Mah Sing positive of achieving 2015 sales target

KUALA LUMPUR: Mah Sing Group Bhd is confident of replicating its 2014 achievement and has set a sales target of at least RM3.43 billion this year, banking on its strategy of providing affordable homes to the mass market segment with a focus on projects mainly in the Klang Valley.
The group has achieved RM761 million in sales as at April 22, 2015 despite the shorter working days in the first quarter due to the festive season, and is confident of achieving its 2015 sales target because of its product mix at the right locations and attractive pricing.
Greater KL and the Klang Valley are expected to contribute 67% to sales this year, with Johor expected to contribute 20% followed by Penang at 11% and Sabah at 2% sales.
Speaking to reporters at Invest KL here yesterday, its founder and managing director Tan Sri Leong Hoy Kum said the property market is undergoing a consolidation period due to recently introduced cooling measures and Goods and Services Tax (GST) and therefore would take a longer time to convert bookings into actual sales.
"Once you go through this adjustment period, especially after the GST period, it will normalise then," he explained.
Mah Sing unbilled sales stood at RM5.3 billion, which is two times last year's property sales.
Mah Sing executive director Datuk Steven Ng Poh Seng said with the RM5.3 billion unbilled sales in hand coupled with a potential gross development value (GDV) of RM43.7 million for undeveloped landbank, it could bring the total GDV to RM49 billion spanning over the next eight to 10 years.
He said the group is looking at replenishing its landbank, mainly in Greater KL, which is estimated to have a population of 10 million by 2020 from the current 7 million.
"We've no gearing and with RM1.4 billion cash in hand, it allows us to go for more expansion plans," he noted.
Ng opined that property prices are unlikely to come down considering the underlying demand is still strong, with a huge young population.
"Now we're focusing more on mass market, that's why there is a little bit price sensitive, house prices are going on a slower path, we're not going to see double-digit but single-digit growth," he said.
In general, he said the property sector has softened but the mass market segment is still doing well.
Mah Sing's future launches include Festival Lakecity @ Puchong CBD, Meridin East and Seremban township.