SLIGHT INCREASE EXPECTED: Shareda and LCAC anticipate a slight increase in house and property prices next year in view of the recent fuel price hike, leaving it to the government to help stabilise the prices.
LABUAN: The Sabah Housing Real Estate Developers Association (Shareda) and Labuan Consumers Action Council (LCAC) anticipate a slight increase in house and property prices next year in view of the recent fuel price hike, leaving it to the government to help stabilise the prices.
Shareda president Francis Goh said the increase is chiefly due to the transportation charges of 15 per cent as proposed by transport operators in Sabah a few days ago.
“There is certain to be a slight increase in property prices in the next couple of months or probably next year, as vehicle owners may have to spend an extra RM100 to RM200 for the fuel, but we cannot say as of now by how many per cent property prices are expected to increase,” he told Bernama when contacted yesterday.
He said the increase would only apply to newly launched properties but those under construction would remain as stipulated under the signed Sale and Purchase agreement (S&P).
“We cannot simply jack up the properties’ prices due to the upward revised building materials cost, led by the transportation charges hike, as we are bound to follow the rules and housing acts,” he said.
Consumers in Labuan are expected to feel the pinch even more as the transport of building materials from the mainland of Sabah would add to the cost.
LCAC chairwoman Fauziah Mohd Din said the fuel price hike would result in higher property prices within six months.
“Consumers are already burdened with five to 30 per cent higher goods prices and soon we will face higher property prices.
“We are already facing rising cost of living here,” she said, adding consumers should be more prudent in the current economic situation.
“Labuan’s property prices are among the highest in the country due to the limited land.
“Oil and gas players are looking for land for the booming sector on the island.
“They have to do sea reclamation which is also costly,” she said.
Real Estate and Housing Developers Association (Rehda) president Datuk Seri Michael Yam Kong Choy said that the fuel price hike by 20 sen per litre is expected to contribute to higher house prices by up to 10 per cent.
Urban Well-being, Housing and Local Government Minister, in expressing his disappointment, said he expects house prices to go up by a maximum of only five per cent.
“The people will be more worried as they are already facing rising costs of living, especially in the urban areas,” he said after attending a community gathering here on Sunday. — Bernama