individual
purchaser, should
the project become
abandoned. Put another
way, 10:90 is better than 100:0
and abandoned
.” However, Saran adds
that amajor shortcoming with government
agencies is its “enforcement”. “
If there is no
professional enforcement of the laws and
equity, any system, however wonderful,
will still fail
. ‘Blind eye’ civil servants are a
national menace. Will they really get a firm
grip of the new systemand ensure fairness
and equity for all? Howmuch helpwill
purchasers get if a project is abandoned under
BTS?” she wonders.
“We don’t see any reasonwhy theremust
be two systems. Developers say that BTSwill
result in higher house prices but we have
never seen any professionally produced
comparison figures. If this is genuinely a real
issue, the
developers should produce
simple examples based on verifiable data
.
Prices can’t be as high as the price of a house
in an abandoned scheme. Financially, the
principal and interest continue on bank loans;
rent is payable because you cannot occupy
your own homes; top-up payments charged
on rehabilitation (if you are lucky enough to
get rehabilitation and can afford it) and the
government fails to collect its dues in terms
of assessments, etc. A purchaser’s money is
freemoney for developers. It is seemingly
invisible when lost. If BTS had been enforced
back in 2003, I would nowbe living inmy
own home and not looking at a decade-long
rent bill or having to go through the anguish
and distress victims likemyself experience.
Such a changemay help the industry rid
itself of errant developers and in turn,
take its place as an internationally
respected body
.”
Follownext week’s article for more views
from the people and the housingministry.
CUT AND KEEP
JUNE 13, 2014
Please email your feedback and queries
to:
W
hile
last week’s column
touched on the peoples’
views, through the National
House Buyers’ Association
(HBA) vice-president, this week,
we consider the developers’ perspective,
via Rehda president Datuk Seri
Michael Yam, along with twomembers
of the public.
Representing the developers
“I
disagree on the implementation
of BTS 10:90 as the one and only
system
. Reason being:
BTS cannot
guarantee the cessation of abandoned
projects. Instead, it would result in
an increase in costs, affecting prices
of houses to increase
,” stated Yam,
sure and unwavering in his reply.
He expounds further saying that the
implementation of
BTSwould have
serious repercussions on the housing
industry, particularly on the supply
and demand equilibrium
. “The smaller
developers will be the worst off, and likely
to be forced out of business as the huge
equity requirement and loan exposure
under the BTS systemwill pose as a
monumental barrier for them to invest
in housing development projects.”
The “demise” of these smaller players,
according to Yam, will inevitably lead to a
shrunken supply, causing a domino effect
>Contrastingviews on the housingdelivery system
seem to be encouraging.”
Yam’s final say: “
Implementation of BTS
as the only housing delivery system
shouldNOT bemademandatory but
both the BTS and STB should be allowed
to co-exist in the housingmarket
.”
Voice of the people
Themajority of the
rakyat
feel that the
nation is ready for BTS 10:90
. For many,
the concept would come as a very attractive
systembecause
it requires very little
money down
. Father of three, an
accomplished and experienced hand in the
advertising arena, nowhead liaison at
MainstreamGroup of Companies, Eddy Quay
shares his views: “The BTS systemcan
help
keep a lid on the number of abandoned
property projects
. It is one way to ensure
that buying a house is not as risky as investing
in the stockmarket. It
ensures that the
house is readywhen it is purchased and
that your dreamhome is not filledwith
cracks, in themiddle of nowhere, and is
20minutes from the city as promised.
”
Saran Kaur, a victimof an abandoned
property calledGenting Valleywhichwas
launched in 2000, is all for BTS. Until today,
having tried all ways andmeans possible - to
possess that which she (andmany others)
purchased, paid a down payment for, and are
still having to pay the bank for - she (along
with others) wait in vain. On BTS, Saran and
the Genting Valley Purchasers Group feel
relieved that the government finally appears
to be doing something about this issue that
affects millions of Malaysians. “
We believe
the BTS 10:90 is a better system than STB
as it reduces the quantumof loss to the
Part 2
For thebest of bothworlds
If
you yearn to return to lush green and
natural surroundings daily or perhapswork,
live andplay in an environment as such, look
over the urban forest city development by
IJMLandBerhad and its joint-venture
partner for this project, Amona
Development SdnBhd - Pantai Sentral Park.
Pantai Sentral Park is a 58-acre integrated
city developmentwith a gross development
value (GDV) of RM2.5 billion. The entire
township consists of seven residential and
six commercial phases. Thewhole
development is expected to be completed
within 10 to 15 years and is designed to
accommodate some 15,000 residents. Phase 1,
known as InwoodResidences, was recently
launched. It offers 211 residential
condominiumswith units ranging between
1,140 and 1,975 sq. ft. in size. These are
cleverly andmeticulously built to offer 2, 3,
3+1 and 4+1 bedroomunits.
InwoodResidences sits on 3.02 acres and
provides ample space to give one a sense of
comfort and freedom. Every unit has a
glorious viewof the city, forest or the pool.
Facilities and amenities are endlesswith the
enchanted forest landscaping amajor
highlight.
Said IJMLandCEOandmanaging
directorDatuk SoamHengChoon (
inset
) at
themedia briefing, “Pantai Sentral Park is
truly IJMLand’s jewel offering. It allows our
group, with our partnerAmona
Development SdnBhd, to create a next
generation township that truly embraces the
core values of ‘people, planet andpriority’,
by nurturing a vibrant and conscientious
community andnature-inspiredhub”.
The video presentation at the launch
captivated the crowd. It showcased a
township founded on green living,
seamlessly blending architecturewith
naturewhile focusing onmeeting the
lifestyle needs andwants of residentswho
will enjoy the surrounding’s unique lifestyle,
living next to a forest, yet remaining closely
connected to the city.
The lush green enclave of Pantai Sentral
Park is designed along the nature reserve of
Bukit Kerinchi. The developmentmaintains
the natural landscape
and terrain of the area,
andhas included in its
blueprint, a linear
forestwalk to connect
residents directlywith
the forest.
Carefully planned
andwell thought out,
the township is
pedestrian-friendly
with its green
connectors and
boulevards that
consider safety (in
accordancewith the
“Crime Prevention throughEnvironmental
Design [CPTED] approach) aswell as
reducing one’s carbon footprint. Awaterfront
sitewith aman-made lakewill serve as an
aesthetic feature, populated by various species
of fish and adornedwithworks of art.
Location of Pantai Sentral Park neednot be
spelt out, ideally situated betweenKL andPJ,
with easy accessibility tomajor highways and
in close vicinity to public transport hubs.
At the recent Asia Pacific PropertyAward
2014, Pantai Sentral Parkwon two five-star
awards for Best DevelopmentMarketing in
Malaysia andBest DeveloperWebsite inAsia
Pacific. It also received the highly commended
award for Residential LandscapeArchitecture
inMalaysia.
Formore information, log on to the
developer’swebsite.
on other supporting services, including but
not limited to related professionals, building
material suppliers, manufacturers, as well as
business andmarketing services.
Word has it that the Local Government
andHousingMinistry (KPKT) intends to
endorse both the STB and BTS housing
delivery systemprocedures (which as a
matter of fact, 16 developers have already
been using BTS for 49 housing projects). Yam
feels that the government is hard pressed by
many parties tomandatorily implement BTS.
“If they do go ahead to enforce BTS and only
BTS, there will be detrimental impacts which
REHDA has already informed themof. At
current pricing levels under the STB system,
increased costs have already placed houses,
particularly in urban areas, beyond the
affordability of many. BTSwill only aggravate
the current conditions. Instead of facilitating
future house ownership, BTSwill be a
burden to our younger population and future
generation,” says Yam, who also thinks this
could be the reasonwhy the government has
not made any firmdecisions on on BTS yet.
Yam shares about the countless
engagement sessions over the years, between
Rehda and the government, as well as related
stakeholders. He suggests that a new
financing approach to support the
implementation of the BTS be looked at.
“At present, bridging finance to developers
is given based on the developer’s ability
to show/prove the sales achieved
to date, apart from the developer’s
financial capability. Under BTS,
as no sales will be available yet,
to support the developer’s
financial statement, the probability
of getting a loan from the bank is
lower. Banks will be reluctant to
lend developers implementing
BTS due to higher credit risks and
exposure. And in less urbanised
states where the development
size is smaller, the scenariowill
be worse. Even if banks are
willing to lend, they are likely to
charge higher interest rates for
project financing (assuming they
are willing to lend) as their risks
will be higher under the BTS
system. This would inevitably
mean
higher costs to developers,
hence higher house prices
for buyers
. Initial responses
from financial institutions on
providing loans to developers
with a smaller capacity, also doesn’t
Property developers already using BTS in
their framework of delivering houses
1. Perbadanan Kemajuan Negeri Selangor (PKNS)
2. Bandar Utama Development Sdn. Bhd.
3. Dewan Bandaraya Kuala Lumpur (DBKL)
4. Hap Seng Land Dev. (Puchong) Sdn. Bhd.
5. Cekap Corporation Bhd.
6. Wijaya Spektra Sdn. Bhd.
7. Pine Properties Sdn. Bhd.
8. Metroplex Project Management Sdn. Bhd.
9. Syarikat Perumahan Negara Berhad (SPNB)
10. Muafakat Kekal Sdn. Bhd.
11. Urban Hallmark Properties Sdn. Bhd.
12. Petaling Garden Bhd.
13. Temasya Development Co Sdn. Bhd.
14. Sime UEP Development Sdn. Bhd.
15. Sime Darby
16. Franky Land Sdn. Bhd.
* List provided by Ministry of Housing and Local Government.
The
BTS10:90
concept
