Photo: Bernama
THERE are currently no plans to enforce a mandatory Build Then Sell (BTS) concept on housing developers, says Nga Kor Ming.
The Housing and Local Government Minister said that plans to enforce such a policy would only be considered once the economy has recovered and is stable.
“The ministry had originally outlined an action plan to ensure developers undergo a phased mandatory transition to BTS in phases from 2018 to 2025.
“But the sudden emergence of the Covid-19 pandemic had caused the plan to be put on hold,” he said in Parliament yesterday.
He added his ministry could only encourage private developers to take on the BTS concept at a 10%-to-90% ratio.
“Through this, buyers would pay only 10% of the property value as deposit first and the remaining 90% would be paid once construction is completed and the certificate of ownership is handed over to the buyer.
“We recognise that to do this, developers must have the sufficient financial capability, which is why we only encourage it voluntarily,” he said.
Nga noted that a number of initiatives was already in place to encourage adoption among developers.
These include an exemption from needing to pay a deposit for the housing development licence and bank guarantee, as well considering providing exemption from development charges.
“There is also ‘fast lane’ priority for all matters involving housing development,” he said in response to a question from Afnan Hamimi Taib Azamudden (PAS-Alor Setar), who asked for an update on the implementation of the BTS concept that Nga had previously championed as a solution to “sick” housing projects.
To this, Nga said the ministry was considering implementing amendments to the Housing Development (Control and Licensing) Act 1966.
Among the amendments being considered is to reinforce a clearer definition of a “sick project”.
“A clearer definition will enable the ministry to better monitor projects and identify abandoned housing projects,” he said.
“The ministry is also studying possible measures to identify developers’ financial standing before giving approval.”
