Supply is balanced, but H-beam pricing moves upward
MLIT's survey conducted August 1-5 covered seven major materials and 13 product categories including ready-mixed concrete, steel and timber. H-beams were assessed as 'slightly rising' in price compared with the previous month, while other materials were flat. Supply-demand conditions were categorized as balanced across every surveyed material, and inventories were considered normal. This indicates no broad nationwide material shortage at the survey date, although higher structural-steel prices remain relevant to building budgets.
Construction cost remains a key driver of new-property pricing
For condominium, office, hotel and logistics development, construction cost is as important as land acquisition in determining project feasibility. Persistently expensive materials may be passed through to sale prices or rents or cause developers to adjust specifications and timing. Overseas investors acquiring land for development therefore need current construction estimates rather than relying on historical cost assumptions. Since material availability was balanced in the August survey, labor expenses, contractor capacity and project duration will be equally important to watch.