Challenges in implementing the Build Then Sell (BTS) concept: developer's perspectives

The Build Then Sell (BTS) concept is a new concept introduced by the government where the developers have to complete a housing first and sell the houses once it completes to the house buyers. However, this concept totally different from the current conventional concept which is Sell Then Build (STB) as a familiar concept used by the developers in Malaysia. Furthermore, the adoption of the BTS concept as a housing delivery in Malaysia is an effort to tackle the problem of abandoned housing projects and to enhance the quality of houses. Even though, BTS concept seems to be beneficial to the house buyers but not to the developers. Under the concept of BTS, the developers are required a higher capital which are needed for more bridging loan and other financial institutions because the house buyers only pay an initial down payment 10 percent when booking a housing unit while the remaining amount will be paid after the houses are completed. Therefore, in 2015, the Urban Wellbeing, Housing and Local Government Ministry has decided that the plan to implement BTS concept will not be implemented next year. The aim of this research is to identify the challenges in implementing BTS concept by the developers. This dissertation is mainly focused on the developers who are involved in residential projects in Perak Tengah.