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Build-and-sell incentives for
developers being worked out
The Star 09/07/2006
KOTA KINABALU: Incentives for housing developers opting for the
build-and-sell concept are likely to be finalised within several months,
Housing and Local Government Minister Datuk Seri Ong Ka Ting said.
He said the incentives would take some time to be completed as some involved
amendments to the laws.
“Our hope is that these incentives will encourage developers to take up the
build-and-sell concept,” Ong, who is also MCA president, said after opening
the Sabah MCA convention here yesterday.
He said the incentives included speedy approval for land matters and
development plans, which currently took time.
Ong said such approvals usually took one to two years but under the fast
track approach, the period would be reduced to about four to six months.
Other incentives included exempting developers from paying the RM200,000
deposit and stamp duties to the Government.
Ong also assured housebuyers that the build-and-sell concept would not
result in prices of properties escalating by 100% to 200%.
While developers would have to fork out more under the build-and-sell
concept compared to the conventional sell-and-build approach, he said the
price difference of houses built under both concepts should not be too
great.
Asked whether a ceiling would be imposed on how much of a price difference
is allowed, Ong said the Government would let market forces dictate the
situation.
Real Estate and Housing Developers Association (Rehda) president Datuk
Jeffrey Ng was earlier quoted as saying that the build-and-sell concept
would cause house prices to escalate by between 30% and 100%. |
