KUALA LUMPUR (Jan 3): Mah Sing Group Bhd is optimistic about the property sector’s prospects for 2023, as robust demand for its recent launches of the M Series properties enabled it to achieve RM1.69 billion in sales as of Sept 30, 2022.

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

Founder and group managing director Tan Sri Leong Hoy Kum said the group will continue to scout for and acquire new land, supported by the company’s confidence in the M Series of affordable homes, and backed by a healthy balance sheet.

“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 first-time buyers should remain sustainable,” he said in a statement on Tuesday (Jan 3).

Leong said with its strong balance sheet and healthy liquidity, the group is continuously on the lookout for suitable land to further strengthen its M Series portfolio of projects that recorded very healthy take-up rates.

He said that the resilient demand is driven by continuous economic growth and healthy employment condition, noting that Bank Negara Malaysia (BNM) forecast the nation’s gross domestic product to expand between 6.5% and 7.0% in 2022, and 4.0-5.0% in 2023.

The reopening of the nation’s borders on April 1, 2022 also helped to boost property buying sentiment, while the employment condition is stable, with the unemployment rate at a healthy 3.7% level.

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

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