He said that every 1% depreciation by the ringgit against the US dollar will cause an increase of 0.15% to 0.25% for one “precision,” referring to an architectural term.

“We are monitoring this (foreign exchange) space. Like it or not, property developers overall are slightly increasing costs and prices to purchasers as well,” he added.

Azmir mentioned that, as raw materials in the construction sector are imported, the impact of the exchange rate would be felt, and it would consequently affect margins going forward.

“There is only so much we can do to increase the prices until it reaches a point where the take-up rate slows down,” he said in a virtual media briefing following the release of the group’s 2023 financial results.

“I hope the economy remains stable. With positive reports indicating that the ringgit is expected to strengthen by the end of this year, I don’t think we will have the problem of passing prices or increasing prices,” he said.

Barring any unforeseen situation, he said that (scenario) should play out, and a stronger ringgit would be good for the industry players in the property sector.

Previously, SPI Asset Management managing director Stephen Innes said the current weakness of the ringgit is temporary as global markets, especially Malaysia’s largest trading partner China, are rebalancing their inflation trends.

He considered that the depreciation of the ringgit at that time was an overreaction.

“Still, the broader context of many Asian countries struggling under tight financial conditions, especially those reliant on US dollar-denominated funding, makes accessing external funding prohibitively expensive,” said Innes.