Sabah: Sabah Housing and Urban Development Authority (LPPB) today raised concerns over surging prices of construction materials such as cement, bricks, fertilisers, and timber, which have recorded significant increases since January.

According to BERNAMA News Agency, LPPB chairman Datuk Masiung Banah said the authority is also alarmed by market forecasts indicating that housing prices in Sabah may rise by 10 to 15 per cent in the second quarter of this year, as developers pass on the escalating cost of building materials to buyers.

Masiung mentioned that Sabah’s expensive housing market is projected to grow this year due to rising raw material prices and the influence of global supply chain constraints. He noted that transportation and logistics costs, particularly those related to converting cargo vessels at Port Klang for shipments to Sabah, were contributing to the price hikes.

The Kuamut state Assemblyman emphasized the need for coordinated action among government agencies, developers, suppliers, and buyers. He suggested that government subsidies for certain materials could help stabilize material prices in the short term. However, setting ceiling prices for construction materials poses a risk for commercial housing and building projects, as developers might need to reduce the project scope to remain within budget.

Masiung warned that such cost-cutting measures could compromise building quality and safety. He identified three key factors behind the increase in building material prices: global supply chain disruptions, rising demand for mega infrastructure projects, and higher labor costs.

He urged the government not to introduce new taxes on property developers, cautioning that this would further raise the cost of residential and commercial properties.