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Saturday, September 6, 2008

Mah Sing sees better outlook for property margin

KUALA LUMPUR: Mah Sing Properties Sdn Bhd may consider increasing the selling prices of its future property projects by 15% to 20% due to the hike in construction costs.

However, chief operating officer Ng Heng Phai said it would depend on the building materials costs at the point of launch and the company was looking for alternative ways to absorb the costs.

“The increase will be adjusted accordingly if construction costs drop in the future,” he said after the launch preview of Phase 2 of Hijauan Residence in Cheras yesterday.

He said construction costs had increased 20% to 30% over the last four months and it was still volatile right now.

Mah Sing Properties had planned to launch Phase 2 before year-end.

“Phase 2 comprises 30 semi-detached houses and bungalows and the estimated selling price would be at least RM1mil per unit,” Ng said, adding that the company had received over 1,000 enquiries about the project. Phase 1 has been fully taken up.Besides, he disclosed, the company was planning to launch its four-storey hill villas project in Hijauan Residence next year and the indicative selling price would be from RM2.3mil.

Asked whether Mah Sing Properties was affected by the property market slowdown, Ng said it had not been impacted because of its niche product offerings.

He said the company would continue to focus on the medium to higher-end market segment, but would not rule out venturing into the industrial property market again like it did about 10 years ago.

On another note, Ng said the company was now looking for partners to jointly develop projects, comprising commercial and residential development, in Vietnam.

“We are looking for potential landbanks in Ho Chi Minh City now,” he said.

By The Star

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