How to buy quality housing

Focus MALAYSIA WEEKLY ISSUE 058

THE WEEK OF JANUARY 11, 2014 – JANUARY 17, 2014

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Value from the largest investment of one's life is critically important

IN the current Malaysian housing market, where the price of houses has risen beyond the reach of many middle-income families, getting value from the largest investment of one’s life has become critically important.

With the expected increase of building materials, electricity and fuel prices in 2014 and the still-known (GST) impact in 2015, the cost of construction is projected to rise significantly.  Squeezed between this construction cost increase and the ceiling of affordability for Malaysian households, developers are likely to reduce floor areas and downgrade quality as well as launch fewer projects, reduce their sizes or develop in phases.

Our concern is not with the downgrading of quality through reduced specifications but through the downgrading of “not-contracted” quality and the squeezing of the price of contractors and sub-contractors, resulting in lower-quality finished housing.  How do housebuyers protect their investment against this type of quality downgrade?  Below is a list of basic criteria housebuyers should look out for when evaluating their purchase.

The best option is, of course, to buy smart.  By this we mean buying only completed housing, whether through build-then-sell new houses or buying second-hand houses.  This is where what you see is what you get.  If, however, you are not technically competent, it is advisable to engage a professional to inspect and verify the house is in good condition and to point out patent and latent defects before purchase.  This is no different than getting a friendly mechanic to inspect a second-hand car before you buy it.  One source of such professionals is www.architectcentre.com.my, operated by the Malaysian Institute of Architects and the Australian Institute of Architects.

Another option is to buy only from a reputable developer.  These are usually developers who are registered members of the Real Esate Housing Developers’ Association of Malaysia (Rehda).  Check out the website, www.rehda.com, to see if they are listed.  These are developers who have a long record of completed, quality projects delivered on time; they are less likely to short-change on the quality of the completed housing as they have their reputation to protect.

The second factor to look out for is certification of projects.  Look out for projects with Construction Industry Development Board QLASSIC or CIS7 (Construction Industry Standard 7:2006), or Singapore equivalent Conquas, and check in the sales brochure for the confirmed standard, which should ideally be more than 75.  Another certification to look out for is the Industrialised Building System (IBS) score of the project, which reflects the extent to which the project is factory manufactured and assembled onsite, leading to higher and more consistent quality.  The IBS score should be better than 60.  This score usually correlates with the QLASSIC score, the higher IBS score usually meaning a better QLASSIC score.

Another certification is the Green Building Index (GBI) rating, which incorporates both QLASSIC an IBS ratings.  The projects should have a minimum GBI rating of silver but GBI gold is preferred and should incorporate both the above criteria in their design assessment (DAA) certifications.  DA is the assessment of the project based on its design specifications.  Look out for GBI score of 76 or better and you can be assured of a cooler, brighter and healthier home.  If you have any doubts regarding this certification, contact GBI at www.greenbuildingindex.org.

The third factor is the International Organization for Standardisation (ISO) certification of the project developer, contractor, architect and engineer.  Responsible, reputable and reliable companies usually go for certification by independent, third party bodies such as Sirim or its equivalent.  This assures customers they have proper systems and processes with which to check the quality of their design and implementation of their work, resulting in more reliable and consistent quality.  Check the websites of these companies for ISO9001 and ISO1400, which usually come with certification number.

Finally, above all, common sense must prevail.  If the offer is too good to be true it probably is.  Do not put down your hard-earned money – not even an earnest deposit – for projects not registered with the Ministry of Urban Wellbeing, Housing and Local Government.  Check that the project has a developer’s licence.  You can easily do this at the website www.kpkt.gov.my.

Finally, the house-buying public can get free advice from architects, engineers and other professionals about how to purchase their houses and problems they encounter every frist Saturday of the month at Pertubuhan Akitek Malaysia (PAM), where there is an architect-meets-the-public open house.  Check this out at our website, www.pam.org.my, under the PAM events calendar.  FocusM