Building costs soar, but Mah Sing limits increase to 10pc
KUALA LUMPUR: Rising building material prices are putting pressure on property developers to protect profit margins without pricing homebuyers out of the market, as industry players grapple with reported increases of 20 per cent to 30 per cent in selected construction inputs.
Building material prices have surged, causing concern among property developers about protecting their profit margins without pricing homebuyers out of the market. Industry experts say construction input costs have risen between 20% to 30%, but this doesn't uniformly impact all projects. Mah Sing Group Bhd, as reported by Business Times, has managed to keep its construction costs up only 5% to 10%, far below the industry-wide increases.
Founder and managing director Tan Sri Leong Hoy Kum attributes this to value engineering, economies of scale, and strong supplier relationships. He notes that even though certain materials have seen steep price hikes, their contribution to total construction costs might be relatively minor. Mah Sing incorporates cost management techniques from the early design stages and leverages its extensive supplier network to secure competitive prices.
This strategy helps the group manage expenses and maintain its focus on affordable homes priced between RM300,000 and RM700,000, with some models reaching RM800,000.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
