IT should be quite clear by now that the Government is determined to protect house buyers who are victims of abandoned projects and suffer huge financial losses. 

While a housing project may be abandoned due to various reasons, at least there should be a formula that in case of such an eventuality, the buyers will not be seriously affected financially. 

The only way to ensure this is to introduce the build-and-sell concept but this is getting the thumbs down from housing developers who prefer the sell-and-build method, which is the current practice. 

With the build-and-sell concept, it will not be necessary for the buyers to commit themselves financially as they can decide only after they have seen the completed units. 

If they are happy with the location, workmanship and the price, they could then proceed with the transaction. If the project should be abandoned, no buyer will be affected. 

The developers are against it because they are the ones who will be taking all the risks.  

Firstly, they will have to finance the whole project as they can no longer make use of the purchasers' money for this purpose. 

What is even more daunting, the developers may have difficulty in selling their units after the completion of their schemes. This will spell a financial disaster for them. 

For their own protection, developers will need to do a proper market survey as to the marketability of their projects before they can proceed with them. 

Even if the sale feedback is good, there is still no guarantee that their houses will be in demand when ready for public inspection.  

An economic slowdown can also affect sales. 

Therefore, a formula will have to be found whereby both the buyers and developers will get some sort of protection.  

It will not do the property market any good if any new proposals should discourage developers from embarking on new projects because of the risks involved. 

The Housing and Local Government Ministry has been directed to look into a proposal whereby the buyers will need to pay a 10% deposit until the whole project has been completed. 

This may not be acceptable to the developers as the deposit will be kept by a third party.   As far as they are concerned, they will need to finance the whole project themselves. 

The Government has decided to step in because too many projects have been abandoned and tens of thousands of buyers have become victims, many of whom are facing serious financial problems because of their heavy commitments. 

Many of them have to keep paying their instalments to the financial institutions, which have already paid the developers for the houses.  

The Government has spent billions to revive the abandoned projects to ensure the victims will not lose their houses.