By DayakDaily Team
KUCHING, Sept 10: The sell-then-build (STB) system remains the most practical and sustainable choice for Sarawak, as a shift to a build-then-sell (BTS) model could hurt housing affordability and slow development.
Sarawak Housing and Real Estate Developers’ Association (Sheda) advisor Dato Sim Kiang Chiok said the current STB model, where homes are sold before construction, is uniquely suited to Malaysia, including Sarawak’s housing needs.
“It has enabled millions of Malaysians to own homes at a lower entry cost compared to countries that require developers to build before selling.
“Sarawak’s housing market needs a system that encourages more suppliers, supports affordability, and matches our stage of development. The sell-then-build system, backed by law, banks, and healthy competition, remains the most practical and sustainable choice,” he said in a statement today.
Sim explained that STB spreads risk among developers, buyers, and banks. Laws such as the Housing Development (Control and Licensing) Ordinance 2013 in Sarawak and the Housing Development Act (HDA) in Peninsular Malaysia protect purchasers by ensuring developers are licensed, contracts are standardised, and funds are closely monitored.
“Purchasers are safeguarded not only by banks through progressive financing but also by strong legal protections,” he said.
The system also allows small and medium-sized developers to participate, increasing competition and keeping prices affordable.
“They can enter the market without raising the full project capital upfront. More developers mean more competition, which stabilises prices and ensures better affordability for homebuyers,” he added.
By contrast, the BTS model places nearly all risk on developers, meaning only large, well-capitalised companies could participate. “This would push out small and medium-sized developers, who currently supply a large share of Sarawak’s housing. With fewer suppliers, competition shrinks, and prices inevitably rise—hurting first-time buyers most,” he warned.
With strong housing demand driven by rural-to-urban migration and population growth, Sim said implementing BTS now could slow development and worsen the supply-demand gap when more homes are urgently needed.
His remarks came in response to the federal government’s proposal to amend the Housing Development Act 1966 under the 13th Malaysia Plan (13MP), which may make BTS mandatory or introduce hybrid schemes such as the build-then-sell 10:90 model, where buyers pay 10 per cent upfront and the remaining 90 per cent upon project completion.
“The way forward is not to dismantle the sell-then-build model but to strengthen it. Stricter enforcement against errant developers and stronger consumer awareness will ensure buyers remain protected while developers of all sizes continue to supply affordable housing,” he said. — DayakDaily
