KUALA LUMPUR: Mah Sing Group Bhd said it will adjust the timing of new launches and boost promotional campaigns including rebates as the property developer seeks to sustain a sales target of RM2.3bil this year.
“Although it is a challenging time for the market, we are not reducing our sales target,” its chief executive officer Ng Chai Yong told reporters yesterday at the launch of the company’s latest sales campaign.
“We expect a high take-up rate in 2016 despite the lending curbs,” he said.
Mah Sing’s status as a Tier-1 developer is a plus point for potential buyers, according to Ng, as banks are more willing to provide financing for its projects.
In addition to the promotion, the property developer is offering an “easy entry” to potential buyers by way of lower downpayment as well as arranging for the first downpayment to be funded by credit card.
As at Sept 30, 2015, the property developer’s unbilled sales stood at RM4.75bil. Its year-end numbers will be revealed in its fourth quarter results in February.
“We need to plan our launches carefully,” Ng said when asked about the current state of the property market.
A slowdown in the economy, coupled with tougher loans approval by financial institutions since last year had somewhat dampened the mood in the property market.
Currently, Mah Sing had a remaining land bank of 2,450 acres in the Klang Valley, Penang and Sabah. About 60% of the group’s land bank was located in the Klang Valley, 24% in Johor and 6% in Sabah, Ng said.
“We are on the lookout for more land to acquire in these three locations as the company has a healthy cash pile of RM1.3bil, but of course we are being careful in our selection,” Ng said.
“We have enough in gross development value and land bank to last us for the next six years, so we are not in a hurry to secure new deals unless they are suitable,” he said.
Among Mah Sing’s existing projects in the Klang Valley are the 428-acre freehold township Southville City@KL South in Bangi, landed, gated and guarded township M Residence 2 in Rawang, serviced residences D’Sara Sentral in Sungai Buloh, residential suites Lakeville Residence in Taman Wahyu at Jalan Ipoh, freehold mixed development project M City at Jalan Ampang and others.
“We have 46 projects, 11 which are completed, with the balance 35 in various stages. For 2016, we will focus on affordable and mass market products, supported by existing high end properties,” he said.
Meanwhile, Mah Sing was on Dec 31, 2015 refunded its 10% deposit of RM35.9mil after aborting its plan to buy a piece of prime freehold land of 1,051 acres near Seremban for RM359.56mil.
