Implement "Build first ,sell
later" concept, Govt urged
MALAY MAIL 07/09/2004
KUALA LUMPUR: With Budget Day drawing near, those in the housing
are upbeat about the Government introducing the long-awaited "build
sell later" concept.
It has been discussed three decades ago with the promise of making
shoddy workmanship and the housing tribunal a thing of the past.
The concept, which was recently mentioned by Prime Minister Datuk
Abdullah Ahmad Badawi, will depend on the developer.
This is because the quicker they build houses, the sooner they get
Those interviewed yesterday also wanted the Budget to include
first-time house buyers and a separate authority to handle low-cost
housing instead of leaving it to the private sector which is more
* S.K. BROTHERS REALTY, which is involved in the Home Ownership
for the last five years to encourage the public to buy a house,
the build-and-sell concept requires the Government's will to see its
Its chief operating officer, Charlie Chan, said since the PM had
proposed it recently, banks and Bank Negara should come in.
"What is necessary is for all to sit and discuss the issue which is
mainly to provide funding for developers to encourage them to
building and selling houses.
"With its implementation, we don't need a housing tribunal and the
Chan also proposed that those who just entered the job market to be
given incentives to enable them to buy houses.
He said a separate entity, probably called the "Public Housing
Authority" should be set up to look into building and maintaining
housing costing RM42,000 and below, similar to the Housing
Board (HDB) in Singapore.
"With this new authority, the Government should take over the
construction of low-cost units and build them at the right place,
considering the land mostly belongs to the Government.
"It can then offer affordable units and have them well-maintained
He said low-cost housing involves 50 per cent of those needing
in the country.
* NATIONAL HOUSEBUYERS ASSOCIATION, MALAYSIA, (HBA) honorary
general, Chang Kim Loong, supports the `build and sell' concept
He proposed that 10 per cent of the purchase price be used as down
payment which must be paid into the stakeholder's account as a
party to avoid a situation.
Chang said if the money went to a developer's account, they could
up and make off with the money.
He said the down payment could show the strength of its clients to
obtain a loan while the remaining 90 per cent could be paid to the
developer upon completion after one or two years.
"If the developer is interested, he should carry out the
fast and get paid sooner."
He said if the houses have been built, the buyers have the liberty
check for shoddy workmanship.
"We support the Prime Minister's aspirations in this concept which
With the 10 per cent as down payment of the purchase price, he said
developer could still survive and if the concept is realised, it
kill the housing industry.
He said they also want the Government to look into abandoned and
overhung housing projects, and civil servants be given a lower
loan interest, which is currently at four per cent.