'Sell first, build later' concept to be reviewed
The Government will consider making it compulsory for developers to build
houses first before selling the units even though a previous study has found
that the concept is unsuitable. Housing and Local Government Minister Datuk
Dr Ting Chew Peh said yesterday.
He said another study on the concept can be carried out with the involvement
of all parties in order to work out a more practical solution to the issue.
"The Government will call all agencies involved in the housing industry for
another discussion. We will see how we can boost the industry and at the
same time protect consumers," he said after handing over MCA's Langkawi
Project school materials, in Ipoh.
He said the study on the concept conducted five years ago revealed that it
will delay construction of houses since developers will be more cautious and
refuse to build higher number of units.
"The Government encourages this concept but we are concerned that developers
may become too cautious, resulting in fewer houses being built," he said.
He said under the Seventh Malaysia Plan, the Government planned to build
800, 000 houses and in order to achieve the target at least 100,000 units
will have to be constructed each year.
Ting said legal aspects of the concept should also be considered since under
existing laws, buyers under the buy and sell concept will not be adequately
He said existing laws only covered buyers who made payments in stages where
the amount will be deposited into the Housing Development Account.
The account, introduced in 1991, only allows developers to use the money to
complete their respecting housing projects.