Too premature to ascertain luxury development freeze on JV projects — SD Property

KUALA LUMPUR (Nov 20): Sime Darby Property Bhd, which would be listed on Nov 30, said it will evaluate the effects of newly-announced federal government freeze on luxury properties, on its joint-venture projects.

Till then, its newly-appointed managing director Datuk Seri Amrin Awaluddin said it was still premature to comment further, as the company awaits more clarification.

“It only affects property development that are RM1 million and above, and certain areas under Dewan Bandaraya Kuala Lumpur (DBKL).

“We are not sure if it would affect projects with our joint-venture partners. We still have JVs with international partners for commercial, logistics and industrial that would not be affected by the ruling,” Amrin said.

Speaking to reporters after Sime Darby Bhd’s annual and extraordinary general meetings, Amrin said the announcement by the federal government was related to those currently subject to approval.

“We are in touch with our colleagues of other companies in the industry, and they are engaging to get more clarification. The engagement with authorities is being done with the Real Estate & Housing Developers Association,” he added.

According to news reports, the federal government decided to freeze luxury development, after considering Bank Negara Malaysia’s report in June which showed an oversupply of luxury units, while demand for affordable housing was not being met.

To this, Amrin said there should be cost and benefits to be assessed further on property pricing. — theedgemarkets.com

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