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KUALA LUMPUR: The property development market in Malaysia is not ready to completely adopt the build-then-sell (BTS) concept, said industry players together with Housing and Local Government Minister Datuk Wira Chor Chee Heung.
This was due to the higher capital outlay required, which would then lead to a need for more bridging loans required and other financial institutions, they said on Thursday, July 29th during the 13th National Housing and Property Summit organised by the Asian Strategy and Leadership Institute (Asli), themed 'Gearing up for sustainable growth during the 10th Malaysia Plan period'.
Real Estate and Housing Developers' Association (Rehda) patron and Rehda Institute chairman Datuk Eddy Chen said the association had always supported the BTS concept running side-by-side with the existing 10:90 concept, where purchasers pay a 10% deposit and cough up the remainder after completion of the property and issuance of the certificate of fitness (CF).
He said however, the BTS concept will have a great impact on the industry, causing it to run at "half" speed due to the diminished capacity of property developers.
At present, property developers building 120 to 130 houses are already running at capacity, he said.
Capital Sanctuary Sdn Bhd group managing director Dr Christopher Shun Kong Leong suggested that instead, property developers propose that buyers are given the option to purchase completed homes.
"If buyers choose to pay a premium of, say, RM35,000 to have a ready-built house, then that's fine. But don't force us to adopt this across the board," he added.
They were speaking at a session titled 'Housing and property sector in the 10th Malaysia Plan and New Economic Model'.
Housing and Local Government Minister Datuk Wira Chor Chee Heung said Malaysian property developers would be 'up in arms' if they were forced to adopt this standard.
"It is not time for this concept to be made compulsory yet," he said earlier during his keynote address.
He cited the need for a certain level of development, but did not delve into the specifics.
This was due to the higher capital outlay required, which would then lead to a need for more bridging loans required and other financial institutions, they said on Thursday, July 29th during the 13th National Housing and Property Summit organised by the Asian Strategy and Leadership Institute (Asli), themed 'Gearing up for sustainable growth during the 10th Malaysia Plan period'.
Real Estate and Housing Developers' Association (Rehda) patron and Rehda Institute chairman Datuk Eddy Chen said the association had always supported the BTS concept running side-by-side with the existing 10:90 concept, where purchasers pay a 10% deposit and cough up the remainder after completion of the property and issuance of the certificate of fitness (CF).
He said however, the BTS concept will have a great impact on the industry, causing it to run at "half" speed due to the diminished capacity of property developers.
At present, property developers building 120 to 130 houses are already running at capacity, he said.
Capital Sanctuary Sdn Bhd group managing director Dr Christopher Shun Kong Leong suggested that instead, property developers propose that buyers are given the option to purchase completed homes.
"If buyers choose to pay a premium of, say, RM35,000 to have a ready-built house, then that's fine. But don't force us to adopt this across the board," he added.
They were speaking at a session titled 'Housing and property sector in the 10th Malaysia Plan and New Economic Model'.
Housing and Local Government Minister Datuk Wira Chor Chee Heung said Malaysian property developers would be 'up in arms' if they were forced to adopt this standard.
"It is not time for this concept to be made compulsory yet," he said earlier during his keynote address.
He cited the need for a certain level of development, but did not delve into the specifics.
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