Build-and-sell incentives for developers being worked out

The Star 09/07/2006

KOTA KINABALU: Incentives for housing developers opting for the build-and-sell concept are likely to be finalised within several months, Housing and Local Government Minister Datuk Seri Ong Ka Ting said.

He said the incentives would take some time to be completed as some involved amendments to the laws.

“Our hope is that these incentives will encourage developers to take up the build-and-sell concept,” Ong, who is also MCA president, said after opening the Sabah MCA convention here yesterday.

He said the incentives included speedy approval for land matters and development plans, which currently took time.

Ong said such approvals usually took one to two years but under the fast track approach, the period would be reduced to about four to six months.

Other incentives included exempting developers from paying the RM200,000 deposit and stamp duties to the Government.

Ong also assured housebuyers that the build-and-sell concept would not result in prices of properties escalating by 100% to 200%.

While developers would have to fork out more under the build-and-sell concept compared to the conventional sell-and-build approach, he said the price difference of houses built under both concepts should not be too great.

Asked whether a ceiling would be imposed on how much of a price difference is allowed, Ong said the Government would let market forces dictate the situation.

Real Estate and Housing Developers Association (Rehda) president Datuk Jeffrey Ng was earlier quoted as saying that the build-and-sell concept would cause house prices to escalate by between 30% and 100%.