GEORGE TOWN: Mah Sing Group Bhd
will launch properties in Malaysia with a gross development value (GDV) of about RM2.829bil this year.
According to group founder and managing director Tan Sri Leong Hoy Kum, these properties, which are primarily residential homes, are mainly located in the central and southern regions.
In the second half of this year, he told StarBiz that the Klang Valley would see the development of Mah Sing’s projects such as M Zenya with a GDV of RM307mil in Kepong, M Azura (RM255mil) in Setapak, M Terra (RM472mil) in Puchong, M Legasi (RM63mil) in Semenyih and MSS Business Park (RM69mil) in Sepang.
In Johor, the group is set to develop the M Sinar project with a GDV of RM167mil and the M Tiara project with a GDV of RM396mil.
Leong noted that “the Klang Valley will remain our primary development focus, while Johor and Penang are also vital areas, where we have a strong presence”.
In the central region, Mah Sing’s residential and commercial projects are designed to address the growing urbanisation and demand for mixed-use spaces.
“These projects are designed with sustainability and modern living standards in mind, ensuring they meet our clients’ evolving needs,” he noted.
Mah Sing is also scheduling multiple launches in the southern region, focusing on luxury residential complexes and innovative commercial hubs, said Leong, adding that “our projects here are designed to cater to the high demand for premium living and working spaces”.
At the same time, the group acknowledged the significant potential and demand in Penang.
“We believe our Southbay City project will benefit significantly from the Penang Transport Master Plan, given that it is less than five km from the Bayan Lepas LRT Station and the proposed Silicon Island.
“As part of our existing land bank, this location is ideal for incorporating mid-high residential developments.
“Meanwhile, we plan to offer affordable housing projects when the timing is right,” he said.
According to Leong, Mah Sing still has some 51 acres of landbank in Penang, mainly in the Southbay City project.
The group’s post-pandemic strategy aims for balanced growth across all regions, with a keen eye on emerging opportunities in the north while maintaining high-quality developments in the central and southern areas.
He noted “This strategy involves actively scouting for new opportunities and acquiring suitable land for future developments.
“We are in discussions with various stakeholders and are committed to expanding our footprint in the northern region as soon as viable opportunities arise.
Leong also said the group’s focus is to identify locations that align with its long-term vision and offer substantial value to the community.
“Given the young demographic, the mid-to-long-term property outlook remains positive, supported by fundamental, solid demand for properties.
“Hence, the demand for houses from first-time homebuyers should remain resilient,” he said.
Malaysians generally believe that properties are a good hedge against inflation.
Therefore, many house buyers, especially the first-home buyers, choose to lock in their purchases now with the expectation that house prices will increase due to construction costs hikes and inflationary effects, Leong explained.
Furthermore, infrastructure projects such as the Johor Bahru-Singapore Rapid Transit System Link, the Penang LRT project, the potential revival of the Kuala Lumpur-Singapore High-Speed Rail and the Johor-Singapore Economic Zones would provide localised opportunities to boost property buying interests.
“The rise in the direct foreign investment to Malaysia is a positive signal for the industrial property segment.
“The relaxation of the conditions for Malaysia My Second Home (MM2H) and Malaysia-China visa-free travel is timely to attract foreign buyers,” he added.
Meanwhile, analysts are positive about Mah Sing Group Bhd’s growth prospects, particularly its diversification into data centre venture.
RHB Research in a recent report has dubbed the property group the “next data-centre powerhouse” having successfully secured a 500 megawatt power allocation from Tenaga Nasional Bhd for its 150-acre Mah Sing Data Centre Hub @ Southville City in Selangor.
“As power supply is now deemed to be a scarce resource due to the influx of data-centre investments from global technology players, the Data Centre Hub in Southville City should receive a greater premium,” the research house said.
Given the greater visibility of Mah Sing’s hub development, RHB Research has now revalued Mah Sing’s 132 acres of remaining land in the Southville Hub.
Previously, 17.55 acres of commercial land earmarked for the Bridge Data Centre was transacted at RM160 per sq ft, while the commercial land in the surrounding area is valued at RM200 per sq ft.
“Assuming a gross margin of 50% (for the remaining 132 acres of land in the data centre hub), the net surplus from our revaluation for the whole of Southville City will be boosted by 63%,” the research house said.
Meanwhile, about 70 acres to 80 acres of land at Mah Sing’s Bandar Meridin East in Pasir Gudang, Johor, is zoned for commercial and industrial development.
“In our view, most of the data centre investments have been concentrated around Nusajaya, on the western side of Iskandar Malaysia, in Johor. We think some data centre players may start to explore areas on the eastern side of Iskandar Malaysia as the availability of resources may possibly be better,” said RHB Research.
While data centres are now a new growth engine, the research house noted that Mah Sing’s management continues to stay focused on growing its property development business.
The research house, which maintained a “buy” call on the stock, raised its target price to RM2.26, given a higher value for the Data Centre Hub land and better demand prospects, particularly for its industrial land.
