Strategies to implement the “build then sell” housing delivery system in Malaysia

Abstract

The “Build Then Sell” (BTS) system is a new housing delivery system introduced by the Malaysian government in which housing developers must complete a housing project before selling individual houses to buyers. This new system differs from the current “Sell Then Build” (STB) system, which allows developers to sell houses and collect progress payments while housing is being built and thus is not yet fit for habitation. Even though the so-called BTS system is the norm in other developed countries, it is still very much a foreign idea in Malaysia. In April 2007, the government announced that the BTS system would run in parallel to the conventional STB system for trial period of two years, with a package of incentives offered for developers who adopt BTS. Clearly, more work needs to be done before the BTS system can become a reality. This paper explores strategies for facilitating the full implementation of BTS in Malaysia. To accomplish this goal, a series of focus group interviews was conducted with all the main stakeholders in the BTS system. A number of strategies to make the BTS implementation a success are outlined and discussed.