• President, Datuk NK Tong, said building material prices continued to rise as developers reported more than 10% annual increase in average price for sand and concrete as at the end of December 2023.

PETALING JAYA (March 14): Malaysian property prices are expected to continue increasing significantly for the first half of 2024 (1H2024) due to challenges of rising cost of building materials, according to the Real Estate and Housing Developers’ Association (Rehda).

Speaking about Rehda’s Property Industry Survey for 2H2023 and Market Outlook for 2024 reports, its president, Datuk NK Tong (pictured), said building material prices continued to rise as developers reported more than 10% annual increase in average price for sand and concrete as at the end of December 2023.

“This translates to construction cost is expected to increase by an average of 15% in 1H2024,” he said in a media briefing today.

Tong added that 91% of the survey respondents observed a higher increase in building material prices in 2023 compared to previous years.

“Ultimately, the increase in building materials means higher construction costs.

“We hope that this issue will be addressed effectively and that all industry players will play their roles to ensure Malaysians are not further affected by the increase,” he said.

Meanwhile, Tong noted that the property market players remain neutral towards the business and property industry outlooks for 1H2024 but are more optimistic about the market for 2H 2024.

“This is understandable considering the industry’s challenges, but the higher optimism for the second half of the year shows that respondents and developers at large are still confident that the market will improve,” he added.

Commenting on the proposed Urban Redevelopment Act, Tong highlighted that the insinuation that this is to enable developers to seize land for a profit is completely misplaced.

He said that as responsible developers, Rehda members have plenty of other options to acquire development lands elsewhere, which can be developed easily compared to redeveloping existing buildings.

“However, as a strategic initiative, Rehda Malaysia applauds the Ministry of Housing and Local Government’s vision, through the minister, to continue enhancing the urban fabric of cities to ensure they remain competitive and attractive globally for the benefit of the rakyat.

“We are awaiting more specific details to be able to engage KPKT, but we believe that they have carefully studied similar models in the region that have operated well for many decades,” he added.

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