TAN SRI MUSTAPHA KAMAL
StarBiz: Your outlook on the property sector for the second half of 2005
Mustapha: The overall property market is expected to continue its growth over the second half of 2005, sustained by the positive economic outlook and steady interest rates.
The residential property sub-sector is relatively more resilient and is expected to perform better. Purpose-built offices are also seeing improvement in demand. Location, price range, design and facilities continue to be key factors in determining the demand of properties. Projects in good locations and with practical layouts are expected to continue to record better sales.
StarBiz: Opportunities and challenges for the sector going forward
Mustapha: Going forward, the company can rely on its strength that comprise the sizeable undeveloped land bank of around 5,500 acres, of which 630 are in Petaling Jaya.
MK Land has proven delivery record and privatisation expertise, having sold over 39,000 property units with a gross development value of RM4.5bil and handed over 30,696 units as at March 31. It has participated in four privatisation projects in Damansara Perdana, Damansara Damai, Bukit Merah Laketown and Bandar Lembah Beriah.
The company’s core competencies in all market segments include being a “proven supermarket” with experience, strength and success from low to high-end premium segments. Its mainstay is in residential development, but commercial ventures have also proven successful. It is seeking to carve a strong reputation for resort properties such as Bukit Merah Laketown and Langkawi Lagoon Resort. Its geographical diversification is also an advantage.
The company has a highly motivated and dedicated sales team of 130. The nine operating teams nationwide adopt a direct and proactive approach with their customers. There are also dedicated showrooms to showcase the various property products.
The prevailing low interest regime and promotional financial packages offered by the financial institutions augur well for the property sector. A renewed interest in the real estate investment trust has also added a bit of excitement in the property sector.
Since there is strong demand for well planned and designed residential properties, our priority is to launch semi-detached homes and bungalows in Damansara Perdana.
The performance of the share market tends to have certain impact on the property sector while an increase in the interest rates may also affect its performance. The current high oil prices may also lead to higher construction cost.
StarBiz: Major Government policies that have contributed to the industry’s performance
Mustapha: Policies relating to recruitment of foreign construction workers, price increase of building materials and more stringent approval process will have an impact on the industry’s short-term performance.
A relaxation of Foreign Investment Committee guidelines on acquisition of property by foreigners with quicker approvals from the state will contribute to higher property sales.
Overall, the Government’s fiscal and monetary policies continue to support the property sector.
StarBiz: Ways to bring about better opportunities and a more robust property market
Mustapha: l The current low interest environment and favourable financing packages to remain
·Stamp duty waiver for property transaction for a specific period
·Lower real-property gains tax rates or exemption for sales of properties for a specific period
·More promotion of the Malaysia-My Second Home programme to attract foreign purchasers.
StarBiz: Property sector that offers the best potential for your company
Mustapha: The commercial and residential sectors and our projects in the Klang Valley - Damansara Perdana, Damansara Damai and Cyberia - offer the best potential. Our resort properties in Bukit Merah Laketown and Taiping Resort are also seeing improved demand.
StarBiz: New projects from your company
Mustapha: Interesting launches in the coming months include high-end duplex condominiums and semi–detached houses in Damansara Perdana. Also in the pipeline are condominiums at our Cyberia project in Cyberjaya and traditional villas-on-stilts over the lake in Bukit Merah Laketown.
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