Malaysia: The government of Selangor state has frozen the approval of new property projects in three sectors for six months.
The sectors affected are serviced apartments, small office home offices (SOHOs) and small office versatile offices (SOVOs).
The Real Estate and Housing Developers’ Association Malaysia (REHDA) informed its Selangormembers of the development after receiving a notice from the Selangor Housing and Property Board (LPHS).
“LPHS issued a letter informing that the state has decided to freeze the approval for all applications of serviced apartments/SOHO/SOVO submitted after Jan 1, 2016 for a period of six months, pending the issuance of new planning guidelines for such developments,” said Rehda Selangor chairman Datuk Khor Chap Jen.
The move follows that of the Johor government in Deecember 2014, which rejected applications for serviced apartments due to oversupply.
Malaysian Institute of Estate Agents immediate past president Siva Shanker said: “In the last few years, there have been a lot of apartments and condominiums being built and sold. That sector of the market is clearly oversupplied and the market started to feel the pinch last year. All those units will come into the market about the same time and it is going to create a glut, especially during a market downturn, the glut will be a double whammy.” he said.</p
