Sim Kiang Chiok
KUCHING: Any increase in building material prices will affect property prices and as such, Sarawak Housing Estates Developers Association (Sheda) Kuching Branch advised that any increases should be done gradually, if needed.
Sheda Kuching Branch chairman Sim Kiang Chiok, when contacted by The Borneo Post recently on his take on what should be done to keep cost down to make property prices attractive for the current market, highlighted that property price are determined or based on various cost.
He pointed out that the major ones are land, compliance, construction cost and margin the developer would expect for to put its capital, time and efforts into the development.
He explained that with the construction cost aspect of building houses, there are many components involved but the most basic material would be cement.
For the structure of the building, cement could be used to make concrete, cement bricks to plastering, screeding as in building finishes, irrespective of the type and price of house.
“Any increase in price for this basic material would affect the construction cost of building and the price of houses, as there is no other substitute,” he said.
“The other important material is steel which is needed in the structure of all modern design building. Contractors and developers are affected when these prices are adjusted upward and will be passed on the end users or house buyers.
“Ten years ago in Malaysia, we used to have price control on these basic material but were lifted and manufacturers are free to adjust their price on their own subject to supply and demand or market forces.
“I hope that prices of these basic building materials will not be increased too much and too quickly so that we can continue to build houses at affordable price for all.”
However, such construction costs are just one of the major factors which affect new property prices. Sim also highlighted that land and compliance cost affects new property prices.
“On land and compliance cost, we have several proposals to the government on how to reduce the cost of building homes such as increasing the infrastructure such as road to open more land for housing to increase supply of land.”
Sim also proposed to further increase the density of number of houses allowed to be built per acre of land, increase land supply by allowing automatic convertion from native land to mixed zone within a 20-kilometre (km) radius of cities and 10km radius of towns in Sarawak and reduce the compliance cost by reducing the approval time for planning layouts, building plans, engineering plans, developer licences, advertising permits, road certifications and occupation permits.
Additionally, he also suggested allowing for self certification by consulting the architect or engineer of the development to certify road certificates, occupation permit as in Peninsular Malaysia Certification of Completion and Compliance (CCC).