Monday 17 Jun 2024
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PETALING JAYA (Sept 21): Mah Sing Group Bhd plans to unveil 10 property launches this year as buyers' confidence returns amid the opening of more economic sectors and relaxation of more activities, driven by the positive progress in the National Recovery Plan (NRP) and strong vaccination rate.

These launches have a key focus on affordable products. 

In a press release, Mah Sing Group CEO Datuk Ho Hon Sang noted that the economy is picking up momentum as more people are being vaccinated, including adolescents between the ages of 12 and 17. 

"The rolling out of the NRP is key to directing Malaysia towards normalcy and sustainable economic development. We have reopened our sales galleries and resumed operations at all our project sites, while complying with all standard operating procedures (SOPs)," he said.

"Purchasing power from households will gradually improve. We foresee affordably priced properties at strategic locations will still be well sought after. We intend to roll out more exciting marketing campaigns to tap on this pent-up demand."

New projects in 2H2021

Mah Sing plans to unveil eight new phases in various projects, including Tower E of M Vertica, Cheras; the remaining phases of M Arisa, Sentul; Phase 2 of Cerrado Suites and Tower B Sensory Residences at Southville City, Bangi; Phase 3 of M Aruna and M Panora in Rawang; serviced apartments in Southbay City, Penang as well as Erica in Meridin East, Johor Bahru.

The developer will also launch two new projects from its acquired lands earlier this year, namely M Astra in Setapak and M Senyum in Bandar Baru Salak Tinggi, Sepang, which are both indicatively priced below RM500,000 to meet the pent-up demand for affordable homes.

M Senyum, which is developed on a 100-acre land in Bandar Baru Salak Tinggi, will mainly comprise two-storey terraced houses with indicative sizes ranging from 20ft by 60ft to 20ft by 70ft. 

Indicatively priced from RM450,000, this development is targeted to be launched in December 2021. It is accessible via major highways such as ELITE and PLUS Highways. It is also located near the Salak Tinggi ERL station.

Meanwhile, M Astra is a 39-storey mixed development comprising two blocks of serviced residences. With indicative built-up ranging from 850 to 1,044 sq ft, the project is priced indicatively from RM399,000. This development is surrounded by various amenities such as shopping malls, hospitals, public transport, schools and F&B outlets, and is accessible via major highways such as MRR2, DUKE 1 and 2, AKLEH, KARAK and SPE highways. M Astra’s sales gallery is targeted to be launched in November 2021.

Budget 2022 wish list 

Meanwhile, Mah Sing’s earnings visibility is backed by locked-in unbilled sales of approximately RM1.79 billion as at June 30, 2021. Its remaining gross development value (GDV) and unbilled sales totalling approximately RM24.45 billion are expected to provide earnings visibility for at least eight years.

Its cash and bank balances and investment in short-term funds stand at approximately RM807.5 million as at June 30, 2021.

Mah Sing has recorded approximately RM1.06 billion for the first eight months of 2021 or approximately 66% of its RM1.6 billion sales target for 2021. With 91% of its 2021 sales target coming from properties priced below RM700,000, the group is cautiously optimistic that its projects will continue to attract buyer interest mainly due to their strategic locations, affordable price points with attractive packages, innovative design and layout.

Mah Sing also hopes the government will introduce additional incentives during Budget 2022, especially to help first-time homebuyers and expedite the recovery of the property industry. 

"This will lead to a wider impact on the overall economy as the property industry has a critical multiplier effect on more than 140 industries," Ho said.

"Some of the measures that can ease homeownership for first-time homebuyers include reinstating maximum loan tenure to 40 years; referring to gross income rather than net income for loan applications; higher debt service ratio; and setting higher margin of financing up to 100% for first property to help the M40 and B40 groups who are affected during the pandemic."

He added that the property developer hopes the government can consider the possibility of implementing the Developer Interest Bearing Scheme (DIBS) for first-time homebuyers, as this allows them to have the option to not service their loan interest and rentals at the same time during construction period.

"We also hope that the Home Ownership Campaign can be extended for another year. In the meantime, we will do our part by rolling out more campaigns for our project launches, especially the affordable projects."

Edited ByRacheal Lee
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