Malaysia’s Mah Sing targets Singaporean investors

Singaporeans keen to look for a property in Malaysia may no longer need to travel across the Causeway to make a booking.

More Malaysian developers are setting up their sales office and showrooms in Singapore.

Following the opening of its sales office in Shanghai last year, Mah Sing Group has opened its second overseas gallery in Singapore to cater to increasing demand from investors here.

Mah Sing is Malaysia’s second largest listed property developer by sales value.

Other Malaysian developers that already have a showroom in Singapore include UEM Land.

Mah Sing says it wants to tap into the the growing interest that Singaporean investors have for Malaysian property, especially in hotspots like Iskandar of which it has seven projects.

Mah Sing’s new property gallery in Singapore will feature three of its latest projects that have caught the eye of Singaporeans.

The Meridin@Medini in Iskandar Malaysia in Johor, Icon City in Petaling Jaya in Greater KL and M City in Jalan Ampang in Kuala Lumpur will be featured at the new showroom at TripleOne Somerset along Orchard Road.

With 44 projects across Malaysia, Mah Sing says the interest from foreign buyers in places like China, Hong Kong, Macau, Taiwan, Japan and Indonesia has been on the rise.

Mah Sing Group CEO Leong Hoy Kum said: “Because of increasing demand from Singaporean buyers, that’s the reason why we’re here in the Lion City.

“The cooling measures in Singapore, Hong Kong will actually make our property more appealing. So definitely there are more foreign buyers coming to Malaysia.

“We anticipate this is in line with our mid-term group strategy to boost revenue from foreign buyers from 10% to 30% within the next two to five years.”

And if numbers are anything to go by, 50% of Mah Sing’s recent project, the Meridin@Mendini, was bought up by Singaporeans.

When phase two of the project kicks in later this year, Mah Sing is expecting that number to increase.

Indeed, analysts say the rising prices for projects in Iskandar in the last few months have made it a more attractive option compared to developments in other states like Kuala Lumpur and Penang.

Some analysts also expect property prices for new projects in Iskandar Malaysia’s flagship A (central JB) and flagship B (Nusa Jaya) to rise by about 10 to 15% over the next 12 months.

OrangeTee’s head for international projects, Johnny Chng, said: “Investors have to take into account the appreciation in price in the last two years, especially for hot markets like Iskandar.

“Two years ago, a unit in Iskandar was priced at 700 ringgit per square foot. Now in the hot area, like flagship B, it’s like 1,400 ringgit psf and above for new launches.

“Singapore, being the nearest neighbour to Johor…everybody wants a piece of that. With the strong support level from both sides of the government and government-linked companies like Khazana and Temasek, that even pushes up the demand even more. Everybody is rushing to it.”

Mr Chng went on to say: “Setia has their office here…E&O (too) and of course, Mah Sing. More will be coming, because we are just too close to each other, especially if you’re talking about Iskandar. Because we’re just across the Causeway, it’s very much like selling a local project.”

And market watchers say more might rush into Iskandar Malaysia when the KL-Singapore high speed rail is completed.

Source : Channel NewsAsia – 15 July 2013

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