Slow? RM5.96b launchings in 2015

Thus far, many have said 2015 is going to be another slow year. In fact maybe worst than 2014 due to GST and the depreciating Ringgit. At the other end, Mah Sing disagrees which is a positive sign. It is launching new launches worth RM5.96b and its group managing director and chief executive Tan Sri Leong Hoy Kum said that Mah Sing is looking at better sales in 2015 versus 2014. 🙂  67% would in Klang Valley, 11% from Penang (obviously it’s Southbay), 20% from Johor and 2% Sabah. Sabah? Hmm.. I have interest. Haha. Projects include Southville@KL South, Lakeville, D’sara Sentral and MResidence 1 and 2, and Ferringhi Residence and Southbay City, while new projects in the pipepline for 2015 were Bandar Meridin East, MResidence 3, Icon Residence Georgetown and Star Residence.
For investors who have some Mah Sing stocks, a proposed renounceable rights issue with free warrants, followed by a one-for-every four share bonus issue to raise up to RM630mil has also been approved. In other words, more shares that you would be having soon. Value might be the same for now but if everything goes according to its plan? The next statement is totally expected. Mah Sing would be developing more affordable properties. This segment which has been overlooked by so many of the huge developers are now huge with all developers. Demand is always there for affordable properties. There’s way too many in fact as long as the price is right. I think if the projects that they are launching are slightly over RM500psf and around 1,000sf, it should be very easy to sell. Mah Sing said that 84% of all their projects for 2015 are below RM1 million.
Personally, anything above RM700,000 is going to be tough to sell currently in my opinion. This is true whether it’s Klang, Penang or even JB. The investors are wary of the many uncertainties while actual house buyers buying for their home is likely to be looking at lower priced properties. For those who are looking to upgrade, the number may be big but the action is likely to be small. After all, they still have a home today, why rush? Plus there are also choices in the secondary market. In fact today, I read in one online site that one Professor who’s an expert in real estate is asking all the first time home buyers to save money and do not buy in 2015 or 2016. This is because a lot of new completed units are coming into the market due to the boom in 2011 and 2012. The sellers are unlikely to be able to hold for very long and thus, first time home buyers can get properties at a heavy discount. While I believe there’s going to be huge incoming supply, I am not so sure about the huge discount. Anyway, with any prediction, the best proof is? Wait till then to see if it’s true. 🙂  let’s see if there are more of these feel-good news from the bigger developers continuously.
written on 8 Jan 2015
Next suggested article: Seremban, Mah Sing, RM7.5 Billion and Ipoh. Nice.


  1. J C Law avatar
    J C Law

    Primary market usually attracts more investor / speculator compared to Secondary market, mainly due to discount or rebates and freebies given by the developer. Huge incoming supply of new completed properties may face challenges for reselling as the initial cost of buying is much higher including but not limited to 1st 10% down payment, stamp duty, SPA & loan legal fees, valuation fees & etc.
    Financing of newly completed properties will have another challenge when come to valuation by the valuer. Banks will only give financing on LTV, where most of the new completed properties are difficult to get the comparison for valuation purposes. Financing of under-construction properties are always easier compared to completed properties due to End-Financing arrangement already pre-arranged between the developer and the banks, and there is no Formal Valuation Report required.
    Thus, subsale of properties above RM700k is much more difficult as compared to a selling of under construction properties which also priced at RM700k (assuming both at a similar location).

    1. Agree with all the points jc.

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