TAN Sri Datuk Sri Leong Hoy Kum expects the local property market to hit a turning point soon and anticipates demand to pick up in the second half. “Various indicators point towards a turning point. Residential property transactions have bottomed out as there was a milder contraction in Q42015 compared with the third quarter and second quarter of last year,” says Leong, the managing director of Mah Sing Group Bhd.
“We are also seeing more interest in the property industry among local and foreign institutional investors, which indicates that consumer sentiments may have already hit bottom. The MIER Consumer Sentiment Index was at an all-time low of 63.8 points in 4Q2015 even though the Business Conditions Index showed a slight improvement during that quarter.
“I think it is highly unlikely that house prices will contract this year. It will probably grow at low- to mid-single-digit levels. During the 2008 global financial crisis, house prices increased by low single-digits,” he says.
Mah Sing is well positioned to capture an upturn in demand and Leong expects the group to deliver a sustainable performance for the current financial year on the back of a solid track record, an established brand, prudent financial discipline and healthy liquidity.
This year, the developer is focusing on providing affordable homes and homes for first-time homebuyers. Half of its residential launches are priced below RM500,000. “Just under 90% of our launches are priced below RM1 million and about 68% will be priced below RM700,000. Buyers of some of our projects can also tap into the government’s recently announced First Home Deposit Scheme,” says Leong.
Projects priced below RM500,000 include the Cerrado serviced apartments in Southville [email protected] South, with indicative prices that begin at RM368,000.
The developer has also launched an affordable home project known as Rumah Selangorku at M Residence 2 @ Rawang — its inaugural project under the Rumah Selangorku affordable housing scheme administered by the Selangor Housing and Property Board. Rumah Selangorku consists of two blocks with 488 units. The units, priced at RM170,000, come with three bedrooms with two parking bays.
“We are a responsible corporate citizen and have been operating as a premier lifestyle property developer for more than 20 years in the country. We are committed towards supporting the government’s request for more affordable homes to be built for the rakyat. It goes without saying that a shelter or a home is still a basic need for everyone. Mah Sing is proud to be able to contribute towards fulfilling this need by making housing more accessible to all,” adds Leong.
Upcoming projects include M City and Southville [email protected] South. M City is an integrated developed based on a hanging garden concept. It is situated in the heart of KL city, within five kilometres of the KLCC.
This article first appeared in the Special Report Mapex Property Showcase, of TheEdgeProperty.com, on May 6, 2016. Download free copies of TheEdgeProperty.com here.