IN a soft property market, it would be normal for developers to hold back or postpone their launches. Not Mah Sing Group Bhd and for good reasons too.
The developer will be launching its second block of service apartments from its M Vertica project in Cheras this weekend.
Mah Sing, which is naturally upbeat about the project, has set high expectations in terms of response for M Vertica’s Tower B.
“We are confident of a good take-up rate. Currently we have more than 9,500 registrants for the launch of Tower B,” says Mah Sing central sales and projects chief operating officer Yeoh Chee Beng.
Tower A, which was launched last November, is almost fully snapped up. “During the two-day weekend preview, Tower A recorded an 85% take-up,” says Yeoh, adding that he expects the first tower to be completely sold “really soon.”
Tower B has 53 storeys and comprises 685 units of service apartments. The units start from RM450,800.
“Traditionally when we launch a new tower, developers will increase the price. However, we want to make it accessible to first time buyers,” says Yeoh.
Apart from the pricing, he says the strategic location was also a key factor in attracting buyers.
M Vertica is two MRT stations away from the Tun Razak Exchange and three MRT stations away from Bukit Bintang and the Golden Triangle area.
The property development is also accessible via Jalan Cheras, Jalan Loke Yew, Jalan Pudu, Sungai Besi Highway, Jalan Tun Razak and KL-Seremban Highway and Middle Ring Road 2. It is also 500m from Aeon Maluri, 2.5km from Ikea Cheras and 6.5km from Royal Selangor Golf Club.
The development is a stone’s throw from hospitals and schools.
M Vertica, a mixed development with a gross development value of RM2.2bil, will be constructed on a 11.25-acre leasehold land, which is currently occupied by Stadium Badminton Kuala Lumpur.
The project comprises 3,684 units of serviced apartments spread over five high-rise towers. The units have indicative built-up areas of 850 sq ft (three bedrooms) and 1,000 sq ft (four bedrooms).
Yeoh says the group’s main target market will be homebuyers aged 25 years to 40 years.
“M Vertica’s affordable pricing and nearby conveniences are ideal for first time homebuyers as well as young couples and families working in Kuala Lumpur.
“It is also suitable for those looking to upgrade – especially those within the Cheras area that want to move out of their parent’s homes.”
Moving forward, Mah Sing is looking to develop a dedicated ingress ramp from Jalan Cheras into M Vertica. The project plans are currently in the process of being approved by the local authorities.
With the success of Tower A and the anticipated, equally-overwhelming response for Tower B, Yeoh says Mah Sing plans to launch a third tower by the third quarter of this year.
“For this financial year, earnings contribution will come from Towers A and B, and a portion of Tower C,” he says.
Mah Sing’s net profit for its fourth quarter ended Dec 31, 2017 rose 3% to RM88.78mil from RM85.61mil in the previous corresponding period on the back of steady sales from its various ongoing property projects.
Revenue in the fourth quarter increased to RM760.84mil from RM742.18mil a year earlier.
For the financial year ended Dec 31, 2017, Mah Sing’s net profit improved to RM361.90mil from RM361.36mil in the previous corresponding period, while revenue was flat at RM2.92bil from RM2.96bil a year earlier.
The company recorded sales worth RM1.8bil in 2017 – with 45% of residential sales coming from affordable products below RM500,000. Projects that contributed to the group’s 2017 earnings in Greater KL and the Klang Valley included Southville City @ KL South, Lakeville Residence @ Jalan Kuching, D’sara Sentral @ Sungai Buloh, M Residence and M Residence 2 @ Rawang, M City @ Jalan Ampang, Icon City @ Petaling Jaya, Garden Residence, Clover@Garden Residence and Garden Plaza in Cyberjaya, Kinrara Residence @ Puchong, Icon Residence @ Mont’ Kiara and Star Avenue @ Sungai Buloh.
Projects from other regions that also contributed to the group’s results were Penang’s Southbay City, Legenda @ Southbay and Ferringhi Residence, Johor’s The Meridin @ Medini, Meridin East, Sierra Perdana, Mah Sing i-Parc @ Tanjung Pelepas and Austin Perdana as well as Sutera Avenue in Kota Kinabalu, Sabah.
The developer is maintaining its RM1.8bil sales target for this year, and expects 74% of its residential sales from homes priced below RM500,000. Mah Sing has 2,125 acres of undeveloped land with remaining gross development value and unbilled sales of RM27.6bil, which can support the group’s revenue and earnings growth for the next eight years.