Construction materials have been increasing in price and may spike again after the implementation of the RM1,500 minimum salary in May!
According to data, building materials such as cement, steel, gravel, bricks, roofing and ceilings are all showing signs of price increases. Higher steel prices are caused by fluctuations in raw material costs in steel producing countries, while steel prices are affected by the war between Russia and Ukraine, as both are the world’s largest steel producers and the war has led to disruptions in the global supply chain.
The price of steel in February 2021 was around RM2,680 per tonne, but in April 2022 the price has come to RM3,500 per tonne, an increase of 30.6%. bulk ash in February 2021 was RM210, but in April 2022 it has risen to RM350, an increase of 40%.
For a kitchen with a space of about 10 feet, the cost of basic renovation in previous years was only about RM6500, but this year it will cost about RM7800. If you are planning to renovate your house, you may consider buying building materials first to avoid the price of building materials keep soaring, especially after May may usher in a wave of price increase.
In the case of significant price increases in building materials, developers can only pass on the cost to consumers, and it is generally expected that real estate prices will increase by at least 10%, and the rate of increase will be more serious in the future. Those who have already signed the contract of real estate, the price can not be changed, only by the developers themselves.
As for the new real estate plans, the price will definitely soar, so if you want to buy a house in the near future, you should be prepared.
