According to price data, they remained relatively stable at the end of 2022, but were still more expensive compared to December 2021, and by about 20%. And what were the prices of building philippines number list materials like at the beginning of 2023? Well, January 2023 was 17% more expensive compared to the same period of the previous year. Based on an analysis of the sales prices of building and home and garden materials of PSB Handel SA Group, the increase is as follows:
In contrast, OSB boards and wood have become cheaper by around 6%. Meanwhile, in the space of one month, from December 2022 to January 2023, building materials have already managed to increase by 1%. According to forecasts, the increase in the price of building materials in 2023 will be between 4TP3T and 8%. The dynamics will be lower than in previous years, but it could still be difficult.
Availability of land for investment
For years now, the real estate market has been faced with a shortage of building plots. Demand is far outstripping supply. Market research shows that the attractiveness of land is declining considerably and that land in the most favourable locations is becoming more and more expensive. Investors are particularly interested in land in larger cities, where construction can begin as soon as possible.
The higher cost of land will lead to higher sales prices for apartments, which will force some developers to cut margins to maintain the interest of buyers.