After so many replies from you . Only this I can listen. 1000000000000% agree

If anything isn't this good for the consumers? Bear in mind all the developers are selling at future price. We are not in the era where people need to queue to buy property anymore, we have oversupplied of them especially in klang valley right now.

I only see win for consumer

As if buyers currently don't need to make down payment in spa.

Currently, value is decided by developers whim and fancy. on completed units, after comparing transacted of similar units in the vicinity, valuers could quote fair market price. buyers are less likely to be water fish.

When supply > demand, there still be oversupply either way.

How much premium are you willing to pay for to eliminate the risk of sell-than-build? That premium will be priced into your purchase price.

This post has been edited by kbandito: Oct 30 2023, 09:31 AM

For build then sell scheme, the most affected are the small developer, they may not have ability to fund the whole project

Build then sell system wont be execute widely....Developer have to funds the whole construction, which even some big developers might have hardship to fund it...The current sell then build provides funding for developer thru bridging loan from banks, if there is no sales then bridging loan method could not works...

Most possible scenario for build then sell to happen is for landed properties only, shorter construction periods, less costly (land cost aside), and its more feasible to build row by row & deliver with limited infrastructure access...

For condo most likely not possible, and someone mentioned Sapphire WCT project, thats a fail project example for a build then sell...where got developer still dare to proceed with it....

and we haven't touch on possible higher price (due to developer funding whole projects), lower quality (to cost saving and faster completion), more hangover (built then unable to sell), unfair package to purchaser( 1st batch buyer might bought at higher price, later buyer got more discount due to developer clearing stocks), and so on.

This post has been edited by Rinth: Oct 30 2023, 09:50 AM

The "good" thing about real estate for new comer at the moment was always the low entry point. (Can or cannot afford after purchase that one different story altogether).

If this scheme were to be implemented, a few things i foresee will happen:
1. Definitely a price hike set by the developer due to risk absorption
2. Mid-to-small sized developer will no longer have ball game in this sector due to capital constraint, and ultimately leads to lesser competition (and only in-between the big guys which they tend to have superb holding power)
3. SPA value & market value gap (completed project no longer use SPA price as 90%, but valuation required), which may lead to a huge hurdle for home buyer as they need to fork out tons of cash up front (I would say maybe >20-25% of the price?)
4. Harder for people to buy house, rich getting richer, those who don't own house will have to rent, maybe forever.

Personally I favor this scheme la, but don't implement so fast, let me buy few more first

anyone know which country implemented this system?

I know both MetroKajang and SHL Property has been following build then sell concept since 20 years ago for their landed house, price is reasonable.

Like SHL they had successfully built the Sungai Long township.

I agree to what you say. I am all for build then sell as it provides security for the buyer. Aussie practices this. But the consequences of which many do not forsee is what you have mentioned. As a small time property investor, i am all for it. Why? Supply will greatly reduce. Not many more rumahwip/rumah selangorku will be launched as developers will need lots of capital locked up for tiny margin or even loss making project leaving less capital for profitable projects. Only big developers will benefit as with less competition, they can price their properties much higher. So enough talk lah MOH, just implement already!!! BTS! BTS! BTS!

ps. Bandar Utama Developer practice BTS for their BU9 condo...... i think so many years already still not fully sold, due to pricing , i think they use future future pricing which havent arrived yet

This used to be common in Western countries like Australia but these were primarily low rise units. Some of the bigger developers like Meriton operate like this with high rise. But pre-sales became common once the Chinese developers came in.

For landed, they do progressive payments and you can customize a bit.

I think pricing mismatch is a thing, another thing is people are not ready to actually splash cash to buy house. (Or they are not aware of )
Given a scenario let say developer wants to sell the unit for 1Mil (SPA price), valuation is at 900K. Loan of 90% (let say LTV for the buyer is still 1st or 2nd house) FROM THE VALUATION PRICE = 900k x 90% which is 810k
Imagine the buyer have to pay upfront 190K DP EXCLUDING paper works and etc., which easily costs another 70+k easily which adds up to like 260K, before we even talk about renovation works


I can only say Malaysians are getting too pampered when comes to property purchase. Here cannot there cannot, 0 downpayment still want 100% loan la, cashback la, free this free that la. Haiyaaaaaaa.....
When BTS time comes, I'll be glad to say: "Ha, baru kau tau "

for new project, even with build the sell scheme, the valuation most likely still in 100% of selling price

Under this scheme, i feel either government want to boost the sub-sale property market or limited to approve new high-rise project at city center.

Under this scheme we can see building landed project is easier compare to highrise, so maybe this is also a policy government encourage developer to develop outskirt area with everyone most favours landed property project.

If buyers couldn't save for 10% down payment, it could be stretched to make monthly loan repayment.

In the last decade, developers already priced in this premium/future price. a reason why flippers hardly could make money.

DAP is good good friend with developer, look at Penang, sure won't risk angering developer with new nonsense scheme, must continue squeezing buyers

Don’t buy lo . Macam la tak ada rumah nak tinggal . Adoi . Wake up buyers . Kena water fish so many years d .

follow ah mou style, rent and not buying...

not really, valuation will be an issue if the SPA price is too premium compare to surrounding market price...most of the time valuer use the surrounding market price as measurement....but of course in this bolehland sometimes can do magic, see the developer want or dun want only....but it'll be challenging...

but but but malaysian dun like to help other ppl serve installment....why help other ppl to own a house when you can top up abit and own it yourself....