PETALING JAYA (Oct 27): The escalating raw material prices has impacted property and construction sector due to short of supply, but Glomac Bhd group managing director and chief executive officer Datuk Seri Fateh Iskandar Mohamed Mansor (pictured) believed that as economic activities gradually resume, market supply and price growth will stabilise in the next three to six months.
“In the short term, it will be very challenging as there is pent-up demand for things [building materials] like windows and doors as such. Factories only reopened in September after being closed for six to seven months,” said Fateh Iskandar during a virtual media briefing after Glomac Bhd’s 37th Annual General Meeting 2021 today.
He noted that once the suppliers’ production line resumes as normal, the raw material prices will stabilise, especially for the locally produced materials, but prices of non-locally produced materials like aluminium and copper products might continue to rise due to external factors.
Commenting on the outlook of the property market, Fateh said the current market condition remained challenging as most buyers are taking a wait-and-see approach.
“The demand for the property market remained the same with no increment. This is because people are still waiting and looking at where the economy is going. Economy must improve before people can buy big ticket items,” he added.
Fateh Iskandar is taking a cautiously optimistic stance on the property outlook, he said the Home Ownership Campaign (HOC) has helped the property market during this challenging period and urged the government to extend the HOC in the coming Budget 2022 announcement on this coming Friday (Oct 29).
“Property market will be in doldrums if not because of HOC. In fact, the market is starting to stabilise because of the campaign,” he noted.
The developer has recorded a profit-before-tax of RM58.1 million and a total revenue of RM366.9 million while unbilled sales stood at RM578 million in its financial performance 2021 ended April 30.
In FY2022, Glomac is focusing on launching five projects from second quarter onwards with an estimated gross development value (GDV) of RM282 million. These projects are Lakeside Residences, Saujana Perdana, Saujana Utama 5, Saujana KLIA in Selangor and Saujana Jaya in Johor.
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