Mah Sing Achieves RM1.8 billion sales in 2017, targets similar success in 2018 with minimum RM1.8 billion sales by launching more affordably priced homes in strategic locations.
MAH Sing Group (Mah Sing) announced that it achieved RM1.8 billion sales for year 2017 during a media briefing at Invest Malaysia 2018 (IMKL) in Shangri-La Hotel Kuala Lumpur. The Group targets similar success in 2018 with a minimum of RM1.8 billion sales target by launching more well-planned mass market residential projects priced below RM500,000 with good concepts in strategic locations.
Mah Sing launched the Reinvent Affordability campaign in 2H2017 which focuses on developing quality homes in strategic locations at an affordable price. The Group looks into reinventing innovative layouts, providing quality and generous facilities with high security as well as central location surrounded by amenities and convenience.
Mah Sing’s Group Managing Director, Tan Sri Leong Hoy Kum shared, “StarProperty.com’s survey showed that pricing and location remains as top influencing factors when it comes to purchasing a home.
We want to address these 2 concerns with our Reinvent Affordability campaign. Compared to neighbouring countries, we are offering value buy products such as M Vertica in Cheras which is only 500m away from MRT and LRT and only 4.5km from the city. Priced from RM450,800, the 3 to 4 bedroom homes from 850sf is something that homebuyers want and is able to afford. In fact, 74% of our target sales in 2018 is priced below RM500,000.”
He also commented that in 2017, many talked about the overhang conditions in Malaysia. “We believe this is due to mismatch in terms of location and pricing. Demand for properties in strategic location and right pricing continues to be strong. This can be seen at the preview of our M Centura in Sentul (from RM328,000), Fern in Meridin East, Johor (from RM410,550) and M Vista in Southbay, Penang (from RM345,800) which recorded a good take up rate of more than 95% over a weekend.”
As of 30 September 2017, the Group recorded a healthy balance sheet which provides opportunities to pursue more land banking. Tan Sri Dato’ Sri Leong shared, “In 2017, we have acquired 2 lands in Klang Valley and 1 land in Penang which adds up to Gross Development Value (GDV) of RM3.65billion.
We currently have a remaining landbank of 2,131 acres and Remaining GDV and unbilled sales of RM28.3 billion which will sustain the company’s growth for the next 8 years. We will continue to be active in our land acquisitions, armed with our healthy balance sheet.”
- Strong financial track records with 14% return on equity for 5-year average (above comparable peers with 9%) and 49% asset turnover over 5-year average (above comparable peers with 24%).
- Target to increase land banks in the Klang Valley to 75% from the current 66% in the next two years.
- Looking at land banks in prime locations that fit into our business strategy such as favourable payment terms.
- As affordable properties are main focus of the Group, the lands to be acquired must be suitable for immediate launch of affordable range of properties.
- According to StarProperty.com survey, 57.21% people want their first home to be in Klang Valley and more than half of them prefer Greater KL.
- Klang Valley also recorded the highest household income in 2016 currently has a population of 8.1million. This shows that our strategy to focus our developments in Klang Valley is in the right direction to cater to market demand.
Tan Sri Leong said, “We envision our projects to be sustainable developments that stems from population growth, interconnectivity of society, transportation, facilities and economy. We put our best effort in ensuring our buyers can benefit from convenience and value appreciation of our developments in the long run.”
The new Southville City Direct Interchange which will be open for use in Q1 2018 allows access into Southville City directly from KL-Seremban Highway, which is estimated to be 1.2km from the highway exit. Southville City will be only 19km drive away from KL city as opposed to the previous 25km distance.
Mah Sing is developing a connecting road into the Tanjung Langsat – Cahaya Baru Toll Connecting Highway, which forms part of the Senai Desaru Expressway. This shortens travel time to key locations such as Tanjung Langsat and Pasir Gudang between 15 minutes to 45 minutes.
The Group has also allocated approximately 9.66 acres to build SJK (C) Sim Mow Yu within the township. The school will be a good addition for homeowners, especially married couples and young families.
Property Outlook in 2018
Tan Sri Leong shared, “Although the current property market is affected by weak sentiments, the healthy Gross Domestic Product (GDP) growth, strengthening of Ringgit and higher oil prices will continue to support the property market in the longer term.”
Malaysia recorded improving GDP with an estimate of 5.2%-5.7% for 2017, compared to 4.3%-4.8% expected earlier.
- GDP growth for 2018 is forecasted to be as resilient as it was in 2017.
- Ringgit has stabilised further towards the end of 2017 and likely to continue in 2018.
- Supported by Malaysia’s young demographic and growing population. HSBC Housing Survey 2017, 94% Malaysian millennials does not own a property but intending to buy in the next five years.
- Continued development of public transportation systems that include LRT, MRT and KL-SG High Speed Rail.
- Long-term demand will continue to be strong for property buyers who are buying to own or buying for long-term investment. Property as an investment asset remains one of the safest form of investment and a good hedge against inflation.
Mah Sing’s Planned Launches in 2018
Mah Sing will continue its Reinventing Affordability campaign coupled with innovative marketing initiatives such as Arts & Lights which had received over 50,000 visitors for its first venue in Icon City, Petaling Jaya. Arts & Lights is currently ongoing at M Centura in Sentul and M Vertica in Cheras.
- M Centura in Sentul (high-rise residential, starting from RM328,000)
- Southville City in KL South
- Questa serviced residence, indicative price starting from RM385,000
- Cerrado Residential Suites Tower C and D, indicative price starting from RM600psf.
- M Vertica in Cheras (high-rise residential, starting from RM450,800)
- M Aruna in Rawang (2-storey link homes, starting from RM550,000)
- Meridin East in Pasir Gudang (township with 2-storey link homes, starting from RM408,000)
- M Vista@Southbay (high-rise residential, starting from RM345,800)