Some construction projects temporarily halted due to rising construction material prices

Some construction projects have been temporarily halted due to the rising prices of construction materials such as rebar, according to construction industry stakeholders. The price increases for essential construction materials such as rebar, bricks, and gravel have been ongoing since around July. Due to these price fluctuations, some contractors who have entered into contracts with homeowners and are undertaking construction have either suspended operations after negotiating with homeowners, or have suspended operations with compensation according to the contract if negotiations fail, or have transferred the projects to contractors who can proceed with construction, according to one construction entrepreneur. It is also reported that some construction companies that build and sell their own properties, rather than building for homeowners, have temporarily halted their operations and are monitoring the situation. According to the construction material market, the price of rebar, which was previously around 2.6 million kyats per ton, has now risen to around 5 million kyats per ton, and the price of gravel, which was around 120,000 kyats per load, has now risen to around 400,000 kyats per load.