Rehda



This website is

Welcome Main Forum FAQ Useful Links Sample Letters Tribunal

Rehda: 'Build and sell' needs closer look
13/08/2004 theedgedaily.com By Reese Loh

The implications of the 'build and sell' concept on the housing and property industry and the economy need careful consideration by the government before its implementation, said Real Estate and Housing Developers’ Association (Rehda) deputy president Ng Seing Liong.

He said the 'build and sell' concept might help to address house buyers’ complaints and dissatisfaction with regards to timely delivery and quality but there were other important national objectives that must be considered.

Ng said the industry had not achieved the level of maturity to adopt the concept.

The adoption of the concept might result in a significant reduction in house production with potentially severe social and economic implications, he said at a two-day seminar of the National Housing and Property Summit 2005 in Kuala Lumpur on Aug 13.

Ng said based on the concept, financial institutions were not likely to lend to developers when they could not gauge the viability of projects. He added that even under the present 'sell then build' system, banks had been known to be reluctant to lend in non-risk proof conditions.

He said under the 'build and sell' scenario, very few developers would have the financial capital or capacity to carry out development projects on their own without financing from either purchasers or banks.

"This will lead to a situation where housing output and the number players will drop drastically, resulting in higher house prices," he said.

Ng said the amended Housing Development Act had served as an effective tool to address buyers’ problems and complaints by providing protection for them.

He said the establishment of the Tribunal for Homebuyers’ Claims had provided an additional safeguard for the house buyers.

Ng said while the 'build and sell' concept was viewed by many as the answer to issues in the housing industry, it should be balanced with other important considerations such as the impact on the economy, social implications, employment and housing affordability.

Meanwhile, Meda Inc Bhd executive director Ong Bok Siong suggested that the 'build and sell' concept could co-exist with the present system at a later period, with incentive given to those adopting the new concept.

He said projects would also have to be downsized into small phases so that adequate funding for 'build and sell' could be acquired.

Main Forum FAQ Useful Links Sample Letters Tribunal

National House Buyers Association (HBA)

No, 31, Level 3, Jalan Barat, Off Jalan Imbi, 55100, Kuala Lumpur, Malaysia
Tel: 03-21422225 | 012-3345 676 Fax: 03-22601803 Email: info@hba.org.my