Mah Sing acquires new freehold project in Mukim Petaling
Mah Sing Group Berhad’s wholly owned subsidiary Mah Sing Properties Sdn Bhd today acquired prime freehold land in Mukim Petaling measuring approximately 4.63acres for RM90.3million. The land cost is inclusive of development charge.
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 of approximately RM500million. The most affordable 2-bedroom units would have an indicative built up from 700sqft and indicative starting price from RM428,000.
The project will enjoy a large captive target market as the land straddles the highly populated and established neighbourhoods of Old Klang Road, Sri Petaling, Bukit Jalil and Salak South, and is within a 10km radius of KLCC, Cheras, Ampang, Petaling Jaya and Seri Kembangan. These are densely populated residential communities which are highly accessible via major highways and trunk roads. 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. This station would enjoy Park and Ride facilities.
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 commence in the second half of 2019 and developed over a span of 4 to 5 years.
Mah Sing’s Director of Group Strategy and Operations Lionel Leong said, “The location is very prime and we intend to plan 2-bedroom units for first time homebuyers, with an indicative built up from 700sqft and indicatively 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 neighourhoods. From the actual transactions listed in JPPH, 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 3 to 4-bedroom units. We shall be doing a registration of interest exercise soon.”
The acquisition will increase Mah Sing’s prime landbanks to 2,109 acres, with total remaining GDV and unbilled sales of RM26.2billion. 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 their 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 RM32.3 billion, accounting for nearly half of the RM68.5 billion achieved in the whole of Malaysia. In terms of demand, 47% of the total transaction value of RM68.5 billion for the residential sub-sector in 2017 came from units with price points between RM300,000 and RM1 million (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 Dato’ Sri Leong Hoy Kum said, “This acquisition fits our strategy of landbanking for niche projects in good locations which are ready for immediate development. Various recent survey has shown that 92% of Malaysians prefer to buy than rent, with the top 3 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.”
Image via iProperty
Quality homes in the city with affordable pricing from RM428,000
Preliminary plans for the land is to develop 2-bedroom residential suites with an indicative built up from 700sqft and indicatively priced from RM428,000. A choice of 3-4 bedroom units will also be available and registration of interest will start soon. This new project is targeted at first-time home buyers and some upgraders as well as the city’s professional population who are looking to stay near to the central business district with ready amenities and infrastructure.
Lionel Leong commented that, “In view of the location 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.
The acquisition will continue the Group’s track record of developing projects in strategic locations to meet immediate market demand. The matured location adjacent to the heart of Kuala Lumpur host a large catchment of the city’s professional population, as well as residential and commercial developments. 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 at the same time, is a familiar location.
Nearby Facilities Which Provide Multiple Choices to Residents
The development is surrounded by 4 public schools which are 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 shopping malls such as Mid Valley Megamall, Nu Sentral, Mytown, Sunway Velocity and the upcoming Pavillion Bukit Jalil.
With excellent location and accessibility coupled with mature catchment, established amenities and backed by Mah Sing’s recent successful launches, the management is confident that the new development will be well received.
The new development intends to address the demand of homes with affordable price points in sought after locations in the Klang Valley, similar to other projects of the Group such as M Centura in Sentul, M Vertica in Cheras, M Aruna in Rawang and Cerrado as well as Sensory in Southville City @ KL South, catering to the middle income group and mass market. M Centura, Sentul and M Vertica, Cheras projects were acquired in 2017. Both projects have since received positive response where M Centura has recorded take-up rate of 78% to date while M Vertica (phase 1) recorded take-up rate of 83% to date, mainly due to their strategic locations within well-connected mature neighbourhood and proximity to the city centre. The Group’s focus on the mid-market housing segment has continued to be well-received due to Mah Sing’s branding and in-depth knowledge of market catchment that has enabled continuous innovation and development of tailored products that meet the requirements of this targeted customer segment. Demand in Klang Valley is expected to be further supported by population growth, urbanisation, household formation and on-going infrastructure improvement projects.