5, 2019. — Picture by Sayuti Zainudin

Customer service coordinator, K. Letchemi, 45, said she was offered a RM72,500 low-medium cost unit at Skyview Garden on Perak Road.

"The developer told me they are out of low-medium cost units and to take a RM180,000 unit but offered me a discount so the price I had to pay was RM162,000,” she said.

She said she had to accept the offer because her family is currently renting a house and they need a permanent place to stay.

"We later found out that the unit we paid RM162,000 for is the same as the RM72,500 unit and now, even before we get to move in, they are charging maintenance fees of RM220 each month,” she said.

Retiree Rosalind Yagambaram in tears as she speaks to reporters during a press conference in George Town September 5, 2019. — Picture by Sayuti Zainudin

Another homebuyer, Y. Rosalind, was offered a low-cost unit of RM42,000 in Sungai Ara but ended up paying an additional RM35,000 for a carpark lot and another RM34,000 for basic renovations to the unit.

"When we moved in two years ago, we were forced to engage their contractor for basic renovations to the unit and they charged us RM34,000. I had to spend my life savings on all that,” she said.

The 56-year-old is retired and has to depend on monthly Socso payments due to her medical conditions that included vertigo and fibromyalgia.

Healthcare assistant Mohd Hirwan Mokhtar speaks to reporters during a press conference in George Town September 5, 2019. — Picture by Sayuti Zainudin

Another house buyer, Mohd Hirwan Mokhtar, 32, had to fork out an additional RM57,500 for a low-medium cost unit in Mount Erskine that originally cost RM72,500.

"I was forced to take a corner unit which is the same size as the other units and they told me I had to pay extra so I had to pay RM130,000 for a low-medium cost house and this does not even include renovations,” he said.

All three buyers are just some of the many others who are facing issues when purchasing low and low-medium cost units from developers in five projects in Tanjung Tokong, Tanjung Bungah, Sungai Ara, Jalan Perak and Jelutong.

Consumer Association of Penang acting president Mohideen Abdul Kader speaks during a press conference in George Town September 5, 2019. — Picture by Sayuti Zainudin

CAP acting president Mohideen Abdul Kader said this is a case of developers ripping off the low income group by forcing them to take up carpark lots or renovation packages at exorbitant prices.

"The developers are forcing the buyers to pay between 40 and 70 per cent of the cost of the unit just for carpark lots,” he said.

He said the developers then allegedly charge another 40 to 70 per cent for renovation packages for work that costs a fraction of the sum.

He claimed that renovation packages were only for basic floor tiling but the house buyers had to pay between RM30,000 and RM50,000 extra for these packages.

He said CAP had received numerous complaints from house buyers of five low and low-medium cost projects in the state.

He called on the state government to look into this issue seriously as developers are allegedly making a farce out of the state’s low-cost housing policy.

"The state leaves it to the developers to do the sales of these units and it turns a blind eye to the fact that developers are not selling the units at the low and low-medium cost prices,” he said.

He accused developers of "arm-twisting” buyers into taking up expensive carpark and renovation packages.

"The state is fully aware of this and the housing department even said warnings have been issued to the developers but all these warnings have fallen on deaf ears,” he said.

He demanded the state set a maximum price for carpark lots and that it should be proportionate to the price of the housing units.

"Car parking facilities in high-rise buildings are a requirement by the state government, not a luxury item,” he said.

He also asked that the government take over the balloting for the units and give special consideration to applicants with medical conditions and the disabled.

"The scope for the 30 per cent compliance clause must be extended to include the signing of the sale and purchase agreements at the controlled prices and be carried out by the state housing department so that developers cannot resort to arm-twisting tactics,” he said.

Mohideen called on the state government not to send successful applicants of low-cost housing to the developers.

"The only way to stop the exploitation and bullying of low and low-medium cost house buyers is to make sure that everyone offered a unit by the state signs the sales and purchase agreement under the eyes of the state housing department,” he said.

Currently, Penang has a 30 per cent compliance clause imposed on housing developers in which 30 per cent of housing units built by developers have to be low-cost units priced at RM42,000 and low-medium cost units priced at RM72,500.