PERAK STUDYING MOVE TO MANDATE 'BUILD-THEN-SELL' FOR NEW HOUSING PROJECTS - EXCO

IPOH, Nov 26 (Bernama) -- The Perak government is conducting a comprehensive study and engagement sessions with various relevant parties before mandating the ‘build-then-sell’ (BTS) concept for new housing projects in the state, as part of efforts to reduce the risk of buyers being affected by sick or abandoned developments.

State Housing and Local Government Committee chairman Sandrea Ng Shy Ching said several factors need more in-depth study, including the financial strength of developers, particularly small and medium-scale companies.

“This is because the BTS concept requires a much larger initial capital. In addition, there is the risk of house prices increasing if developers transfer the upfront financing costs to consumers, as well as concerns over the readiness of the industry chain - including bank financing, regulations and the necessary incentives - to ensure that BTS can be implemented sustainably,” she said.

She said this in response to a question from Steven Chaw Kam Foon (PH-Menglembu), who asked whether the state government planned to implement the build-then-sell concept for new housing projects in Perak, during the Perak State Assembly sitting here today.

Ng added that considerations must also include the suitability of the concept with the housing market in Perak, such as demand, the financial ability of the people, and the structure of the state’s development industry.

In this regard, she said that as part of the initial preparations, Perak - through the State Housing and Property Board (LPHP) and in line with national policy - had held several rounds of engagements with developers, financial institutions, property associations and industry players.

“These efforts also include obtaining feedback on needs, challenges and suitable financial models; conducting internal studies on several successful BTS models implemented in other states; and assessing the readiness of the state housing market for implementation based on segments and project categories,” she said.

“This effort is important to ensure that if the federal government decides to implement the BTS concept more broadly in the future, Perak will be in a state of readiness - including in terms of policy, implementation mechanisms and industry preparedness,” she said.

-- BERNAMA