EdgeProp Print Edition Paramount flags 3%–5% price hike for new launches, keeps RM1.2b sales target Justin Lim / theedgemalaysia.com 26 May, 2026 Updated:about 6 hours ago Google LogoAdd EdgeProp as preferred source Highlights only AI-powered summary, reviewed by our editors KUALA LUMPUR (May 26): Paramount Corp Bhd (KL:PARAMON) is expecting a 10% rise in construction costs following recent geopolitical shocks, and plans to increase the prices of its upcoming property launches by 3% to 5% to offset rising building material and fuel expenses. Although about 80% of the group's construction costs for its ongoing projects are now insulated because prices were locked in before the conflicts erupted in the Middle East, new launches will inevitably face these higher cost pressures, deputy group chief executive officer Beh Chun Chong told a press briefing on Monday. ADVERTISEMENT Construction costs, including building materials and fuel, account for up to 50% of total development costs, while land costs make up for 20%. The remaining are sales and marketing and labour costs, he explained. Brent crude oil prices surged past US$120 per barrel in April following the closure of the Strait of Hormuz. While Brent crude had eased to US$85 at the time of writing on Monday, the global benchmark for oil prices have gained 41% year to date, from US$60 per barrel at end-2025. Meanwhile, Paramount is maintaining its RM1.2 billion property sales target for this year, which it expects to be supported by property launches totalling RM1.8 billion in gross development value. ADVERTISEMENT Paramount recorded RM1.03 billion property launches in FY2025, when it launched RM808 million worth of new projects, with sales declining 26% from RM1.4 billion in FY2024 due partly to a moderated launch pipeline and a challenging operating environment — arising from cost pressure from wage increase, US tariff, and expansion of sales and service tax. While the group is ramping up launches this year to support sales momentum, group chief executive officer and executive director Jeffrey Chew Sun Teong said the pipeline is "not aggressive". The group’s combined launches for the next two years are valued at about RM2.6 billion, which he described as only “slightly higher” than the level needed to support the group’s annual sales momentum and growth target. For the January-March period this year, the group’s property sales came in at RM152 million, down 34% from the RM230 million sales it achieved in the same quarter last year. Middle East conflict weighing on upgrader demand, but starter-home buyers not affected Geopolitical tensions in the Middle East have affected consumer confidence, Chew said, particularly among upgrader-home buyers, who are adopting a cautious wait-and-see approach before committing to larger property purchases, he said. There is also a “hollowing out” effect among local small medium enterprises (SMEs) due to growing competition from Chinese businesses and imports, Chen said, which is affecting upgrade demand among business owners. Nevertheless, he is confident that underlying residential demand remains supported by Malaysia’s growing population, especially demand for first-time home buyers. "The segment that's not affected is the starter homes or the first home buyers. So it's people who actually used to rent, or now need to move into a new place because they just got married," said Chew. Some are anxious to buy as they worry that raw material costs will spike, besides concern about developers holding back launches driving property prices up, he said. Plans to secure land with potential RM2 bil GDV this year Paramount is targeting the acquisition of additional landbank with a potential gross development value (GDV) of RM2 billion, mainly in the northern part of the peninsula and the Klang Valley. Between December 2024 and March 2026, the group inked six deals to buy 373.9 acres of land with a projected GDV of about RM4 billion. Upon completion, the group will have undeveloped lands with a projected GDV of RM7.3 billion. Paramount's net profit came in flat at RM14.40 million for the three months ended March 31, 2026 (1QFY2026), as revenue fell to its lowest in nearly five years due to fewer ongoing projects and the absence of new launches. Quarterly revenue dropped 29.7% to RM152.2 million from RM216.46 million, due to softer sales and slower revenue recognition from projects at early stage of construction. Pls redo similar, write what I learn including title in article format. Pls remove all those advertisement
What I Learned from the Article: Paramount Plans Property Price Hike Amid Rising Construction Costs
A recent article by EdgeProp Malaysia discussed how Paramount Corporation Berhad is responding to rising construction costs caused by global geopolitical tensions and higher fuel prices.
From this article, I learned that construction costs in the property industry are heavily affected by global events, especially conflicts in the Middle East. Due to rising fuel and material prices, Paramount expects construction costs to increase by around 10%. To reduce the impact of these higher costs, the company plans to raise prices for its upcoming property launches by 3% to 5%.
I also learned that construction costs form a large part of total property development costs. According to the article, building materials and fuel account for up to 50% of development costs, while land costs contribute around 20%. Other expenses include labour, sales, and marketing costs.
Another important point is that despite the challenging economic situation, Paramount is still maintaining its RM1.2 billion property sales target for 2026. The company believes demand for residential properties, especially starter homes and first homes, remains strong because Malaysia’s population continues to grow. Many newly married couples and first-time buyers are still actively searching for homes.
However, the article explained that buyers looking to upgrade to larger or more expensive homes are becoming more cautious because of uncertainty caused by geopolitical conflicts and economic pressure. Small and medium enterprises (SMEs) are also facing stronger competition from imported products and foreign businesses, which affects the purchasing power of some business owners.
Besides that, I learned that Paramount is continuing to expand its landbank. The company plans to acquire more land in the Klang Valley and northern Peninsular Malaysia with a potential gross development value (GDV) of RM2 billion. This shows that the company is still confident about the long-term growth of the property market.
Lastly, the article showed that Paramount’s financial performance in the first quarter of 2026 was weaker compared to the previous year. Revenue and property sales declined because there were fewer ongoing projects and fewer new launches. Even so, the company is still planning future launches carefully to maintain stable growth.
In conclusion, this article helped me understand how global economic and political issues can directly affect the property industry. It also showed how property developers adjust pricing strategies, manage costs, and plan future projects to remain competitive during uncertain times.
Don't put what I learn as title
Paramount Plans Property Price Hike Amid Rising Construction Costs
A recent article by EdgeProp Malaysia discussed how Paramount Corporation Berhad is responding to rising construction costs caused by global geopolitical tensions and higher fuel prices.
From this article, I learned that construction costs in the property industry are heavily affected by global events, especially conflicts in the Middle East. Due to rising fuel and material prices, Paramount expects construction costs to increase by around 10%. To reduce the impact of these higher costs, the company plans to raise prices for its upcoming property launches by 3% to 5%.
I also learned that construction costs form a large part of total property development costs. According to the article, building materials and fuel account for up to 50% of development costs, while land costs contribute around 20%. Other expenses include labour, sales, and marketing costs.
Another important point is that despite the challenging economic situation, Paramount is still maintaining its RM1.2 billion property sales target for 2026. The company believes demand for residential properties, especially starter homes and first homes, remains strong because Malaysia’s population continues to grow. Many newly married couples and first-time buyers are still actively searching for homes.
However, the article explained that buyers looking to upgrade to larger or more expensive homes are becoming more cautious because of uncertainty caused by geopolitical conflicts and economic pressure. Small and medium enterprises (SMEs) are also facing stronger competition from imported products and foreign businesses, which affects the purchasing power of some business owners.
Besides that, I learned that Paramount is continuing to expand its landbank. The company plans to acquire more land in the Klang Valley and northern Peninsular Malaysia with a potential gross development value (GDV) of RM2 billion. This shows that the company is still confident about the long-term growth of the property market.
Lastly, the article showed that Paramount’s financial performance in the first quarter of 2026 was weaker compared to the previous year. Revenue and property sales declined because there were fewer ongoing projects and fewer new launches. Even so, the company is still planning future launches carefully to maintain stable growth.
In conclusion, this article helped me understand how global economic and political issues can directly affect the property industry. It also showed how property developers adjust pricing strategies, manage costs, and plan future projects to remain competitive during uncertain times.
Don't put from edge prop
Paramount Plans Property Price Hike Amid Rising Construction Costs
Paramount Corporation Berhad is responding to rising construction costs caused by global geopolitical tensions and higher fuel prices.
From this article, I learned that construction costs in the property industry are heavily affected by global events, especially conflicts in the Middle East. Due to rising fuel and material prices, Paramount expects construction costs to increase by around 10%. To reduce the impact of these higher costs, the company plans to raise prices for its upcoming property launches by 3% to 5%.
I also learned that construction costs form a large part of total property development costs. According to the article, building materials and fuel account for up to 50% of development costs, while land costs contribute around 20%. Other expenses include labour, sales, and marketing costs.
Another important point is that despite the challenging economic situation, Paramount is still maintaining its RM1.2 billion property sales target for 2026. The company believes demand for residential properties, especially starter homes and first homes, remains strong because Malaysia’s population continues to grow. Many newly married couples and first-time buyers are still actively searching for homes.
However, the article explained that buyers looking to upgrade to larger or more expensive homes are becoming more cautious because of uncertainty caused by geopolitical conflicts and economic pressure. Small and medium enterprises (SMEs) are also facing stronger competition from imported products and foreign businesses, which affects the purchasing power of some business owners.
Besides that, I learned that Paramount is continuing to expand its landbank. The company plans to acquire more land in the Klang Valley and northern Peninsular Malaysia with a potential gross development value (GDV) of RM2 billion. This shows that the company is still confident about the long-term growth of the property market.
Lastly, the article showed that Paramount’s financial performance in the first quarter of 2026 was weaker compared to the previous year. Revenue and property sales declined because there were fewer ongoing projects and fewer new launches. Even so, the company is still planning future launches carefully to maintain stable growth.
In conclusion, this article helped me understand how global economic and political issues can directly affect the property industry. It also showed how property developers adjust pricing strategies, manage costs, and plan future projects to remain competitive during uncertain times.
Yao Mu Realty, based in Kuala Lumpur, Malaysia, specializes in industrial real estate for factories and land, delivering professional and efficient solutions.
Posted by Yao Mu Realty Sdn Bhd on 26 May 26
Malaysia