KUALA LUMPUR: The recent hike in cement prices will only have a minimal impact on house prices, says Selangor Bumiputera Real Estate Developers Association president Mohammad Sahar Mat Din.
He said cement usage in housing projects usually accounts for two per cent of building cost and should not affect overall house prices.
Mohammad Sahar that if the price of a 50kg cement bag rises by RM1, houses between RM200,000 and RM500,000 should increase by less than RM5,000. As such, he said, developers should not take advantage of the situation to increase prices indiscriminately.
Cement prices were increased by RM1 to RM17.75 a 50kg bag and by RM20 to RM340 a tonne bag on August 1.
Source: Business Times Dated: 24/08/2012
