THE freeze on approvals for luxury projects will not affect the Bandar Malaysia and Tun Razak Exchange (TRX) projects here, said Federal Territories Minister Datuk Seri Tengku Adnan Tengku Mansor.
He said both projects were given approvals prior to the Cabinet’s decision to temporarily halt luxury developments from Nov 1.
“We cannot restrict development that will take place in these areas,” he said when replying to a question raised by Hee Loy Sian (PKR-Petaling Jaya Selatan).
The moratorium covers development projects for condominiums, shopping complexes and office lots.
Bank Negara had raised the alarm over the mismatch of housing demand and supply along with a glut in commercial space.
Works Minister Datuk Seri Fadillah Yusof clarified the freeze was not a ban on all projects.
Meanwhile, Tenku Adnan said talks are being held with Bank Negara on how best to deal with the oversupply.
He told lawmakers some 130,690 residential properties remained unsold as reported by Bank Negara.
In contrast, he said there were 170,095 applications for affordable homes in Kuala Lumpur compared to only 44,064 available units.
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