KUALA LUMPUR (Dec 15): The government is willing to consider relaxing the freeze on luxury property projects in areas such as the KLCC and Bukit Bintang where the price of land is high, said Second Finance Minister Datuk Seri Johari Abdul Ghani. 

"The ban is throughout the country but the government has said that in certain locations, we have to be fair to high-end developers. 

“(Developers may have) bought land at RM3,200 per sq feet in KLCC and Bukit Bintang. How can they be expected to build units that are priced below RM1 million?" Johari said, referring to freeze on approvals for shopping malls, commercial complexes and condominiums with units priced above RM1 million, effective Nov 1. 

There is demand for properties priced above RM1 million in such locations, the minister told reporters at a signing ceremony between Eco World International Bhd and UK-based Willmott Dixon Holdings Ltd's Be Living Holdings Ltd. 

"We don't want to stop them because there is a lot of interest from foreign investors. We are more concerned about high-end properties on the fringes of the capital city, and in Klang Valley, and in Johor and Penang. We need to re-look those. 

Johari was commenting on the Kuala Lumpur City Hall’s (DBKL) alleged defiance on the nationwide freeze. 

After announcing a blanket freeze on luxury properties last month, the government clarified Bandar Malaysia and Tun Abdul Razak Exchange developments are exempted from the freeze. 

Last week, the Cabinet set up a committee to look into appeals by developers to exempt their projects from the freeze. Putrajaya then said it would consider appeals on a case by case basis.