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MALAYSIA’S property market is set for only modest price increases this year, with developers expected to raise home prices by just one to two per cent, according to Datuk Ho Hon Sang, president of the Real Estate and Housing Developers’ Association (REHDA).
Speaking at the REHDA CEO Series press conference on Tuesday, Ho said developers cannot simply raise property prices at will, as affordability for buyers remains a critical factor.
“We anticipate house prices increasing around one to two per cent to cover higher construction costs. Of course, this is not an increase of 10 to 20 per cent,” he said.
He added that enforcement by the Road Transport Department (JPJ) against overloaded lorries has contributed to higher construction costs.
“All of these factors impact construction costs. Therefore, costs are expected to rise by around two to three per cent, and naturally, the effect on selling prices is roughly half of that percentage,” he explained.
Ho noted that property prices are also influenced by individual developers, their business models, and the strength of their sales and marketing strategies.
“We have received feedback from our members that slight price increases may occur depending on the type of project offered.
“However, in general, the decision to increase a project’s selling price is not taken lightly. If prices are too high, banks may not support the financing, and buyers who can afford it become limited or may be unable to purchase at all,” he said.
The REHDA president highlighted that the cost of construction materials, including cement, has risen between 10 and 20 per cent, placing pressure on overall development costs and ultimately affecting property selling prices.
He assured that domestic supply of construction materials is currently sufficient to meet development needs, though sudden price hikes remain a major concern for the industry.
Government consideration to relax import regulations for construction materials, he said, signals to cement cartels not to raise prices abruptly.
“Local manufacturers need to exercise caution in light of the Prime Minister’s announcement yesterday, so that building material costs can be controlled.
“We, as property developers, also do not want to face operational cost increases that would ultimately push property prices higher for consumers,” Ho said during the REHDA CEO Series 2026 press briefing.
He explained that imported building materials, such as steel bars and cement, are often more competitively priced than local products, which has informed the government’s consideration to allow greater imports.
Currently, Malaysia’s cement market is dominated by three major companies: YTL Cement Berhad, Cement Industries of Malaysia Bhd (CIMA), and Tasek Cement.
In his 2026 New Year’s address, Prime Minister Datuk Seri Anwar Ibrahim said the government is open to easing import regulations to ensure building material costs remain affordable and do not burden the public.
He added that such measures would be considered if industry price increases continue to exert pressure on development costs and the cost of living. - January 6, 2025