- 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.