Developers and distributors of construction materials warned of an increase in property prices should the planned price hike in cement materials.
"Talk is rife that cement prices will be increased on 1 Aug by RM1 per bag of 50kg or RM20 per metric tonne," said New Ching Liong, President of Building Materials Distributors Association of Malaysia.
He said that the impending price increase will negatively affect contractors, makers of construction materials and members of the Real Estate and Housing Developers' Association Malaysia (REHDA).
Solid increases in home price have already diminished housing affordability across Malaysia, particularly in Penang and Klang Valley.
"Cement is perishable, it has a shelf life, so for how long can you lock in prices? It is also up to the cement manufacturers whether the prices can be locked in or not," he noted.
Datuk Ng Seing Liong, Past President of REHDA, estimates that the RM1 price hike could increase the construction cost of a terrace house by RM1,000 to RM2,000.
He noted that although the costs of construction materials in existing projects have already been locked in to minimise the impact of the price increase, this is could not be done in new developments.
He also questioned the reason behind the price hike.
"Why would they suddenly want to increase the prices? Most of our members and the industry players were shocked to learn about it."
"We hope industry players are consulted before the official announcement of the increment," he added.
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