GLOPRAGlobal Property Radar

Malaysia construction costs ease as steel falls 2.4% in September 2026

Malaysia's building cost index fell month on month in September 2026 as steel bars dropped -2.4%, while Klang Valley cement stayed 7.4% up on the year.

The facts

  • The Department of Statistics Malaysia released its Building Cost Index for September 2026 on 12 October 2026.
  • The average price of steel bars fell -2.4% to RM3,431.90 per metric tonne, from RM3,484.20 in August 2026; the steel unit price index was down 0.2% to 1.6% on the month, with Johor at -1.6%.
  • The building cost index including steel bars fell month on month in every building category: 0.1% to 1.3% in Peninsular Malaysia, 0.1% to 0.7% in Sabah and 0.1% to 0.5% in Sarawak.
  • Sand eased 0.1% to 0.7% on the month, the steepest fall 0.7% in Selangor, Kuala Lumpur, Melaka and Negeri Sembilan.
  • Cement went the other way: up 0.3% to 1.9% on the month and 0.6% to 7.4% over the year, the 7.4% in Selangor, Kuala Lumpur, Melaka and Negeri Sembilan.
  • Ordinary Portland cement held at RM25.80 per 50 kg bag, unchanged from August.

What it means for your money

  • Cheaper steel trims what developers pay to build. Cement in the Klang Valley is still 7.4% dearer than a year ago.
  • The index prices inputs, not finished homes. One month down 1.3% at most does not undo a year of cement rising 7.4% in the largest urban market.
  • Lower build costs make shelved projects viable again, and those units arrive later as extra choice for buyers and extra competition for landlords.
  • For existing owners, repair and extension bills split the same way: steel and sand were cheaper in September, cement was not.

What to watch

  • The next building cost index, covering October, is printed for 10 November 2026.
  • The release gives ranges by region and building category, not one national figure, and measures material and wage inputs rather than transaction prices.
  • Malaysia's transaction-price benchmark is the separate NAPIC house price index, on its own quarterly cycle.

Sources: Department of Statistics Malaysia https://www.dosm.gov.my/portal-main/release-document-log?release_document_id=21480; Department of Statistics Malaysia https://www.dosm.gov.my/portal-main/release-content/special-release----for-building-and-structural-works-sep2026

Market data: Malaysia