Menu

The build-then-sell (BTS) housing model — where developers complete construction before marketing or selling units — has reappeared at the centre of Malaysia’s housing debate after proposals in the recently tabled 13th Malaysia Plan. 

Proponents say build-then-sell protects buyers and reduces abandoned projects; critics warn it could raise development costs and limit supply. 

This article explains what build-then-sell means for Malaysia, highlights the data behind the discussion, and sets out Raine & Horne’s view on a balanced way forward.

What is build-then-sell (BTS)?

Under the build-then-sell approach, developers finance and complete construction before transferring ownership to purchasers. This contrasts with the conventional sell-then-build (STB) model in Malaysia, where early-stage pre-sales and progress payments help fund construction. 

BTS is designed to give buyers confidence that projects will be finished before ownership changes hands.

Why BTS is back on the policy table

The 13th Malaysia Plan recently signalled stronger policy attention on housing delivery and quality. Among the measures proposed is a possible amendment to the Housing Development Act to encourage — and in some reports, mandate — the build-then-sell model as part of steps to curb abandoned projects and unsold stock.

There are real reasons for urgency. The government’s Task Force on Sick and Abandoned Private Housing Projects (TFST) reported hundreds of delayed, sick and abandoned projects that together represent significant gross development value — a reminder that project failures carry real social and financial costs.

In early 2025, the TFST identified and monitored 230 delayed projects, 347 sick projects and 116 abandoned projects.

The argument in favour of BTS — buyer protection and fewer abandonments

Advocates of build-then-sell say the model reduces the risk of buyers losing deposits or waiting years for keys when projects stall. 

Completing projects before sales boosts transparency, builds consumer confidence, and, in theory, strengthens the sector’s overall credibility. This is the key public-interest rationale behind the policy discussion in the 13MP.

Risks of mandating build-then-sell: what industry observers warn

While buyer protection is important, mandating build-then-sell across the board may bring significant unintended consequences:

  1. Higher financing costs for developers — Without progressive buyer financing, developers must fund construction upfront or take on larger borrowings. That increases financing costs and is likely to be passed on through higher selling prices. Industry analysts have warned of increased financial strain and earnings volatility under mandatory BTS.
  2. Greater development risk borne by developers — Developers carry the full development risk until sales occur, which can force more conservative pricing or risk-adjusted margins to preserve viability.
  3. Fewer new launches and lower supply — Smaller or mid-sized developers may not have the balance sheet to adopt BTS, reducing the number of new projects and competition, a potential driver of higher prices. Analysts and broker reports note that BTS could concentrate supply among larger, capital-strong firms.
  4. Market concentration and price setting — If only a handful of large developers can adopt BTS at scale, competitive pressure may fall, and price discovery could be affected.

These trade-offs suggest that while build-then-sell can help address specific failures, a blanket switch without mitigations could hurt affordability.

Two graphs showing overhang of residential units in Kuala Lumpur and Selangor respectively, illustrating the efficacy of build-then-sell implementation.

It is important to view BTS in context. Malaysia’s residential overhang (completed but unsold units) has been gradually improving in recent reporting, suggesting some market rebalancing in parts of the country — but structural pockets of unsold inventory remain, especially in certain states and segments. National and industry data show overhang numbers declining year-on-year, but still material in value and volume.

Separately, TFST recovery efforts have managed to revive a number of sick projects, demonstrating that enforcement, targeted interventions and recovery mechanisms can work alongside market mechanisms to resolve problem developments. In early 2025, the TFST reported progress in reviving projects, underscoring the role of active monitoring and remediation.

Raine & Horne’s view: a balanced, evidence-based approach

Raine & Horne supports measures that protect buyers and strengthen market confidence, but we caution against one-size-fits-all mandates for build-then-sell. A more balanced approach would include:

  • Targeted adoption: Encourage BTS for specific high-risk segments (e.g., large, speculative high-rise launches or projects with weak pre-sales history) rather than a blanket rule.
  • Stronger feasibility & market studies: Require independent market and feasibility studies during approvals, so developers can better match product to demand and pricing. This reduces the likelihood of mispriced projects and project failures.
  • Enhanced monitoring and enforcement: Strengthen regulatory oversight, project reporting and faster remedial action via the TFST or similar bodies. Evidence shows active recovery and enforcement can revive projects and return units to the market.
  • Financing support and transitional measures: If BTS is encouraged, consider financing facilities, risk-sharing mechanisms (for example, 10:90 or similar hybrid models) and phased implementation to avoid sudden market shocks. Some policy proposals discussed alongside RMK13 reference risk-sharing BTS variants for this reason.

Conclusion — BTS is a tool, not a panacea

The build-then-sell model brings clear buyer-protection benefits, but it is not a universal cure for oversupply, abandoned projects or affordability challenges. Policymakers should weigh the trade-offs carefully. At Raine & Horne, we advocate for a pragmatic, data-driven approach: use BTS where it reduces demonstrable risk, strengthen market assessment and enforcement, and provide support measures so housing remains affordable and supply healthy.

If you’re a developer, investor or buyer and want a data-led assessment of how BTS may affect a project or portfolio — from feasibility and valuation to market positioning — Raine & Horne can help with independent market studies, valuation, and project advisory tailored to Malaysian market realities.

Real Estate Analyst, Research & Consultancy

Job Description:

This candidate would be positioned under the Research and Consultancy Department. He / She is expected to be a highly self-motivated individual, team player with excellent communication skills and actively participate in both departments and company’s discussions and events.

The candidate is expected to be involved in works ranging from the collection and analysing real estate transaction data, conducting market research and financial analysis, upkeep and upgrade of database from time to time, and producing market and feasibility reports and real estate publications. clients.

Responsibilities:

  • To gather, process and analyse real estate transaction data.
  • To undertake market research and conduct feasibility study through analysing demands, trends & pricing mechanism of various development components.
  • To be involved in undertaking market surveys and analyse data findings
  • Jointly ensure all data bank updated and well maintained.
  • To keep update on the relevant market updates relating to real estate industry and local economic performance.
  • To produce market insight and feasibility study reports and publications.

Requirements:

  • Candidate must possess at least Bachelor’s Degree/Post Graduate Diploma/Professional Degree in Real Estate Management or equivalent.
  • MUST be a team player with strong interpersonal skills and good working etiquette.
  • MUST be a team player with strong interpersonal skills and good working etiquette.
  • Strong numeric and analytic skills with attention to details
  • Candidate with real estate valuation experience is encouraged, fresh graduates are welcome to apply.
  • Possess own transport with a legitimate driving license, and willing to travel.

Salary Range:
RM 2,800 to RM 3,000

 

Kindly state your expected salary upon application. Salary negotiated and offered shall be based on candidates experience and capability.

 

Interested candidates are welcome to apply for this position. Kindly email your CV and expected salary

Contact Us

Marketing Executive

Job Description:

This candidate would be positioned under the Research and Consultancy Department. He / She is expected to be a highly self-motivated individual, team player with excellent communication skills and actively participate in both departments and company’s discussions and events.

He / She is expected to have full knowledge and understanding of the way the Research and Consultancy Department works in order to relay the best impression of the department’s product and services to the prospect clients.

Marketing Executive:

  • Perform all marketing duties (prospect planning, marketing pitch presentation, and follow through marketing progress)
  • Assist HOD in preparation of marketing materials and kits relating to product and services provided by the department.
  • To identify and manage good rapport with relevant/potential JV partners for prospect client’s land bank future development.
  • To implement & execute all marketing strategies approved.
  • To organize, coordinate, follow up and monitor the prospect clients’ business growth and keeping good rapport with the prospect clients.
  • To understand and compile customers' feedback and requirements for future improvements of product & services offered.
  • To prepare monthly marketing progress report.

Requirements:

  • Candidate must possess at least Bachelor’s Degree/Post Graduate Diploma/Professional Degree in Business / Property Development/Real Estate Management or equivalent.
  • Must be a team player with strong analytical skills and good working etiquette
  • Natural communicator with excellent negotiation, persuasive and interpersonal skills at all levels as well as effective presentation skills.
  • Candidate with related work experience with good command of English is preferred. Proficiency in Mandarin is an added advantage.
  • Willing to travel and possess own transport.

Interested candidates are welcome to apply for this position. Kindly email your CV and expected salary

Contact Us

REGISTERED VALUERS


Requirements

  • Candidate must possess at least a Professional Certificate in Property Development/Real Estate Management or equivalent.
  • Must have a registered license with the Board of Valuer, Appraisers and Real Estate Agents Malaysia which allows the candidate to practise as a Registered Valuer or Estate Agent.
  • At least 2 year(s) of working experience in the related field is required for this position.
  • Applicants must be willing to work in Kuala Lumpur/Melaka
  • Successful candidates will be offered an attractive remuneration package with incentive scheme and prospects of partnership in the company.
  • Applicants should be Malaysian citizens.

Interested candidates are invited to submit a detailed resume including personal details, qualification, working experience, present & expected salary, a recent passport-sized photograph and contact number either by mail, e-mail. Please click contact us button

Contact Us
Main Menu
Main Menu