Mah Sing Group Bhd expects the profit contribution from its property division to grow in the next two years, with the return of market confidence following the introduction of the governments economic package.
Group managing director Datuk Dr Leong Hoy Kum said property should contribute 80% to 85% of group post-tax profit by then, compared with 70% in the year ended December 2002, with plastics manufacturing accounting for the balance.
On the company's plan to transfer to the KLSE main board by early 2004, Leong said it was confident of qualifying for the move by the end of this year.
We are set on making Mah Sing a strong brand in property development and will continue to enhance our image as a reputable developer, he told StarBiz yesterday.
Leong said the various incentives announced, such as the loan interest subsidy and stamp duty exemption to promote home ownership, were a shot in the arm for houses priced below RM180,000.
The one-year real properties gains tax (RPGT) exemption will encourage people to upgrade to bigger up-market homes such as super links, semi-detached houses and bungalows, he said.
Leong said Mah Sing was on the lookout to expand its land bank in prime locations in Johor, the Klang Valley and Penang either on a joint venture basis or through purchases.
He said to ride on the market recovery, the company was looking to launch its latest housing development called Austin Perdana in Tebrau, Johor next month.
The project, situated on 238 acres, would showcase serviced apartments, terraced units, superlink houses and bungalows. It will be completed in five years.
With an estimated gross development value of RM450mil, the project would have more than 3,500 medium to upmarket units for sale.
The first phase of lakefront fully-serviced apartments would be launched at the Mapex fair in Johor from July 10-13. Leong expects sales of over RM110mil from the event.
The double-storey terrace houses of between 1,300 and 2,000 sq ft priced from RM160,000 to RM250,000 would be launched early next year while those in the gated super-link precinct would be sold from RM230,000 to RM300,000 late next year.