House prices are expected to increase on higher building and material costs due to a weaker ringgit.
Property developer LBS Bina Group Bhd managing director Tan Sri Lim Hock San said the impact of the ringgit depreciation local currency on the property prices was inevitable.
“Building materials are more expensive and construction costs are going up as well as the ringgit weakens and even the workers are asking for higher salaries because they get lesser value for every ringgit.
“To sustain themselves, housing developers may need to increase the prices to curb the higher building costs,” said Lim after LBS’ extraordinary general meeting here today.
“As a developer, we also urge the government to abolish cooling measures for the sector such as the real property gains tax (RPGT), foreign home ownership and tight lending rules,” said Lim.
He added that the reduction of house prices for foreign buyers from RM1 million to RM500,000 can help stabilise the ringgit. - By NST