KUALA LUMPUR (Nov 26): MK Land Holdings Bhd said it will be focusing on affordable housing developments in the northern part of Malaysia as opposed to premium developments, because the property developer sees more demand for cheaper houses.

MK Land group chief executive officer Lau Shu Chuan said the group will be focusing on its northern developments, namely its Klebang Putra and Meru Perdana projects in Perak. Meanwhile, the group is reserving some of its landbank in the Klang Valley for premium developments in the future.

"What is still in demand in the market is affordable housing. In fact from last year to this year, more of our focus [has] been in affordable housing. In terms of the central region, Damansara Perdana is our crown jewel. We have already done most of the affordable housing in the past, so we are reserving the land for more premium housing, those priced above RM1 million.

"We'll still be doing some of this, but not aggressively as this is not the current market trend. Most of the focus will be in the northern side, as I mentioned, Klebang Putra and Meru Perdana where we have single-storey houses starting from RM200,000 and double-storey houses ranging from RM300,000 to RM400,000," said Lau.

He added that the response has been quite good for its northern developments after its launches last year, noting that its affordable housing developments have seen a good take-up rate, with its Jasmine and Sakura range of double-storey terraces fully sold, while its new launches have seen a take-up rate of 85% to 90%.

Currently, MK Land has a landbank measuring over 4,000 acres in the northern part of the country, out of its total landbank of close to 5,000 acres. Asked if the group is eyeing to acquire any more land, Lau said that there is currently no need for replenishment yet.

"We have 4,000 acres of land, which is very sizeable, so technically we don't need to replenish. But we are also selling land which we have no immediate plans for development, to realise our investment. So we are on the lookout for opportunities, for example in Klang Valley.

"If there are opportunities for us to acquire land at a reasonable price, we will consider it. However, our focus currently is not on buying big parcels of land, but more on small parcels. For bigger tracts, we would consider it if there is an opportunity for privatisation, where we can work with the state authority," he said.

Asked if the group is looking into expanding overseas, he said there are no plans yet, as there are still opportunities to expand in Malaysia. -- theedgemarkets.com

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