'Promote build-then-sell plan’

15/12/2003 NST By V. Anbalagan

KUALA LUMPUR, Dec 14: The National House Buyers Association today called on public agencies such as Syarikat Perumahan Negara Bhd and state economic development corporations to take the lead in promoting the “build-then-sell” concept.

NHBA secretary-general Chang Kim Loong said these agencies could adopt the idea as they had the funds or paid lower land premiums to build homes.

"We have been advocating the concept for some time because of the numerous advantages to house buyers." He was commenting on a statement by Domestic Trade and Consumer Affairs Minister Tan Sri Muhyiddin Yassin that house buyers' woes could be reduced if more developers adopted the "build-then-sell" scheme.

He said Muhyiddin's views were commendable because they were consistent with NHBA's stand. Developers now followed the "sell-then-build" concept.

He said under the concept, as adopted in Australia, buyers would be able to see the product before buying, have a choice of selection and could move in immediately.

He said the NHBA proposed a variant of the "build-then-sell" concept where buyers paid 10 per cent as down payment and the remaining sum on the completion of their houses.

He said NHBA's stand was that developers must have sufficient funds to be serious players in the housing industry.

"Small developers are urged to form a bigger consortium by merging," he said.

Now, he said, it appeared that buyers were funding developers for their project.