Mah Sing Group is planning 10 property launches this year with a key focus on affordable products, driven by the positive progress in the National Recovery Plan (NRP) and strong vaccination rate recorded nationwide. Around 78.8% of Malaysia’s adult population is fully vaccinated and 93.3% received at least one dose of vaccine as of 19th 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 its 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. For a start, 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
According to the National Property Information Centre’s (NAPIC) Malaysia Property Market Report for 1H 2021, the Malaysian property market performed significantly better in the first half of 2021 than in the first half of 2020, with a 21% increase in transaction volume and a 32.1% increase in transaction value.
Mah Sing has planned the launch of eight additional phases across a number of projects, including Erica in Meridin East, Johor Bahru.
Meridin East, located in Pasir Gudang, is Mah Sing’s largest township in total land area, with 1,313 acres of land and 15,000 units of property planned. Mah Sing plans to debut Phase 1 of Erica, its prospective project in the township, in Q4 of this year, with double storey link homes starting at RM407,000. Two 9-acre lakes, a 16-kilometer running and cycling track, and other amenities are among the township’s 500 acres of beautiful nature. The Senai Desaru Expressway, Pasir Gudang Highway, and JB East Coast Highway are all easily accessible from Meridin East.
Healthy cash flow with cash and bank balances of approximately RM807.5 million, locked in unbilled sales of approximately RM1.79 billion as of 30th June 2021
Mah Sing’s earnings visibility is backed by locked in unbilled sales of approximately RM1.79 billion as at 30th of 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.
The property developer continues to look for attractive locations, with Greater Kuala Lumpur, Klang Valley, Johor, and Penang being the focus areas, having secured two additional landbanks in 2021. The Group will continue its strategic landbanking for continued growth while maintaining conservative financial management, armed with a robust balance sheet with cash and bank balances and an investment in short-term funds of approximately RM807.5 million as of 30th June 2021.
Because of their strategic locations and low price points, Mah Sing is cautiously optimistic that its property developments would continue to draw buyer interest. For the first eight months of 2021, the Group saw strong revenue growth, bringing in nearly RM1.06 billion. 91% of its sales target for 2021 would come from houses costing less RM700,000.
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”.