Ipoh: The Perak government is undertaking a thorough study and engaging with various stakeholders to potentially mandate the 'build-then-sell' (BTS) concept for new housing projects. This initiative aims to minimize the risk of buyers being impacted by stalled or abandoned developments.
According to BERNAMA News Agency, State Housing and Local Government Committee chairman Sandrea Ng Shy Ching emphasized the need for a detailed examination of several factors. These include the financial capabilities of developers, particularly small and medium-sized enterprises, as the BTS model demands a larger initial investment. Additionally, there is a possibility that developers might pass on the upfront financing costs to consumers, potentially driving up house prices. Concerns also surround the industry's readiness, including bank financing, regulatory frameworks, and necessary incentives for sustainable BTS implementation.
Ng addressed these points in response to a query from Steven Chaw Kam Foon (PH-Menglembu) during the Perak State Assembly session. She highlighted the importance of assessing the BTS concept's suitability for Perak's housing market, considering factors such as demand, residents' financial capacity, and the state's development industry structure.
As part of the preliminary steps, the State Housing and Property Board (LPHP), aligned with national policies, has conducted several engagement sessions with developers, financial institutions, property associations, and industry players. These efforts aim to gather feedback on needs, challenges, and appropriate financial models. Internal studies of successful BTS models in other states are also being reviewed to evaluate the readiness of Perak's housing market for implementation based on various segments and project categories.
Ng stressed the significance of these preparations to ensure that if the federal government decides to broaden the BTS concept in the future, Perak will be well-prepared in terms of policy, execution mechanisms, and industry readiness.