KUALA LUMPUR: Mah Sing Group Bhd forecasts a higher sales target of RM2.2 billion for 2023, owing to the recent launches of M-series properties.
Founder and group managing director Tan Sri Leong Hoy Kum said that healthy balance sheets support the company's confidence in the M-Series of affordable homes. Mah Sing will also continue to scout for and acquire new lands.
Beyond 2023, Leong said the mid-to-long-term outlook remains positive, supported by strong fundamental demand for properties due to the young demography.
"Demand for houses from first-time homebuyers should remain sustainable," he said in a statement.
Meanwhile, Leong said Mah Sing is confident of 2023 property market prospects and will continue to ensure its products align with market sentiment and demand trends.
"As of September 30, 2022, the company's unbilled sales position has grown to RM2.29 billion, providing more than one year of future property revenue visibility.
"Looking ahead, the company will maintain discipline on execution for continued revenue, earnings, and cash flow generation momentum," he said.
He said the continued economic growth, domestic employment conditions, and the global opening of borders further boost sentiment for property buying.
The property developer is rightly positioned to capture the resilient demand for affordable properties with its focus on the M series of developments that target first-time homebuyers and the buy-to-stay group.
"With a strong balance sheet and healthy liquidity, the company is on the continued lookout for suitable lands to further strengthen its M series portfolio of projects that have recorded very healthy take-ups," it said.
Meanwhile, Mah Sing said the resilient demand is driven by continued economic growth and healthy employment conditions.
"Many believe properties are a good hedge against inflation. However, with the recent news of expected house price increases due to construction cost hikes and inflationary effects, many homebuyers now choose to lock in their purchases.
"The company has achieved RM1.69 billion in sales as of September 30, 2022, and is on track to achieve its 2022 sales target of RM2 billion.
"Due to the right strategy of focusing on affordable residential properties targeting first-time home buyers, the 2022 sales momentum for the company has recovered to well above its pre-pandemic levels.
"As such, the company has set a higher sales target of a minimum of RM2.2 billion for 2023," it said.
Mah Sing's M-series of affordable projects in multiple residential hotspots have seen healthy take-up from homebuyers.
Recent launches such as M Astra Tower B in Setapak (95 per cent taken up), M Senyum Phase 2 Camellia 2 in Salak Tinggi (98 per cent taken up) and M Panora Phase 1A in Rawang (100 per cent taken up) have recorded strong take-up rates.
Upcoming projects like M Nova in Kepong, upcoming new phases of M Senyum (Phase 3), M Panora (Phase 1B) as well as Meridin East (Jasmine and Erica West) in Johor Bahru have also received overwhelming registrations of interest.
"Given the strong pipeline of projects that are rightly priced for the current market conditions and targeting the right buyer segment, we are confident that despite the slowdown in global economies, high inflation, and high-interest rate environment, strong home buying momentum for the company's properties should remain resilient in 2023," Mah Sing added.
Ends