KUALA LUMPUR: Mah Sing Group Berhad is confident of achieving a sales target of RM1.5 billion for the year 2019.
The group’s managing director, Leong Hoy Kum, said this was despite the uncertain domestic and global economy, rising cost of living and cost of doing business.
“We are still positive about the Malaysian property market, as long as it is the right product, (in the right) location and price,” he said at a press conference after the group’s 27th annual general meeting at its headquarters here today.
“About 81% of our residential target sales are affordably priced at below RM700,000,” he added.
Leong also said the group is on the lookout for land at strategic locations to increase its land bank over the next two to three years.
“The group has identified promising parcels of lands in Greater KL and the Klang Valley which could fit our business model.
“We will allocate 0.5% from our RM1.3 billion cash balance to buy these plots of land.”
Leong said the company was happy the government is considering unlocking value in government-linked lands.
“The company is bullish about pursuing any opportunities to support initiatives to boost home ownership, especially in providing quality affordable homes, ” added Leong.
In addition, Mah Sing is also in talks with potential partners from China to set up a permanent Industrial Building System (IBS) precast concrete plant in Kajang.
“If this collaboration is successful, it will enhance Mah Sing’s offerings to local home buyers using IBS in our own and other projects, including the government’s affordable homes and projects,” said Leong.
At the meeting today, the group announced its latest high-rise residential development, M Oscar, which will be ready in October this year.
M Oscar sits on 1.9ha land, off Jalan Kuchai Lama, next to Happy Garden in Kuala Lumpur.
The project has an estimated gross development value of RM500 million. Its two-bedroom units, with a built-up area of 700 square feet, are priced at RM428,000.
As at March 31, 2019, Mah Sing’s land bank stood at 850ha, which constitute a total remaining gross development value (GDV) of RM25.1 billion, which can sustain growth for the next eight to nine years.
“We remain profitable because our product mix is in the right range, with 61% of our remaining GDV and unbilled sales in residential properties, 33% in commercial units and 6% in industrial properties,” said Leong.