Mah Sing to launch new projects

De­vel­oper to unveil RM1­bil worth of prop­erty in the fourth quar­ter of this year

The Star Malaysia - StarBiz - - Front Page -

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.

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