20190219 (Tue)
Can you ask your boss if I just buy the land, and not the house?
If you have been to a project sales, you might get this kind of question from a potential buyer. For under construction project, the house is not yet erected. Hence, there might be buyers who just want to buy the location, but do NOT need a house.
There are also some developers who sell plots of land without building. Some are in fact, pockets of lands among a matured garden. So, it is common that people might consider buying the land and build their own house later on.
For project sale, this is impossible. There are two major reasons:
- That the whole land has been approved for a project, and only when the project is completed that the land office will issue individual title to the houses. When any of the detailed project is incomplete, the land title will not be issued. Therefore, it would be impossible for the developer to just sell some land and jeopardise the whole project.
- That most construction of projects had been detailed as parcels to the subcontractors in various contracts. A change to that will render the entire contract under jeopardy. Some of these contracts has clauses when penalty can be substantial.
In short, when there is value in the land, the developer will enhance the land, and not just sell the land. Developers are not land traders.
