Asas Dunia raises prices

GEORGE TOWN: Asas Dunia Bhd is raising prices of its new landed properties on the mainland by 25% to 30% next year due to soaring energy and raw material prices.

Group managing director Datuk Jerry Chan said the group planned to launch 1,176 single- and double-storey terraced and semi-detached properties in Bukit Mertajam, Jawi and Nibong Tebal.

The gross development value of the new properties is about RM215mil.

“We are likely to start construction work in two months. We will launch the properties only when we have completed about 50% of the units next year,” he said after the company AGM yesterday.

To reduce construction costs, the group would build units with smaller built-up areas, Chan said.

“We would also build more single-storey units, which will comprise about 30% of the new launch,” he said.

For existing unsold properties, the group would increase selling prices by about 10%, he said.

Landed properties on the mainland are currently priced between RM110,000 and RM300,000 per unit, depending on the built-up area, type and location.

Chan said soaring raw material prices would result in lower supply of properties.

“Developers will be more cautious in launching new projects. The population will continue to grow while there will be limited supply of properties.

“In this scenario, property prices are likely to escalate further,” he added.

By The Star (by David Tan)