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Readiness of Private Housing Developers and Financial Institutions to the Build Then Sell Concept

Page 1 of 25
Readiness of Private Housing Developers and Financial Institutions to the Build Then Sell Concept

Associate Professor Dr Nor ‘Aini Yusof,
School of Housing, Building and Planning
Universiti Sains Malaysia,
11800 Penang.
MALAYSIA
Email: ynoraini@usm.my

Abstract
This research assesses the readiness of private developers and financial institutions in Malaysia to implement or support Build Then Sell (BTS). A generic model of BTS readiness and factors influencing it, was developed to analyze the BTS readiness of developers and financial institutions in Malaysia. A questionnaire survey was carried out to assess developers’ readiness to implement BTS. Elite interviews were conducted to assess the readiness of financial institutions. Statistical analysis consisting of descriptive analysis, Pearson correlation analysis and multiple regression analysis was used to analyze the survey data. The interview data were analyzed using a content analysis technique. The results revealed that developers are partially ready towards BTS and not all financial institutions seem eager to support BTS in Malaysia. Only the Islamic financial institutions were truly optimistic about BTS. External support and organizational factor are the two determinants for Malaysian developers’ readiness to implement BTS. On the ther hand, the financial institutions asssert the importance of market demand to ensure BTS can be succesfully implemented. Keywords: organizational readiness, housing developers, financial institutions, build-then-sell

INTRODUCTION
The government has proposed that a Build Then Sell (BTS) concept be implemented in Malaysia, seeing BTS as the best way to solve housing woes such as late delivery of houses, poor housing quality and abandoned projects. The government has offered some incentives to encourage developers to use BTS, and some developers have already implemented BTS in Malaysia. Yet many developers are reluctant to implement BTS. This hesitant from...