The Edge -- Johor postpones approvals for new serviced apartments to counter oversupply


KUALA LUMPUR (May 13): Bernama reported today that Johor will, from this year, postpone the approvals to build serviced apartments in Johor as the state moves to counter oversupply in the market.

The news agency said, quoting Johor Menteri Besar (MB) Datuk Seri Mohamed Khaled Nordin, that the postponement is to allow the department of town and country planning to draft guidelines to address the issue.

"The guidelines will include a check on approval criteria for the construction of serviced apartments and a feasibility study to ensure the situation of oversupply can be avoided.

"Views from those involved in the housing sector, including the Real Estate and Housing Developers' Association Malaysia (REHDA), housing developers as well as other stakeholders would be taken into consideration in preparing the guidelines," said Mohamed Khaled, according to Bernama.

The MB was speaking in response to questions raised by Chen Kah Eng (DAP-Stulang) and Dr Zaini Abu Bakar (BN-Nusajaya) on the state government's action to overcome the issue of excess supply in the property market, particularly luxury apartments in Iskandar Malaysia, at the 13th Johor Assembly today.

Mohamed Khaled said the state government will ensure that most of the serviced apartments built in Johor are placed in the international zone, in line with the concept requested by buyers.

Bernama also reported that last year, the Johor property market saw 11,459 housing units launched, with 3,995 units of serviced apartments and 7,464 others being terrace and detached houses and bungalows.

Quoting Mohamed Khaled, the news report said only demand for serviced apartments had fallen, and that from the 3,995 units launched in 2014, only 1,022 or 26% had been sold so far, although the launches were done in the early first quarter of the year.




Yes, only the high-rise service apartment is affected because of indiscrimating building by the Chinese developer. Why go for high-rise in JB? Definitely it pays for you to go for shoe-box in JLD.

To enjoy life with you young children/ grandchildren in your own garden/ swimming pool is what you should envy for. Not to live a prisoner in your shoe-box, of course you must have reach certain level of financial capabilities and education.............