Advantages to build-first
The Star 07/07/2006

Housing and Local Government Minister Datuk Seri Ong Ka Ting said developers who chose this new concept would enjoy several incentives, including exemption from paying the RM200,000 deposit and stamp duties to the Government.

“Prices will be monitored by the Government so that the buyers' interest will be protected,” he told reporters after visiting Kampung Telekong new village in Mengkebang here.

He said major housing developers were capable of self financing housing projects without having to borrow from banks.

Recently, Real Estate and Housing Developers Association (Rehda) president Datuk Jefrey Ng was quoted as saying that the build-and-sell concept would cause house prices to escalate by between 30% and 100%.

Ng had said that developers who borrowed from banks to finance their projects were likely to charge housebuyers for the loan interest.

He added that under the build-and-sell concept, terrace houses in Bandar Utama Damansara would cost between RM700,000 and RM750,000 each. Under the sell-and-build concept, similar houses could be sold at half the prices.

Ong said Rehda’s views did not apply to the general situation as its study was only confined to the Klang Valley