Nasser Yusof, the lawyer representing the residents, questioned if the developer was offered the lower land premium due to their involvement in the redevelopment project.
“I believe that we all deserve an explanation regarding the procedures involved in this deal, because we would like to know why the developer was given such a low price,” he said at a press conference in Kinrara today.
According to Nasser, the developer is estimated to pay RM74 per sq ft for 25ha of land surrounding the pond based on the premium price of RM41 million and the expected cost of RM40 million to redevelop the pond.
However, he said the sum of RM81 million pales in comparison to the average land price in Kinrara, which stands at RM200 per sq ft.
He said this deal would incur an “opportunity cost” for the government of over RM100 million.
“The average land premium in Kinrara’s residential area is RM200 per sq ft if we take into account the market price of RM300 per sq ft and the government housing price of RM100 per sq ft.
“Based on this calculation, the government and public are losing around RM138.60 per sq ft or RM136.8 million for 25ha of land.
“What is the authorities’ justification for the lower price of RM74 per sq ft? What were the criteria for such a low price? The residents want to know,” he said.
On May 16, federal territories minister Dr Zaliha Mustafa said the government made it a “mandatory condition” for the developer to upgrade the retention pond before any development order is issued.
Firdaus Ibaruslan, the deputy director of the federal territories land and mines office, also said the move would result in significant government savings, adding that the upgrade would have cost taxpayers RM40 million but this cost would now be borne by the developer.
Their comments came after residents in Kinrara voiced opposition to the degazetting of the pond for a proposed housing development.
Taman Kinrara residents’ association chairman Alvin Lee reiterated his call for the government to reconsider the plan as they are concerned any new development will increase traffic congestion and the risk of flooding in the area.
“We hope that there will be no development in this area because we don’t want to face any more floods. My family and I are always very worried about water levels during rainy days,” he said.