SUNGAI BULOH, Selangor: Glomac Bhd expects the property market to improve, although much will hinge on factors like economic conditions.

Glomac chief operating officer and operations Zulkifly Garib said the minimum wage is set to increase under 2025 Budget, raising labour costs for contractors. This will subsequently drive up the overall construction costs.

“Even if material costs stabilise, labour costs are expected to rise. When we discuss with the contractors or master builders, they think that it will go up.

“The (planned) implementation of foreign workers to contribute to the Employees Provident Fund (EPF) proceeds will benefit consumers as the EPF fund will grow. However, it has its pros and cons.

“The downside is that contractors or manufacturers will need to pay more, which means prices will go up. When prices increase, our costs also rise, as we do not build directly but outsource contracts to third parties,” he told reporters at a media briefing.

Zulkifly noted that increased contract costs lead to higher expenses, raising the unresolved question of how to reduce housing prices.

“But again, this does not take into account the overall economic situation, particularly the potential impact of Donald Trump’s presidential election. If that factor is set aside, the market should improve,” he said.

Zulkifly said in terms of material costs, certain items have stabilised such as steel prices.

“However, cement prices remain volatile due to control by just one or two producers. As for labour costs, feedback from master builders and contractors suggests they are likely to increase,” Zulkifly added.

He said whether construction costs will go down remains a question.

Meanwhile, Glomac unveiled its new development called Serai @SBCR in Bandar Saujana Utama, Sungai Buloh with a total gross development value (GDV) of RM353 million.

The development offers a matured township with complete amenities and facilities such as primary and secondary schools.

It comprises 374 units of double-storey terrace houses and two commercial plots.

This development consists of four phases: Serai 1 (112 units), Serai 2 (96 units), Serai 3 (90 units), and Serai 4 (76 units).

Serai One has a GDV of RM78.6 million, with prices ranging from RM654,220 to RM911,430.

Source: New Straits Times