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JB developer ordered to pay US$2.58 million to condo owners, including Singaporeans, over delays

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In short

The Johor Bahru High Court established that delivery duties were met only after shared facilities achieved completion in November 2018, triggering substantial damages for 84 unit owners. Individual payouts range widely based on unit delivery delays and missing shared amenities, accompanied by mandated refunds for water deposits, sinking funds, and early maintenance fees. However, buyers tied to 39 other units were denied compensation and ordered to pay the developer RM10,000 per unit in legal costs because their contracts were executed after plan modifications.

Key points

  • The Johor Bahru High Court enforced that a project is not legally delivered until both re…: The Johor Bahru High Court enforced that a project is not legally delivered until both residential units and shared facilities are fully completed.
  • Both the developer and the unsuccessful condominium purchasers have stated their intentio…: Both the developer and the unsuccessful condominium purchasers have stated their intentions to file appeals against the High Court decision.
  • Property developers face significant legal exposure if they phase out project amenities w…: Property developers face significant legal exposure if they phase out project amenities without aligning buyers' contractual terms accordingly.

Sources checked by our analysis pipeline: 1

The owners of 84 units in R&F Princess Cove, a waterfront development overlooking the Woodlands Causeway, were awarded compensation for delays involving their units and shared facilities. The developer intends to appeal the decision, its lawyer told CNA.

JOHOR BAHRU: The developer of a high-end Johor Bahru condominium has been ordered to pay RM10.56 million (US$2.58 million) in compensation to a group of property owners, including Singaporeans, over delays in completing the project.

The Johor Bahru High Court ruled in favour of claims involving 84 condominium units in Princess Cove, finding that the developer, R&F Development Sdn Bhd, had breached its agreements with buyers by splitting the original first phase of the project into two.

This meant some buyers received their keys while parts of the sprawling development, including some shared facilities, were still unfinished.

The court, however, dismissed claims involving another 39 units, ordering the unsuccessful buyers to pay RM10,000 (US$2,454) in legal costs per unit to R&F. These buyers had signed their purchase agreements after the developer changed the building plans, according to lawyers involved in the case.

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