PM: No more bailouts for housing developers
www.theedgedaily.com 24/07/2001 By Thomas Soon

Prime Minister Datuk Seri Dr Mahathir Mohamad has warned housing developers to buck up as the government may not bail them out again because of their own shortcomings.

Real Estate and Housing Developers' Association Malaysia (REHDA) president Datuk Eddy Chen Lok Loi said the prime minister gave the warning at the Budget 2002 dialogue session in Putrajaya recently.

"The prime minister warned that this could well be the last time that developers would be bailed out (after the last financial crisis)," said Chen, while giving a special address at the one-day conference.

He added that the government had gone out of its way to help the developers in time of crisis, but "the handout cannot last forever".

"Developers must clearly face up to their own shortcomings, and apply greater discipline to continue in business. There is no substitute for thorough market studies, while projects must be feasible and viable," said Chen.

However, he noted that many developers were now more prudent, with most starting with smaller launches to test the market. "Pricing is now more realistic, while customer service has improved."

"More are taking heed of the PM's comments by improving their layout design. Building design is moving away from the barrack-like layout, as the PM himself described, and monotonous designs," Chen said.

He also said that much more had to be done for quantity to be met, quality to be improved and rules and regulations rationalised to assist orderly development.

"More importantly, a comprehensive property development master plan is urgently needed to chart the course towards meeting all our housing needs."

Chen said the property market continued to be soft. "Launches tend to be smaller, take-up rates are up slightly from 48 per cent, 49 per cent to 50 per cent respectively in the last three quarters, but still low compared to 71 per cent four quarters ago."