KUALA LUMPUR: Mah Sing Group Bhd founder and group managing director Tan Sri Leong Hoy Kum expects first-time homebuyers' demand for housing to remain strong.
This is given that Bank Negara Malaysia has projected the country's economic growth to be firm at between 4.0 and 5.0 per cent in 2024.
The RM10 billion Housing Credit Guarantee Scheme, which is included in the 2024 Budget, will contribute to first-time homebuyers' increased access to home ownership, Leong said.
As such, Mah Sing expects continued strong demand for its M Series developments, leading it to set a target of higher sales in 2024 of over RM2.2 billion.
Leong said the M Series developments, particularly those in the Klang Valley that cater to first-time homebuyers, should continue to enjoy strong momentum.
The projects in the M series are M Arisa (from RM380,000) in Setapak, M Luna (from RM385,000) in Kepong, MAstra (from RM399,000) in Setapak, M Adora (from RM468,000) in Wangsa Melawati, M Vertica (from RM480,800) in Cheras, and M Oscar (from RM499,000) in Sri Petaling.
Leong said one of the main objectives of the group's development strategy is to attract young buyers, and that the M Series properties that offer distinctive products for millennials have a strong following among them.
According to him, the M Series developments are ideally located with excellent access to public transportation.
The group will benefit from a number of significant infrastructure projects in the plan, including the Penang Transport Master Plan, the Johor-Singapore Special Economic Zone, the Johor Bahru-Singapore Rapid Transit System, and the possible resuscitation of the Kuala Lumpur-Singapore high-speed rail project.
"The distance from our Southbay City project in Penang to the proposed Silicon Island and Bayan Lepas LRT Station 19 is approximately 5km," he said.
Additionally, the Pengerang Integrated Petroleum Complex (PIPC), which is slated to be designated as a chemical and petrochemical development hub with the provision of special tax incentives to attract high-value activity ecosystems, will benefit the group's largest township development, Meridin East, located in Pasir Gudang, Johor.
"As an active home-grown developer, our nimble business model has gained us a strong product leadership in affordable homes, specifically our well-known M Series development, which has recorded encouraging take-up rates as seen from our 2023 sales performance," Leong said.
Mah Sing is optimistic that it will hit its 2023 sales goal of RM2.2 billion.
For the nine months ended Sept 30, 2023, the group recorded property sales of RM1.8 billion, up 14.4 per cent from RM1.57 billion during the same period the previous year.
According to Leong, the group ought to keep receiving the five-year stamp duty waiver for first-time homebuyers on residential properties under RM500,000 (through the end of 2025), as suggested in the 2021 Budget.
Last year, Mah Sing acquired five land plots, namely M Terra and M Hana in Puchong, M Tiara in Johor Bahru, M Legasi in Semenyih, M Zenya in Kepong, and M Azura in Setapak.
Leong estimates that the total estimated gross development value (GDV) of these acquisitions is RM5.5 billion.
Future phases of M Senyum in Salak Tinggi, Meridin East in Johor Bahru, M Residence in Rawang, M Sinar, Southville City in Bangi, M Terra in Puchong, M Tiara in Johor Bahru, and M Zenya in Kepong are among Mah Sing's upcoming launches, he said.
Looking ahead, Leong said the group will continue to execute with discipline in order to sustain momentum in revenue and earnings delivery.