Property Hunter Magazine Issue 64 2015 | Page 124

COFFEE TALK | kopiandproperty.com 200,000 New Marriages, Y es, in Malaysia, on a yearly basis there are 200,000 new marriages every year. There are also a total of 80,000 new properties being built on a yearly basis. This information is from Mah Sing’s group Managing Director Tan Sri Leong Hoy Kum. He said due to this, there would always be shortages of property supplies. Thus he believes the group 80,000 would be able to replicate its amazing 2014 sales in 2015. In fact he expected net profit would grow 18% year on year in 2015. Mah Sing is also shifting its focus to affordability, just like many other developers and thus nearly half or 44% of all its properties would be below New Properties RM500,000. The take up rate despite the upcoming GST remains at 75% which means that the breakeven stage has been exceeded. In fact he said GST will not be a big issue and the adjustment period should take just 3 months. After reading through all these encouraging information from Tan Sri, what do you think of the property market in 2015? Of course, not all developers are as positive as Mah Sing. Remember last year REHDA members said that the negative sentiment would persist into 2015? However, when we look at the overall market it is very clear that affordability is a very important factor which can continue to drive demand. The founder of penangpropertytalk.com, Ken told me that affordability is a very popular subject and every time he publishes any of such related articles, the response is very encouraging. I just visited Quill City Mall a few days ago and the baby room inside AEON’s baby department is simply amazing. Think objectively, if this group is not the main target, why spend so much effort for the baby room? If this group is the main target, it brings us back to the number of marriages in the first sentence. Yes, the family formation is also increasing tremendously and not just the number of marriages. Thus, smaller properties of below 1,000 sf all the way to bigger sized condos or even landed ones would continue to be in demand. Yes, it’s also possible that Tan Sri may just be too optimistic but Mah Sing is a listed entity. Its result has to be announced and made easy for all to see and if majority of what he said does not come true, what do you think would happen to Mah Sing’s share prices? Now, what happens if you think he is telling the truth and you are not ready to buy their properties? Easy. Buy some of their stocks and keep for the next few years. According to The Edge, the top pick for 12 stockbroking firms in town is Mah Sing. Prices? Please refer online and kindly do a bit more homework than believing everything that is written. Happy reading and learning. 124 www.PropertyHunter.com.my 550sf VS 1,000sf O n and off, I read articles on how best some interior designers redesigned a tiny small space into a liveable space. For some cases, it is tagged as desirable space. In a recent article, someone bought a small garage, made it into a very nice little home which can even be used to host parties for friends. He made it into two levels, so that he can have a bed on the 1st floor and sleep right below the ceiling. Is this a lifestyle that I would want in the near future? Well, even if I am single, not for me. To me, size is very important to me. No matter how awesome a 550sf space can be redesigned into something which looks like a 1,000sf, I would prefer that 1,000sf place anytime. Yes, call me a ‘traditionalist