Construction materials continue to decline but it is not reflected in the cost of housing

The Construction materialsstill experienced lower their prices although you are still not reflected in building costs nor in the sales of housing projects, since many hardware stores allege that they must exhaust the inventories of the merchandise that they already have in store and that were acquired at high prices.

The president of the Dominican Association of Hardware Stores (Asodefe), Arturo Espinal, told Listin Diario that rebar tying is down again by around 7%, after months ago under about RD$10,000. “It has dropped more or less RD$1,500 more in recent days. The cement lowered about RD$10.00 per cover”.

He explained that this reduction in the prices of construction materials they have to do with the drop in the cost of sea freight by more than 50% and said this will be reflected in the coming months in all the merchandise that comes from China, Europe and elsewhere.

The president of the Dominican Confederation of Small and Medium Construction Enterprises (Copymecom), Eliseo Cristopher, pointed out that in the case of steel the reduction of around 12% has been maintained and pointed out that the case of wire has experienced a very significant drop, since it was quoted at RD$18,000 per quintal of soft wire for construction and in currently it is located at RD$6,000 or RD$6,500.

In the case of woodthe leader of Copymecom indicated that he has presented a drop of 12 or 14% and the cement cover was reduced by RD$15.00 its retail price, from RD$475 to RD$460.00.

In the case of construction aggregates He said that instead of going down, their prices have increased, as a result of several factors, among them, he cited “the correct policy of the Government of prohibit the extraction of aggregate from rivers, which forces us to use quarry materials and that makes it more expensive”.

When consulting the president of the Dominican Association of Home Builders and Promoters (Acoprovi), Jorge Montalvo, he agreed in pointing out that the sector has experienced “a significant drop in rebar of 7% at the beginning of September and some reductions in PVC pipes, otherwise it has been rather a certain stabilization in prices”. Drops are not reflected yet

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The president of Copymecom pointed out that the decreases that some construction materials have registered in their prices are not yet reflected in the population because many hardware stores allege that they have merchandise in inventory that they bought at high prices and must wait to get out of that inventory to adjust prices.

While the president of Acoprovi stated that they are monitoring housing cost index carried out by the National Statistics Office (ONE), which “it reflected just a reduction of 0.42% in its last publication so now we have to wait for the suppliers to finish consuming their inventories so that we can see more important reductions in the prices of construction materials”.

Outlook for 2023
The president of Copymecom, Eliseo Cristopher, recalled thathe projections they had made for 2022 pointed to a slowdown in the sector compared to 2021 when it closed with a growth of 24%.

He added that 2023 is expected to be busier and more prosperous “although the indicators we are seeing are not the most promisingbecause although the materials have gone down, we do not believe that they will reach the levels they were before the pandemic or the war.”

He added, as another factor that will affect the dynamism of the sector for next year, the increase in the cost of credit as a result of the increases in the monetary policy rate.

Rod
Rod tying, for a few months, has shown significant declines of about RD$11,000, according to different actors in the sector.

Cement
the sheath of cement recorded a reduction from RD$10.00 to RD$15.00 and according to Copymecom before it was sold for RD$475.00 and now for RD$460.00.

sweet wire
The quintal of soft wire used in construction has registered a drop of more than 50%, according to Copymecom, since months ago it was priced at RD$18,000 and currently it is sold between RD$6,000 and RD%6,500. Also PVC materials have dropped in price.

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