KUCHING: Cahya Mata Sarawak Bhd’s (CMS) move to increase its cement prices effective January 1, 2016 has been viewed by some as an understandable development.
“We understand where CMS is coming from as some of our suppliers who rely on imports such as aluminium and sanitary wares supplier have also been hit by the depreciating ringgit,” director Peter Lau of Travilion Group told The Borneo Post.
On whether the increase in cement prices will impact Travilion Group’s property prices and earnings for next year, Lau noted that for their current projects, it depends on the stage of works and type of development (landed versus high rise).
Lau further noted that Phase 1 of their Windsor estate guarded detached housing project (Kuching) is essentially physically completed whereas the Waterfront Residence condominium in Sibu still has a few floors to go to reach the roof.
Meanwhile, Lau revealed that in view of rising land prices in selected locations, imported inflation vide building materials, expected impact from minimum wage effective July 1, 2016 and affordability of property (coinciding with the difficulty of purchasers getting loans from the banks) issues particularly in urban areas in Malaysia, the performance of Travilion Group in 2016 will be affected by the industry-wide factors.
“Nonetheless, we take comfort in the locked-in sales and contracts from prior years which will facilitate the completion of ongoing projects.”