Mah Sing Group Bhd (Mah Sing) is poised to achieve higher property sales of approximately RM3.6 billion in financial year 2014 (FY14) compared with RM3 billion in 2013.

Following a meeting with the company's management, AmResearch Sdn Bhd (AmResearch) in a report said the property developer is banking on new property launches in the second half of the year as well as its affordable or mid-range segment to sustain its turnover.

In the meantime, the research firm observed that Mah Sing has generated about RM1.5 billion in sales in the first half of 2014 (1H14) which exclude about RM708 million achieved during the launch of Lakeville Residence@Taman Wahyu in Kuala Lumpur recently.

AmResearch said the buying momentum for property is set gain pace in 2H14, supported by Mah Sing's six new launches which include projects such as D'sara Sentral serviced apartments at Sungai Buloh (Selangor Darul Ehsan), Canal Link @ M Residence(Rawang, Selangor Darul Ehsan), Meridin Bayvue @ Sierra Perdana, (Johor), Bandar Meridin East, Pasir Gudang (Johor), The Coastal @ Southbay City (Batu Maung, Penang) and Feringghi Residence - Precinct 2 (Penang).

Additionally, the research firm believed that the strong take-up rate for Mah Sing's new property launches would be sustained with the property developer's focus on the affordable or middle range segment.

It noted about 87 per cent of the property developer's residential launches for 2014 would be priced at RM1 million or below. Obviously, the research firm noted that there is still strong demand for landed residential houses priced below RM1 million and RM700,000 for high-rise units.

Moreover, AmResearch observed that a few of Mah Sing's recent key projects have registered strong take-up rates.

It noted that one of the projects, for instance, Lakeville Residence which was launched in the middle of August has achieved an 85 per cent take-up rate for the first four tower blocks which has 1,244 units.

Moving on, AmResearch expects the demand for Mah Sing's upcoming launches at Southville City @ Bangi, (Selangor Darul Ehsan) should increase once the proposed interchange to the North-South Highway is being constructed.

As for the group's property projects in Johor, AmResearch said Mah Sing remains optimistic that its projects would be well-received as it has been targeted towards the affordable segment with pricing from below RM350,000 and RM400,000 for landed houses.

Besides that, the research firm said the property developer has expressed confidence in its pricing structure of RM650 per square feet to RM700 per square feet for the Medini project is within the budget of many local buyers.

The research firm added Mah Sing upcoming property launches for 2H14 in Johor would include Meridin Bayvue, which represented the last phase of the matured Sierra Perdana township. Apart from that, AmResearch noted Mah Sing has planned to launch up to 588 units of houses in two blocks of condominium from pricing of RM414,000 per unit with built-up area of 980 square feet.

The research firm also said the property developer other property project launches include Bandar Meridin East in Pasir Gudang. Other than that, it said Mah Sing has targeted to complete the sales of industrial units at Mah Sing i-Parc industrial development near Port of Tanjung Pelepas, Johor.

As for Mah Sing's projects in Sabah, AmResearch said property sales for shop lots or retail units at Sutera Avenue located in front of Kota Kinabalu Times Square has been brisk while upcoming launches consists of service apartments atop a retail mall that the group is currently building.

Nevertheless, the research firm observed that the response towards the property developer's project has witnessed a slowdown within certain segments in Sabah.

It believed that the lukewarm demand could be due to less interest from Chinese property buyers as a result of negative newsflow particularly the MH370 and MH17 incident coupled with the kidnapping incident in East Sabah.

Despite that, AmResearch said Mah Sing remains positive on a potential resurgence in demand over the medium term for the high-end segment given the limited supply over the last few years.

The research firm noted that Mah Sing is expected to launch its project at the Kelab Golf Sultan Abdul Aziz Shah (KGSAAS) golf course land in Shah Alam in two years' time.

AmResearch said the property developer does not expect any major issues in receiving the development order for the prime KGSSAAS land, which is dubbed as the ‘Damansara Heights' of Shah Alam.

The research firm noted the high-end development project would consist of super-link houses, semi-detached and some small condominiums.

Year-to-date, AmResearch observed that Mah Sing has acquired new landbank with a combined gross development value (GDV) of RM19 billion against RM9 billion for 2013.

Hence, the research firm noted that the landbank acquisition has boosted the property developer's pipeline of projects to RM50 billion.

AmResearch believed that Mah Sing's aggressive landbanking would enable the property developer to emerge as one of the largest developers by GDV in the the future.

Therefore, the research firm is upbeat that Mah Sing would be able to achieve its property sales target and enhance its earnings for FY14.