KOTA KINABALU: Property prices in Sabah are set to increase by 10% to 15% in the second quarter of this year due to a surge in construction material costs.
Sabah Housing and Town Development Authority chairman Datuk Masiung Banah said key materials like cement, bricks, steel and timber have seen price hikes since January and added that developers are considering adjusting prices to offset costs.
“According to early-year data from the Department of Statistics Malaysia, cement prices have increased by 15%, steel by 20%, bricks by 12% and timber by 10%,” said Banah on Saturday (April 12).
Sabah's property market, already facing high prices, is expected to rise further due to material costs and global supply chain issues.
“Transport and logistics costs, especially the trans-shipment process at Port Klang before reaching Sabah, also add pressure,” he said.
The Kuamut assemblyman called for joint efforts by government agencies, developers, suppliers and buyers to find solutions.
“One step is government subsidies for materials with price hikes to stabilise short-term prices.
“Another option is price ceilings on essential materials, but that could force developers to reduce project scope, risking building quality and safety,” he said.
He added that poorly funded projects could lead to quality and long-term safety issues.
Banah then said that there are three main factors for rising material costs; global supply chain constraints, demand from large-scale projects and increasing labour costs.
He then urged the government not to introduce new construction taxes, as it would further inflate home and commercial property costs.
