DEVELOPER Mah Sing Group Bhd’s wholly owned subsidiary Mah Sing Properties Sdn Bhd has acquired prime freehold land in Mukim Petaling measuring approximately 1.87ha for RM90.3mil.
This will be a quick-turnaround niche development as the land comes with development order obtained, but in view of the prime location, Mah Sing intends to revisit the development plans in order to fit current market demands.
Based on preliminary plans, the project will have an estimated gross development value (GDV) of RM500mil.
The project will be on land that straddles the highly populated and established neighbourhoods of
Jalan Kelang Lama, Sri Petaling, Bukit Jalil and Salak South, and is within a 10km radius of KLCC, Cheras, Ampang, Petaling Jaya and Seri Kembangan.
Access to the NPE and Silk Highways are just 1.1km away, KESAS and KL Seremban Highways within 2.8km and MEX and Smart Tunnel within 4.8km.
It is only 800m to the upcoming Taman Naga Emas MRT station along MRT Line 2, which is on track to be completed by July 2021 and fully operational by 2022.
Based on population analysis and market survey, Mah Sing intends to target mainly first-time homebuyers and upgraders.
Access into the land is available via Jalan 2/149 and Mah Sing will build a direct access from the existing road to the new development.
The project is targeted to start in the second half of the year, with development spanning four to five years.
Mah Sing’s group strategy and operations director Lionel Leong said: “The location is prime and we plan to have two-bedroom units for first-time homebuyers, with an indicative built up from 700sq ft and priced from RM428,000.
“We believe there will be a large pool of these buyers as their families may be staying within the surrounding established neighbourhoods. We also see high demand for bigger units.
“These larger units would be ideal for buyers who are currently staying in older homes and want better security and facilities to cater to their young families and children. For this target market, we intend to design three- to four-bedroom units. We shall be doing a registration of interest exercise soon,” said Leong.
The acquisition will increase Mah Sing’s prime landbanks to 853.48ha, with total remaining GDV and unbilled sales of RM26.2bil.
This is in line with Mah Sing’s focus to increase its presence in the Klang Valley, especially in the affordable range. With this acquisition, 67% of its landbank is in the Klang Valley.
By virtue of its economic dominance, the value and volume of property transactions in the Klang Valley (Kuala Lumpur and Selangor) is by far the highest in the country.
According to the National Property Information Centre (NAPIC), in 2017, the value of residential property transactions in the Klang Valley itself was RM32.3bil, accounting for nearly half of the RM68.5bil achieved in the whole of Malaysia.
In terms of demand, 47% of the total transaction value of RM68.5bil for the residential sub-sector in 2017 came from units with price points between RM300,000 and RM1mil (similar to 48% in 2016) per NAPIC’s report.
By stepping up land acquisitions in the Klang Valley with focus on affordable pricing, Mah Sing will be better positioned to meet the market demand.
Mah Sing’s group managing director Tan Sri Leong Hoy Kum said: “This acquisition fits our strategy of land banking for niche projects in good locations which are ready for immediate development. Various recent surveys have shown that 92% of Malaysians prefer to buy than rent, with the top three influencing factors being price, location and security and safety.
“We will continue our strategy of providing homes with luxury features at affordable rates as we believe demand will persist for the right product in the right location, at the right pricing.”
The project is ideal for the city’s professional population who are looking to stay near to the central business district with ready amenities and infrastructure.
Leong added: “In view of the location being close to existing retail convenience, it makes more sense to focus the development as residential suites with a host of facilities that will appeal to residents.
“This will make it an ideal location for younger generations who grew up in the surroundings areas as it is close to the city centre and also a familiar location.”
The development is surrounded by four public schools – SJKC La Salle (2.4km), SMK Sri Sentosa and SK Seri Setia (2.6km), SJKC Yoke Nam (5.1km) – and various institutions of higher learning including Institute Latihan Perindustrian KL (IPKL – 2.2km), Social Institute of Malaysia (2.8km), International Medical University (IMU – 4.6km) and Asia Pacific University of Technology and Innovation (APU – 5.5km).
Residents will be able to enjoy the retail convenience of NSK Trade City just 2.2km away, while within a 5km radius, there are Mid Valley Megamall, Nu Sentral, Mytown, Sunway Velocity and the upcoming Pavillion Bukit Jalil.
With excellent location and accessibility coupled with mature catchment and established amenities, the management is confident that the new development will be well received.