By Shannon Teoh, The Malaysian Insider
KUALA LUMPUR, May 30 — The controversial RM700 million rare earth plant in the Gebeng industrial zone is threatening to sink the local property market in Kuantan.
Developers are holding off on new projects, fearing a collapse in prices if Australian miner Lynas Corp is given the green light to begin operations in as little as three months.
The refinery has faced mounting opposition over the past few months due to fears of radiation pollution, giving pause to both developers and buyers.
“A few developers here are holding back from starting new projects. Some who have not committed too much money have totally backed out of their current developments,” said property valuer Liom Hong Sang.
Kuantan Chinese Chamber of Commerce chairman Pang Woon Ping said that some real estate companies had experienced a 50 per cent drop in sales since March.
Although developers have managed to hold out without slashing prices, Pang told The Malaysian Insider that “if the plant goes ahead, there will be a sure drop.”
Homes along the Kuantan-Gebeng stretch are currently priced about 20 per cent lower than in the city of Kuantan itself, with single-storey terrace units going for about RM100,000 to RM120,000.
The government was forced to put the refinery on ice last month pending a review by international experts that will be completed at the end of June.
Despite the review, Lynas expects no delay to its plans to begin operations in September as it maintains the plant is safe.
KUALA LUMPUR, May 30 — The controversial RM700 million rare earth plant in the Gebeng industrial zone is threatening to sink the local property market in Kuantan.
Developers are holding off on new projects, fearing a collapse in prices if Australian miner Lynas Corp is given the green light to begin operations in as little as three months.
The refinery has faced mounting opposition over the past few months due to fears of radiation pollution, giving pause to both developers and buyers.
“A few developers here are holding back from starting new projects. Some who have not committed too much money have totally backed out of their current developments,” said property valuer Liom Hong Sang.
Kuantan Chinese Chamber of Commerce chairman Pang Woon Ping said that some real estate companies had experienced a 50 per cent drop in sales since March.
Although developers have managed to hold out without slashing prices, Pang told The Malaysian Insider that “if the plant goes ahead, there will be a sure drop.”
Homes along the Kuantan-Gebeng stretch are currently priced about 20 per cent lower than in the city of Kuantan itself, with single-storey terrace units going for about RM100,000 to RM120,000.
The government was forced to put the refinery on ice last month pending a review by international experts that will be completed at the end of June.
Despite the review, Lynas expects no delay to its plans to begin operations in September as it maintains the plant is safe.
