The implementation of build first, sell later policy mean that developers will need to complete at least 10% of houses before they can open selling.
According to a statement in Parliament by the Minister for Housing and Local Government, the government is expected to amend the Housing Development (Control and Licensing) Act 1966 in the third quarter of 2022 and plans to gradually implement the build first, sell later policy from 2023.
Right now, many developers are selling homes before they start building them, and people can only see the homes being built through drawings. However, this may be phased out from 2023 onwards. The government will make it mandatory for developers to sell homes using a 10:90 build-first-sell scheme, meaning that developers will need to build 10% of the homes before they can open them for sale.
As the country’s economy is still suffering from the effects of the outbreak, mandating developers to build first and sell later is not appropriate for the time being. The Government will be looking in depth at the implementation of this policy.
In the National Housing Policy 2018-2025, the Ministry of Housing and Local Government has developed an action plan for a phased transition from sell first, build later to build first, sell later.
