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Mah Sing focussed on offering affordable options

Posted in Penang Properties (Island), and Property, KL / Selangor

My first apartment in Penang was under the affordable category, at RM123k. For the past couple of years, Penang state government classifies the affordable category as properties which are below RM400,000. I agree with their assessment as I think for KL I would rate anything below RM500,000 to be affordable. In fact when we look closely, there are lots of launches these days below RM500,000 in KL but of course, the compromise would have to be the size. Gone are the days when RM500,000 could easily buy you 1,000 sf or higher. Yes, some would now argue that ‘Last Time,’ even PJ landed properties used to be below RM500,000. No comment. Read here: I prefer today, not yesterday

As per a news in NST, one of the largest developers in Malaysia by gross development value, Mah Sing is eyeing more affordibale projects. They will partner either the government or private land owners.  This is to strengthen their offerings in the mass affordable housing segment. It’s group managing director, Tan Sri Leong Hoy Kum said the way forward for the group is in the mass affordable market. Currently, Mah Sing has just ONE (1) project, the Kota Kinabalu Convention Centre (KKCC) which is a tie-up with the government. The KKCC is an integrated mixed development spanning 8.4 acres in the northern edge of Kota Kinabalu and holds an estimated gross development value (GDV) of RM1.4 billion.

mahsingLeong shared that Mah Sing has 2,522 hectares of existing land bank which is enough to keep the company busy for the next 9 years. He said, “So right now, we are just shopping around to further enlarge that while ensuring that we have the best deal possible in order to continue our commitment to a pay a minimum 40 per cent of net profit as dividend to our shareholders.” It’s current sales target for 2016 is RM2.3 billion. Current achievement as at end April is RM536 million. The projects contributing to the sales include Southville City@KL South in Bangi, Lakeville Residences on Taman Wahyu, D’Sara Sentral in Sg Buloh, M Residences 2 in Rawang and Ferringhi Residences in Batu Ferringhi, Penang.

I think for the bigger developers, they have more options than the smaller ones. However, no one can escape from the current market sentiment and everyone who could still afford to buy are somehow not yet buying. For those who stretched themselves too thin, their loans are rejected. That’s why when there are any projects launched for which the price is deemed to be extremely attractive, it would get huge response. Economy wise, we are not in a crisis but the mind is currently doing lots of analysis. Let’s keep looking externally for more positive signs. Happy looking.

written on 17 June2016

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