By citing robust demand for its recent launches of M series properties, Mah Sing is optimistic about the property prospects for 2023. Thus the group has set a higher sales target for 2023 at a minimum RM2.2billion.
The continued economic growth and healthy employment conditions domestically as well as the global opening of borders further boost sentiment for property buying.
Positioned itself 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, 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, with a strong balance sheet and healthy liquidity.
Bank Negara Malaysia (BNM) has forecasted that the GDP will expand between 6.5% – 7% in 2022 and 4%-5% in 2023.
The borders reopening on 1 April 2022 has helped to boost property buying sentiment. Employment condition is stable with the unemployment rate at a healthy 3.7% level. Despite the fact that BNM increased the 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% – 3.25%.
Meanwhile, 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 RM1.69 billion in sales as of 30 September 2022 and is on track to achieve its 2022 sales target of RM2 billion. 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, the Group has set a higher sales target of a minimum RM2.2billion 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, the group is 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 the first-time homebuyers should remain sustainable,” Mah Sing’s Founder and Group Managing Director, Tan Sri Dato’ 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 to RM1 million (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.
The Group is confident of 2023 property market prospect and will continue to ensure that its products are aligned with market sentiment and demand trend. As of 30 September 2022, the Group’s unbilled sales position has grown to RM2.29 billion, providing more than one year of future property revenue visibility.
Looking ahead, the Group will maintain discipline on execution for continued revenue, earnings and cash flow generation momentum.
