KOTA KINABALU: Property prices in Sabah are expected to rise between 10% and 15% in the second quarter of this year, driven by a surge in the cost of construction materials.
Sabah Housing and Town Development Authority (LPPB) chairman Datuk Masiung Banah said the recent spike in prices of key materials such as cement, bricks, steel and timber, reported since January, has forced developers to consider price adjustments to offset their mounting costs.
“According to early-year data from the Department of Statistics Malaysia (DOSM), cement prices have increased by 15%, steel by 20%, bricks by 12%, and timber by 10%,” said Banah in a statement yesterday.
He noted that Sabah’s property market, already burdened by high prices, is expected to see further increases not only due to rising material costs but also as a result of global supply chain disruptions.
“Transport and logistics costs, particularly involving the trans-shipment process at Port Klang before goods reach Sabah, are also adding to the pressure,” he said.
The Kuamut assemblyman stressed the need for joint efforts by government agencies, developers, suppliers and buyers to find solutions.
“One possible step is government subsidies for selected materials experiencing price hikes, which could help stabilise prices in the short term.
“Another option is for the government to introduce price ceilings on essential materials, but that could force developers to reduce the scope of their projects to stay within budget, which then risks compromising the quality and safety of buildings,” he said.
He warned that poorly funded developments could lead to construction quality issues and long-term safety concerns.
Banah identified three primary factors behind the surge in material costs: global supply chain constraints, rising demand due to large infrastructure projects, and increased labour costs.
He also urged the government not to introduce new taxes on the construction industry, as this would further inflate the cost of homes and commercial properties.
