House prices to shoot up due to sharp cement price hike, says Redha Penang

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PROPERTY prices in Penang and throughout the country will go up due to the big jump in the prices of ready-mixed concrete.

State Rehda chairman Datuk Toh Chin Leong said new property projects that would be coming up would possibly see an increase of between 15 percent and 20 percent range due to the 40 percent to 50 percent increase in cement price and other significant hike in input costs.

He said this negative impact, which came into effect on June 15, has caused much brouhaha and concerns among Rehda and other federations.

He said cement prices had all this while only increased gradually instead of a huge hike this time.

“House prices including affordable homes will be much affected,” he said at a press conference in Jalan Rangoon.

Also present were Federation of Malaysian Manufacturers (FMM) Penang branch chairman Datuk Dr Ooi Eng Hock and Penang Master Builders and Building Materials Dealer Association adviser Datuk Lim Kai Seng.

Finance Minister Lim Guan Eng, who also attended the press conference, acknowledged their grievances and stated that he would meet up with the relevant ministry soon.

“I will discuss further this matter with the Domestic Trade and Consumer Affairs Minister Datuk Seri Saifuddin Nasution Ismail,” he said.

Lim said cement manufacturers should not take advantage of the situation.

“There’s no reason for the huge increase,”he said, adding that the price increase might be caused by someone out to monopolise the industry.

Story by Edmund Lee

Pix by Tan Kean Ming