Sabah’s Housing and Urban Development Board (LPPB) will be creating a new policy regulating the ceiling price for houses within the state, following the hike in construction material prices and transportation costs.
Datuk Masiung Banah, Chairman of LPPB, does not rule out the possibility of seeing a slight uptick in LPPB’s property prices, reported the Borneo Post Online.
“A new guideline will be created to study the balance of raw material prices and property values, including affordable housing,” he said after the draw for the affordable housing project phase 1A of Kampung Sook, at the Sook District Office.
The project features 56 units of double-storey terrace homes that were sold at RM47,000 per unit.
Masiung noted that the drastic hike in the price of raw materials like sand, cement, timber, iron and machinery throughout Malaysia is a clear contributing factor to the hike in the prices of shops and houses sold.
The Kuamut assemblyman underscored that the increase in ceiling prices for all types of property not only involved Sabah’s housing agencies, but was also witnessed across the whole country.
He explained that if LPPB maintains the old selling price, the contractors will have to reduce the sizes of shops and homes to balance the cost of profit.
“If this happens the buyers will bear the burden of high monthly installments and loans in the long run. If this year, we are selling affordable houses, namely double-storey terrace houses at RM47,000 a unit, the price will no longer be suitable next year,” he said as quoted by the Borneo Post Online.
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