SunSuria Hopes For Flexibility On Build & Sell Concept
13/04/2007 Bernama

KUALA LUMPUR, April 13 (Bernama) -- SunSuria Group, a property-based company, hopes the government will continue giving flexibility with regard to the build and sell concept.

"We have different sizes of property developers with different types of financial constraints," its managing director, Ter Leong Yap, told Bernama here today.

Ter acknowledged that it is not mandatory for developers to adopt the concept but did not discount the possibility that the government may make it so later.

He expressed concern that not all property companies are ready to adopt the concept, saying that "they still need flexibility."

He, however, welcomed the incentives given by the government to encourage developers to use the build and sell concept.

Under the concept, developers sell the houses only after they have been completed and the Certificate of Completion and Compliance (CCC) obtained.

Buyers will not be required to place deposits or make progress payments until then.

The government is also encouraging developers to accept the partial build and sell concept.

Three incentives are offered, including exemption from payment of the RM200,000 deposit for a housing developer's licence.

Ter said the improvements in the public service delivery system for the property sector could help boost the industry as a whole.

"In fact, stronger property as well as construction industries will have a multiplier effect on over 120 supporting industries," he said.

The Ministry of Housing and Local Government today introduced four approaches to improve the public delivery system for the property sector. All the initiatives take effect immediately.

They include a new one-stop centre aimed at shortening the approval time for developers to construct buildings to four to six months, from the present one and two years.

"It is always timely when it comes to `improving'. It will later lead to more competent local companies when they venture abroad," he said.

The one-stop centre will operate on the fast lane concept to ensure that approvals are given within four months.

Meanwhile, Sunway Group chairman Tan Sri Dr Jeffrey Cheah, who sees the government's initiatives as a positive move for the property industry, said it may take time to mature.

"It is not an easy thing but may take some time to mature as the banks need time to get comfortable with the new initiative," he told Bernama.

"I think this is fair because they (banks) need to be very careful. The risk of mitigation is very important in banking," he added.

Cheah, however, pointed out that the group has already implemented the concept of build-and-sell in its Sunway Rahman Putra project at Bukit Rahman Putra, Sungai Buloh.

So far, about 20 units have been built under the concept and are now ready for sale.

On the property market, Cheah said there has been an improvement in the market since the government announced the removal of the real property gains tax (RPGT) effective April 1.

He said the introduction of the "Malaysia My Second Home" programme, is also giving a boost to the market, as more foreigners are looking at buying properties here.

"The Malaysia My Second Home programme is a very strong policy that attracts foreigners to our country. When you compare with the rest of the region, like Singapore, Malaysia's house prices are relatively competitive," he noted.

-- BERNAMA