The second finance minister, Datuk Seri Johari Abdul Ghani urge housing developers to check with the government before proceeding with any projects to curb oversupply in the market.
This was necessary as there is an oversupply of studio and service apartment at the time being, he said.
He also added, “It is good for developers to get more information from the urban wellbeing, housing and local government ministry.”
There will be more abandoned property developments if the government and developers do not hold on the luxury property development seriously, told the Secretary-general of National House Buyers Association (HBA), Chang Kim Loong to FMT.
He also said the history could repeat itself where many property developments were affected and abandoned in the mid-1980s. Not to forget during the Asian financial crisis of 1997-2000.
The cabinet decided to freeze luxury (above RM1 million) property developments but was clarified later that it only affects projects which had not been approved.
However, earlier this month, DBKL said it would continue doing high-end property projects despite the freeze order from Putrajaya.
Then, many questions remain especially to which areas were really affected by the government decision.
Chang also spoke about his concerns over the matter in looking forward to what would be in store in 2018.
253 abandoned private housing projects in Peninsular Malaysia has been registered by the government since 2009.
In November, Bank Negara Malaysia (BNM) also informed the country is facing a residential property glut that was the highest level in a decade.
The price of residential properties over RM250,00 is the main reason for this oversupply as it is not affordable for most Malaysians. These are mostly high-end projects.
Bank Negara also added, “There were 130,690 unsold units at the end of March this year, with 83% priced at above RM250,000. Also, 61% of the unsold units are high-rise apartments.”