Mah Sing “selectively optimistic” on property outlook

KUALA LUMPUR, May 30 — Mah Sing Bhd, Malaysia's second largest listed developer by sales revenue, said today that it is upbeat on only selected segments of the property market.

This comes after property analysts said that sales would slow this year following tightening measures by Bank Negara to curb speculative buying and put a lid on household debt.

"We are selectively optimistic on certain segments," said Mah Sing's founder and group chief executive Tan Sri Datuk Sri Leong Hoy Kum. "We must fit supply to demand."

He said that segments that were expected to do well due to customer demand were the small units of service residences and link homes in townships.

He also said that homes costing above one million in gated and guarded communities would also do well.

Property analysts had said that Bank Negara's new guidelines for lending would cool a property market that had run up substantially over the past two years.

They also noted that loan approvals and applications in February had fallen 27 and 18 per cent respectively from last year's peak.

Mah Sing said that it is still scouting for land that can be turned around quickly and is suitable for development that meets market demand.

The group acquired several new projects this year with a gross development value of about RM3.63 billion.

It posted sales of slightly above RM1 billion as at May 15 or 40 per cent of its full year target of RM2.5 billion.

Leong said that he expects minimal impact from the new minimum wage policy as construction is awarded to contractors on a lump sum basis inclusive of labour.

He also noted that labourers are paid between RM60-80 per day which is already higher than the proposed minimum wage of RM900 per month.

Mah Sing posted sales of RM2.26 billion last year, the second highest of any listed developer. - The Malaysian Insider