KUCHING: Matrix Concepts Holdings Bhd’s (Matrix Concepts) prospects remain encouraging moving into the new year.
Following a company’s briefing, Inter-Pacific Research Sdn Bhd (Inter-Pacific Research) in a report yesterday said the property developer’s focus on building affordable houses will enable the company to generate higher revenue as the demand for affordable houses expected to be sustained.
Inter-Pacific Research noted the Negeri Sembilan state government has recently proposed a New Prima Development Policy in middle of November to increase the Bumiputera quota of home ownership from 30 per cent to 50 per cent.
Given the proposal, the research firm observed that Matrix Concepts is working closely with the state government on the proposed implementation and address low-cost/affordable housing scheme issues that arose with rapidly rising property prices.
Inter-Pacific Research said Matrix Concepts is actively engaging with the state authorities on the suitable approach of building affordable houses.
Besides that, the research firm believes the property developer will be embarking on land banking activities to replenish its industrial land plots especially in Sendayan Techvalley (STV) in Negeri Sembilan after strong property sales there.
It noted up to the third quarter 2014 (3Q14) ended September, Matrix Concepts has sold 10.5 acres (4.25 hectares) of industrial plots in STV and Sendayan TechPark (STP) at approximately RM40 per square feet.
The research firm said the group has sold an additional 29.6 acres (11.98 hectares) of land in October and is currently in negotiations to sell another 55 acres (22.3 hectares) of industrial plots land.
In the meantime, Inter-Pacific Research observed the positive response for Matrix Concepts’ township project Bandar Seri Sendayan (BSS) in Seremban, Negeri Sembilan has proved that house buyers continued to seek quality lifestyle homes within a community-centric environment at affordable prices.
Therefore, the research firm said the company will continue to target house buyers for affordable housing market segment for its residential property offering in Negeri Sembilan, Johor or even Klang Valley for its future and upcoming projects in BSS.
Having said that, Inter-Pacific Research said Matrix Concepts’ township development project, BSS is seen as a potential beneficiary of the planned KL-Singapore high speed rail (HSR) project.
The research firm believes that the HSR project will spur more development as well as property development at nearby towns, thus providing opportunities for Matrix Concepts in the future.
Hence, Inter-Pacific Research remains optimistic on the property developer’s outlook for the medium to long term.