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|a The presence of abandoned housing project in Malaysia has present anxiety to various party including Federal Government and buyers. The Malaysian economy has grown 6.2% as announced by Bank Negara in its 2005 Annual Report, despite a faster rate and strong growth apparently abandoned housing project continues to be a bane of the industry, albeit on the declining. Expectation at this time is to minimize the number of abandoned housing projects to propel Malaysia into developed status as articulated in Vision 2020. This paper describes a study on factors causing the abandonment of housing projects and has been conducted based on literature review , interview with the top management in the relevant parties involved and case study. Its is aimed to identify root causes that lead to housing project abandonment, the strategy that had been taken, and the advantages and disadvantages of the existing practice as well as to propose enhancement to the present approach. The finding revealed that incompetent and poor financial management of the developers, financial difficulties as a result of inadequate cash flow, lack of feasibilities studies, competition of new residential projects, inattractive marketing strategies, inexperineced developers, higher financing cost and critical material shortage are categorised as important factors affecting abandoned housing project. Beside the said factors and analysis on the present strategies and practice, abandoned housing project is still exist due to several undisclosed causes such as lack of enforcement for control and monitoring, limtitation of juridisction as well as unavailability of Home Indemnity Insurance. These had caused the revival of abandoned housing project to be hold back. At the end of the study a recommendation has been proposed and it is expected that it will able to be used for improving the present approach of reviving abandoned housing project by taking into consideration the undisclosed root causes.
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