SANDAKAN: Property market prices in Sabah are projected to increase by 10 to 15 per cent in the second quarter of this year as developers adjust to the rising cost of building materials.
Sabah Housing and Urban Development Authority (LPPB) chairman Datuk Masiung Banah expressed concerns over the significant spike in construction material prices, including cement, bricks, fertilisers, and wood, since January.
Masiung attributed the expected surge in property prices to the rising costs of raw materials and disruptions in the global supply chain.
He also highlighted that transportation and logistics expenses, particularly the transshipment process of merchant vessels from Port Klang to Sabah, have further driven up the cost of building materials.
A recent report by the Malaysian Department of Statistics (DOSM) revealed sharp increases in key construction materials – cement: 15%; fertiliser: 20%; bricks: 12%; wood: 10%.
The Kuamut Assemblyman urged joint action between the government, developers, suppliers, and buyers to address the issue. He suggested short-term measures such as government subsidies for certain materials to help stabilise prices.
However, Masiung cautioned that imposing price ceilings on construction materials could pose risks, as developers may be forced to reduce project scopes to stay within budget, potentially compromising building quality and safety.
Masiung identified three major factors behind the rising costs – (1) Global supply chain disruptions; (2) Increased demand for mega projects and (3) Rising labour costs.
He also warned the government against introducing new taxes on the construction industry, as this could further escalate the costs of residential and commercial properties. – James Leong
