Property sale scam
Crooked deal-makers try to cash in on MCO
PETALING JAYA: A list containing the names of hotels within the Klang Valley and Penang purportedly up for sale has been rubbished by estate agents as nothing more than a scam by unscrupulous deal-makers looking to cash in on the uncertainties during the movement control order (MCO).
The list, which has gone viral on Whatsapp, contains more than 40 properties that include a number of well-known four- and five-star hotels, as well as serviced suites up for sale for between Rm4mil and Rm1.2bil.
Zerin Properties founder and chief executive officer Previndran Singhe said he had contacted a number on the list to verify one of the deals. But to his horror, the information memorandum that he received on the property revealed that the deal was being brokered by his own firm.
“I don’t even know this person or how he had access to my info memo. The details were on a letter with my letterhead on it.
“To further verify it, I told him that I wanted to view the said hotel. However, five minutes later I received a call from another person asking me (Previndran) to make the appointment with the owner! I found out later that he was also an illegal agent.”
Previndran said the agent then revealed that he did not know if some of the Penang owners were actually selling their properties.
“I actually have a client in Penang who is threatening legal action because he is not selling. However, the damage is already done. When news like this becomes widespread, it affects the entire tourism industry.
“It’s not just the hotel players that will become jittery; the banks will also become anxious. It’s just bad news for the market.”
City Valuers & Consultants Sdn Bhd real estate services and business development head Ruben Kelvin said buyers should always do their due diligence and check beforehand if the agent they were dealing with was registered.
“Always check with the registered agent if the staff or negotiator is employed with them and verify with their real estate negotiator during viewings. Visit their office to verify with their staff if the person exists. If you’re dealing with a subsidiary, check with the headquarters if the subsidiary is registered and legitimate.”
“Alternatively, check with official bodies such as the Board of Valuers, Appraisers and Estate Agents (BOVEA) or the Malaysian Institute of Estate Agents (MIEA) to verify that you are dealing with a licensed estate agent.”
Last month, Starbiz had reported that the local hotel industry had already laid off 6% of its employees so far this year, with a growing number of its staff taking unpaid leave and pay cuts, as the sector crumbles from the impact of the Covid-19 pandemic.
According to the Malaysian Association of Hotels (MAH), based on a sampling size of 41,000 employees, 20% have already been given pay cuts, while another 26% are on unpaid leave.
The highest number of lay-offs were in
Melaka (15%), Johor (12%), Perak (12%) and Negri Sembilan (11%). Kedah, Perlis, Pahang and Kelantan have yet to report any layoffs.
Pahang and Kelantan, however, reported the highest number of employees on unpaid leave at 54% and 50%, respectively.
Meanwhile, areas with the highest number of employee pay cuts were Langkawi (33%), Johor (32%), Selangor (32%) and Perak (30%).
The MAH, in a survey of 324 hotels last month, also revealed that half of the participants responded that they expect to close down operations.
The survey also revealed that 15% of the respondents, or 48 hotels, would be closing down permanently, while 35% (114 hotels) intended to shut down temporarily.
Of the hotels that will be closing temporarily, the bulk of them (27%) plan to shut down until the MCO is lifted, 15% are still undecided while 2% are planning to either sell or renovate their establishment.
The MAH has projected revenue losses of up to Rm6.36bil for the local hotel sector.