Friday 29 Mar 2024
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SUBANG: MCT Consortium Bhd, which is in the process of a reverse takeover (RTO) of GW Plastics Holdings Bhd (fundamental: 1.2; valuation: 0.3), will focus on developing affordable housing, instead of commercial properties, going forward as the former is likely to stay resilient amid a slowdown.

“Going forward, we will focus on the affordable housing market to deliver quality products in strategic locations such as Cyberjaya,” MCT managing director and co-founder Datuk Seri Tong Seech Wi told a press conference on Friday.

He said the company has lined up RM3.6 billion worth of property launches, of which 90% constitute affordable housing priced at below RM700,000 per unit.

Tong said while there are signs showing that the property market is slowing down, demand for landed properties and other products in the affordable segment remains resilient, especially those located within Greater Kuala Lumpur.

“The take up rate of our recent launches has been satisfactory,” he said, but did not elaborate.

“People are looking for houses priced around RM500,000, which is deemed affordable,” he said, adding that Cyberjaya is set to benefit from improvements in accessibility and infrastructure around the area.

MCT is expecting earnings contribution from the residential segment to grow beyond the current 8% in coming years.

Currently, commercial property is the largest contributor to the company’s earnings at 70%, while another 22% is derived from its construction division.

Today, MCT’s total gross development value of its ongoing and future projects stands at some RM8 billion, said Tong.

“Out of this, RM 5.1 billion have been planned for development such as SkyPark@Cyberjaya and The Place@Cyberjaya and the remaining RM3.2 billion will be retained,” he added.

 

This article first appeared in The Edge Financial Daily, on January 19, 2015.

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