KUALA LUMPUR – The Kuala Lumpur mayor has confirmed that a recently-announced government ban on new condominiums or office properties with units worth over RM1 million will not apply to the city, an MP said today.

Segambut MP Lim Lip Eng said he had asked the mayor regarding Finance Minister II Datuk Seri Johari Abdul Ghani’s November 19 announcement of the Cabinet’s decision to freeze luxury property developments from November 1 onwards.

“So I asked the mayor whether this blanket ban of property worth more than RM1 million will be implemented in KL. So the answer is no.

“They said no, they will have their suggestion to the Ministry of Finance,” he told reporters here after a meeting this morning between the mayor and four KL MPs.

Lim further explained: “I asked mayor whether this will apply in DBKL because we know it’s all infeasible.

“Mayor basically said no, it’s not possible especially in Golden Triangle area. So they will discuss, they will come up with their suggestion and make a suggestion to Finance Ministry,” he said, adding that the proposal could be for the ban to apply only to certain parts of Kuala Lumpur.

The Golden Triangle is Kuala Lumpur’s main commercial and shopping district, where both land and property command premium prices.

The other MPs in the meeting today are Wangsa Maju MP Datuk Dr Tan Kee Kwong, Cheras MP Tan Kok Wai and Bandar Tun Razak MP Tan Sri Khalid Ibrahim.

On November 19, Johari reportedly said that the ban announced on November 1 was due to an oversupply of luxury property, and will last until demand for these addresses the market imbalance.

Johari also said the government wanted developers to instead focus on affordable housing.

Works Minister Datuk Seri Fadillah Yusof was then reported saying on November 20 that the ban was not wholesale, as RM1 million condominium units in unattractive areas may not draw buyers whereas RM4 million units in the KLCC area would still have interest.

On November 21, The Edge reported Johari as confirming that the moratorium was indeed a blanket ban applicable nationwide until the level of unsold property reached a level that would not disrupt the economy, and that the ban will not be dealt with on a case to case basis.

– Malay Mail