Govt Studying
"Build First, Sell Later" Concept For Housing Developers
21/05/2004 Bernama.com
KUALA LUMPUR, May 21 (Bernama) -- The government is studying the
possibility of making housing developers build houses first before
selling them, Prime Minister Datuk Seri Abdullah Ahmad Badawi said
Friday.
Saying that he was in agreement with the approach taken by housing
developers in Taiwan who sold houses only after they had built them,
he said housing developers must have adequate funds before they
embarked on housing projects so that they would not have to depend
on upfront money from housebuyers.
"As a matter of fact, we want housing developers to have adequate
funds before building houses and not sell (houses) first and then
get the money to build," he told reporters after attending a public
sector Workers' Day gathering at Intan here.
"If they don't get to sell all of their houses, the money won't be
enough for them to build, what will happen to those who had paid
up?" he asked.
Abdullah, who is also Finance Minister, was asked on the usual local
practice of "sell first, build later" where developers collected
upfront money from housebuyers before buiding the houses.
He said,"I think this is not right -- to take the money first before
you (housebuyers) can get a house."
Asked when would the government implement the "build first, sell
later" concept, he said it would have to deliberate on the matter
first.
On a suggestion by Cuepacs, the umbrella body for public sector
unions, that the government set up an assistance scheme to help low
income earners staying in urban areas to buy their own houses,
Abdullah said the government always strove to ensure that low and
medium cost houses were not only sold at reasonable prices but also
with quality.
He believed that the cost of building houses could be lowered with
already existing technology. |
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