In today’s global inflation, construction costs are not immune. The prices of various building materials in Malaysia have been increasing in the past year, but they are expected to increase again next month.
Deputy Housing and Local Government Minister Datuk Seri Ismail Abdul Muttalib said the ministry expects construction costs in the country to increase by 5% to 13% after March this year. This is in line with the construction market’s forecast for a sharp increase in demand for building materials after the Chinese New Year.
Factors such as rising costs and shortages of raw materials, increased logistics costs, and credit terms are all contributing to the increase in construction costs.
It is understood that the prices of various types of building materials have risen several times in the past year. It is currently estimated that the overall increase has reached about 20%. The prices of many building materials, including steel, plastic water pipes, electrical wires, etc., have soared, and the price of steel alone has risen by RM1,000 per ton.
Typically, material and construction costs account for 60 to 70 percent of the total cost, while the remaining 30 to 40 percent involve labor, machinery, and other costs.
And these construction costs continue to rise, which will eventually lead to the further rise in housing prices in our country, and more people cannot afford to buy houses.
