KUALA LUMPUR: More developers will be encouraged to adopt the build-then-sell (BTS) concept, says Housing and Local Government Minister Nga Kor Ming (pic).
Nga said the concept, which allows buyers to pay only 10% upfront and the balance upon completion, is currently implemented on a voluntary basis by developers with strong financial capability.
He said the government does not plan to make BTS compulsory as it would have serious implications for small and medium- sized (SME) developers.
“If we force developers to adopt it, many SMEs will not be able to compete. Cities in the second and third tiers, such as Kuantan, may not see new housing projects because developers will only focus on areas with high demand like Petaling Jaya, Kuala Lumpur, and Johor Baru.
“If the foundation of our housing sector collapses, the consequences will be severe as the property industry involves over 200 related sectors,” he told the Dewan Rakyat yesterday.
Nga said the government’s pragmatic approach has contributed to steady growth in the property market over the past two years.
“Last year alone, total property transactions reached 420,000 units worth RM232bil, the highest performance in over a decade,” he said in response to Wan Razali Wan Nor (PN-Kuantan).
Nga said the BTS (10:90) model, introduced under the National Housing Policy 2018-2025, is one of several approaches being promoted to ensure safe and affordable housing for all Malaysians.
“The government has provided several incentives at both federal and state levels, including priority in planning approvals and exemption from the 3% housing development account deposit,” he said.
Nga also announced that the ministry will unveil a major housing reform plan on Nov 20, aimed at strengthening the industry and eradicating abandoned housing projects by 2030.
“Several initiatives have already been implemented, including the establishment of the Task Force for Abandoned Private Housing Projects, which has been meeting almost every week over the past three years.
“As of now, the ministry has revived 1,200 projects involving 163,000 homebuyers, including the Residensi Hecta project in Gombak [Selangor],” he said.
