The new rate was announced by Federal Territories Minister Khalid Samad after discussion with Prime Minister Dr Mahathir Mohamad.
“I consider this the final and best offer by the government to all landowners in Kampung Baru,” he told a press conference today.
The RM1,000 per square foot offer is split into shares in a special purpose vehicle (RM150), which will be announced later, and price per square foot for the land (RM850).
Landowners have four ways to claim the RM850 per square foot offer:
- In cash;
- A new house;
- Cash and house (the new house cost will be deducted from the amount residents receive per square foot); and,
- Invest in shares in the special purpose vehicle.
For those who decide to purchase a new house (Options 2 or 3), they will receive a 15% discount on the house price as well.
“For example, Residensi Wilayah, to be developed at Kampung Baru, will be sold at RM255,000 per unit (900 square feet), instead of RM300,000,” he said.
Khalid urged all landowners in Kampung Baru to submit the feedback form on their agreement for the redevelopment.
“Landowners have three weeks (until Nov 15) to submit the feedback from the date of this announcement.”
On Sept 21, the government offered to buy land in Kampung Baru here at the rate of RM850 per square foot as compensation to landowners and heirs in return for the redevelopment of the area.
However, most residents felt the offer was unreasonable given the strategic location of the settlement and asked the government to review the offer.