By Yussof J. Imbang
KOTA KINABALU: Market prices in Sabah are expected to rise 10 to 15 per cent in the second quarter of this year as developers will offset the rising cost of building materials.
Sabah Housing and Urban Development Authority (LPPB) chairman Datuk Masiung Banah voiced concerns that the trend of inflation of construction materials such as cement, bricks, fertilisers and wood saw significant spikes since January.
“Sabah’s expensive marketing market is expected to grow this year due to the new prices of raw materials as well as the influence of global chain narrowing,” he said in a statement issued today.
Masiung said the cost of transportation and logistics involving the process of conversion of merchant vessels in Port Klang to Sabah also contributed to the increase in raw building materials.
The Malaysian Department of Statistics (DOSM) report earlier this year showed a spike in four price materials, such as 15% cement, 20% fertiliser, 12% brick and 10% wood.
The Kuamut People’s Representative said in this issue there should be joint action between governments, developers, suppliers and buyers.
“For example, government subsidies for certain materials are increasing. It may help stabilise the price of materials in the short term.
“The government can set the price of the ceiling of the construction materials. But it is at risk for commercial homes and buildings, as developers have to reduce the scope of the project to remain within the budget limit,” he said.
According to Masiung, if this happens, it can cause the quality of the building and the safety of the building.
According to him, the three main factors are the cause of the increase in building materials, including the narrowing of the global chain and increasing demand for mega projects as well as rising labour costs that play a critical role.
Masiung warned the government not to impose new taxes on construction industry developers, as it could contribute to rising costs of homes and commercial buildings.
