A Malaysian government proposal to make “build then sell” (BTS) the only method of housing delivery in the country by 2015 is now facing appeal from the Malaysian Developers’ Council.
“We appeal to the government to review the impact on the industry and the stakeholders and reconsider its implementation as the only single system of delivery as opposed to the current parallel delivery system,” Sabah Real Estate and Housing Developers’ Association president Datuk Seri Michael KC Yam said in a press conference at the 15th MDC meeting hosted by last week, the Borneo Post reported.
Yam said that removing the option to sell then build would negatively affect housing in the country, forcing developers to borrow the full cost of construction.
The meeting was hosted by the , whose president Datuk Susan Wong Siew Guen told reporters that using on the build then sell method would raise costs to homeowners. “After two to three years, (the housing) will have appreciated by 20 to 30 per cent when completed,” she said.
Former president of Sabah Real Estate and Housing Developers Datuk Ng Seing Liong said developers had built 4.2 million houses in Malaysia for the past 30 years.
“If build and sell come mandatory in 2015, I’m not sure we can build 150,000 houses for people annually,” he said, estimating that costs would go up by 80 per cent under the plan.
In addition, Ng said statistics showed that only 0.4 to 0.5 per cent of the housing projects were abandoned from 2002 onwards.
“Now that the build and sell is put mandatory, 99.5 per cent of good developers have to suffer because of the 0.5 failure rate,” he said.
“We appeal to the government to review the impact on the industry and the stakeholders and reconsider its implementation as the only single system of delivery as opposed to the current parallel delivery system,” Sabah Real Estate and Housing Developers’ Association president Datuk Seri Michael KC Yam said in a press conference at the 15th MDC meeting hosted by last week, the Borneo Post reported.
Yam said that removing the option to sell then build would negatively affect housing in the country, forcing developers to borrow the full cost of construction.
The meeting was hosted by the , whose president Datuk Susan Wong Siew Guen told reporters that using on the build then sell method would raise costs to homeowners. “After two to three years, (the housing) will have appreciated by 20 to 30 per cent when completed,” she said.
Former president of Sabah Real Estate and Housing Developers Datuk Ng Seing Liong said developers had built 4.2 million houses in Malaysia for the past 30 years.
“If build and sell come mandatory in 2015, I’m not sure we can build 150,000 houses for people annually,” he said, estimating that costs would go up by 80 per cent under the plan.
In addition, Ng said statistics showed that only 0.4 to 0.5 per cent of the housing projects were abandoned from 2002 onwards.
“Now that the build and sell is put mandatory, 99.5 per cent of good developers have to suffer because of the 0.5 failure rate,” he said.
by Property Report
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