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Putrajaya: No U-turn on luxury homes freeze

KUALA LUMPUR, Nov 21— Putrajaya on Tuesday (Nov 21) denied that it has flip-flopped on its decision to freeze approvals for luxury property developments, saying that the ban will remain in place.

Houses under construction in Johor. Putrajaya denies that it has flip-flopped on its decision to freeze approvals for luxury property developments, saying that the ban will remain in place. Photo: TODAY file picture

Houses under construction in Johor. Putrajaya denies that it has flip-flopped on its decision to freeze approvals for luxury property developments, saying that the ban will remain in place. Photo: TODAY file picture

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KUALA LUMPUR, Nov 21— Putrajaya on Tuesday (Nov 21) denied that it has flip-flopped on its decision to freeze approvals for luxury property developments, saying that the ban will remain in place.

“There is no U-turn on the decision. It was something that has already been decided by the Cabinet,” The Star Online quoted Second Finance Minister Johari Abdul Ghani as saying.

Malaysia has temporarily frozen approvals for luxury property developments since Nov 1 due to a glut in the sector.

The temporary freeze affects shopping malls as well as commercial and residential developments which sell units at RM1 million (S$326,000) and above.

The move comes after Malaysia’s central bank warned that the country’s property market is facing an oversupply of non-affordable homes and idle commercial space, while demand for affordable housing is not being met.

There were 130,690 unsold units at the end of March this year, with 83 per cent priced at above RM250,000. Sixty one per cent of the unsold properties comprise of high-rise apartments.

The central bank pointed out Johor has the largest share of unsold residential units, followed by Selangor, Kuala Lumpur and Penang.

On Monday however, Works Minister Fadillah Yusof said the freeze was not a blanket ban.

Instead, green light for luxury property projects will still be given on a case-by-case basis, prompting reports that the government was making a U-turn on the matter.

Mr Johari said on Tuesday (Nov 21) that he has spoken to Mr Fadhillah on the matter.

“He told me that only projects that are under construction or have received approvals before Nov 1 will continue. There is no U-turn,” he said, adding that fresh applications to build properties costing RM1 million and more will not be considered.

He also said any developers who have problems with the new ruling should see him.

“They may tell me, for instance, that Kuala Lumpur has a shortage (of luxury homes), then we may have to look at the statistics,” he said. AGENCIES

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