M'sia freezes luxury property projects to address glut

[Johnrambo]

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

 

[Rogue Trader]

Najip tried to use the same sinkie formula to grow GDP but Xi Dada already bolted the door shut

 

[Bonut]

I am thinking of using a relative's Malaysian citizenship to buy a landed property around KSL which can be used as a shop. I have seen many converted those residential houses to SPA, car wash etc.

 

[JohnTan]

What kind of idiot will spend $200k on a property in mudland when the trend is for the islamists to take over and turn the country into some failed state?

 

[Devil Within]

What kind of idiot will spend $200k on a property in mudland when the trend is for the islamists to take over and turn the country into some failed state?

Good question.