This is verbatim from Saiful Nizam Hj Ali available at the link below:
https://www.academia.edu/5173271/GUIDELINES_ON_PROPERTY_DEVELOPMENT_IN_MALAYSIA
GUIDELINES ON PROPERTY DEVELOPMENT IN MALAYSIA
Tenure of Land and Development Permission
Saiful Nizam Hj Ali
At -Tamyeel Real Estate Knowledge (T.R.E.K)
1.0: Land Conversion (Tukar Syarat Tanah):
According to Seksyen 124, National Land Code 1965 allocated that only registered proprietor shall ion eligible to apply to State Authority to alter, impose and convert any status of the land. For example as stated in title document:
EXISTING USE CONVERT TO:
Kategori Kegunaan Tanah : Bangunan Bangunan
Syarat Nyata : Bangunan Kediaman Bangunan Komersil
Or
EXISTING USE CONVERT TO:
Kategori Kegunaan Tanah : Pertanian Pertanian
Syarat Nyata : Hendaklah di tanam dengan padi Tanaman koko
Or
EXISTING USE CONVERT TO:
Kategori Kegunaan Tanah : Pertanian Bangunan
Syarat Nyata : Tanaman Getah Industri
Conversion of land use refers to the variation of the titled category of land use from the existing category to another category of the variation of express condition. An additional premium is imposed on the conversion of land use. The basis for the computation of additional premium is provided in the various State Land Rules and it is differs between rules. The roles of valuers are to determine the value of land according to the basis adopted by the various states as stipulated in their respective Land Rules.
1.0.1: Procedure for Land Conversion:
- Fill up applicable forms made available at Land Office or Registry office i.e
- 2 copies of form 44C application through section 124 (1) a and C of NLC or
- 3 copies of form 7D application through section 124A or
- 3 copies of form 12D application through section 204D or
- 3 copies of form 12A and 2 copies of form Schedule 1 application thourgh section 197 and 96 of NLC
- Surat Wakil should be registered at High Court and Land Office if the presentation done by third parties.
- 7 copies of Layout Plan and Pre computation plan as certified by Planning Dept.
- 15 copies of Key Plan, Location Plan, Site Plan prepared by Registered Planner
- A copy of Development Proposal as required by JPBD
- Official Search of Title
- Receipt of Quit Rent effective year of assessment
- Original copy of Title
- A copy of company’s statutory declaration
- A copy of Memorandum of association or articles of association
1.0.2: Payment for Land Conversion:
- 0.2.1 :For section 124 (1) A and C
Less than Hectare RM 50.00
A hectare to 10 Hectares RM 100.00
More than 10 hectares RM 100 for every exceeding 1 hectare
- 0.2.2 For Section 124A
Less than
Less than 10 hectares RM 100
10 hectares to 50 hectares RM 300
More than 50 hectares RM 500
- 0.2.3 For Section 204 D
RM 15 for every title document
- 0.2.4Section 197 and 76
Less than hectare RM 50.00
A hectare to 10 hectare Rm 100.00
More than 10 hectare RM 200.00
1.0.3 Calculation of Premium for Land Conversion:
1.0.3.1: From Pertanian to:
Bangunan Kediaman = 15% of CMV
Industri = 20% of CMV
Bangunan Perniagaan = 30 % of CMV
1.0.3.2: From Bangunan Perniagaan to:
Industri RM 1000 for every lot
Kediaman Rm 100 for every lot
For any conversion affecting Malay Reservation Land and any Customary Land the premium shall be ½ for the imposed rates.
1.0.3.5: Conversion of Agricultural status to another agricultural status
- Kepada Getah - kurang <= 4 hektar (RM 75.00)
- Kepada Getah - melebihi > 4 hektar (RM 124.00)
- Kepada Kelapa Sawit dan Koko - kurang <= 4 hektar (RM 99.00)
- Kepada Kelapa Sawit dan Koko - melebihi > 4 hektar (RM 149.00)
- Kepada Kopi, Kelapa dan Teh (RM 50.00)
- Kepada semua jenis Kebun dan Buahan (RM 75.00)
- Kepada Padi (RM 37.00 sehektar)
- Kepada Ternakan (RM 99.00 sehektar)
2.0: RENEWAL OF LEASE:
Approval of renewal of lease was under discretion of YB Dato Menteri Besar and Majlis Mesyuarat Kerajaan Negeri. Basically, if any leasehold property is about to expire it is the responsibility owner of the land to apply extension or renewal of lease for the maximum period of 99 years. Once the application approved the state authority will serve the owner with notice 5A (Premium Payable). Va luers are not required to assess amount of premium but it is a requirement by Pejabat Tanah to assess the approved current market value (ACMV) to be formulated to the Land Office’s formulae. Premium considered as a gift.
2.0.1: PREMIUM CALCULATIONS:
Formulae: By the order of Government of Selangor.
| Period | Rate |
| LAND ALIENATION | |
| Alienation to:
· Category of Land Use- Building · Express Condition – Residential |
¼ X 1/100 X COMV X N X LAND AREA |
| EXTENSION OF LEASE DURING UNEXPIRED TERM AND CHANGES IN CATEGORY OF LAND USE AS WELL AS CHANGES IN EXPRESS CONDITION TO RESIDENTIAL | |
| During unexpired term:
· Category of Land Use- Existing Category. · Express Condition- Existing condition in the titles document. To : · Category- Building · Express condition - Residential |
¼ X 1/100 X COMV X N X LAND AREA |
| RENEWAL OF LEASE DURING EFFECTIVE UNEXPIRED TERM | |
| · No changes in category and express condition | ¼ X 1/100 X COMV X (n-UxT) X LAND AREA |
| EXTENSION AFTER LEASE EXPIRED | |
| · Application upon expiry | ¼ X 1/100 X COMV X N X LAND AREA + [SPECIAL PREMIUM RM 200.00 FOR EVERY OF ‘N” LATE] + ( QUIT RENT x PERIOD OF OCCUPATION AFTER EXPIRY) |
2.0.2 PROCEDURE FOR LEASE RENEWAL:
- Extension of leases is governed by Section 197 of the National Land Code 1965.
- Leasehold owner have to fill in a form Permohonan Serahbalik dan Mohon Semula Tanah Untuk Tujuan Melanjutkan Tempoh Pajakan.
- With proper documents included i.e quit rent receipts, copies and site plans and such, a settlement officer (S.O) would prepare a report incorporated in a draft paper for approval of the state exco. This may take up to 3 months or more upon the discretion of the state government.
- Once approval has been given by the exco, the owner would be notified and would have to submit Form 12A which entails giving back the property to the land administrator for re-alienation.
- If the application is approved, the land office will issue ‘Notice that Land Revenue is Due’ Form 5A to the property owner giving them 3 months to settle the premium (lump sum) from the issuance date.
- If the owner fails to pay the premium, and the lease expires, the property automatically reverts back to the state government and this allows anyone to apply for the land.
- It is advisable to start reapplying for extension at least two (2) to three years (3) years before the lease expires as the whole re-alienating process may take up to at least one year.
3.0 LAND DEVELOPMENT IN MALAYSIA:
3.0.1 PLOT RATIO:
According to chapter 1, Section 2 - Akta 267, Akta (Perancangan) Wilayah Persekutuan, 1982 define plot ratio is a ratio between gross floor area of building divide by a total site area. The higher the plot ratio, the more gross floor area can be allocated to the site. Plot ratio is very important measurement to tells the maximum intensity to the development or how much can be built on the site. If a site's allocated plot ratio is higher than that utilized by the existing building or if it is revised upwards, then more gross floor area can be allocated to the site. This would raise the site's value because a developer could build and sell more homes on the site.
Example 1: Proposed one unit of purpose built 20 storey office with car park at located at basement 1 to 4 and level 2 & 3
Site area: 50,000 sq.ft
Proposed Gross Floor area or 289,868 sq.ft.
Calculation of Plot ratio: 289,868 sq.ft / 50,000 sq.ft
: 5.79
3.0.2. FEES ON DEVELOPMENT CHARGE
|
BIL |
TYPES OF DEVELOPMENT |
FEES |
|
1 |
Land Conversion |
30% of increment from the existing of Market Value ascertained by Valuation department of LA |
| 2 | Increment in Density | 30% of increment from the existing of Market Value ascertained by Valuation department of LA |
| 4 | Excess in Floor Area
PR 3= Residential PR 4= Commercial PR 5 = Industrial |
RM 4 per sq.ft in every excess as in Pelan Pembangunan Lengkap PPL 1039) |
| 5 | Excess in residential units | RM 4,000 for exceeding units. |
| 3.0.3 CALCULATION OF PLOT RATIO FOR DEVELOPMENT CHARGE | |||||
| Site Area | 50,000 | sq.ft | |||
| Land Zoning | Commercial | ||||
| Permissible plot ratio | |||||
| Commercial | 5.2 | ||||
| Hotel | 6.5 | ||||
| Proposed Development floor area | |||||
| Usage | Floor area (sq.ft) | Percentage | |||
| Shopping Center | 100,000 | 350,000 | 18.18 | 63.63 | |
| Office | 250,000 | 45.45 | |||
| Hotel | 200,000 | 36.37 | |||
| TOTAL | 550,000 | 100 | |||
| Total PR | 550,000 | ||||
| 50,000 | |||||
| = | 11.0 | ||||
| Permissible plot ratio commercial | |||||
| 5.2 x 50,000 x 63.63 = | 165,438.00 | sq.ft | |||
| Permissible plot ratio for Hotel | |||||
| 6.5 x 50,000 x 36.37 = | 118,202.50 | sq.ft | |||
| So, total permissible floor area for this project is | 283,640.50 | sq.ft | |||
| Excess floor area | |||||
| Total Floor Area - Permissible floor area = | 266,359.50 | sq.ft | |||
| 4 | |||||
| Development Charge | 266,359.50 | @ | RM 4.00 | 1,065,438.00 | |
3.0.2. PLOT RATIO FOR MIXED DEVELOPMENT (RESIDENTIAL AND COMMERCIAL)
In a mixed development theory, any commercial space exceed 15% from total floor area shall be assumed as commercial development. In order to determine whether the development is subject to development charge or not. The valuer need to ascertain the total plot ratio. If the total plot ratio exceed than permissible plot ratio, then project is subject to excess in floor area development charge rate.
| 3.0.2.1. EXAMPLE:
Site Area |
50,000 sq.ft | ||||
| Breakdown of Floor Area | |||||
| USAGE | FLOOR AREA SQ.FT | ||||
| Shooping Complexes | 50,000 | ||||
| Office | 150,000 | ||||
| Residential | 202,000 | ||||
| TOTAL | 402,000 | ||||
| Breakdown of Residential Space | |||||
| TYPE | NOS. | FLOOR AREA | TOTAL FLOOR AREA | ||
| A | 30 | 800 | 24,000.00 | ||
| B | 60 | 900 | 54,000.00 | ||
| C | 100 | 1000 | 100,000.00 | ||
| D | 20 | 1200 | 24,000.00 | ||
| TOTAL | 210 | 202,000.00 | |||
| Land Zoning | Commercial | ||||
| Plot Ratio | 5.2 | ||||
| CALCULATION | |||||
| Total PR | 402,000 | ||||
| 50,000 | |||||
| = | 8.04 | ||||
|
|
|||||
| PR for Com Space | 200,000 | ||||
| 50,000 | |||||
| = | 4.00 | ||||
| * Plot Ratio for for commercial space is less than permissible plot ratio. That is means | |||||
| the excess in floor area is related to Residential space only. | |||||
|
|
|||||
| Total floor area | 402,000 | ||||
| Permissible floor | 260,000 | ||||
| Area | |||||
| Excess floor area | 402,000 - 260,000 | ||||
| 142,000 | sq.ft | ||||
| Since the excess is only related to Residential space, valuer need to assess the average floor area | |||||
| for every residential units. | |||||
| Residential Space | 202,000 | ||||
| Units | 210 | ||||
| Average FA | 961.90 | ||||
| say | 962 | sq.ft | |||
| When the information regarding the average floor area is gathered, Valuer now required | |||||
| to assess the excess in units of residential | |||||
| Excess in FA | 142,000 | sq.ft | |||
| Average FA | 962 | sq.ft | |||
| 147.61 | |||||
| Say | 148 | units | |||
| CALCULATION OF DEVELOPMENT CHARGE FOR MIXED DEVELOPMENT (COMMERCIAL AND RESIDENTIAL) | |||||
| 148 units x RM 4,000 | 592,000.00 | RM | |||
4.0 POPULATION DENSITY:
According to Planning Act 1982( Federal Territory) - Density means highest and best usage of the particular land, calculated based on the amount of people, residential unit or any space that can be occupied or any annex attached to any hereditament for usage for a particular land.
4.0.1: WHY WE NEED TO CALCULATED THE POPULATION DENSITY:
Density calculation as part of the Jabatan Perancangan Bandar requirement to be attached in a development proposal as an instrument used to grant a development permission on that land, before any construction commence on that particular land. Any excess in density as approved by the Comprehensive Development Plan (CDP) and Center Planning Area (CPA) plan shall be chargeable with development charge (caj pembangunan).
4.0.2: CDP 1040& CDP 1039 UNDER FEDERAL TERRITORY STURUCTURAL PLAN.
- For an area within 36 sq miles from the town center the Basic zoning density is 10 to 40 people per acre which any excess of the requirement is chargeable with Development Charge.
- For any land in federal territory not listed CDP plan 1040, 1041& 1039 was zoned as residential purpose with the basic zoning density is 60 people per acre.
Any application from the developers regarding the amendment of existing density shall submit
Amendment to Density Plan to JPBD,W.P together with the prescribe fee for approval is RM1000
4.0.3: METHODS TO CALCULATE THE DENSITY:
Valuer should assessed few basic information that required before ascertaining the density.
- Proposed residential units
- Particular on the land area of the said land
4.0.3.1: Basic formulae in density calculation
Basic Density = Total residences
Proposed development area (Land area).
There are three methods normally used in determining the density for the purpose of application of Planning Permission
GROSS DENSITY
Gross Density = Total Residence
Total land area for residential (proposed)
*Total land area for residential including any public amenities components, infra and any material related to public facilities not including commercial and industrial area.
NET DENSITY
Net density = Total Residence
Total land area for residential according to development phases
DENSITY WITHOUT LOW COST UNIT (DWLCU)
Calculation of this density is Total Residence within that area (disregarded Low- Cost Unit) divided with total land area for residential (disregarded site area for low cost housing).
DWLCU = Total Residence (without Low Cost)
Total Land area for Residential Development)
*Total Residential Area – Total Low Cost Area.
Example: Calculate the basic density for the following development
- Development Proposal: 3 blocks of Medium Cost Apartment 13 to 19 storey comprises of 308 units residential parcel.
- Proposed Development area 2.26 acre
- Occupation of each parcel shall not exceed 5 pax per parcel
Answer: 681 people per acre
4.0.4 CALCULATION OF DENSITY BASED ON ACTUAL LAYOUT PLAN
| Contoh Butir-Butir Cadangan Pelan Susunatur CADANGAN | UNIT | Ekar |
| Kediaman
Parcel 1A Kos Rendah 10 tingkat Parcel 1B Kos Sed. Rendah 11&12 tingkat Parcel 2 Pangsapuri 12 - 15 tingkat Parcel 3 Pangsapuri 14 - 15 tingkat Parcel 4 Pangsapuri 15 - 16 tingkat Parcel 5 Pangsapuri 15 - 16 tingkat |
314
157
338
248
206
308 |
3.11
2.85
2.06
1.62
2.36 |
| Jumlah kecil | 1571 | 12.00 |
| Perdagangan
Kedai/Pejabat (24’ x 70’)
Blok Pejabat |
20 |
0.80
0.40 |
| Jumlah kecil | 20 | 1.20 |
| Kemudahan Awam & lain-lain
Kawasan Lapang Rezab talian elektrik Jalan dan lorong |
1.3
1.61 3.95 |
|
| Jumlah kecil | 6.86 | |
| Jumlah Besar | 20.06 | |
| Pax Penghuni Hendaklah tidak melebihi lima orang bagi setiap bagi setiap parcel tanpa mengira status pembangunan | ||
STEP BY STEP APPROACH:
1: Identify these elements:
- Total Site Area : 20.06
- Site Area for residential : 18.86
- Low Cost Unit : 314 units
- Other Residential Units : 1,257
2: Identify all density calculation as required by Local Authority
- Gross Density
- Nett Density
- DWLCU
3: Calculation
- Gross Density : …………… people per acre.
- Nett Density: Phase 1 …………....people per acre.
Phase 2…………….people per acre.
Phase 3…………….people per acre
Phase 4…………….people per acre
Phase 5…………….people per acre
DWLCU : …………… people per acre