THE government appears to have backtracked on the decision to freeze approval for luxury property developments, with a minister saying projects will be assessed on a case-by-case basis.
Works Minister Fadillah Yusof said the freeze does not apply to all projects, The Edge reports today.
On Friday, Bank Negara said the number of unsold residential properties is at a decade-high, with the majority of units costing above RM250,000.
The glut prompted a temporary freeze on approvals for luxury property developments but Fadillah was quoted as saying today that it is not a blanket stop order.
“If you sell RM1 million condos in (unattractive) areas, it may not attract buyers. But if you sell RM4 million condominiums around the KLCC area, you will definitely get buyers, especially among expatriates.”
The selective approval of high-end real estate developments will help address the country’s property glut in the luxury segment, he said.
Second Finance Minister Johari Abdul Ghani said a day earlier that Putrajaya has temporarily frozen approvals for luxury property developments since November 1 due to a glut in the sector.