Mah Sing Group Berhad (Mah Sing) is planning 10 property launches in this year with key focus on affordable products, as confidence returns to buyers amidst 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 of recorded nationwide.
Around 78.8% of Malaysia’s adult population are fully vaccinated and 93.3% received at least one dose of vaccine as of 19 September 2021.
Mah Sing’s Group Chief Executive Officer, Datuk Ho Hon Sang said, “Close to 100% of Mah Sing’s employees have received the 1st dose of vaccination against COVID-19, and more than 95% have completed the 2nd dose.
“We can see the economy picking up momentum as more people are being vaccinated, including adolescents between the ages of 12 to 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).
“While we have been able to close new property sales of approximately RM1.06 billion for the first 8 months of 2021 due to our strong online sales and marketing capabilities, buyers have been looking forward to visiting our sales gallery for a more personalised consultation.
“Purchasing power from households will gradually improve and 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,” he added.
10 New Project Launches from Mah Sing
Mah Sing has planned launches of 8 new phases in various projects including Tower E of M Vertica, Cheras, remaining phases of M Arisa, Sentul, Phase 2 of Cerrado Suites and Tower B Sensory Residences at Southville City in Bangi, Phase 3 of M Aruna and M Panora in Rawang, service apartments in Southbay City, Penang and Erica in Meridin East, Johor Bahru.
Mah Sing also plans to launch 2 brand 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 from below RM500,000, targeting to meet the pent-up demand for affordable homes.
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Healthy cashflow with cash and bank balances of approximately RM807.5 million, locked in unbilled sales of approximately RM1.79 billion as of 30 June 2021
Mah Sing’s earnings visibility is backed by locked in unbilled sales of approximately RM1.79 billion as at 30 June 2021. Its remaining gross development value and unbilled sales totalling approximately RM24.45 billion is expected to provide earnings visibility for at least 8 years.
Having locked in 2 new landbanks in 2021, the property developer continues to scout for good locations with Greater Kuala Lumpur, Klang Valley, Johor and Penang being the focus areas.
Armed with a healthy balance sheet with cash and bank balances and investment in short-term funds of approximately RM807.5million as at 30 June 2021, the Group will continue its strategic landbanking for continuous growth while maintaining prudent financial management.
Mah Sing recorded robust sales growth, locking in approximately RM1.06billion for the first 8 months of 2021 or approximately 66% of its RM1.6 billion sales target for 2021.
With 91% of its 2021 sales target from properties priced below RM700,000, the Group is cautiously optimistic that its property projects will continue to attract buyer interest mainly due to their strategic locations, affordable price points with attractive packages, innovative design and layout.
Datuk Ho Hon Sang commented, “Our “Mah Sing NOW” sales campaign which offers “THREE DOSES” of homeownership boosters, namely Own Now, Zero Now, and Save Now has garnered good results. There is clear buyer interest for incentives such as easy entry for home buyers, zero payment during construction and saving up to 50% off monthly payments for selected projects.
“We hope that the Government will introduce additional incentives during Budget 2022, especially to help first-time home buyers 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,” he said.
According to Ho, some of the measures that can ease homeownership for first time home buyers 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.
“We also hope the government can consider the possibility of implementing the Developer Interest Bearing Scheme (DIBS) for first-time home buyers, 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 (HOC) 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.”
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