The knowledge, practices and challenges of developers in housing delivery systems in Malaysia

Abstract

There are various types of housing delivery system in Malaysia which are Sell Then Buils (STB), Build Then Sell (BTS), 10:90 System (10:90) and 5/95 Home Loan Package (5/95). It is reported that most of the developers are practising the conventional system which is STB. In this context, it is important to justify developers’ circumstance and the rationales of their preferred and practised housing delivery system. The objectives for this study are threefold. First, to determine the knowledge of developers about the different types of housing delivery system in Malaysia. Second, to identify the common types of housing delivery system currently practised by developers and third, to determine the challenges faced by developers in the implementation of different types of the system. The data and information needed in this study were obtained from the questionnaire returned by 20 developers out of 32 in the scope of study, Johor Bahru. Contingency Table Analysis was used to obtain the findings for the first and second objectives; whereas the third objective was studied via the average mean score and ranking method. The findings revealed that most of the developers only knew and practised STB but lacking in the knowledge and information for another three types of housing delivery system. Although they are practising STB, not all of them have good understanding about it, especially regarding the party to bear the risk of abandoned housing project. It was also found that the burden of financial sources and inherent risk of project are among the main challenges faced by developers to not implement BTS, 10:90 and 5/95. This study would serve as supplement information for developers, government agencies, and house buyers to gain better insight on the reasons for developers’ reluctance to adopt the proposed housing delivery systems. With that, the existing housing delivery system can be improved further.