Build and Sell Policy

(Group 7)

Members:
Rafiezatul Hanie Binti Rosdian
Nor Azlina Zulaika Binti Mustafa Yasin
Nurin Zulaikha Binti Zulhisham
Nur Nabihah Binti Othman
What is Build and Sell Policy ?
Who Involves in Build and Sell Policy ?
 Why does Build and Sell Policy is being
Implemented ?
The Build and Sell Policy (BTS) is being implemented because
the conventional concept which is Sell and Build Policy (STB) has
contributed to various types of problems, mainly to the house
buyers.

The failure of the developers to complete the project within time,

make the government introduce the new concept.

This new policy can protect the buyers right.

Foreign people can highly participated in buying the house from

Malaysia.

So, the BTS is to help solving the problem of house buyers from
not getting their homes due to the abandoned projects.
 When did Build and Sell Policy is being
Implemented ?
In 2006, the government agreed to introduce a housing project using the "build and sell"
concept with a trial period of two years with a package of incentives offered for developers
who adopt BTS.

In 2007, the build and sell concept has been launched in order to overcome the problem of
abandoned housing projects that had caused hardship to some of the buyers.

In 2012, it has been announced that all developers will be required to implement build then
sell concept began in 2015 in order to avoid an abandoned projects.

In 2014, the government decided that BTS concept for housing is not required to be
implemented to avoid to stabilize house prices in the market and avoid shortages.
 Where did Build and Sell Policy is being
Implemented ?
Many of the developed countries such as Singapore and Thailand
have been succeed implemented Build and Sell policy.

“If other countries like Thailand could succeed with the Build and
Sell Policy, we do not see why we could not do it in this ‘Boleh
land’ of ours” – Malaysia’s Prime Minister (27/5/2004).

In Malaysia, there are also certain developer that already using
Build and Sell in their framework of delivering houses.

 Example of project use Build and Sell concept

i. Project Taman Panchor Utama, Nibong Tebal, construction and
completion 140 unit Semi-D single storey (2012)
ii. Project Taman Sri Rampai, Setapak, construction and completion 70
unit Terrace House Superlink 3-storey. Joint venture between Bolton
Bhd and CRSC Property Sdn Bhd.
 How to Differentiate between Build then Sell and Sell
then Build Policy ?
Build then Sell
(BTS)
Upon signing the The house purchaser pay 10% of the
Sale and Purchase purchase price first and then pay the
Agreement (SPA) remaining 90% of the purchase price
upon the completion of the house with
certificate of fitness issued.
Sell then Build
(STB)
The house purchaser pay 10% of the
purchase price upon the signing of the sale
& purchase agreement and the remaining
90% progressively paid to developer.

Buyers completing Must be complete project within time The payment will be paid progressively
payments period according SPA date and according SPA signing.
(Remaining 90%) depending on the regulated contract of Example: 10%, 15%, 10% 10%, 10%,
sale. 5%, 5%, 5%, 12.5%, 2.5%, 5%

How developer The developers not be financed by buyers The property buyers have to finance
finance the project & have to obtain financing aid from bank in developer during the construction of the
during the order to finance project up to completion project.
construction stage

Duration of The project will be running according The project may not running smoothly
Construction Period construction period agreed in contract according the contract agreement and
agreement although delay in completion probability to be abandoned by
maybe occur. developer is higher.
 Conclusion

In a nutshell, Build and Sell Policy has its own

advantages and disadvantages same goes to the
Sell and Build Policy. But the different is the
BTS give more benefit to the buyers while STB
give more benefit to the developers.
Any questions ?
Thank you 