Package of perks for build-then-sell

23/06/2006 The Star

PUTRAJAYA: A package of incentives is being offered to housing developers who adopt the build-then-sell concept, which was approved in principle by the Government yesterday.

The incentives include fast-track approval for their projects, doing away with the RM200,000 deposit for every licence developers apply for, and developers be allowed to build medium-cost houses instead of meeting the low-cost housing quota in certain localities.

Deputy Prime Minister Datuk Seri Najib Tun Razak, in making the announcement yesterday, said the method would be implemented for two years, after which a review would be carried out to assess its effectiveness.

“The National Council for Local Government has in principle agreed with the build-then-sell concept where buyers need to pay 10% at first.”

The balance is payable when the houses are completed and ready for vacant possession with permanent certificates of fitness issued.

“However, the package will be worked out by the Housing and Local Government Ministry and each state. The present method of progress payments to buy a house will go on because smaller developers may not be able to implement the build-then-sell concept,” Najib told reporters after chairing the council meeting here.

Housing and Local Government Minister Datuk Seri Ong Ka Ting later said the method was another system for developers, but with “a lot of carrots being offered to them.”

“It will take a while for us to put the incentives in place pending our discussions with the states. The package is being worked out to tighten existing laws to protect the interests of housebuyers,” he added.

Najib also announced that former squatters would be given the option to buy the low-cost houses they are currently renting.

The price has been fixed at RM35,000 in the peninsula and RM42,000 in Sabah and Sarawak.

On the issuance of certificates of completion and compliance to replace the certificates of fitness, Najib said six related bylaws would have to be amended, and the amendments would be tabled at the next Parliament session.

The decision was meant to relieve local authorities of the task of issuing CFs, thereby reducing red tape in getting approval for buildings.