Mah Sing to launch new projects
Developer to unveil RM1bil worth of property in the fourth quarter of this year
PETALING JAYA: Mah Sing Group Bhd is launching RM1bil worth of new property in the last quarter of the year to boost sales, as the developer reported flat earnings growth in the three months ended Sept 30.
The upcoming new offerings will bring total planned launches for the year to RM2.3bil.
Group managing director Tan Sri Leong Hoy Kum said the recently launched units in Cheras registered a strong take-up rate of 85%.
“It has been a very busy period for us,” he said in a statement yesterday, adding that offered units were almost entirely snapped up.
The company is targeting to achieve total sales of RM1.8bil for the full year after raking in RM1.26bil in the first nine-month period.
We are on the lookout for more strategic land bank.
Tan Sri Leong Hoy Kum
Mah Sing made a net profit RM92.3mil in the third quarter on a revenue of RM704.3mil.
Leong said the group’s strong balance sheet as of Sept 30 provides opportunities to pursue more land banking.
“We are on the lookout for more strategic land bank with a focus on developing products below RM500,000, especially in the Klang Valley,” he said.
He said the group is targeting to increase its land bank in the Klang Valley to 75% of its gross development value (GDV) over two years from two-thirds currently.
“We are looking at land in good locations that fit our business strategy,” he said.
The group has a balance of 2,131 acres of undeveloped land at remaining GDV and unbilled sales of RM28.3bil, which can support the group’s revenue and earnings growth for the next eight years.
A key theme in the group’s business plan is to “reinvent affordability.”
Leong said projects are planned to be affordably priced at strategic locations which are near the city centre and public infrastructure such as the mass rapid transit and light rail transit. “We are very serious in positioning our brand as Malaysia’s leading developer of affordable homes, which still come with premium features,” he said.
On the outlook for the property market, Leong said that while the industry is currently undergoing consolidation, basic housing demand is still expected to be resilient.
This is driven by the robust economy, which continues to strengthen, underpinned by increased government spending on infrastructure and connectivity, strong domestic demand and stable labour market conditions.
The average household median income is set to improve in tandem with gross domestic product growth and the slew of measures and incentives proposed in Budget 2018.
“Historically, the improvement of median income has led to an increase in transaction volume,” the company said.