KUALA LUMPUR: Land & General Bhd (L&G) foresees a potential rise of between 10 and 15 per cent in total construction cost for new property projects due to the weaker ringgit againts US dollar.
It's managing director Low Gay Teck said, this would add further to the already higher construction costs which have been rising progressively over the last one to two years.
However, Low said the higher costs would mostly be seen in high-end property projects given that their fittings and finishes are not locally produced.
"The bulk of the raw materials are price controlled items and produced locally so it's not that bad.
"But if the weakening of ringgit continues to prolong, we would feel the pinch as certain items need to be imported in US dollar," he told a press conference after the company's annual general meeting, here, today.
Low said, the company will opt for price adjustment for each of its new project accordingly to accommodate the higher development costs.
He said the property developer will also focus on acquiring strategic landbank, completing its existing projects and securing buyers to ensure a sustainable growth for the company during this tough time.