23 Nov 2017
MALAYSIA: Enforced Hiatus Leaves High-Value Property Projects in Development Limbo
A temporary moratorium has been imposed on all real estate projects with individual units valued at more than RM1 million (US$238,479). This enforced hiatus - and its unspecified duration - has left a number of high-value residential developments, shopping malls and commercial complexes in something of a development limbo, despite government assurances that every project will ultimately be reviewed on a case-by-case basis. It has, however, been officially indicated that projects in a number of prime locations, such as the immediate environs of the Kuala Lumpur Convention Centre, may get priority treatment.
The move comes as the government’s looks cut back on the excessively high level of luxury real estate projects underway across the country. Addressing a similar concern, local government officials in Johor, Malaysia’s second most populous state, are said to be looking to relax the rules relating to the overseas ownership of residential properties in a bid to clear the current housing stock surplus. At present, only properties valued at above RM1 million can be purchased by overseas investors.