Move to better protect buyers

THE STAR 13/08/2004

KUALA LUMPUR: The Government is reviewing the delivery system for housing projects to see how it can better protect the interests of housebuyers.

Housing and Local Government Minister Datuk Seri Ong Ka Ting said his ministry was looking into the build-then-sell concept.

"The Government does not want house buyers who have used their life savings to suffer because of abandoned housing projects.

"We must ensure that housebuyers' interests are protected. To achieve that, we need to develop a more 'tangible' delivery system," he told a press conference after opening the National Housing and Property Summit here yesterday.

Ong, however, said the Government was also looking into how the build-then-sell concept would affect smaller developers, who played. a role in building houses in the out-skirts and rural areas.

"We are considering different ideas and concepts that will best suit the country," he added.

Ong said the Government had taken steps in past years to prevent irresponsible developers from failing to deliver after taking the buyers' money.

The Housing Developers Act, he said, had been amended to regulate every payment buyers make to developers, who were not allowed to draw full payment before completing a project.

"In the past, there were cases of fraud where the developer had only completed 40% of the project but took up to 70% of the payments.

"Developers are now closely monitored and they are required to submit reports every six months."

Ong said his ministry was also looking into other legislative amendments, including acquiring powers to regulate the delivery of serviced apartments, not categorised as residential property now.

Prime Minister Datuk Seri Abdullah Ahmad Badawi had said in May that the Government might make developers build houses first before selling them.

On another matter, Ong said town planners in all states had been directed to incorporate the "safe city" concept in the development of future townships.

"Beside providing adequate amenities, the developers must complement the efforts of local authorities in installing features such as separation of pavements and roads, fencing and additional lighting to ensure safer surroundings."