Build-and-sell houses dearer

06/07/2006 NST

KUALA LUMPUR, July 5 (Bernama) -Houses will cost more under the build-and-sell concept compared with the present sell-and-build concept due to the higher production cost and the risks involved, said Deputy Housing and Local Government Minister Datuk Azizah Mohd Dun.

She said the price hike was also due to the higher project financing and market speculation.

"Banks are more selective in granting loans to developers due to the speculative elements in the projects," she said in reply to Tan Sri Hew See Tong (BN-Kampar) .

She said the shrinking of the housing sector in the National Gross Domestic Product had a far-reaching impact on contractors, professionals and workers in the housing industry.