KUCHING: The state Housing Ministry will study the implications of the rising cost of building affordable homes following the increased prices of such materials as cement and steel.
Its Minister, Datuk Abang Johari Tun Abang Openg, said the price of cement had risen from RM12.50 a bag in 2005 to RM14 or RM14.50 now.
Steel has gone up by 11%, from RM1,800 a tonne in 2005 to RM2,100, while bitumen now costs RM140 a tonne, up by 65% from RM85 in 2005.
As such, he said, the Sarawak Housing and Real Estate Developers Association (Sheda) had requested a revision of the ceiling price of affordable homes, which is currently fixed at RM42,000.
“We are going to tabulate the cost of building a unit each of an affordable single-storey house and a double-storey terrace house,” he told a press conference after chairing the fifth state housing co-ordination committee meeting here yesterday.
“With the price increase in construction materials, there is going to be cost implications, and my ministry will study the matter before bringing it to the state Cabinet for a decision on whether or not to increase the ceiling price of affordable houses.”
On another matter, Abang Johari said Sheda would launch a self-regulatory Code of Practice in March to govern the conduct of its members.
“This will enable us to work closely with Sheda to reduce abandoned projects and to ensure houses are delivered to buyers on time.
“We can ask Sheda to assist us in investigating incompetent developers. If they have a bad performance record, we can withdraw their licence,” he added.