NuProp Team

PROPERTY NEWS: Mah Sing is optimistic about the property prospect in 2023

Key takeaway: Mah Sing Group Bhd is bullish on the property sector's prospects for 2023, owing to strong demand for its recent M series property launches, which enabled it to achieve RM1.69 billion in sales as of September 30, 2022.

The group is on track to meet its 2022 sales target of RM2 billion and has set a minimum 2023 sales target of RM2.2 billion.

Tan Sri Leong Hoy Kum, founder and group managing director, stated that the group will continue to scout for and acquire new lands, backed by the company's confidence in the M-Series of affordable homes and healthy balance sheets.

"Beyond 2023, the mid to long-term outlook remains positive, backed by strong fundamental demand for properties due to the young demography. Demand for houses from the first-time buyers should remain sustainable,” he said in a statement today.

Leong stated that the group, with its strong balance sheet and healthy liquidity, is constantly on the lookout for suitable lands to further strengthen its M series portfolio of projects, which has seen very healthy takeups.

He stated that the resilient demand is driven by continuous economic growth and a healthy labour market, noting that Bank Negara Malaysia (BNM) forecasted the nation's GDP to grow between 6.5 and 7.0 percent in 2022 and 4.0-5.0 percent in 2023.

The reopening of the country's borders on April 1, 2022, also boosted property buying sentiment, while the employment situation is stable, with the unemployment rate remaining at a healthy 3.7 percent.

"Although BNM increased the overnight policy rate (OPR) by 100 basis points year-to-date to 2.75 per cent, the current rate is still lower than the pre-pandemic OPR range of 3.0 per cent - 3.25 per cent.

"Many believe that properties are a good hedge against inflation, and with the recent news of expected increases in house prices due to construction costs hike and inflationary effects, many house buyers are choosing to lock in their purchases now,” he added.

Copyright © January 2023, The Star

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