MASSACRE ACCELERATING - 30% INFLATION IN CONSTRUCTION COSTS. SUPPLIERS THREATEN TO HALT DELIVERIES. HOUSE PRICES WILL SHOOT UP

 Tuan-Tuan I said it just a few days ago.

After that 55% hike in diesel prices the massacre is only just beginning. 
Now the contractors association has increased their prices by up to 30%. 
AND WORSE OF ALL THEY ARE THREATENING TO STOP SUPPLYING CONSTRUCTION MATERIALS IF THEY CANNOT INCREASE THEIR PRICES.

 

Click here for the story in the Malay Mail.

Bumi Contractors says prices in construction surged 30% 

following recent increase in diesel prices

• price hike highest in country’s history
• suppliers set new rates for materials since Monday
• suppliers threatened halt deliveries if new prices not adhered
• increase in rental costs of heavy machinery, excavators
• raw materials, ready-mixed concrete risen by 30%

construction costs will rise

delaying project completions 

causing substantial financial losses

My Comments :

This is just the beginning. You cannot increase the price of diesel by 55% overnite and not expect things like this to happen. 

There will be worse repercussions from this. 
Development projects will just shut down. 

Woi dunggu, dia macam ini. Pemaju perumahan yang sudah sign Sale and Purchase Agreement (SPA) dengan house buyers untuk jual rumah pada harga tertentu are now suffering up to 30% inflation in the cost of construction materials. This can wipe out the pemaju perumahan's profits.

So what will the pemaju perumahan do? 
They will stop the construction and just walk away. 

 

House buyers will suffer life-destroying losses. 
Usually people spend their life savings to buy a house. 
They can possibly lose their life savings. 

Banks who provided housing finance will suffer bad loans.
Tahniah to the dunggus. Well done.

 

The views expressed are those of the writer and do not necessarily reflect those of MMKtT.