Kuala Lumpur, 2017 – Mah Sing Group (Mah Sing) is pushing towards its RM1.8billion sales target for 2017 on the back of several upcoming launches which are affordably priced below RM500,000. The Group also shared its plans to increase its landbanks in Klang Valley over the next two (2) years. This was shared during its media briefing at Invest Malaysia 2017 (IMKL) in Shangri-La Hotel Kuala Lumpur today.
Present at its IMKL 2017 media briefing was Mah Sing’s Group Managing Director, Tan Sri Dato’ Sri Leong Hoy Kum, Chief Executive Officer, Datuk Ho Hon Sang and Executive Director, Group Corporate and Investment, Dato’ Steven Ng, sharing the Group’s strategy, financial updates, recent and upcoming launches as well as outlook of the property industry.
Mah Sing’s Recent Land Acquisitions in Line with Group’s strategy to focus in the Klang Valley; offering homes below RM500,000
Within a 2 month period, Mah Sing announced four (4) land acquisitions, three (3) in Klang Valley and one (1) in Bukit Mertajam, Penang which have a combined estimated gross development value (GDV) of RM4.3billion.
(Land 1) – Mah Sing’s 11.25 acres land along Batu 2.5 Jalan Cheras, Kuala Lumpur will be developed into M Vertica, offering residential suites with indicative built up of 850 square (sq) feet (ft) at an indicative price from RM450,000 or approximately RM530 per sq ft. M Vertica is only 600m to the Maluri MRT and LRT interchange and 800m to the Taman Pertama MRT Station as well as Sunway Velocity Mall. Mah Sing official opened the M Vertica Sales Gallery on 19 July 2017, showcasing two (2) fully furnished show units, a 850sqft residential unit with three (3) bedrooms and a 1,000sqft residential unit with four (4) bedrooms.
(Land 2) – The Group’s 8.5 acre land in Sentul will be developed into M Centura and plans to offer residential suites with indicative built up from 650 sq ft, indicatively priced from RM326,000. M Centura fronts Jalan Sentul Pasar, just opposite Sentul Point. M Centura is only 1.5km from DUKE highway, 8.3km to Kuala Lumpur City Centre and is close to both Sentul Timur and Sentul LRT Stations.
(Land 3) – The 3.56 acre land in Titiwangsa behind Istana Budaya is slated for an affordable transit oriented development just 250meters from the upcoming Hospital KL MRT station. These lake side condominiums are planned with indicative built up from 850 sq ft, indicatively priced from RM485,000.
Tan Sri Dato’ Sri Leong Hoy Kum shared “Our recent land acquisitions is in line with the Group’s strategy to increase our landbanks in the Klang Valley (Kuala Lumpur and Selangor) from our current 67% to 75% within the next 2 to 3 years. We foresee mid-range priced products will drive demand in the Klang Valley market. As such, the Group will continue to focus on developing affordable high-rise and landed quality homes priced below RM500,000 in strategic locations to meet market demand.”
According to REHDA’s Home Buyer survey in 2017, 73% of home buyers prefer to buy homes at a price range of RM300,000 to RM750,000. HSBC’s housing survey also showed that 94% of millennials Malaysians intend to buy a house in the next 5 years.
(Land 4) – In Penang, the Group’s 10.89 acres of land in Bukit Mertajam will be developed into an industrial park using Mah Sing’s award winning iParc concept with an estimated GDV of approximately RM150million, offering well-conceptualised multi-functional industrial spaces comprising a mix of shop offices and light industrial factories.
Group Still In Prime Position For Further Land Acquisitions, Backed By Healthy Balance Sheet
As at 31 March 2017, the Group recorded a healthy balance sheet with a low net gearing of 0.02 times, well below the internal target of 0.5 times.
Mah Sing’s prime landbanks, currently stands at 2,183 acres, with total remaining GDV and unbilled sales of RM30 billion which can support the Group’s revenue and earnings growth for the next 8 years.
Tan Sri Dato’ Sri Leong Hoy Kum said “With our recent land acquisitions, together with our existing landbanks, the Group is in a better position to address the need for affordable homes in the market. We are still active in our land acquisitions and are on the lookout for more potential lands. Of course any new land acquisitions will need to fulfil certain criteria, mainly strategic location, fairly priced and favourable payment terms. We will adhere to our prudent financial policy of maintaining a healthy net gearing ratio. ”
In addition, Mah Sing is expecting approximately RM637 million in Vacant Possession (VP) billings in 2017 which will further enhance the Group’s cash position.
Mah Sing Cautiously Optimistic on Improvement in Malaysia Property Market
The Group believes the Malaysian property market is currently undergoing consolidation. Global and domestic key themes in 2017 include geopolitical uncertainties, foreign policy uncertainties and inflationary pressure in Malaysia.
On a positive note, according to Malaysian Institute of Economic Research (MIER), the nation’s sentiments while weak, shows an improving trend. Furthermore, the Ringgit and commodity prices have stabilised in recent months.
The Group also noted Malaysia’s mid and long-term property outlook is still positive due to strong fundamentals such as resilient GDP growth which is expected to have a growth rate of 4.3% to 4.8%, stable labour market and the continued development of public infrastructure. The mid to long term positive outlook is also supported by the demand-supply gap whereby there are 118,000 new household formed compared to 85,000 new houses completed in year 2012 to 2014.
On Track to Hit Sales Target of RM1.8billion in 2017 – Achieved RM410.3million in Q1 2017
The Group achieved property sales of approximately RM410.3million in the first 3 months of 2017. Approximately 70% of the sales achieved were from projects in Greater KL. With more upcoming launches in the pipeline for the second half of 2017, the Group is on track to reach its sales target of minimum RM1.8billion for 2017.
RM23 million Celebration Rewards and Business Incentive Grant Programme: marketing campaigns attracting the right type of buyers
The Group introduced two (2) marketing campaigns in 1H 2017 which have made the Groups projects more accessible to buyers.
The Group’s RM23million Celebration Rewards campaign aims to reward buyers instantly and help in easing home ownership. A total of 22 of the Group’s projects are participating in this campaign, offering unique rewards for potential buyers.
Mah Sing also launched its Business Incentive Grant programme for the Group’s commercial products. The programme will provide eligible applicants with business grants should they purchase one of Mah Sing’s six (6) participating commercial projects which include Lifestyle Shops @ Southville City, Retail Shops @ D’sara Sentral, M Galleria Shops @ M Residence, 2-storey Shops @ Lakeville Residence, and Garden Boulevard Shops @ Garden Residence in the Klang Valley as well as The Meridin Walk Lifestyle Mall @ Medini in Iskandar Puteri Johor.
Tan Sri Dato Sri Leong Hoy Kum shared “We developed these innovative campaigns in order to help our customers afford a property. The RM23million Celebration Rewards campaign allows us to give back directly to our customers and help them own one of our homes. The Business Incentive Grant programme helps entrepreneurs, business owners and investors to own a quality commercial unit and help start their business. We want to be practical and these campaigns will help our buyers own a quality property.”
Group Plans for More Launches in 2H2017 At Affordable Pricing Points
Mah Sing will continue to launch the right products to cater to market demand with the focus on affordably priced properties. For the Group’s residential sales target price points in 2017, 33% are priced below RM500,000, 73% are priced below RM700,000 and 95% are priced below RM1million.
Upcoming Launches RM700,000 and below
- 565 units of 2-storey link homes in new Rawang township, M Aruna with indicative built ups from 1,680 sq ft. Scheduled to launch in Q4 2017.
Upcoming Launches RM500,000 and below
- M Vertica in Kuala Lumpur – 3,681 units of residential suites, with indicative built ups from 850 sq ft. Tentatively scheduled for launch in Q4 2017.
- M Centura in Sentul– residential suites with indicative built ups from 650 sq ft. Scheduled for preview in Q3 2017.
- 965 units of service apartments in Southville City @KL South with indicative built ups from 888 sq ft. Scheduled for launch in September 2017.
- 237 units of serviced apartments in M Vista in Southbay with indicative built ups from 538 sq ft. Scheduled for launch in October 2017.
- 90 units of 2-storey link home (Dandelion) in Meridin East, Pasir Gudang, with indicative built ups from 2,333 sq ft. Scheduled for launch in end July 2017.
- Phase 2 of 2-storey link home (Fern) in Meridin East, Pasir Gudang comprising 310 units with built ups from 1,622 sq ft. Tentatively scheduled for launch in Q4 2017.
- 294 units of serviced apartments (new tower) of Caspian@Meridin Bayvue, with indicative built ups from 980 sq ft. Scheduled to launch on 29 July 2017.