Houses To Cost More Under Build-And-Sell Concept.
Houses will cost more under the build-and-sell concept compared to the present sell-and-build concept due to the higher production cost and the risks entailed, says Deputy Housing and Local Government Minister Datuk Azizah Mohd Dun. The price hike was also due to the higher project financing and market speculation. Banks are more selective in granting loans to developers due to the speculative elements in the projects.
The shrinking of the housing sector in the National Gross Domestic Product had a far reaching impact on the contractors, professionals and workers in the housing industry. Almost 150 sectors in the upstream and downstream activities of the housing industry would be affected by the shortfall and the expected hike in the inflation rate.
The prevailing condition had dampened the developers' keenness to build low-cost houses if there were no precondition or quota imposed for such houses. On the positive side buyers would not need to withdraw their savings and apply for loans to buy houses which were still under construction under the build-and-sell concept.
**** Well, any way you look at it, buying a house is still going to be a traumatic experience for the average Joe. The mega rich of course will continue to purchase without batting an eye, even if they are quoted astronomical prices, as long as they can 'show off' to the Joneses. Why we have to pay so much more for housing when even compared to advanced nations is a mystery to me. I've been told that to keep the construction industry healthy and kicking the government too 'closes one eye' to unfair pricing while at the same time mouthing platitudes.
We have a housing ministry that behaves like a clawless tiger which either has very little real power to rein in errant developers or lacks the will to do so. They make a lot of noise from time to time, but when it comes to 'action station' they somehow always feel justified in agreeing with the developers' arguments. Now we've been told that the build-and-sell idea, touted earlier as the concept to end all other concepts, is more expensive. You see, if we want we can justify just about anything under the sun. It is up to the government to protect us and not only look after the welfare of the builders.
The shrinking of the housing sector in the National Gross Domestic Product had a far reaching impact on the contractors, professionals and workers in the housing industry. Almost 150 sectors in the upstream and downstream activities of the housing industry would be affected by the shortfall and the expected hike in the inflation rate.
The prevailing condition had dampened the developers' keenness to build low-cost houses if there were no precondition or quota imposed for such houses. On the positive side buyers would not need to withdraw their savings and apply for loans to buy houses which were still under construction under the build-and-sell concept.
**** Well, any way you look at it, buying a house is still going to be a traumatic experience for the average Joe. The mega rich of course will continue to purchase without batting an eye, even if they are quoted astronomical prices, as long as they can 'show off' to the Joneses. Why we have to pay so much more for housing when even compared to advanced nations is a mystery to me. I've been told that to keep the construction industry healthy and kicking the government too 'closes one eye' to unfair pricing while at the same time mouthing platitudes.
We have a housing ministry that behaves like a clawless tiger which either has very little real power to rein in errant developers or lacks the will to do so. They make a lot of noise from time to time, but when it comes to 'action station' they somehow always feel justified in agreeing with the developers' arguments. Now we've been told that the build-and-sell idea, touted earlier as the concept to end all other concepts, is more expensive. You see, if we want we can justify just about anything under the sun. It is up to the government to protect us and not only look after the welfare of the builders.
posted by The Malaysian. at 7/05/2006 07:30:00 PM
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