Mandatory build-then-sell concept will hamper property industry grow, says REHDA
Apr 12, 2011
The Real Estate and Housing Developers' Association Malaysia (REHDA) said the mandatory build-then-sell (BTS) concept will hamper the growth of the property industry as well as the country's economic growth.
Association member Sam Tan said a significant number of small and medium sized developers would go out of business as the concept was very capital intensive to implement.
"A developer who is able to build 300 houses under the sell-then-build concept will now only be able to build one-third under the BTS. Numbers of units launched will inevitably reduce," he said recently at “The Edge Investment Forum on Real Estate 2011”.
Tan, who is also executive director of Ken Holdings Bhd, said a supply reduction in the housing sector would greatly impact the economy as the sector drives RM20 billion in economic and business activities.
"A proportion of the country's Gross Domestic Product will be wiped out. Bankers will lose substantial income from end-financing and income for state governments from conversion and future quit rent or assessment reduced," he added.
See Hoy Chan Holdings group director Teo Chiang Kok said full implementation of the BTS concept would push property prices higher as developers would factor in price and additional risks into their cost.
“Theoretically, BTS was ideal but practically not yet sustainable,” he added.
anonymous said...
In my opinion this step is a good one for the house buyer as this will protect them from any uncompleted project. In klang valley especially there were so much project that did not finished yet the buyer still need to pay the bank because of their loan was approved. This is a burden to them.
April 13, 2011 12:40:00 PM
anonymous said...
In my opinion this step is a good one for the house buyer as this will protect them from any uncompleted project. In klang valley especially there were so much project that did not finished yet the buyer still need to pay the bank because of their loan was approved. This is a burden to them.
April 13, 2011 12:40:00 PM
