The last thing any overseas property investor wants is to end up in a lawsuit against the developer that sold them their units. But that's what some of the buyers of R&F Princess Cove, a luxury condominium in Johor Bahru, found themselves in.
R&F Development Sdn Bhd, a wholly-owned subsidiary of China-based R&F Group, has been ordered to pay US$2.58 million (S$3.29 million) to 84 property buyers for delays at that project.
A Malaysian court found that the developer of R&F Princess Cove had breached its agreement with its buyers by splitting the project’s original first phase into two, Phase 1A and Phase 1B.
While the buyers of units in earlier development phases received their keys on 25 October 2017, the rest of the development, including common facilities, was incomplete. The entire development had initially been marketed with a completion date of November 2018.
The court treated November 2018 as the development’s actual completion date. The compensation for each unit was calculated at 10% per annum of the purchase price, while shared facilities claims were calculated at 10% per annum of 20% of the purchase price.
As a result, the buyers who brought the developer to court were awarded around RM34,000 (S$10,720) to RM196,000 (S$61,802) per unit for late delivery, and an additional RM6,900 (S$2,176) to RM39,000 (S$12,297) for delays in the completion of shared facilities, according to news reports.
The developer also had to refund maintenance fees, sinking fund contributions, and water deposits collected before Nov 8, 2018.
Meanwhile, 39 other buyers were unsuccessful in their claims and were instead ordered to pay RM10,000 (S$3,151) each in legal costs to R&F as they had signed their purchase agreements after the developer changed the building plans.
What is R&F Princess Cove?
R&F Princess Cove is a freehold mixed-use development that is built on two parcels of reclaimed land spanning 116 acres, separated by the Johor-Singapore Causeway.
Located around 650m from the Johor Bahru Customs Immigration and Quarantine (CIQ) complex, the waterfront project reportedly has a gross development value of RM40 billion (S$12.6 billion).
Split over three launch phases, the development has around 11,581 residential units, which consist of studios, one- to four-bedroom units, and dual-key units.
The east parcel of the development houses Johor’s first opera house, a 1.8km marina garden seaside promenade, a retail marina boulevard, a luxury clubhouse and yacht club, and the R&F Mall Johor Bahru. The three-storey mall has been operational since 2019 and connects to the CIQ complex via a 650m covered pedestrian link bridge. The commercial component also includes a waterfront development with Hyatt Hotel.
The project’s proximity to Singapore and location in the Johor-Singapore Special Economic Zone (JS-SEZ) were frequently touted in the project's marketing. It is also close to the Bukit Chagar station as part of the Rapid Transit System (RTS), which has been delayed to February next year.
The first phase of R&F Princess Cove was launched in 2014 and completed in 2017, while the second phase, Seine Region, was completed in 2024. The third phase, New Casa Suites, launched in late 2025, with completion targeted for the end of 2029.
During the first sales phase, units fetched an average price of RM1,000 psf, which was relatively more expensive compared to similar JB projects at the time.
Prices for the studio and one-bedroom units started from RM550,000 to RM600,000, while two- and three-bedroom units were priced from RM750,000 and RM830,000, respectively. Meanwhile, four-bedroom and dual-key units have been sold from RM1.4 million.
The latest sales phase sees prices starting from RM640,178 for a studio unit.
Downturn in Chinese property market affected R&F
An established developer with over 30 years of experience, R&F has a mixed track record despite its experience delivering large multi-phase developments.
With its core business in Guangzhou, China, R&F has launched major projects such as Chongqing R&F City, Tianjin R&F New Town, Xiangjiang R&F City and Guangzhou residential and commercial developments.
But R&F has been affected by the wider financial difficulties facing Chinese developers, after the Chinese property market's downturn in recent years. Apart from the recent homeowners' legal saga, news reports showed the firm had been facing significant financial and debt-restructuring challenges since 2023.
The developer has since expanded its footprint beyond China, entering the United Kingdom at Vauxhall Square, Brisbane and Melbourne in Australia and San Francisco in the United States.
Ultimately, this cautionary tale in JB highlights the necessary due diligence homebuyers should take before committing to any investment, including scrutinising the developer’s track record.
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