Tey Yong Qing Talks About Rising Property Prices
Now is the time for investors and homebuyers to start buying the property because property prices are expected to rise this coming year. The increasing costs of building materials in most building categories are mainly what will contribute to the rise in property prices as this will have to affect the selling prices of property. When there is an increase in costs of construction or material it will always affect the selling price. The developer will have to include the cost one way or the other to respect buyers or consumers.
What Is The Implication of This In The Market?
Both the primary and secondary markets will have to react when there are any changes in demand or the value of a property. This implies that we should anticipate a gradual increase in the prices of property with the rising costs of construction or material. Based on the data from the department of statistics Malaysia as of October 2021, the building material cost index with or without steel bars had increased.
What Is The Possible Cause of an Increase In The Price of Building Material According to Tey Yong Qing?
The global increase in the price of petroleum and coal products is the reason for the rise in the price of building materials like steel, iron, and cement. According to the department of statistics Malaysia, the four phases of the national recovery plan and the implementation of the movement control order by the government in 2021 contributed to the price hike of building materials. Because after the resumption of construction-related activities in October 2021 building materials became more expensive. With the look of things, the real estate market will be performing better next year as there is repressed demand for property from potential investors and homebuyers.
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