GEORGE TOWN: MAH SING GROUP BHD is reviewing the masterplan of its RM2.5bil Southbay mixed-development project in Batu Maung, Penang to accommodate more medium-pricing units.
The decision is to meet the needs of buyers who intend to reside in the properties.
Mah Sing group chief operating officer Everlyn Khaw told StarBiz that the revision of Southbay’s masterplan was expected to help improve the sales contribution from Penang to the group.
“This year the sales from Penang are targeted to be 11%, which is more or less the same as a year ago, ” Khaw said.
“As the local property has slowed down significantly, we need to revise the masterplan so that it can address the needs of the market, ” she explained.
Khaw noted the masterplan for Southbay was designed seven years ago.
Mah Sing aimed to complete the review of the masterplan in 2020.
“We are exploring to include more medium-range properties of below RM700,000, which is in line with the group’s nationwide housing plans.
“The plan is also to include an ideal mix of residential and commercial components in the township, ” she added.
Mah Sing had already launched projects, with an approximate gross development value (GDV) of RM750mil, of the Southbay development, using about 10 acres of the 30-acre site.“As for the completed retail lots, the units are fully sold and some of the lots are being occupied/tenanted. We have plans to activate the place by working with the owners, ” Khaw said.
Mah Sing’s target was to launch RM2.2bil worth of projects nationwide this year.
“We are looking at a minimum sales target of RM1.5bil in 2019, and to achieve this, we plan to launch RM2.2bil worth of properties this year, ” she said.
“We are still positive about the property market outlook as Malaysia has a large young population.
“We expect strong demand to come from this group, especially those who are starting new families, ” she added.
In addition, the recently extended National Home Ownership Campaign, which offered various incentives to assist and encourage homeownership, would also contribute to the increase in property transactions in the country.According to Khaw, most of the projects to be launched by Mah Sing will be priced between RM344,000 and RM600,000 this year.
In the Klang Valley, the projects planned were M Vertica, with an indicative starting price from RM480,000; M Arisa, with an indicative starting price from RM344,000; Basil @ Aruna, from RM500,000; and M Oscar from RM428,000.
In Johor, the projects planned were Hazel in Meridin East, with an indicative starting price from RM487,000 and Orchid in Meridin East starting from RM463,000.
In Penang, the projects planned were high-rises in Southbay City, with an indicative starting price from RM600,000, as well as the second block of Ferringhi Residence 2, which would be priced from RM1.37mil per unit. The latter is a premium tower targeting owner-occupiers.
“We will explore more on the development of serviced apartments in Penang, ” Khaw said.
“There seems to be more young house buyers looking to invest to generate long-term recurring income, ” she noted.
Mah Sing’s prime land banks stood at 2,086 acres, which would yield a remaining GDV and unbilled sales of RM25.8bil.
This was expected to provide steady earnings visibility for the group.