Only 4 Developers Capable Of Build Then Sell Says Govt


 
The housing and local government minister says build-then-sell is preferred, especially for first-time buyers.KUALA LUMPUR: Only four developers in Malaysia are capable of practising a build-then-sell system, says housing and local government minister Reezal Merican Naina Merican.
Responding to a question from Fong Kui Lun (PH-Bukit Bintang) in the Dewan Rakyat today, Reezal said this was one of the more preferred methods in selling houses, especially to first-time buyers.
“However, only four developers can do this because they have strong financial positions,” he said.

Nevertheless, he said, the ministry is working on amendments to the Housing Development (Control and Licensing) Act (Act 118) to offer better protection for house buyers.
“So, among measures on the way aside from the build-then-sell policy, where I will look for some dedicated developers who can do it, amendments to Act 118 will also be done,” he said.
Reezal also said 79 private housing projects were abandoned as at Sept 30, involving more than 17,000 units and affecting 11,000 buyers.
Selangor had the most abandoned housing projects with 33, followed by Kelantan (12), Johor (9), Pahang and Terengganu (6 each), Perak (5), Negeri Sembilan (4), Kedah (2), and Kuala Lumpur and Melaka (1 each).
In terms of gross development value, these projects amounted to an estimated RM5.57 billion, though there would have been a decline in value for some of these projects which had been overdue for up to 10 years.
He also said the ministry had solved some 215 abandoned private housing projects since 2009 through mediation or intervention according to Act 118. This involved over 59,000 housing units and more than 39,000 buyers. - FMT


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