Building Investment (May - June 2022)

(Source: tconglobal.com)
eventually. Most importantly, material costs in construction
should not be seen as a factor that forces developers to sacrifice
in design, quality, and workmanship of their products. Instead,
the bottom line is to balance their project expenses while
improving their supply capabilities.
Realizing that property development is facing a year-overyear
increase in cost of doing business that making profits
ever the slimmer; honouring more “sustainable construction
practices” and “sourcing out alternate materials” are two of
the best solutions to mitigate the impact of commodity price
fluctuations in the long-run. By implementing technologies and
heeding design processes including lean construction, BIM, and
construction field management software, developers can achieve
greater stability, reliability, efficiency, and flexibility in their
projects, which will eventually be leading to the reduction in
operating costs considerably.
Speaking on alternative materials, not only that the architects
and engineers should exercise their creativity in incorporating
unconventional materials in their designs that helps control
costs while does not compromise on safety, quality, durability,
or functionality; developers should also be more receptive to
counter proposals by relooking into the viable substitutes (i.e.
higher concrete grade to reduce required steel bar, rebar coupler,
AAC wall panel) as well as proven technologies (i.e. SMC modular
toilet).
To note, demand has shown signs of weakening for
properties priced below RM500k. Under the previous three
rounds of withdrawal facility – i-Lestari, i-Sinar, and i-Citra –
implemented since the Covid-19 outbreak in 2020; the recent
EPF special withdrawal measure introduced by government is
further evidence to the subdued economic outlook. Perhaps,
over focusing of affordability on the past has overshadowed the
value creation by developers leading to the mismatch of housing
demand-supply. To put value at the perspective of property
buyer, more comprehensive development incorporating longterm
sustainable living would one way or another as pull factor
for recurring property demand as well as value appreciation.
After all, prices may not be the only factor determining
the property demand. For the recovery from the pandemic
to be durable, a return to the “business as usual” model of
environmentally destructive development activities must be
avoided. Instead, the concept of ‘build back better’ should
be advocated in the discourse around reforming the housing
industry. On this basis, developers’ responses to the pandemic
should include not only getting the property market back on its
feet, but also to address well-being, inclusiveness, and various
systemic vulnerabilities that can potentially impede sustainability
in the long-run.
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