CJMY
The developer of Princess Cove, a high-end Johor Bahru condominium, must pay RM10.56 million (US$2.58 million) to buyers over delays.
The owners include Singaporeans. The Johor Bahru High Court ruled for 84 units.
The court found that R&F Development Sdn Bhd breached its agreements by splitting the first phase into two. The developer plans to appeal.
What the court decided
In short, some buyers received their keys while parts of the sprawling development, including shared facilities, were still unfinished. The court ruled for 84 units on that basis. The ruling was delivered on 10 September 2026 and reported by CNA this week.
On the other hand, the court dismissed claims for another 39 units. Those buyers must pay RM10,000 (US$2,454) in legal costs per unit to R&F. According to lawyers in the case, they signed their purchase agreements after the developer changed the building plans.
Overall, the suit involved 145 named plaintiffs and was filed in 2019. In 2021, the owners first won a ruling without a full trial. However, R&F won its appeal. A 10-day trial followed and ended in 2024.
Princess Cove is a waterfront development next to the Johor-Singapore Causeway. China’s R&F Group developed it. In addition, a 650m covered pedestrian bridge links it to the Johor Bahru customs complex. So the case matters to Singapore buyers.
How the compensation was worked out
Here, the dispute centred on R&F’s decision to divide the original first phase into Phase 1A and Phase 1B. Buyers in blocks A1, A2 and A7 received keys on 25 October 2017. However, the original first phase was completed only in November 2018.
As a result, the court treated November 2018 as the true handover date. In effect, the developer was only considered to have met its obligations then. The later date was used to calculate the compensation.
In detail, for late delivery, the rate is 10 per cent a year of each property’s purchase price. For shared facilities, it is 10 per cent a year of one-fifth of the price.
In practice, buyers were awarded about RM34,000 to RM196,000 per unit for late delivery. They also receive RM6,900 to RM39,000 for the late shared facilities. R&F must refund maintenance fees, sinking fund payments and water deposits collected before 8 November 2018.
Appeals and advice for buyers
R&F’s lawyer, Josiah Tea, said the developer intends to appeal. The buyers’ lawyer, NG Vinod, said the owners whose claims were dismissed plan to appeal too. Meanwhile, V Mavin Rajah, another lawyer for R&F, said the developer disputed some complaints about the facilities.
For example, Singaporean owner Crystal Ng said the area was full of construction debris when she got her keys. Another Singaporean owner, Hong Wei Zhong, said the pools were not ready. If the appeal fails, successful claimants plan to pool part of their awards to cover the costs.
Still, property consultant Samuel Tan said buyers should read the terms closely. A plan change can weaken a later claim. Tan is the chief executive of Olive Tree Property Consultants. Vinod advised foreign buyers to check a developer’s record and review the sale and purchase agreement.
Separately, 167 owners sued in February 2023 over delays in strata titles. The court gave them legal costs but no damages, as the titles had since been issued. Meanwhile, Singapore buyers also face the RTS Link and a VEP fee rise next year.
C. Khor
Navin Kumar Perianen
Amirull Salihing
Add comment