KOTA KINABALU: Many homebuyers are trapped in a financial nightmare, forced to rent while paying off housing loans for properties they cannot occupy, says National Consumer Foundation Sabah Chapter chairman David Chan.
Such a financial burden has continued to weigh heavily on lower- and middle-income groups, he said.
“These buyers are paying rent while still servicing loans for homes that remain under construction. It is unjust to leave them in such financial distress,” he said.
He called on housing authorities and policymakers to implement a “Build-Then-Sell” policy to prevent such predicaments.
“The current ‘Sell-Then-Build’ model has left too many buyers in limbo, struggling with loan repayments for homes that are either incomplete or, worse, abandoned.
“It is time for serious policy reform to restore public confidence in the housing sector. Buyers’ hard-earned money must be safeguarded, and stricter measures are needed to prevent future abandoned projects,” Chan said.
The foundation said that sale and purchase agreements for new housing developments must require construction to be completed before properties are sold.
The lack of enforcement and oversight has allowed developers to sell properties before completion, leaving thousands of families vulnerable to financial hardship when projects stall, he said.
Without stronger consumer protection laws, he said the cycle of abandoned projects will continue to burden homebuyers.
