MP13: Govt to curb abandoned housing projects with build-then-sell model
'While this may pressure developers' balance sheets, financially stronger players are poised to benefit. The plan also highlights strategic industrial zones like JSSEZ, Kulim Hi-Tech Park and Carey Island, which are well-positioned due to infrastructure and location, in our view,' said Maybank Investment Bank.
In our view, the BTS approach will help to reduce the risk of abandoned projects, encourages careful planning and better product quality to attract buyers.
It may also address the oversupply issue by discouraging reckless launches and promoting more responsible, demand-driven development.
However, the BTS model could weigh on developers' balance sheets, as financing must be secured before construction begins.
The existing and new industrial parks/zones are poised to reshape the industrial investment landscape, intensifying competition as investors gain more choices and states offer varied incentives.
We see JSSEZ, KHTP and Carey Island as the most competitive due to their strategic location to Singapore (JSSEZ) and Penang (KHTP), as well as strong infrastructure (Port of Tanjung Pelepas, upcoming JB-Spore Rapid Transit System [RTS] and Carey Island Port).
Risk to our calls are such as the weaker-than-expected property sales dragged by weaker economic outlook, policy risks, stricter lending measures by the banks, higher-than-expected Liquidated Ascertained Damages compensation following latest ruling by the Federal Court, and rising building material costs and labour issues. —Aug 1, 2025
Main image: Tekkashop
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