QUOTE(truelife @ Jun 30 2013, 06:25 PM)
It is the other round. If Build-Then-Sell concept is implemented, all additional costs like interest and construction risk will be passed on to purchasers by factoring it into selling price. Also with this BTS, people will feel that 2nd hand properties have no much difference from 1st hand properties, thus this will push up prices in secondary market. Overall, BTS will only push up both 1st hand and 2nd hand properties.
BTS is to remove risk of purchasers from purchasing an abandoned project and dismiss developers without sound financial, but it cannot be used to control prices.
Developers are already paying interest under DIBS and priced in.
Under current arrangement, in event of cost over run, developer could abandon the project and leave buyers high and dry. Under BTS, the developer could priced cost over run into selling price, and buyers need not to bare the completion risk.
Developers are the party making millions, why should buyers bare construction risk, market risk, completion risk for developers?
May be you like to elaborate more; "Also with this BTS, people will feel that 2nd hand properties have no much difference from 1st hand properties, thus this will push up prices in secondary market. Overall, BTS will only push up both 1st hand and 2nd hand properties."
This post has been edited by icemanfx: Jun 30 2013, 10:52 PM