| Summary: | The awaited anticipation of home ownership by the middle-income group in Malaysia has
been marred by the stigma of abandoned housing developments. Abandoned projects are
known to cause environmental degradation since most project sites are stripped of their
green covers that cause speedier surface water runoffs into drains and streams. Those
projects are becoming significant and are further negating the image of the construction
industry in the country. The latest solution that was proposed to overcome this problem is the
implementation of the Built then Sell (BTS) concept, which was launched by the Prime
Minister in 2004. However, the proposal seems not well received by many developers,
including the Real Estate and Housing Developers’ Association (REHDA). The purpose of
this paper is to develop a theoretical model on how we could address the problem of
abandoned housing projects. Through literature survey, we intend to identify key elements in
understanding the phenomenon and develop some theoretical point of departures for
alleviating this problem through creative financial modeling. We are proposing the inclusion
of sustainable elements into the financial model that we believe could provide incentives to
housing developers and other stakeholders involved. The paper will compare and analyze
existing BTS concepts from the Australia and other country. It will extract the key
components and reasoning behind their inclusions so that we can make informed
recommendations for BTS implementation in the Malaysian context. The analysis will then
guide us in recommending key construct for further integration with the Malaysian Agenda 21
policy. This paper contributes towards the development of a financial model for developing
affordable quality housing in Malaysia.
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