Build-then-sell housing delivery system to heal 'sick' projects, says Nga

KUALA LUMPUR (Oct 27): The Ministry of Local Government Development plans to implement a build-then-sell housing delivery system, rather than a sell-then-build delivery system, next year to reduce the number of "sick'' or delayed housing projects.

Minister Nga Kor Ming said the ministry will work together with the Real Estate Housing Development Association (Rehda) to overcome the issue.

"I will discuss with Rehda about the new business model, so that developers build new houses and sell them.

''This is so that there will be no more abandoned projects in the future, as you are only allowed to sell upon completion," he told the media after launching the Malaysia Property Expo (MAPEX) 2023 here on Friday.

Nga said the ministry's special task force had revived 256 projects worth RM23.37 billion as at August.

"We managed to save a total of 28,863 buyers, and we want to make sure there are no more abandoned projects,'' he said, adding that 9,500 affordable housing units are on track to be completed under the 1Malaysia Housing Programme (PR1MA) this year.

Nga said that to date, 17 out of 24 sick housing projects under his scrutiny had been restored.

MAPEX 2023, which runs until Oct 29 at the Mid Valley Exhibition Centre, is participated by 44 exhibitors comprising developers, financial institutions and government agencies.

Meanwhile, the ministry will be joining hands with Rehda to co-organise MAPEX 2024, in a mission to further boost the country's property sector.

https://theedgemalaysia.com/node/687958

I applaud this, but remains to be seen if there's any follow through.

I don't think it's an issue, people having issue will never have bought in the first place, right? Plus higher density developments already provide an incentive to buyers, i.e. cheaper cost and lower maintenence fees.

Either way still need down payment ma. Just that developers inflate the price 10% then give it back to customers as a rebate which means no down payment needed. Of course this is wrong but do the bankers cares. They all turn a blind eye to this. Panel bankers know for sure.