The relocation of the Sungai Besi Air Force Base, which has been earmarked for the Bandar Malaysia project, will begin next month, according to the Finance Ministry.

The ministry said that the facilities for the new base are between 85 and 96 percent complete.

"Some facilities have been completed and were handed over in June 2015.

"Three other facilities have been completed and are in the process of handover," the ministry said in a parliamentary written reply.

No details of these facilities were provided. The relocation process will take place in stages.

The Finance Ministry said that the relocation cost for Putrajaya was RM1.1 billion, while the balance would be paid by 1MDB.

"The government has fully paid up... there is no pending payment between 1MDB and the government," it said.

The written reply was directed to Bukit Bintang MP Fong Kui Lun, who requested an update on the development of Bandar Malaysia and the financing aspect of the project.

Fong did not ask any questions on the relocation of the airbase, and the written reply did not respond to Fong's queries on Bandar Malaysia.

Bandar Malaysia is a high-end residential and commercial project, where a station for the Kuala Lumpur-Singapore High-Speed Rail project will also be sited.

According to 1MDB's website, the company secured the 200.5ha airbase from Putrajaya in 2011. During the same period, 1MDB also bought a 303.8ha plot of land in Sendayan, Negeri Sembilan, for the new airforce base.

Although the cost of acquiring both plots of land was not mentioned, many media reports have estimated that 1MDB effectively paid between RM363.5 million and RM400 million to secure the site - far below the value of land per square feet in the surrounding areas.

Since then, Putrajaya has been struggling to secure a master planner for Bandar Malaysia, which is now fully-owned by the Finance Ministry.

Putrajaya's deadline for the submission of bids lapsed on July 20. There have been no updates since.

Prospective developers will likely risk contributing to the high-end property glut.

Bank Negara has warned that Malaysia, especially the Klang Valley, already faces an oversupply of residential properties, along with vacant office and retail space.

The cabinet has instructed local governments to stop approving new high-end property projects, but Bandar Malaysia appears to be exempted from this ruling.