The effect of increasing the price of materials on the housing market

The effect of increasing the price of materials on the housing market

Iron affected by the dollar rate
There is no difference in the price of iron in the world market, and as iron was traded at the price of 520 dollars 6 months ago, it is traded at the same price today, and in this sense, we cannot talk about the increase in the price of iron, but since the price of the dollar has increased in the domestic market. This increase in the price of calculating the exchange rate with Rial has caused the price of iron in the market to increase. With the fluctuations of the dollar rate in the domestic market, the price of iron changes and increases or decreases.
The increase in the price of iron only in July compared to June was about 70%. This price increase is due to the increase in global prices due to the suspension of iron exports by China.

Cement stability, housing prosperity
Although iron is affected by the price of the dollar in the days of instability, but cement, as another effective building material in the finished price of the house, is going through the opposite trend and its activists report the stability of the price in this market.
The only thing that has happened in this market is the reduction of the discounts that the producers gave to the suppliers, and in 1997, these discounts were removed or reduced, and this is explained by the high price of cement.
In order to survive in the competitive market, cement factories used to offer different discounts from 10 to 25 percent to their buyers depending on the cement distribution area.
On the other hand, the average consumption of cement per square meter residential unit is 2.5 to four bags, and we need about 400 bags of cement for 100 square meters; It is estimated that about four million tomans will be spent on these cement bags; Therefore, the lowest amount of cost in construction, related to cement, ultimately does not have a significant price effect on the finished price of the house.

In August of this year, the Deputy Minister of Industry, Mines and Trade announced the agreement of the ministry with a 12% increase in the price of cement and said: This price increase for the last 2 years (1996 and 1997) has been calculated and implemented by 6% per year, while this The 12% increase applies to all manufactured cement items and is based on the performance of the respective factories.

Dollar game with sanitary ware market
The factors influencing the finished price of the house are the land, sanitary ware, and ceramic tiles.
Due to the fact that the raw materials for the production of building sanitary ware are mostly priced in dollars, in the past months and days since 1997, they have faced an increase in the price of foreign exchange, and therefore this increase can be very effective on the cost of housing. .

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This post is written by poshtibaniTs