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Build then Sell (BTS)
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Must the Govt pander to the developers?
10/04/1991 BT
HOUSING and Local Government Minister Dr Ting Chew Peh has waxed lyrical on the merits of the "build and sell" concept under which houses are built first and then offered for sale. But, lest anyone get carried away with this obviously attractive proposal, he was quick to point out that in effect it is only a pipe dream, that it won't materialise in the foreseeable future. Why? Because the housing developers say so. The minister is taking such great care not to unsettle the developers, for aren't they the demigods who have built up the property sector into such a strong pillar of the national economy? Never mind the ruins that lie in their wake, the hundreds of abandoned housing schemes, the financial institutions that went bust or had to be salvaged at the taxpayers' expense, or the hundreds of thousands of folks suffering because they didn't get the houses they were paying for. Why the Government continues to bend over backwards to appease housing and other property developers is not that difficult to understand but nevertheless unpalatable - for the MCA these developers remain among its financial "fat cats". In the aftermath of the mid-1980s party crisis several of the big-time developers were actually running the party. While financial scandals and other criminal offences caused some of them to fade away from the forefront of MCA polities, their influence still reeks within the party and MCA ministers find themselves still beholden to the bidding of the property sector.

House buyers still saddled with problems, not homes
15/04/1991 NST
LAWS, Thomas Jefferson observed, will be wisely formed, in proportion as those who form them are wise. If it wants to protect buyers effectively, the Ministry of Housing and Local Government needs all the wise men it can muster for the latest review of the laws on housing.

Builders ready for discussion
20/04/1991 NST
HOUSING developers are generally receptive to the idea of holding a seminar to discuss the pros and cons of the Government's build-then-sell concept to help overcome the problem of abandoned housing schemes. Chairman of the Federal Territory/Selangor Housing Developers' Association Alan Tong Kok Mau said, the Housing and Local Government Ministry's move to hold such a seminar was fair.

Developers: It's a good idea but not for now 
17/05/1991  NST
THE Selangor and Federal Territory Housing Developers Association yesterday described the, "build and sell" concept for houses as a good idea but felt that it is not opportune to implement such a concept now. Its chairman Tong Kok Mau said its members who discussed the proposal during the association annual general meeting yesterday felt that many other factor's must be ironed out before going  ahead with the idea.

HDA: Concept of build and sell not workable 
17/05/1991 BT
THE proposed build and sell concept has been described by the Federal Territory Housing Developers Association (HDA) as unworkable and premature. Chairman Alan Tong Kok Mau said the greatest obstacle facing developers if such a concept was implemented was finance. Banks normally only agree to provide financial backing once a sizeable number of the houses have been taken up.

Case for build-then-sell houses  
18/05/1991 BT
THE only ones who are dead against the introduction of a system to sell fully-constructed houses based on the build-then-sell (BTS) concept are the housing developers themselves. The public, of course, love the idea, for the simple reason that they can at least see what they buy. The Government is also in favour of it and will, in fact, organise a seminar to explore the possibility putting the concept into practice. The main contention of the developers is that it will be difficult to get banks to finance the huge amounts needed to fully complete housing projects. They claim that, as it is, several banks demand that buyers be found for at least 60 per cent of the houses in a scheme before they extend loans. In the first place, how can it be assumed that banks will automatically reject any BTS scheme funding proposal? The financial services sector in Malaysia is gaining momentum, partly due to greater competition and also because it is becoming more innovative and introducing new form of financial instruments, to the extent that even private companies with potential to go public are being encouraged to issue corporate bonds as a cheap form of financing. Bank Negara has said that it is now concentrating on the creation of a viable private securities market "as the most pragmatic manner to meet the substantially expended investment needs of the private sector". The chances are there for the availability of funding until the completion of a housing project, so long as the scheme is deemed to be a viable venture. Besides, in a business undertaking where does one find the customer sharing in the businessman's risk? As it is, house buyers in more than 200 projects had taken a greater risk than the developers, who just abandoned the schemes and made themselves scarce while the buyers have to continue to pay for "phantom" houses.

Odds against build-then-sell concept
27/05/1991  BT
THE odds are stacked heavily against the build-then-sell housing concept which is considered to be holding the key to resolving the abandoned housing project problem. Housing developers warn that house prices may go through the roof and bankers vow they cannot share the risk under such a concept in which houses are sold only after they are completed and have been issued the certificate of fitness for occupation. Under the present progressive-payment system, houses are sold as they are built but there have been complaints of late or no delivery at all because of errant developers who abandoned their projects. As at the end of last year, housing projects valued at $4.9 billion involving nearly 50,000 buyers were abandoned. 

Housing development account not a solution
26/08/1991 NST
THE Housing and Local Government Ministry, despite exhaustive studies into the problem of abandoned housing projects obviously cannot see the wood for the trees. It assumes the primary and sole reason for projects being stopped mid-stream is the avarice of some developers who abscond with the buyers' money. Out of this assumption comes the presumption that the Housing Developers (Housing Development Account) Regulations, 1991, which comes into force today, is all encompassing enough to ensure that instalments and financing raised by buyers are safe in the tightly controlled accounts, if the developer is insolvent and cannot continue with the project. The assumption and the presumption, to be sure, are both manifestly baseless.

Builders should focus on livable housing and "build and sell' concept 
07/10/1991   NST
YET another "national' conference on housing begins today. Once again it is that perennial organiser of talk-shops, the Housing Developers' Association, which is choreographing this latest two-day show. This year the HDA has plucked once more that catchy slogan, "Affordable Housing' as the theme for the conference. The theme appeals to all. The word, "affordable' conjures visions of houses within the means of consumers. Even more evocative is the longer version of the theme: Affordable Housing - New concepts, approaches and challenges towards the year 2000.

`Build-and-sell concept not viable'
08/09/1992 NST
THE proposed build-and-sell concept to prevent housing projects from being abandoned will burden the developer financially and the end result would be higher selling prices, according to a banker. Perwira Habib Bank Malaysia Bhd's assistant general manager Encik Mohd Radzil Mohd Yunus, said the cost of development would be more as the developer would have to rely on full financing throughout.

Minister: Concept not an order
12/10/1992  NST
IPOH, Sun. - The Housing and Local Government Ministry is confident that the present system of housing development in the country will be able to meet the Government's target of 570,000 houses under the Sixth Malaysian Plan. However, the Ministry will also encourage the developers to go for the build-then-sell concept in housing development.

Ting: No policy yet on `build-and-sell' concept
12/10/1992 BT
THE Housing and Local Government Ministry will not come out with a policy for houses to be built under the "build-and-sell" concept now so as not to jeopardise the Government's housing target. The Minister, Datuk Dr Ting Chew Peh, however said the Government will consider having a policy for the concept after the country has attained developed nation status by the year 2020.

`Build and sell' concept minimises risks for buyers
05/11/1992  NST 
A FORTNIGHT ago, this column commented on the procedure which an intending house-buyer would have to go through when acquiring a residential property. The column concluded that although the current procedure has a systematic flow, it is not the best. Unscrupulous developers or a slump in the property market which affect financially weak developers would leave house buyers in a quandary. They might find the houses for which they have paid deposits and for which they raised loans left abandoned.

`Buy then sell concept' worth considering
14/11/1992 BT-SUPP 
BUYING a house is probably the single most expensive purchase Malaysians make in their entire life. For many of us, it will take between 10 and 20 years to pay off the loan on the house. Still, after parting with a significant portion of our salary to pay for our dream house, that's not the end of the story. House buyers continue to face risks. However, the days of consumers having to bear the brunt of a failed project are over.

Reviving confidence of buyers
30/08/1994 NST
PURCHASING a house is often intended as a life-long commitment, not an exercise in despair, which has been the fate of housebuyers of abandoned houses. It is a sorry tale of lifesavings under threat, banks threatening bankruptcy over overdue interest payments, municipal councils waxing eloquently about warrants of attachments on sizeable properties over non- payment of assessment. All this anguish and what they have are the skeletal remains, in various stages of development, of their intended homes. In cases where the houses are in an advanced stage of construction, and funds committed, they stand out like white elephants mocking the house buyer as he is forced to continue to service his loan, pay his rental, eat into his savings and erode his hopes.

Building responsibility
07/08/1995 NST
IT was not so very long ago that property developers went through their worst crisis in living memory. The recession in the late 80s, causing hundreds of half-built projects to be abandoned, would have sank the industry had it not been rescued by a massive government operation, parts of which are still being implemented to this day. With demand consistently high, many were conditioned into thinking of bridging finance as a snap, cheerily confident of their ability to sell their products as fast as they could build them. When demand fell through the floor, and they could not pre-sell their units to the extent required by institutional lenders, their projects died on the ground. Demand has now sprung back with a vengeance, and the developers have with equal zest returned to a coddled reliance on a hungry market.

Siap dulu baru jual
25/01/1996 HM
KUALA LUMPUR: Perbadanan Kemajuan Negeri Selangor (PKNS) masih mengekalkan pendiriannya untuk menyiapkan terlebih dulu sesuatu projek perumahan sebelum menjualnya. Pengurus Perhubungan Awam PKNS, Yusof Othman, berkata langkah itu bertujuan meyakinkan pembeli dan tidak menyusahkan mereka yang mengambil pinjaman kerajaan atau bank

Call for change in concept to ease consumers' burden
23/12/1998  NST
KUALA LUMPUR, Tues. - The National Consumer Advisory Council has called on the Government to change the "sell and build" housing development concept in the country to a fairer "build and sell" concept. President of the Federations of Malaysian Consumer Associations Professor Hamdan Adnan who is also a member of the council said that housing problems were the top consumer complaints over the years.

`Build and Sell' concept for housing under study
25/01/1999 NST
GOPENG, Sun. - The Housing and Local Government Ministry is looking into the possibility of introducing the "Build and Sell" concept where housing developers will have to complete projects before selling units to the public. Its minister Datuk Dr Ting Chew Peh said this was to protect house buyers against the possibility of housing projects being abandoned.

State keen on buy-and-sell concept
26/01/1999 NST
SHAH ALAM, Mon. - The Selangor Government is willing to co-operate with the Housing and Local Government Ministry to carry out a study on the possibility of introducing the build-and-sell concept for houses. Menteri Besar Datuk Abu Hassan Omar said the State Government welcomed the concept as it would protect house buyers from the possibility of housing projects being abandoned.

No rush to implement `Build and Sell' concept
11/02/1999  NST
KUALA LUMPUR, Wed. - The Housing and Local Government Ministry will not rush into implementing the "Build and Sell" concept but will keep its doors open for views from consumers, developers, bankers and related agencies. Its Minister Datuk Dr Ting Chew Peh said the concept seemed attractive but several issues had to be addressed before a decision could be made.

Build first, sell later concept encouraged
11/02/1999 BT
HOUSING developers are encouraged to build their houses first and sell them later even though the Government has not imposed such a a condition as yet, Housing and Local Government Minister Datuk Dr Ting Chew Peh said yesterday. He said this concept had long been practised by the Selangor State Development Corporation (PKNS) and has not given rise to any problem.

FIABCI anjur forum konsep bina, jual
08/04/1999 BH
DALAM satu langkah yang dilihat sebagai usaha menangani tindakan pemaju tidak bertanggungjawab, Persekutuan Hartanah Antarabangsa (FIABCI) bahagian Malaysia akan menganjurkan perbincangan meja bulat terbuka mengenai konsep bina dan jual pada 8 Mei ini. Konsep bina dan jual yang diperbincangkan bagi melindungi pembeli rumah daripada pemaju yang membiarkan projek mereka terbengkalai selepas menerima bayaran.

Developers urged to build, then sell to ensure quality 
10/05/1999 NST
THE Government encourages developers to build then sell in order to maintain the quality of houses and high-rise buildings like condominiums, apartments and flats. Housing and Local Government Deputy Minister Datuk Azmi Khalid said on Saturday the sell then build system was open to abuse by developers.

Builders need not use new mode yet
22/05/1999  NST
KAJANG, Fri. - The Government does not intend to force housing developers to use the build-and-sell method in the near future, Housing and Local Government Datuk Dr Ting Chew Peh said today. He said both this concept as well as the progressive payment arrangement, which was currently used, had respective advantages and could be used concurrently until a decision was made later.

To sell or build first? That's the question
16/06/1999   ID By Gurmeet Kaur
FOR the past 20-odd years, buyers of new properties in Malaysia have had to rely on brochures, models and show houses as a means of viewing what they would be acquiring. And for as long as that, the debate on whether property developers should be allowed to continue with the same modus operandi has been simmering. Malaysia is, in fact, one of the few countries in the world that practises the sell-then-build (STB) concept, which on the face of it, favours the seller. Now, as the country is recovering from an economic crisis partly contributed by an inflated property market, there is a renewed call to change the system.

Build first to ensure quality  
10/11/1999  Editorial Voice NST
Shoddy workmanship, poor finishing and structural defects are some of the headaches many hapless house buyers have had to endure over the years.

Strategi laksana konsep bina rumah kemudian jual
11/12/1999 BH By Baharuddin Mat Asek
BINA kemudian jual secara rasminya diperkenalkan di Malaysia pada 1992 melalui seminar anjuran Kementerian Perumahan dan Kerajaan Tempatan di Kuala Lumpur yang disertai pelbagai pihak terdiri daripada sektor kerajaan dan swasta. Pada prinsipnya bina kemudian jual bukan konsep baru dalam industri perumahan di Malaysia. Kerajaan negeri dan badan berkanun seperti Perbadanan Kemajuan Ekonomi Negeri (PKEN) sudah menjayakan konsep itu. Misalnya, dalam program perumahan awam kos rendah iaitu program kerajaan negeri membina rumah kos rendah dengan bantuan kewangan kerajaan Pusat.


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