Friends who have visited the building materials market must have noticed that many well-known brand building materials have quietly raised their prices.
A while ago, Keshun and Dongfang Yuhong, the two leading waterproofing companies, issued notices that waterproofing membranes and coatings have increased directly.
3%-8%, and the increase in insulation materials has also reached 5%.
BNBM Group, which makes ceramic tiles, followed suit and raised prices for its entire range of ceramic tiles by 2%-5%. Even basic building materials that had not seen price changes in several years also followed suit this time.
Especially for friends who are planning to renovate in third- and fourth-tier cities. Now that they have just collected the money, they are panicking: should they bite the bullet now and pretend, or should they wait and see if the price will drop back?
The following will give you a clear account based on market conditions. After reading this, you will know how to choose.
This wave of price increases is really not a concept speculated by merchants. There are three reasons why it has landed around us.
The most direct thing is that the price of raw materials has increased too much.
Asphalt, which is necessary for waterproofing, has increased by almost 180 yuan per ton since the beginning of this year. The overall price of copper has increased by 6%. Even the freight for clay used for firing tiles has increased by more than 30 yuan per ton.
Manufacturers cannot bear the cost heap, so they can only transfer this pressure to the terminal selling price.
Furthermore, environmental protection policies have been tightened, and a large number of non-compliant small and medium-sized factories have been directly eliminated.
Leading brands have gained more market share, but they also have to upgrade production lines and improve environmental protection equipment. These investments will eventually be reflected in the selling price.
Finally, the demand has increased. In the past two years, the delivery volume of old renovations and new residential buildings in third-tier cities has increased. Especially the waterproofing projects of old renovations are basically contracted by leading brands. Manufacturers give priority to supplying large projects with their production capacity. Naturally, there is less supply at the retail end, and prices rise accordingly.
These three reasons are not short-term speculation. In the next one or two years, the price of building materials is likely to rise steadily. It is basically impossible to wait for a sharp drop to pick up the leakage.
Let us do some real accounting for owners in third-tier cities: How much more will the price increase cost you?
Many people panic when they hear the word “price increase”. Don’t worry, let’s take the most common three-bedroom decoration of 100 square meters in third-tier cities and calculate it. You will understand after reading it.
As for waterproofing, it would take about 35 barrels of paint to waterproof a 100-square-meter house, kitchen, bathroom, and balcony. Calculated based on Oriental Yuhong’s average increase of 5%, the original total price was about 1,400 yuan, but now it only costs 70 yuan more.
Excluding ceramic tiles, a 100-square-meter house would require about 80 800*800 floor tiles, plus 120 kitchen and bathroom wall tiles. Based on Beixin’s average increase of 3%, the original total price would be about 8,000, which is an extra 240 yuan.
Add in all the basic building materials such as cement, sand, water pipes and wires, which have increased with the price, and if it is flat-packed for 100 yuan, the total budget will only cost 300 to 800 yuan more, which is less than 1,000 yuan.
Putting it into the overall decoration budget of more than 100,000 yuan, the increase is less than 1%. It is really not as exaggerated as the saying on the Internet that “the increase is too much to afford”. It is really not a big pressure for ordinary families.
In these two situations, listen to my advice, don’t rush to pretend, you will only lose money if you try hard.
The first type is that you haven’t raised the full payment for the renovation yet, you only have enough to pay a deposit, and you have to rely on a loan to finance the renovation.
The interest rate on decoration loans in third-tier cities is basically 4%-6%. Even if you wait for a year, the interest you have to pay will be much more than the increase in building materials. There is no need to rush this trip.
There is such an example around me. Last year, in order to grab the “last train before the price increase”, I borrowed 20,000 yuan from an online loan for decoration. The interest rate was only 1,800 yuan a year, which was twice as much as the increase in building materials. It was a huge loss.
The second type is that you rush to order building materials in advance before you even pay for the house, or you haven’t released the mortgage, or you haven’t even decided on the final apartment type.
Many brands say they “book in advance and guarantee the price for you”, but if you order the style now, you may not be able to get it when the house is delivered in half a year. There will be a 10%-20% penalty for canceling the order, which means you will lose more than the price increase.
And there are many small building materials stores in third-tier cities. If you pay in advance to stock up on goods, if the boss fails to continue the business and changes his career and closes down, you won’t even be able to find anyone, and the money will be wasted. Who should you cry to?
Don’t worry about these three situations, make your reservation as soon as possible, the longer you wait, the less cost-effective it will be.
The first type is that the house has been taken over, the decoration budget is fully prepared, and the apartment design is finalized.
This kind of work can either start construction directly, or first order the core building materials with large price increases.
Let me talk about a little trick commonly used by local dealers: Most local dealers in third-tier cities can guarantee the price for you as long as you pay a deposit of less than 30%. You can lock in the current price without paying the full price. Even if the price increases later, they will give you the original price. The risk is really very small.
I ordered ceramic tiles for my relative last year and paid a 20% deposit to guarantee the price. Three months later, the brand really increased its price, so I still got the goods at the original price. I saved a small three hundred, which was just enough to buy a set of better floor drains. Isn’t this delicious?
The second type is to live on your own after the decoration is completed. For example, the child will get married soon and use a house. If he just needs it, he can’t afford to wait.
Even if you spend a few hundred yuan more on building materials, move in half a year in advance and don’t have to rent a house outside, the monthly rent for two rooms in a third-tier city costs more than 1,000 yuan, and half a year is more than 6,000 yuan. It is much more than the increase in building materials. It is a good deal no matter how you calculate it.
The third type is to have idle provident funds on hand, which just meet the withdrawal conditions this year.
In the past two years, many third-tier cities’ provident fund withdrawal policies have been relaxed. The money you get is just for decoration, and it is left in the account to depreciate with inflation. It is better to take it out early and decorate it as your own house.
To put it bluntly, this time the price increase of building materials is driven by cost and demand. It is not caused by speculation by merchants. It will basically not fall back in the future. However, for ordinary decoration households, the impact is really not that big. If 100 square meters is enough, it will cost an extra thousand yuan, so there is no need to panic.
If you haven’t collected the money or got the house, just wait quietly, there is no need to rush for the news; after taking the house, you have enough money, and you are waiting to move in, don’t hesitate, just pay a small deposit to lock in the price, it will be more cost-effective than digging out your wallet if the price really increases.
For ordinary families in our third-tier cities, decoration should be done at their own pace. There is no need to follow the emotions on the Internet and panic. What suits you is right, what do you think?
Have the prices of your local building materials increased?
Are you planning to install it this year or wait?
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