Developers Expect Higher Property Prices

About half of Malaysian property developers nationwide surveyed in July expect to raise prices at the back of a spike in cost of building materials.

According to the Real Estate and Housing Developers’ Association Malaysia (Rehda), about half of those surveyed plan to raise prices by 15 percent at launches this year.

On top of that, a whopping 65 percent of the 147 respondents expect general prices to rise up to 20 percent in the second half of 2011.

Presenting the survey results in Petaling Jaya today, Kuala Lumpur Rehda chief NK Tong (right) said much of the price rise is led by massive spikes in construction costs.

Leading this price hike is the cost of steel reinforcement which has gone up by 13 percent to RM2,589 per tonne compared to 2010, cement up 4 percent from RM15.64 per bag in 2010 and brick and partition, up 27 percent to 42 sen compared to 2010.

News Source: Malaysiakini

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