‘Build first, sell later’ developers to get perks

22/05/2008 The Star

DEVELOPERS who wish to take up the “build first, sell later” concept will enjoy certain incentives from the Government, said Housing and Local Government Minister Datuk Seri Ong Ka Chuan.

He said these developers might be exempted from having to pay deposit for their projects when applying for licences.

“However, this concept is being implemented on a trial basis at present as we have to take into account the demands of the market as well as whether our developers are financially capable,” he said.

Ong said the concept was proposed by the Government as one measure of reducing the number of abandoned housing projects.

To Sim Tong Him (DAP - Kota Melaka), he said service apartments now fell under the purview of the ministry as these would now be bound by the standard sales and purchase agreement.

“However, for shoplots, the ministry will study whether to include these under our purview.

“We will also consider setting up a special committee to evaluate the value of abandoned projects,” he said.

Ong said the ministry acted as facilitators in the mediation between house buyers of abandoned lots and developers.

He said so far, out of the 2.7 million houses that had been completed, only 43,606 units had been abandoned.

“This forms less than 2% but the ministry is not satisfied,” he said, adding that a “special purpose vehicle” would be set up soon to help revive abandoned projects.

He said many of these projects were abandoned during the last financial crisis in the late 1990s.

Ong also denied that allocation given to projects in Perak would be retracted.

“The allocation to aid urban poor has been increased to RM27mil to reduce the rate.