Mah Sing’s Cerrado project expected to be well-received

PETALING JAYA: AmInvestment Bank expects Mah Sing Group Bhd’s upcoming launch of Cerrado Residential Suites to be well-received as it will be priced between RM388,000 and RM599,000, or averaging about RM590 per sq ft.

Cerrado is the latest offering within the group’s flagship Southville City township in Bangi, Selangor.

With a gross development value of RM832mil, it will take up about 7% of Southville City’s total GDV of RM11.1bil, the research house said. Cerrado is expected to be launched by the second quarter of 2016 and completed by 2020.

“We expect this to resonate well with first-time home buyers,” the report said.

The project will offer a total 1,626 units in four towers of 35 storeys each. Built-up areas range from 656 sq ft to 825 sq ft for residential suites, 1,260 sq ft for duplex units and 1,860 sq ft for cabana units.

The research house is expecting demand to be driven by the industrial and educational community in Bangi, where there is a lack of integrated townships.

AmInvestment Bank opined that while Cerrado appears to be more dense compared to Savannah Executive Suites, Cerrado’s absolute price is lower than Savannah, which averages at RM531,000 per unit, although on a per sq ft basis, Savannah’s eighth and final block is priced lower at RM556 per sq ft. Savannah was sold in the fourth quarter of 2013.

The next launch in Southville – Savannah Plaza – comprises more retail and food and beverage elements to elevate the overall livability of Southvile City, said AmInvestment Bank.

The various parcels of development there will be further boosted when the direct interchange into Southville City is completed in 2017.

This new interchange which costs RM130mil, will shorten the distance from Southville City to the Sg. Besi toll, from 35km to 19km.

In Johor, the Meridin East project in Pasir Gudang got off to a good start.

Bookings reached an estimated 88% since its soft launch at the end of last month.

Response for the affordable link homes costing RM356,000 onwards was good, due to an immediate catchment from those working within the Pasir Gudang and Tg. Langsat industrial parks.

In line with affordability issues, Mah Sing Group’s target is to have 89% of its residential launches for this year to be priced below RM1mil.

“Its unbilled sales remains healthy at RM4.8bil,” the research house said.