DEVELOPERS should build quality homes in well-planned environment to attract greater interest in their projects, Real Estate and Housing Developers’ Association (Rehda) president Datuk Jeffrey Ng said.

Commenting on remarks by Deputy Finance Minister Datuk Dr Ng Yen Yen that the number of residential properties unsold in the last quarter of 2004 had increased by 6,258 units to 15,558 units compared with the corresponding period in 2003, Ng said the onus was on the developers to be more proactive in undertaking measures to make their projects more attractive.

''The residential property market is now a buyer’s market. The projects coming on stream have widened the choices of the buyers and they are taking longer to decide where they want to buy.

''In order to stay competitive and protect their market share, developers have to be innovative by providing better choices to the consumers,'' Ng added.

He said since the definition of unsold property had been changed in early 2004, all properties that had been issued with certificates of fitness (CF) but remained unsold were now classified as unsold property.

Prior to that, only unsold properties that have been launched for nine months were considered unsold.

Ng said the authorities should also monitor houses under construction that remained unsold after nine months of being launched to assess the take-up rate for such projects.

Although the market is still relatively favourable with the prevailing low interest rates, developers have been advised to undertake proper feasibility studies and pre-launch registration to gauge the interest for their projects before putting them on the market.

The mass housing sector priced from RM100,000 to RM250,000 is among the biggest contributors to the property overhang.

Ng said Rehda had proposed that the Government promoted foreign purchases by offering stay permits of up to 10 years to foreigners who opt for the Malaysia, My Second Home programme.

Presently, the permit is for a period of five years and subject to renewal for another five years.

''Foreign businessmen who have invested at least RM5mil in the country should also be considered for business migration stay of up to 10 years instead of having to apply for work permit as is the current practice,'' he added.