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Build-sell concept gets big aye |
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Written by The Star
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Saturday, 24 June 2006 |
 PUTRAJAYA: Both the Real Estate and Housing Developers Association (Rehda) and House Buyers Association lauded the Government’s approval of the build-and-sell concept.
Under the concept, house buyers pay 10% of the house cost when they sign up for it and the remaining 90% only when the house is ready.
Rehda president Datuk Jeffrey Ng said this concept parallels the existing progressive payment scheme and this was good as both approaches balanced the needs of the nation and house buyers.
Ng: ‘The Government has heeded our feedback’
Deputy Prime Minister Datuk Seri Najib Tun Razak announced on Thursday
that the National Council for Local Government had approved in
principle the build-and-sell concept whereby buyers paid an initial 10%
deposit for a house and the balance only when it was completed.
Ng said the association had always maintained that the introduction of
the build-and-sell concept or any variant be market driven and be
allowed to co-exist with the current progressive payment scheme.
“We are glad the Government has heeded our feedback to allow the new
and existing systems to co-exist,” he said in a statement here
yesterday.
Chang: ‘There should be a fast track approval system’
Ng, however, suggested that under the new concept, banks and financial
institutions play a more vital role to ensure that projects under the
new 10:90 scheme were adequately funded.
House Buyers Association secretary-general Chang Kim Loong praised the
Cabinet, especially Housing and Local Government Minister Datuk Seri
Ong Ka Ting, for having the courage and wisdom to implement the
concept, which he described as a balanced decision.
He said it was a good system that would protect house buyers and reduce the number of projects being abandoned.
Chang also said there was a need for mechanisms to encourage housing developers to comply with the 10:90 concept.
“I suggest that the Government set up a fast track approval system for
developers to begin a housing project, to be managed by a special
committee,” he said when contacted in Petaling Jaya yesterday.
This, he said, would encourage the developers to comply with the concept.
Liew: Says house buyers now have a choice
Group managing director of SP Setia Bhd Tan Sri Liew Kee Sin said in a
statement that the system provided buyers with a choice either to buy
properties built under the old sell-and-build system or the new
build-and-sell system.
Sarawak Housing Minister Datuk Abang Johari Tun Abang Openg said the
state would study the viability of the build-and-sell concept before
implementing it, and that it was not compulsory for the state to
implement the concept.
“If we feel that the concept is viable, we will implement it together
with the existing system,” he told reporters after launching the
state-level golden jubilee celebration of Dewan Bahasa dan Pustaka in
Kuching yesterday.
Source: The Star, read the complete article here
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