Mah Sing Group Bhd is seeing an increase in property sales, having sold RM1.28 billion in properties for the nine months ended September 30, 2021, representing a 51.1 percent increase over the same period last year.
Tan Sri Leong Hoy Kum, Mah Sing's founder and group managing director, said that the company's M-Series of reasonably priced high rises in the central business district and landed properties located in strategic locations with good catchment areas contributed to the increase in property sales.
According to Leong, Mah Sing's two-story link homes in Johor Bahru, namely Phase 1 of Erica @ Meridin, were completely sold out when they first went on sale.
"Because Phase 1 of Erica was completely sold out, we opened Phase 2 to meet demand," he said.
Leong said that Mah Sing's new projects, such as M Adora in Wangsa Melawati, which debuted last year, have an actual 90 per cent take-up rate.
He also said that the company's two newly acquired lands this year, M Senyum in Sepang and M Astra in Setapak, which it plans to launch in the first half of next year, have generated a lot of interest.
He said that, in response to the pent-up demand for affordable housing, Mah Sing had acquired another 8.09-acre plot of land in the high-catchment area of Kepong for RM95 million under the M Series banner dubbed M Nova.
"M Nova will be our third project in the Kepong area. We are confident that M Nova will replicate the success of our first two developments in the area," he said.
Mah Sing's previous projects in Kepong include M Luna and Lakeville Residence, which are about 4km and 5km away from the new land, respectively.
According to Leong, M Luna has received 90 per cent take-up in a short period since its launch in June of last year, while Lakeville Residence has sold out.
He said that this latest land acquisition would further solidify its presence in Kepong and strengthen its competitive position in the affordable segment.
According to preliminary plans, M Nova is envisioned as a mixed development consisting of serviced residences with approximate sizes of 700 square feet, 850 square feet, and 1000 square feet, as well as retail, with a gross development value of RM790 million.
The most affordable residential unit has an estimated selling price of RM318,000.
According to Leong, M Nova will be registered for interest in the first quarter of 2022 and launch in the third quarter of 2022, per Mah Sing's quick turnaround model and subject to regulatory approval.
He said that the strong take-up of M Luna and Lakeville Residence demonstrates that demand persists in Kepong, particularly given its strategic location among the well-established neighbourhoods with ample ready amenities and infrastructure and easy access to various parts of the city and suburbs.
"We will leverage spillover demand from M Luna as well as catchment from the surrounding neighbourhood by putting an irresistibly low price tag on M Nova, complementing the well-designed features we are developing," Leong explained.
M Nova will have a large captive market because the land straddles the well-established neighbourhoods of Kepong, Taman Selayang Jaya, Batu Caves, Bandar Menjalara, Segambut, Taman Seri Gombak, and Sentul.
"It would appeal to first-time homebuyers, upgraders, and working professionals who enjoy city living and want to be close to the city while still having access to amenities and infrastructure. We are confident that M Nova will be as successful as the well-received Lakeville Residence and M Luna.
Mah Sing still has a land bank of 2,051 acres with a remaining gross development value of RM24.98 billion in unbilled sales.
According to Leong, the company will continue to scout for strategic land because its balance sheet remains healthy, with cash and bank balances and a short-term fund investment of about RM720.1 million as of September 30, 2021.
"This will be the primary motivator for Mah Sing to maintain its disciplined land banking strategy in the future. Encouraged by our projects' positive track record and quick turnaround time, we are constantly looking for more land in Greater Kuala Lumpur, Klang Valley, Johor, and Penang, as well as other property hotspots in Seremban, Melaka, and Perak to develop affordable landed homes," he said.
Mah Sing recorded a 65 percent increase in pre-tax profit to RM166.4 million for the nine months ended September 30, 2021, on the back of revenue of RM1.2 billion, compared to a pre-tax profit of RM100.6 million and revenue of RM1.1 billion in the same period last year.