Enforcing build-then-sell policy depends on economic recovery, Nga tells Dewan Rakyat

KUALA LUMPUR: There are currently no plans to enforce a mandatory build-then-sell (BTS) policy on developers, says Housing and Local Government Minister Nga Kor Ming.

He told the Dewan Rakyat on Tuesday (Feb 27) that any such plan would only be considered once the economy had recovered to the post-pandemic period.

“The ministry originally had an action plan to ensure developers undergo a mandatory transition to BTS in phases from 2018-2025.

“But the sudden emergence of the pandemic had caused the plan to be put on hold,” he said, adding that the ministry could only encourage developers to adopt BTS on a 10%-to-90% ratio basis.

“Through this, buyers would pay only 10% of the property value as deposit while the remaining 90% to be paid once construction is completed and the certificate of ownership is handed over to the buyer.

“To do this, developers must have sufficient financial capability which is why (it is voluntary)," he said, noting that there were initiatives in place to encourage developers to adopt the practice.

This included exemption from certain development charges and having to pay a deposit for licensed housing development, he said.

“There is also 'fast lane priority' given for... housing development (to developers who adopt BTS),” he told Afnan Hamimi Taib Azamudden (PN-Alor Setar), who asked for an update on BTS implementation which Nga had previously championed as a solution for sick housing projects.

Nga said the ministry was considering implementing amendments to the Housing Development (Control and Licensing) Act 1966, such as a clearer definition of a sick project.

“This definition will enable the ministry to better monitor projects and identify abandoned ones,” he said.

He added that the ministry was also studying possible measures to determine developers' financial standing before approving projects, and blacklisting those with a bad track record of delivery.

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