Construction material price increase will directly affect the price of housing, housing prices are expected to rise by 5% to 20%.
With the global outbreak of serious inflation, construction materials have also been rising in price, the most direct impact of the price of construction materials is the price of housing followed by the rise. Housing prices will rise as much as 20% will exceed the affordability of consumers.
According to a report by Nanyang Siang Pau, the price of construction steel has risen by more than 20%, with each metric ton of steel costing only RM3,258 in May last year, while today it costs RM3,910 per metric ton. Last year, cement cost RM18.61 per 50 kilograms, while today it has risen to RM20.89 per 50 kilograms, an increase of 12.2%.
In addition, the prices of various materials needed for construction such as wooden planks, sand and gravel, red bricks, floor tiles, water pipes, electric wires and plaster are all going up. National banks are also on the way to raise interest rates, making the cost of buying a home even heavier.
The average domestic real estate price increase from 2009 to 2021 rose from RM200,000 to RM450,000, with an average annual increase of 4.8% in Selangor, 5.6% in Kuala Lumpur, 3.2% in Penang and 4.8% in Johor.
