One of the biggest challenges faced in the property industry today is the issue of abandoned housing projects, and the Build-Then-Sell (BTS) scheme could help in handling it, said Urban Wellbeing, Housing and Local Government Minister Tan Sri Noh Omar.
Speaking at the opening ceremony of Malaysia Property Exposition (Mapex) organised by the Real Estate and Housing Developers’ Association Malaysia (Rehda) at Mid Valley Exhibition Centre last week, Noh said a total of 226 projects has been declared abandoned since 2009 and 182 of them have been revived by the National Housing Department.
The government has spent RM202 million to rescue abandoned and delayed projects.
He said the government implemented the BTS 10:90 system under Schedule H of Housing Development (Control and Licensing) Act 1966, whereby the buyers make only an initial payment of 10 per cent of the purchase price, and pay the balance of 90 per cent upon completion of construction.
“BTS 10:90 will benefit the developers as those who implement the scheme will be given incentives such as deposit of RM200,000 for application of developers’ licence and ‘fast lane’ priority for other processes regarding the development,” he said.
Noh said the scheme has been adopted by 14 developers for 61 projects.
“I hope Rehda will encourage its members to consider implementing the scheme in their developments in order to help the rakyat to own their dream home,” he said.
On the end-financing issue for buyers, Noh said that banks should consider providing full housing loans to homebuyers, particularly first timers.
He said that currently, banks do not offer loans on the entire value of a house, providing only between 70 per cent to 80 per cent instead.
Noh said the banks must complement efforts by the government in implementing various schemes to help people cover a downpayment or get a more affordable loan so that they can buy their first home.
These include schemes such as MyDeposit and MyHome, which offer incentives of up to RM30,000 per home, benefiting home buyers and housing developers.
Under the programme, eligible applicants will be able to occupy studio units for a five-year period at rents lower than market rates.