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Housebuyers hope there won’t be delays

PETALING JAYA: Her apartment is due for completion in October next year and Nisha Menon is hoping that the escalating cost of building materials will not cause any delay or even worse abandonment.

“I would be absolutely devastated if the project was abandoned,” said the public relations director.

“Developers have to act in good faith and complete the project.”

Nisha had placed a RM45,000 downpayment for her apartment.

Jasmin Khalid, 32, a fashion designer from Klang said she was looking at buying over old property, as she was afraid that new housing projects might be abandoned before completion due to the increase in prices of building materials.

She said that even if she bought a completed house she needed to renovate it and was afraid that contractors may use lower-quality materials.

Karl Lim said he was waiting for property prices to drop.

“If the prices drop, then I may be able to buy a bigger property,” said the 35-year-old marketing manager.

Builders cautious about starting new projects
By MANJIT KAUR

PETALING JAYA: Developers are cautious about launching new projects as the cost of building materials is rising.

Masters Builders Association Malaysia secretary-general Yap Yoke Keong said there was a 20% to 30% impact in construction cost compared with late last year.

He said that with the increase in prices, developers would have a hard time determining the selling price.

“There is a tsunami in the construction industry and I can’t see the light at the end of the tunnel,” Yap said when contacted here yesterday.

“It's not just the price increase in steel bars. The hike in fuel prices also compounds the price increase in building materials,” he said.

Yap also said the association was calling on the Government to help contractors by delaying the implementation of any project under the Ninth Malaysia Plan, as with fewer projects in the market the demand of materials would drop.

“The Government must also extend the completion period for on-going projects,” he added.

“We are also asking the Government to set aside RM1bil to buy steel directly from manufacturers and distribute it to contractors.”

Real Estate and Housing Developers’ Association president Datuk Ng Seing Liong said there was definitely a slowdown, especially in new development projects.

“The trend started early this year, and if the inflationary pressure continues, then there is a possibility of a recession soon,” he said.

When contacted in Kuching, Deputy Works Minister Datuk Yong Khoon Seng said a dialogue with contractors would be held on July 9 to hear their plight.

“I need more details on their grouses to see how we can help them solve their problems,” he said.

Public Works Department director-general Datuk Dr Judin Abdul Karim said the situation now was complicated and volatile but said Works Minister Datuk Mohd Zin Mohamed would meet the relevant parties soon and make a decision.

Construction Industry Development Board chairman Tan Sri Jamilus Hussein was quoted in several newspapers recently as saying that the industry might experience a slowdown for the rest of the year given the increase in fuel and building material prices.

He had said that since the Government raised the price of fuel, the country’s 63,000 contractors were starting to feel the pinch.