The rising cost of building materials makes it almost impossible for private housing developers to continue their businesses, said a Miri-based pioneer housing developer Datuk Lau Siu Wai.
"The percentage of increase in the cost of building materials has reached an average of 37 per cent or more when the price of crude oil exceed US $143 per barrel, which make it impossible for private developers to build houses or to continue their businesses," said Lau, who is the Managing Director of Miri Housing Group of Companies.
He told this to the press in an interview at his office yesterday.
"The increase in the cost of building materials is a global phenomenon. There's nothing we can do about it. On our part, we endeavour as much as possible to find ways and means to improve on the techniques of construction with the hope that we can lower the construction cost. Apart from that, there's nothing much we can do," lamented Lau.
Inspite of having said all that, Lau had good news for prospective house buyers in Miri.
On July 6, Miri Housing is going to launch the sale of 134 units of low cost house at Desa Senadin at RM128,000.
"I therefore urge prospective house buyers to grab this golden opportunity of buying houses at affordable prices. It is not that we can play magic selling at such a low price.It is because one year ago I foresaw the cost of building materials would increase tremendously. Therefore, at that time I pay the deposit to tie up the price of building materials with the manufacturer. For example, I ordered steel bar at RM2,000 per tonne then. Now the price has increased to RM4,300 per tonne. Therefore, we are able to sell these houses based on the cost of building materials before they increased. If we were to base on present prices of building materials, the selling price would be around RM164,000," explained Lau.
He said the vacant lot at Desa Senadin area of 354 units of low cost housing plus would be completed within one year.
"The size of the houses, the depth and length are slightly bigger than the houses in the previous phases. This is an opportunity for those who dream of owning a house to buy at such an affordable price," said Lau.
Lau also pointed out to the price of houses sold by the National Housing Commission Bhd (SPNB) in Miri at RM149,000.
"This is the benchmark for us in the housing industry in light of the current economic scenario. Honestly, I cannot see how we the private developers can sell houses lower than the price sold by SPNB, " said Lau.
"To my understanding, the Housing Commission is not making any profit even though selling at the price," he added.
