KUALA LUMPUR: Mah Sing Group Bhd (Mah Sing) is optimistic about the property prospects for 2023, citing robust demand for its recent launches of M series properties, and has set a higher sales target for 2023 of at least RM2.2bil. The continued economic growth and healthy employment conditions domestically as well as the global opening of borders further boost sentiment for property buying.
The group is positioned to capture the resilient demand for affordably priced properties with its focus on the M series of developments that target the first homebuyers and the buy-to-stay group. With a strong balance sheet and healthy liquidity, the group is on the continued lookout for suitable lands to further strengthen its M series portfolio of projects that have recorded very healthy take-ups.
Bank Negara Malaysia has forecasted that the GDP will expand between 6.5% and 7% in 2022 and 4% to 5% in 2023. The borders reopening on April 1 this year has helped to boost property buying sentiment. Employment condition is stable with the unemployment rate at a healthy 3.7% level. Although Bank Negara Malaysia has increased the Overnight Policy Rate (OPR) by 100 basis points year to date to 2.75%, the current rate is still lower than the pre-pandemic OPR range of 3% to 3.25%.
Many believe properties are a good hedge against inflation. With the recent news of expected house price increases due to construction costs hike and inflationary effects, many house buyers choose to lock in their purchases now. The group has achieved RM1.69bil in sales as of Sept 30 last year and is likely to achieve its 2022 sales target of RM2bil. Due to the right strategy of focusing on affordably priced residential properties targeting first-home buyers, the 2022 sales momentum for the group has recovered to well above its pre-pandemic levels. As such, Mah Sing has set a higher sales target for 2023.
The group’s M-series of affordable projects in multiple residential hotspots have seen healthy take-up from homebuyers. Recent launches such as M Astra Tower B in Setapak (95% taken up), M Senyum Phase 2 Camellia 2 in Salak Tinggi (98% taken up) and M Panora Phase 1A in Rawang (100% taken up) have recorded strong take-up rates. Upcoming projects like M Nova in Kepong, upcoming new phases of M Senyum (Phase 3), M Panora (Phase 1B) as well as Meridin East (Jasmine and Erica West) in Johor Bahru have also received overwhelming registration of interests. In view of the strong pipeline of projects that are rightly priced for the current market conditions and targeting the right buyer segment, we are confident that despite the slowdown in global economies, high inflation and high-interest rate environment, strong home buying momentum for the group’s properties should remain resilient in 2023.
“Supported by our confidence in the M-Series of affordable homes, and backed by healthy balance sheets, the group will continue to scout for and acquire new lands. Beyond 2023, the mid to long-term outlook remains positive supported by strong fundamental demand for properties due to the young demography. Demand for houses from first-time homebuyers should remain sustainable,” Mah Sing founder and group managing director Tan Sri Leong Hoy Kum said.
Home buyers will benefit from the exemption of 75% of stamp duty on the sales and purchase agreements of properties priced between RM500,001 and RM1mil (signed by 31 December 2023). Meanwhile, 100% of the stamp duty exemption for first-time homebuyers remains and is applicable for properties priced at RM500,000 and below.