Sarawak Says No To Build First

Sarawak Says No To Build First, Sell Later Concept
Bernama.com 02/06/2004

KUCHING, June 2 (Bernama) -- The "build first, sell later" concept cannot be implemented in Sarawak as this needs huge capital which is beyond the reach of many housing developers in the state, said Datuk Michael Manyin Jawong.

The Sarawak Housing Minister said the state government would implement the concept once real estate developers had acquired sufficient resources to sustain the concept.

"Developers in Sarawak are those on the minor scale and do not have sustaining ability to build first and sell houses later as the overall cost for a project is massive," he told reporters here Wednesday.

Manyin said problems in acquiring suitable and cheap land located near urban sites hampered the ministry's efforts to build more low-cost homes for the people.

"Location of low-cost houses should not be too far from urban centres and these areas should have basic infrastructures to avoid buyers from incurring other costs like transportation," he said.

Manyin said the price of a low-cost house in Sarawak was capped at RM47,000 a unit despite developers calling for the ceiling to be raised.

He said price hike of construction materials had prompted many developers to make the call.

"So far there is no directive from the Housing and Local Government Ministry to raise the ceiling price...therefore price of a low-cost house in Sarawak remains RM47,000 a unit," he said.

-- BERNAMA