LPPB Raises Concern Over Rising Construction Material Costs
KOTA KINABALU, April 12 (Bernama) -- Sabah Housing and Urban Development Authority (LPPB) today raised concerns over surging prices of construction materials such as cement, bricks, fertilisers and timber, which have recorded significant increases since January.
LPPB chairman Datuk Masiung Banah said the authority is also alarmed by market forecasts indicating that housing prices in Sabah may rise by 10 to 15 per cent in the second quarter of this year, as developers pass on the escalating cost of building materials to buyers.
“Sabah’s expensive housing market is expected to grow this year due to rising raw material prices and the influence of global supply chain constraints," he said in a statement issued here today.
Masiung said transportation and logistics costs, particularly those related to converting cargo vessels at Port Klang for shipments to Sabah, were also contributing to the price hikes.
The Kuamut state Assemblyman said coordinated action was needed among government agencies, developers, suppliers and buyers.
“For example, government subsidies for certain materials are increasing. This may help stabilise material prices in the short term.
“The government can set ceiling prices for construction materials, but this poses a risk for commercial housing and building projects, as developers may need to reduce the project scope to stay within budget,” he said.
Masiung warned that such cost-cutting measures could compromise building quality and safety.
He identified three key factors behind the increase in building material prices: global supply chain disruptions, rising demand for mega infrastructure projects, and higher labour costs.
He urged the government not to introduce new taxes on property developers, cautioning that this would further raise the cost of residential and commercial properties.
-- BERNAMA