Freeze on KL high-end property projects has little effect on stocks

Move against glut: DBKL has frozen approvals for the development of shopping malls, offices and luxury condominiums priced above RM1mil effective Nov 1 to mitigate the supply glut.

PETALING JAYA: An indefinite freeze on approvals for the development of high-end residential and commercial property above RM1mil in Kuala Lumpur is expected to have a negligible impact on most property stocks on Bursa Malaysia.

This is in part due to the fact that most of the listed property developers in the country do not have significant exposure in the capital city, and in part due to the fact that most of their residential projects are priced below the RM1mil threshold, with limited involvement in commercial properties, some analysts said.