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Shorten delivery
time
25/05/2004 NST
I, ALONG with many other Malaysians, applaud the Prime Minister’s
call for developers to adopt the build-and-sell model. House-buyers
have had to put up with slow delivery and poor quality and the
build-and-sell approach will be a sure way to provide buyers with a
chance to see what they get before committing their hard-earned
money. Most of us are putting our life-savings into our “dream home”
and the last thing we want is to go through a nightmare as it can
easily turn out to be dealing with an unscrupulous developer.
Lack of funds should not be an excuse for not adopting
build-and-sell. If the developer doesn’t have the funds than he
should not even be a developer in the first place. Perhaps
developers need to look and downsize projects and launch them in
smaller phases to accommodate funding.
Banks, too, would be more receptive to developers of smaller
projects and with a proven sales track record. It would also reduce
risk of overbuilding, particularly in non-prime locations.
In most countries, one can expect to move into one’s new home within
six to nine months after signing the sale and purchase agreement.
Sadly this is not the case here as developers are given 24 months to
deliver. Buyers not only have to pay the financing cost, but also
rental as they wait for their keys to their new homes. This long
delivery period also breeds inefficiency.
Having a project drag over 24 months also exposes the project to
more uncertainties. The steel situation facing the industry
currently is a case in point. Developers should build faster to
reduce the possibility of external factors influencing their
projects. Using more advanced building methods will also improve on
the quality of houses. being provided.
Perhaps as an interim measure to build-and-sell, the Government
should consider providing legislation that requires the time for
delivery of homes to be reduced to within a year. I believe this has
been done with great success in Thailand. When talking to developer
friends in Thailand, I have been told that they deliver landed homes
within nine months and high-rise units within 15 months.
The cost of homes in Thailand is more affordable than they are here
so the HDA’s excuse that homes will cost more when considering less
labour intensive building systems does not hold water.
RON PICKERING
Klang |
