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- REHDA stated that Minister of Housing and Local Government Nga Kor Ming clearly signified the “government’s willingness and readiness to focus on the rakyat’s needs and to take all industry stakeholders’ opinions into consideration, to ensure the property industry remains robust and healthy”.
KUALA LUMPUR (Nov 3): Real Estate and Housing Developers’ Association (REHDA) Malaysia today expressed its gratitude following the Minister of Housing and Local Government Nga Kor Ming’s clarification in Parliament last week that both the build-then-sell (BTS) and sell-then-build (STB) systems will remain.
In a media release, REHDA stated that Nga clearly signified the “government’s willingness and readiness to focus on the rakyat’s needs and to take all industry stakeholders’ opinions into consideration, to ensure the property industry remains robust and healthy”.
“As a whole, STB has made housing more affordable for the rakyat since housing became regulated decades ago, and made it possible for developers to continuously deliver housing to meet the national housing agenda.
“To impose a strictly BTS system will negatively impact that ability, which will affect the provision of affordable housing,” said Datuk Ir Ho Hon Sang, president of REHDA.
At the same time, homebuyers still have the option of buying BTS homes in the secondary market. Each year, about 80% to 85% of housing transactions are done on such a BTS basis, REHDA revealed.
BTS has always been an option made available to developers
“The build-then-sell 10:90 scheme is outlined in the Housing Development (Control and Licensing) Act 1966, or Act 118, and we encourage capable developers to consider it, should they have the means to do so,” added Ho.
“REHDA looks forward to the housing reform plan that YB Tn Nga announced during the same Parliament session, and is hopeful of the changes it will bring to the industry,” stated the association.
Last week, Nga said in Parliament that one reason the government has not mandated the BTS model is that, based on the National Housing Department’s assessment, the industry chain is not yet fully ready, while mandatory implementation could also favour large corporations at the expense of SMEs, which play a critical role in developing small towns and rural areas.
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