Adopt Build First And Sell Later Concept, Housing Developers Told
25/05/2004 Bernama.com

KOTA KINABALU, May 25 (Bernama) -- Sabah Deputy Chief Minister Datuk Yahya Hussin has called on housing developers in the state to adopt the "Build First and Sell Later" concept to ensure a win-win situation for both developers and buyers or consumers.

Yahya, who is also State Community Development and Consumer Affairs Minister, said that the concept was good for consumers as they would be assured of their houses, and the housing developers would have ready buyers.

"May be it's quite difficult for developers because they need some payment (to proceed with the projects) but the meaning of "Build First" is very wide and it doesn't mean it (house) must have doors already.

"May be, once half or one-third is completed, they may start paying. I think housing developers can bargain on the percentage," he told reporters after visiting the office of the Domestic Trade and Consumer Affairs Ministry's Sabah branch at the KWSP building near here Tuesday.

He was asked to comment on the statement by Sabah Housing and Real Estate Developers Asociation (Shareda) chairman Abu Bakar Mohamad Yahya yesterday that "it is not the time yet for the housing industry to adopt the "Build First and Sell Later" concept in the state.

Abu Bakar contended that "house buyers today are better educated and discerning, and they are able to assess which housing project or developer is good and reliable".

Yahya said that he totally agreed with the proposed concept announced by Prime Minister Datuk Seri Abdullah Ahmad Badawi, adding that "there must be a striking fairness as far as the interests of the developers and buyers are concerned".

Last week, the Prime Minister said that the government was studying the possibility of making housing developers build houses first before selling them.

Abdullah said housing developers must have adequate funds before they embark on housing projects so that they would not have to depend on upfront money from the housebuyers.

Yahya said: "I think there must be negotiations between consumers (buyers) and Shareda on the percentage but I totally agree it must be built first, and at least 90 per cent must be there.

"There are cases where buyers have to wait for 10 years until they retire but no house yet. Their salaries have been deducted every month, but they are still squatting here and there, and renting house...it is very unfair for them.

"So, the move (build first and sell later concept) is to avoid this kind of disappointment," he said.