January 6, 2026
PETALING JAYA: Malaysia’s residential property prices are expected to increase only modestly this year, by around one to two per cent, according to Real Estate and Housing Developers’ Association (Rehda) president Datuk Ho Hon Sang.
Speaking at the CEO Series 2026 pre-launch press conference today, Ho said that while construction costs are rising due to operational and logistics pressures, most developers remain cautious about increasing selling prices, as affordability and financing considerations continue to influence buyer demand.
“Perhaps one to two per cent is enough to cover the additional cost, but not 10 to 20 per cent,” Ho said at the press conference for the CEO Series 2026 pre-launch today.
He said that any price adjustments are likely to remain modest and will also hinge on additional costs arising from government measures to be introduced in 2026.
Ho noted that construction costs are anticipated to increase by about two to three per cent, but developers are unlikely to pass the full impact on to buyers.
He was responding to Prime Minister Datuk Seri Anwar Ibrahim’s remarks yesterday that the government may consider relaxing import conditions, if necessary, to ensure construction material costs remain contained and do not burden the public.
Ho said the statement serves as a reminder to industry players to manage costs responsibly.
“Local producers and manufacturers need to be very vigilant about what the Prime Minister said so that costs remain under control,” he said, noting that most construction materials are sourced domestically.
He added that higher operating expenses, including enforcement on overloaded lorries and other compliance measures, continue to contribute to rising project costs.
“Some may adjust costs slightly depending on the product, but generally it is not easy to increase the selling price. Realistically, the price should increase as well but not necessarily, because this is business,” said Ho.
Source: https://www.nst.com.my/
