Maxim-um charge in JB

AFTER years of focusing on high-rise residential projects in the Klang Valley, Maxim Global Bhd is entering new territory with a RM1.7bil gross development value (GDV) project in Johor – and it’s doing so in a big way.

Dubbed “The Address JB”, the mixed-use project – the developer’s largest to date – will sit on a 6.51-acre plot in Plentong, Johor Baru.

Maxim Pelangi Sdn Bhd, a 51%-owned unit of the group, bought the land for RM167mil in March.

Managing director Tan Sri Gan Seong Liam believes the group’s move into Johor Baru couldn’t have come at a better time.

“The only place where you can command a good price now is Johor Baru. But probably it’s only for this small window opening,” he says.

Maxim is targeting Malaysians working in Singapore with units priced over RM400,000 and starting from RM935 per sq ft.

“The location is key. It’s only 3km from the Customs, Immigration and Quarantine complex – just five to seven minutes without traffic,” says deputy managing director Jayden Gan Kuok Chyuan, who is Seong Liam’s son.

The project comprises 2,734 units across three blocks, with the first phase – two blocks totalling 1,716 units – carrying a GDV of RM1bil.

A soft launch of its sales gallery is slated for today, with the official launch scheduled for September.

Seong Liam says the project is supported by major infrastructure projects such as the Johor-Singapore Rapid Transit System (RTS) and the proposed Elevated Automated Rapid Transit.

With the RTS link on track to be completed in December 2026 and demand picking up from the Singapore-based Malaysian workforce, he believes Maxim has struck the right product at the right location.

“There’s not much stable land in Singapore for Malaysian workers. So we don’t foresee issues with this launch.”

This development is one of two launches the group is targeting in its financial year ending Dec 31, 2025 (FY25).

The other is a two-block high-rise serviced apartment in Alam Damai in Cheras, Kuala Lumpur (KL), with a GDV of about RM500mil, pending approval of a development order (DO).

“We are in the midst of getting a DO. If we are able to get it within two months, I think we can launch in the third to fourth quarter this year,” says Kuok Chyuan.

A slow year behind, better years ahead

FY24 was relatively quiet for Maxim, with just one project – The Atas in Taman Desa, KL, with a GDV of RM580mil – launched in May. Still, the luxury high-rise – slated to be completed in four years – has seen a 70% take-up rate so far.

“Since it has big units – close to a million ringgit – take-up rate is slow but consistent,” says Seong Liam.

“But we are optimistic of a 100% take-up. In fact, we have bookings way higher than 100%. But, due to the pricing, some of them fail to get their loans approved.”

Staying local — for now

Maxim is now focused on expanding in Johor, particularly in the landed segment and possibly township development, Seong Liam says

“We’re seriously looking at Johor. The potential is very good,” he says.

“But for a township, you need at least 200 to 500 acres. We’re talking to some parties.”

He adds that future infrastructure could further unlock value – especially if the long-discussed high-speed rail (HSR) linking KL and Singapore materialises.

“High-speed rail would definitely help KL. That would be a real catalyst (for the KL property market),” says Seong Liam.

Maxim’s existing landbank stands at about 30 acres, which Seong Liam says will support development for the next eight years.

He says Maxim is also eyeing land in Penang but remains cautious on East Malaysia due to tighter regulations.

He says that while the group previously explored international expansion, particularly in Melbourne, but it has since put those plans on hold.

“We were quite keen on Melbourne. But in the last two years, there have been a lot of changes – new conditions that make it less lucrative,” says Seong Liam.

“There’s still room for growth in Malaysia.”

Margins under pressure

While building material prices have stabilised, Seong Liam says Maxim is grappling with higher labour costs and weak demand, making it difficult to raise selling prices.

“Last year, steel bars were still rising. Now they’ve stabilised. Cement prices too,” says Seong Liam. “But labour (cost) is up and the business environment isn’t strong. For this period, we have to absorb it.”

Adding to the pressure is the recent expansion of the sales and service tax, which now includes logistics services that indirectly impact construction cost.

“Transportation has been affected. That will indirectly come to us. To pass it on to customers is not a good move at this time because the market is soft.”

As at March 31, Maxim held RM86.9mil in cash, with a net gearing ratio of 41%. The company has a free float of nearly 10%.

At the time of writing, its shares traded at 36.5 sen, valuing the group at RM268.3mil.

Major shareholders include Seong Liam with nearly 21%, and his sons Kuok Chyuan with 7.88% and executive director Gan Kuok Wei with about 10%.