Building Investment (May-June 2021)

NEWS & EVENTS
Surging global freight rates caused
recent spike in building and
construction materials costs,
says BMDAM
A recent spike in the building and
construction material costs is due to the
surging global freight rates, says Mr Bill
Lee, the President of Building Materials
Distributors Association of Malaysia
(BMDAM).
In a statement issued on 19 April 2021,
Mr Bill said: “Despite recent reports that
building materials distributors are hiking
prices of their products, but in reality, they
are only involved in scattered sales and
ensuring effective distributions, as well as
providing channels for merchants to pay
for credit; we use the difference between
buying and selling transactions to make
profits.”
Mr Bill mentioned that the current
economic downturn has created numerous
challenges for the building materials
distributors. Apart from reduced gross
profits, there are also issues of delayed
payments and more bad debts.
“Our members at BMDAM prefer to
see the market prices remain constant
or an orderly price market. Based on
past experience, intense price spikes and
speculative demand will affect the business
environment and cause short-term shocks
to the market.”
“This kind of unfavourable market
issues must be addressed immediately,
otherwise we will face stagflation pressure,
housing prices will get out of control, and
affordable housing will be in vain.”
“We are not part of a coalition
monopoly, and we will not lobby the
authorities to introduce protective
measures, because doing so will lead to
shortages and rising prices. We support
open markets and free trade,” he
continued.
Mr Bill then highlighted that the
standard operating procedures (SOP)
implemented as cautionary measure
against the spread of COVID-19, as well
as the shortage of foreign labour and
dormitory issues, have dealt a heavy
blow to the housing and construction
industries. He also expresses his hopes
for rapid economic recovery during these
challenging times.
Trinity Group to launch projects worth RM1 billion
in the year
Property developer Trinity Group aims to
roll out RM1 billion worth of new projects
in the Klang Valley within the next one
year.
The projects are namely Trinity
Wellnessa in Beverly Heights, a 3.9-acre
condominium project in Ampang North
that is slated for launch in July 2021, as
well as Trinity Enlivea that will also be
located in Ampang North and a mixed
development in Bandar Kinrara.
Founder and Managing Director
Datuk Neoh Soo Keat said Trinity has been
optimistic as industry data show sustained
interest in certain sections of the market,
especially from young and first-time
property buyers.
“We see this as a great opportunity
to fill the gap and demand for affordable
lifestyle-oriented homes by moving
forward with a number of projects in
strategic locations to meet the market
demand. It’s certainly a calculated move
with 80% of our projects over the next
one year priced below RM650,000 per
unit with a key focus in delivering valuedriven
properties. We will specifically
target buyers under 35 years, a majority
of whom are first-time homeowners,” said
Datuk Neoh.
While acknowledging a challenging
market environment, Dato’ Neoh said
that Trinity Group remains confident that
demand for the group’s projects will meet
the interest of buyers, driven by strategic
location, attractive price-points and
compelling concepts featuring innovative
designs and layouts.
“What differentiates Trinity’s
upcoming developments are our
innovative wellness and multi-layer
protection concepts, as consumers will see
during the launch of projects like Trinity
Wellnessa and Trinity Enlivea. These USPs
are already starting to create significant
buzz in the industry and interest from
prospective buyers,” said Dato’ Neoh.
“As a boutique developer, our
game plan moving forward is being
agile, prudent and demand-centric in a
competitive market. Above all, we will
continue to stay true to our brand value
Dato’ Neoh Soo Keat, Founder and Managing
Director of Trinity Group.
of developing projects that delivers true
value to our customers, with timely
delivery of these projects, which is
reflected in our track record,” he added.
8 May-June 2021 | www.b-i.biz