Malaysia puts indefinite freeze on approval of luxury property projects

Condominiums being built at Jalan Skudai in Johor Baru
The Straits Times

Malaysia has imposed an indefinite freeze on approvals for luxury property developments to control a nation-wide oversupply of luxury projects, the New Straits Times (NST) has reported.

On Sunday (Nov 19), Second Finance Minister Johari Abdul Ghani was quoted by NST as saying that a Bank Negara report on the glut took into account “high-rise condominiums, shopping malls and commercial units, including those that are worth more than RM1 million”.

As a result, the government has temporarily halted development of shopping malls, commercial complexes and condominiums priced above RM1 million a unit.

Explaining that the freeze is a indefinite but temporary measure, the minister also said that there is currently a “stark imbalance between supply and demand”.

“We have to review the strategy in real estate development as we do not want such a situation to adversely affect the economy,” he added.