Mah Sing Group Bhd is expanding its property development efforts to become one of the market's top players and provide more homes to meet the country's affordable housing demands, according to its founder and group managing director Tan Sri Leong Hoy Kum.
The developer now has 30 ongoing property projects with a remaining gross development value of roughly RM23 billion.
Leong said within these next few months it will launch an additional 10 projects.
He also said the company is currently looking for suitable land in important markets such as Greater Kuala Lumpur, Selangor, Johor, and Penang to expand.
"We're looking for more land to meet the growing demand for affordable housing. Market morale appears to be improving. There have been more sales since the reopening of our sales galleries. People are looking for larger homes and are willing to live outside of the city centre, according to our observations," he told NST Property.
"Mah Sing has always been driven by the market. We construct what people desire and can afford. Our goal is to build affordable homes for under RM500,000 while maintaining high quality. We are a 50-year-old firm, and our products have always sold well because they are designed to meet the wants and needs of our customers. We will continue to do so in the future and offer our buyers the best residences possible," he said.
As of June 30, 2021, the company had a good financial sheet, with cash and bank balances of roughly RM807.5 million, as well as investments in short-term funds of around RM807.5 million.
Leong said Mah Sing has reopened all of its sales galleries and resumed operations at all of its project locations, while adhering to all regular operating protocols (SOPs).
After seeing returning buyer confidence amidst the opening of more economic sectors and the relaxation of additional activities, he is optimistic about the possibilities for the company's new and existing projects and initiatives.
"As more individuals are immunised, we can see the economy gaining up speed. The implementation of the National Recovery Plan (NRP) is critical in guiding Malaysia back to normalcy and long-term economic growth. Malaysia has benefited from the NRP, and we should expect better times ahead. We anticipate more property-friendly measures will be intoduced in Budget 2022," Leong said.
According to the Malaysia Property Market Report for 1H 2021 released by National Property Information Centre (NAPIC), the local property market saw a significant increase in the first half of 2021, compared to the first half of 2020, with a 21 per cent increase in volume and 32.1 per cent increase in transaction value.
New launches
Mah Sing plans to launch eight new phases in various ongoing projects. They includeTower E of M Vertica, Cheras; the remaining phases of M Arisa, Sentul; Phase 2 of Cerrado Suites and Tower B Sensory Residences at Southville City, Bangi; Phase 3 of M Aruna and M Panora in Rawang; serviced apartments in Southbay City, Penang, and Erica in Meridin East, Johor Bahru.
It will also launch two new projects, namely M Astra in Setapak and M Senyum in Bandar Baru Salak Tinggi, Sepang, offering affordable homes indicatively priced below RM500,000.
Mah Sing group chief executive officer, Datuk Ho Hon Sang said the pricing is in line with the company's current strategy of focusing on inexpensive landed and high-rise homes in the outskirts/suburban areas and affordable high rises in the central business district (CBD) areas.
M Senyum, which is developed on 41 hectares (ha) in Bandar Baru Salak Tinggi, will mainly comprise two-story terraced houses. Indicatively priced from RM450,000, this project is targeted to be launched in December 2021.
M Astra is a 39-storey mixed development comprising two blocks of serviced residences. With indicative built-up ranging from 850 to 1,044 sq ft, the project is priced from RM399,000.
According to Ho, M Astra's sales gallery is targeted to be launched in November 2021.
In Meridin East, Mah Sing is targeting to launch Phase 1 of Erica in the next quarter.
Ho said that Phase 1 comprises double-storey link homes indicatively priced from RM407,000 and he is positive it will be a sell-out.
Meridin East is Mah Sing's largest township by acreage with 532ha and 15,000 units of properties planned throughout the development.
"We have been able to close new property sales of around RM1.06 billion for the first eight months of 2021 due to our strong online sales and marketing capabilities. But now, with our sales galleries all open, we anticipate higher sales in the coming weeks," said Ho.
Ho said the purchasing power from households will gradually improve and he foresees affordably priced properties at strategic locations will still be well sought after.
Mah Sing recorded robust sales growth, locking in RM1.06 billion for the first 8 months of 2021 or about 66 per cent of its RM1.6 billion sales target for 2021.
With 91 per cent of its sales target from properties priced below RM700,000, it is cautiously optimistic that all of its property projects will continue to attract buyer interest mainly due to their strategic locations, affordable price points with attractive packages, innovative design, and layout.
He hopes that the government would propose extra incentives in Budget 2022, particularly to assist first-time home purchasers and speed up the property industry's recovery.