17/12/2015
Mah Sing a top pick for ability to lure first-time buyers
Macquarie Research has chosen Mah Sing Group Bhd as its top pick for the local property sector, citing the company’s ability to attract first-time buyers and offer affordable housing.
“Mah Sing has placed itself well in the market to capture the first-time home buyers and upgrades at affordable pricing points. Not only is Mah Sing pricing it right, it is also hugely exposed in the central region.
“We believe, given the current property market conditions, Mah Sing will retain its exposure in the affordable segment in 2016, as this segment was seen to have better support from the buyers, especially in the central region,” said Macquarie in a report.
Commenting on the property sector, it said the “affordable housing play” with the central region would be the main highlight in 2016.
“In general, the central region gives a better demand-supply match for the launched properties. However, we think going forward, the affordable segment with a pricing point of around RM500,000 per unit will continue to drive the sales numbers for the property developers.”
Macquarie said that an average of 64% of new property launches would be taken up by consumers every year.
“From this total, 54% are owner-occupier buyers. Owner-occupier buyers in Malaysia are either first home buyers or upgraders. Mah Sing generally caters for the first home buyers, given its cheaper pricing points, and SP Setia Bhd mostly caters for the upgraders, given the higher pricing points and the township projects it has.
“We believe the owner-occupier property developers will be better off in facing the property market slowdown,” it said.
Macquarie, meanwhile, said it expected 2016 to remain challenging for developers within the high-end segment.
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