Friday, June 14, 2024
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.
Development projects will just shut down.
They will stop the construction and just walk away.
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.
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.
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.
Tahniah to the dunggus. Well done.
Classic case of price gouging or opportunistic profiteering
ReplyDeleteFor a 55% increase in diesel costs to lead to a justifiable increase of 30% in building material pricing, the diesel cost component of the building material would have to amount to 87%.
Which is Kerbau pricing.
Looking deeper, it is a symptom of the Monopolistic, price collusion and anti-competitive structure of the building imaterials industry in Malaysia.
My organisation competes in the open international market, and while we do increase selling prices in the face of inflation, it is only to the extent what the market will bear.
Anybody increasing selling price 30% for an increase in costs of 55% of ONE of the cost inputs will put themselves out of business in an open Competitive market, and only have themselves to blame.
Check yr understanding of the demoNcratic marketing economic matrices before u fart!
DeleteUltimate monetary benefits overwrite every other moral considerations.
Just likening u keep trading with the evil Zionists just bcoz they r yr biggest income source.