Government will not u-turn on luxury property project freeze

: The government will not “u-turn” from its decision to freeze approvals for luxury property projects from November 1, unless “something significant erupts” which warrants reassessment, said Finance Minister II Datuk Seri Johari Abdul Ghani.

“There is no such thing as u-turn. This is a cabinet’s decision. Unless there is something that is significant, we will look at it,” he told reporters on the sidelines of the Malaysian Institute of Economic Research’s (MIER’s) National Economic Outlook 2018-19.

This is an issue that should not be u-turned.They cannot send wrong signals to people.If we don’t regulate on what has been advised by Bank Negara (), it will affect the sector,” he added.

He said many developments are funded through bank loans and the inability of a developers to sell their property projects will result in non-performing loans which in turn will affect banks.

The government has not ascertained how long the freeze will be in effect.

The freeze is applicable to development projects such as shopping malls, luxury condominiums and office above RM1 million, which are yet to be approved.

In addition, Johari said that the government which recognises the mismatch in demand(48%) and supply(24-28%)for affordable housing segment, wants to ensure that the “gap is filled.”

Source: The Sun Daily

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