Khalid Samad: Parcel rent to replace quit rent for KL strata developments

KUALA LUMPUR: The quit rent system for strata buildings in the city will be replaced with parcel rent system from Jan 1.

Federal Territories Minister Khalid Abdul Samad said the government made the decision after taking into account public interest.

He said the switch to the parcel rent system was needed following a number of issues involving quit rent arrears for registered development strata schemes.

“Based on current records at the Federal Territories Land and Mines Office, about 446 strata development schemes out of 3,214 (or almost 15 per cent) in Kuala Lumpur have quit rent arrears.

“Implementation of the parcel rent system is seen as a correctional mechanism and to rationalise taxation mechanism to a more systematic, transparent and fair strata development,” he said, at the launch of the parcel rent system for strata buildings at the Federal Territories Land and Mines Office here.

Khalid said payment through the parcel rent system would be more transparent as the owner would not have to pay quit rent to management committees (MC) and joint management bodies (JMB), but directly to the Federal Territories Land and Mines Office.

He added that the calculation formula under the parcel rent system was based on the total area of the parcel, including the owned accessory parcel, parcel utilisation category for residential, business or industry, and whether it was leasehold or freehold.

However, he said the owners of strata residential property such as the People’s Housing Programme (PPR), especially the B40, would enjoy a fixed rate.

Khalid added that the fixed rate irrespective of parcel size was RM15 a year for leasehold owners and RM20 a year for freehold title holders.

“Based on record, there are more than 70 per cent of affordable-type apartments with 1,030 per sq ft or 96 per sq metre, and the owners are mostly the M40 group.

“Therefore, the parcel rent rate for such strata development has been drafted to allow the implementation of parcel rent for a minimum rate of RM20 a year for leasehold title and RM25 for freehold title holders can be enjoyed by the M40 group of the strata residential owners.”

Meanwhile, on Kampung Baru development, Khalid said more than 40 per cent of landowners had returned the feedback forms to the Kampung Baru Development Corporation (PKB).

He said this involved some 2,200 of the 5,374 Kampung Baru landowners, where 95.3 per cent of the total had agreed to sell their land for redevelopment.

“PKB will continue to engage with the remaining landowners until June next year to hear their concerns and they will explain on the redevelopment plan.

“Many landowners want to see the area developed and they want to contribute to the value of the land,” he added.

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