The weakening ringgit has resulted in an increase of 20-25% in the cost of some construction materials, said the Real Estate and Housing Developers’ Association Malaysia (Rehda) president Datuk Seri Fateh Iskandar Mohamed Mansor.
“The cost of certain construction materials has actually gone up. For residential units, if you talk about landed properties, it (the cost) shouldn’t be higher because the majority of the construction materials would be locally sourced.
“However, if you talk about high-rises, items like lifts, escalators, precisioning and air-conditioning are still imported,” he told reporters at a press conference last Friday at the presentation of Rehda’s Property Industry Survey for the first half of 2014.
Fateh Iskandar said the cost of these imported items has increased by 20-25% as suppliers are asking to review the rates due to the weakening ringgit, despite prices being locked in six months ago.
He said any increase in prices of landed residential properties would be minimal.