Straits Time By : L.K.T. , Bukit Mertajam
I REFER to the letter "It shows failure of present system" (NST, May 18).
I agree that the issue of abandoned housing projects in the country can be
resolved by doing away with the sell-then-build (STB) system in housing
transactions between developers and house buyers.
The Housing and Local Government Ministry should aggressively enforce the
implementation of the build-then-sell (BTS) or the 10:90 system. The
latter is more equitable to both developers and house buyers.
The STB system is flawed and outdated, as evident in the large number of
abandoned houses that dot the Malaysian landscape. This system also forces
buyers to be at a greater risk than the developers in the business of
selling and purchasing houses.
Many errant developers are let off lightly, which does not serve as any
deterrent but only encourages rogue developers to participate in the
housing industry, thus aggravating the problem of abandoned housing
House buyers who are victims of failed housing projects are left in the
lurch. Some developers do not even have the courtesy to inform buyers of
the stalled projects. Only the banks keep up communication with buyers who
have taken a housing loan to remind them of their monthly interest
The BTS system is a better option as it ensures that houses built by the
developers and completed within the stipulated period are delivered to the
buyers upon obtaining the certificate of occupation. While developers make
a cut in the sale, buyers are happy as they get to see their dream come
In the BTS system, developers may incur extra cost. Nevertheless, the
developer can factor the extra cost into the asking price of houses for
sale to be borne by the buyers.
For a win-win situation between developers and house buyers, the BTS
system is the way to go.