Mah Sing proposes sea villas for Southbay project

Mah Sing proposes sea villas for Southbay project
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KUALA LUMPUR: Mah Sing Group Bhd has proposed to build sea villas as an added attraction in its Southbay Penang project.

Managing director Datuk Leong Hoy Kum said Mah Sing was in the process of submitting its application to develop these villas.

Speaking after the company AGM yesterday, he said should it be given approval, it would be a first in Penang.

He also said Southbay’s current gross development value (GDV) of RM1.28bil did not include the proposed sea villas, which would be built on the seabed.

“Southbay’s target market includes local and foreign investors who are keen to invest in high-value commercial properties,” he said.

Southbay’s residential developments, Legenda@Southbay Penang and Residence@Southbay Penang, are set to be launched in the first half of 2008, to be followed by commercial properties.

Also included in its target market for Southbay were participants in the Malaysia My Second Home programme, Leong said.

The foreign investors interested in Mah Sing’s properties were from South Korea, Japan, the Middle East, Hong Kong, the US, Singapore and Europe, he said.

Leong also said the group was keen to lure institutional investors, as Malaysia’s property sector was attractive due to its prices being among the lowest in the region.

On overseas markets, Leong said Mah Sing was discussing with some parties in Vietnam to venture into residential and condominium development within Ho Chi Minh City, and also exploring opportunities in Doha.

“But, we are in no hurry to venture overseas. We are evaluating opportunities and, if we do go abroad, we want to ensure minimal capital outlay,” he added.

On the Icon development in Jalan Tun Razak, Kuala Lumpur, Leong said Mah Sing was keen to retain one of its blocks to ensure recurring income.

Mah Sing would capitalise on the low supply of semi-detached houses and bungalows in the Klang Valley, he said.

He added that of the total residential supply (in the Klang Valley), only 5% consisted of these types of residences.

Also, Leong said, Mah Sing was keen to further boost its commercial and office property sector due to its high growth potential.

Based on studies from Regroup Associates, it is estimated that buyers outnumber sellers by as much 15:1 in certain (commercial) developments.

With this high demand, it had set a target price of about RM900 per sq ft for Grade A offices in Kuala Lumpur within two years.

To date, Mah Sing has 13 developments and, with unbilled sales of RM430mil as at March 31, bringing its total GDV to RM3.9bil.