KUALA LUMPUR The Malaysian government has frozen approvals for luxury property developments indefinitely from Nov 1 to control the national oversupply of houses and prevent it from adversely affecting the economy.
Second Finance Minister Johari Abdul Ghani said yesterday that the cabinet decided this after scrutinising a detailed central bank report published in June on the real estate glut, reported The New Straits Times.
"The Bank Negara report takes into account high-rise condominiums, shopping malls and commercial units, including those that are worth more than RM1 million (S$325,745)," he said after an event in Kuala Lumpur.
As a result, the minister explained, the Cabinet decided to temporarily stop developments of shopping malls, commercial complexes and condominiums that sold their units above RM1 million.
"This will be temporary until we can clear all the excess supply.
"There is a stark imbalance between supply and demand and we have to review the strategy in real estate development as we do not want such a situation to adversely affect the economy."
More at http://www.tnp.sg/news/business/msia-freezes-luxury-property-projects-address-glut
Second Finance Minister Johari Abdul Ghani said yesterday that the cabinet decided this after scrutinising a detailed central bank report published in June on the real estate glut, reported The New Straits Times.
"The Bank Negara report takes into account high-rise condominiums, shopping malls and commercial units, including those that are worth more than RM1 million (S$325,745)," he said after an event in Kuala Lumpur.
As a result, the minister explained, the Cabinet decided to temporarily stop developments of shopping malls, commercial complexes and condominiums that sold their units above RM1 million.
"This will be temporary until we can clear all the excess supply.
"There is a stark imbalance between supply and demand and we have to review the strategy in real estate development as we do not want such a situation to adversely affect the economy."
More at http://www.tnp.sg/news/business/msia-freezes-luxury-property-projects-address-glut