Factors Affecting Housing Developers' Readiness to Adopt Innovative Systems

To tackle the problem of abandoned housing projects and improve the quality of housing, the Malaysian Government has proposed a new housing delivery system known as Build Then Sell (BTS). To encourage BTS, the government has introduced a fast-track planning approval process, a waiver of a deposit for a developer's license and an exemption for low-cost houses. However, many developers are reluctant to implement BTS. This study aims to identify factors that influence housing developers' readiness to implement BTS. Readiness theory has been used to construct a housing developer BTS readiness model. A questionnaire-based survey was carried out with developers in the major cities of Malaysia. Statistical analyses such as descriptive analysis and multiple regression analysis were used to analyse the data. The findings here revealed that external support and market readiness are the two most important factors influencing Malaysian developers' readiness to implement BTS. This implies that reassessing government incentives, educating home buyers about BTS and improving the role of finance institutions will help to facilitate the implementation of BTS in Malaysia.