Kuala lumpur: The Real Estate and Housing Developers' Association Malaysia (REHDA) has called on local producers and manufacturers to remain vigilant as the cost of construction materials continues to rise, potentially impacting the affordability of property prices.

According to BERNAMA News Agency, REHDA Malaysia president Datuk Ho Hon Sang emphasized the importance of controlling material costs, noting that most supplies are sourced locally. "Most of the materials that we use for simple projects are locally sourced, but yesterday, Prime Minister Datuk Seri Anwar Ibrahim highlighted that there is a rising cost of materials, which will affect the affordability of the end product (property)."

Datuk Ho urged local producers and manufacturers to ensure that costs remain manageable to prevent high operational expenses from affecting the final selling price of properties. He conveyed these concerns during the pre-launch of the REHDA Institute CEO Series 2026.

Ho further noted that construction costs are anticipated to rise by approximately two to three percent this year, with about half of that increase likely to be reflected in property selling prices. He explained that the extent of any price adjustment would depend on individual developers, their business models, and the effectiveness of their sales and marketing strategies. "Some developers may choose to absorb part of the increase, while others may raise prices slightly, depending on the type of property they are offering," he added.

Prime Minister Datuk Seri Anwar Ibrahim has indicated that the government might consider relaxing import conditions if necessary to keep construction material costs low. This consideration would aim to alleviate the pressure that price hikes by industry players could place on development costs and the overall cost of living.