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PETALING JAYA: The Real Estate and Housing Developers’ Association Malaysia (Rehda) has urged local producers and manufacturers to remain vigilant over the rising cost of construction materials, which could impact the affordability of property prices.

Rehda Malaysia President Datuk Ho Hon Sang said it is important to keep material costs under control, noting that most supplies are sourced from local manufacturers and producers.

“Most of the materials that we use for simple projects are locally sourced, but yesterday, Prime Minister Datuk Seri Anwar Ibrahim highlighted that there is a rising cost of materials, which will affect the affordability of the end product (property).

“Local producers or manufacturers need to be very vigilant so that the cost remains under control. We do not want the high operational cost to affect the ultimate selling price to the producer,” he said to reporters during the pre-launch of the REHDA Institute CEO Series 2026, here Tuesday. 

Hon noted that construction costs are expected to rise by about two to three per cent this year, with roughly half of that increase likely to be reflected in selling prices.

“However, the extent of any price adjustment will depend on individual developers, their business models, and the strength of their sales and marketing strategies. 

“Some developers may choose to absorb part of the increase, while others may raise prices slightly, depending on the type of property they are offering,” he added.

On Monday, Prime Minister Datuk Seri Anwar Ibrahim said that the government has not ruled out the possibility of relaxing import conditions if necessary to ensure construction material costs remain low and do not burden the public.

Anwar said the move would be considered should price hikes by industry players continue to exert pressure on development costs and the cost of living.