Good construction practice, financial stability, preparation and scheduling, the significance of credibility, and brand awareness, can be related to the importance of selecting a good developer.
In 2018, in Malaysia’s property market, over 66,000 shiny new residential units were introduced. That figure represents tens of thousands of both high-rise and landed properties to meet the needs of homebuyers.
And behind every one of those, lies a developer of the property with a reputation to defend and a track record. In 2018, in Malaysia’s property market, over 66,000 shiny new residential units were introduced. To meet homebuyers’ needs, the number represents tens of thousands of both high-rise and landed properties. And behind each and every one of those, lies a property developer with a reputation and track record to protect.
What is the role of a property developer?
Often, the question addresses itself kind of! An entity or individual that invests in the construction or redevelopment of the property is a property developer. In addition to an appreciation of how to realize a reasonable return on investment, good land developers have a detailed understanding of zoning laws and building criteria.
Property developers may then convert the area into a new apartment block, glittering mall, or whatever is considered suitable (and lucrative) for a given location by buying vacant or underused land/buildings.
Securing the initial financing for a project is a vital part of a property developer’s business, which might seem doable if you are redeveloping a few pastel terrace houses.
Why is it important to choose a trustworthy developer?
Although Malaysia’s property development industry is mostly driven by ethical, experienced, and trustworthy businesses, you should watch out for some dodgy developers! So, why does a successful developer matter so much? Here are a variety of reasons you want to ensure that a real expert works with your land.
1) Good construction practice
The best developers have considerable experience providing their customers with quality projects. They will have strong relationships with great architects, suppliers of materials, and building firms, ensuring at the end, you are far more likely to get a truly remarkable home.
2) Financial security
For a home buyer or property owner, there’s no greater fear than a project going bust. Abandoned ventures cause investors and buyers to experience substantial financial losses, especially if they have monthly loan repayments to deal with. Suppose you devote your money from the bottom of the road to Bob, the builder. In that case, you have much less financial protection than trusting a multi-billion Ringgit property developer in Malaysia with fifty years of industry experience.
3) Planning and scheduling
Property is a large investment, which sometimes needs a substantial downpayment upfront. During the construction process, when buying a new home, the financial outlay is weighed up against the number of time you have to wait to obtain your house.
Since you’re probably coughing up cash for stuff like a rental and home loans, you want to know that a property will be delivered on time. Therefore, the better and more experienced a developer is, the more likely their targeted deadlines will be met.
4) The value of reputation
A good thing is an excellent reputation, in more ways than one. Not only are the top developers dedicated to producing projects without bugs, but they are also far more driven to address any issues if they occur. Malaysia’s best developers want to maintain their credibility for being Malaysia’s best developers. That means that during periods such as obtaining vacant possession of a house, they are less likely to risk their reputation being tarnished by ignoring consumer concerns or avoiding fixing issues.
5) Brand recognition
It’s impossible to ignore the importance of brand awareness as a property investor. If you’re buying a property one day to make money off it, it’s a powerful part of the story to have the prominent name developer behind you. For all the reasons we’ve mentioned above, home buyers want to buy properties from top developers.
The importance of research and the APDL License
In Malaysia, not every property developer will achieve top developer status, but the APDL License is one thing they should all have. For landowners, the Advertising Permit and Developer License (APDL) is a legal requirement when selling property. It’s an official approval received from the local housing ministry to confirm that they have permission to advertise and sell the property in question.
When you see an advert for a property development, the ADPL should form part of this message. It should include:
- Validity period
- Project name
- Land tenure
- Projected completion date
- Minimum and maximum price
- Building plan number
Alarm bells can ring if you don’t see an ADPL. But it may be just that the marketing department had a low day and forgot! Even, it’s better than sorry, to search and be safe. What’s even more important is that you do your homework! Find out as many details as you can about developers and their previous projects.
To see if they’ve won honours, take a look at developer websites, a sure sign they’re among the crop’s cream. Please have a little analysis of news pieces as well; poor developers tend to come up with public grievances, much like how good developers tend to be released for the fantastic projects they’ve completed.
What goes wrong with the wrong developer?
The list of concerns and grievances is a long one about selecting the wrong developer. Taking ownership of a home that does not live up to standards is a hugely painful experience at the most fundamental stage. Some individuals aren’t even fortunate enough to get the property they have paid for.
A developer filing bankruptcy or abandoning a building is an awful way to end a real estate investment. You will not get your house, but you’re also very unlikely to get back your money, too.
Persistent issues and concerns about health and safety can seriously undermine your satisfaction when you obtain your house. And if a developer is inconsistent enough to have a poorly finished house, when it comes to correcting those errors, they are probably unreliable too.
The Malaysian property industry is now run by awesome developers delivering awesome projects to the people by-and-large. That’s awesome because we all love to call ‘home’ a safe spot. When it comes down to it, top property developers can display consistent and conscientious developments that deliver on their promises.