To eliminate cases of abandoned housing projects, the Pakatan Harapan (PH)-led government should include the build-then-sell 10:90 (BTS 10:90) system in its plans for Malaysia’s housing sector, urged the National House Buyers Association (HBA).
Under this system, home buyers pay an initial downpayment of 10 percent only when booking a housing unit, with the remaining amount to be paid once the vacant possession of the unit is delivered to them, reported Free Malaysia Today.
“Aside from being an eyesore, abandoned projects cause hardship to house buyers who need to continue with their monthly bank instalments for housing loans,” said HBA secretary-general Chang Kim Loong.
“The BTS 10:90 is a far safer mode of home delivery system and the new federal government should implement it without further delay”.
Then-Urban Wellbeing, Housing and Local Government Minister Noh Omar revealed last November that 253 abandoned private residential projects had been recorded in Peninsular Malaysia since 2009.
This involved 64,290 housing units, of which 43,537 had already been sold, he said.
According to Chang, the association is excited of the future, given the many promises made by Pakatan Harapan, which include the development of one million affordable homes across two terms, widening of rent-to-own schemes, providing tax incentives to companies focusing on affordable housing and the setting up of a National Affordable Housing Council to be chaired by the prime minister.
“HBA also fully supports any measures to reform the 1Malaysia People’s Housing Scheme (PR1MA) as it has deviated from its original and noble aspirations to provide affordable housing.”
Notably, only 50 percent of the allocated land area is set aside for affordable homes under the present partnership of PR1MA with developers.
He believes that reforming PR1MA would eliminate exploitation by crony property developers at the expense of the people and the government.
It was revealed last August in the Dewan Rakyat that only 8,475 PR1MA homes was completed out of the 500,000 units promised by the Barisan Nasional government since 2013.