Higher prices offset by savings
NST 11/07/2006

WE refer to news reports that price of houses is expected to rise by up to 100 per cent if the build-and-sell concept is introduced.

No doubt, the price of houses will rise but the 30-100 per cent increase quoted by the president of Real Estate and Housing Developers’ Association Malaysia (Rehda) is to discourage the introduction of this concept.

We would like Rehda to give a breakdown of how much of the 100 per cent increase is attributed to higher costs and how much of it is profit.

Even though house prices will rise, they should still be competitive because any developer who prices them too high will be stuck with unsold houses.

For house buyers, the higher prices will be offset by the fact that they will be saving money as they do not have to make progress payments.

They can also judge for themselves whether the finished house is worth the price.

But most of all, they will not end up as victims of abandoned projects.

S.M. MOHAMED IDRIS, Consumers Association of Penang