Strong sales momentum for EcoWorld Malaysia since mid-2020, says its chief

Eco World Development Group Bhd’s (EcoWorld Malaysia) ongoing township developments in the Klang Valley, Iskandar Malaysia, Johor and Penang performed well despite the ongoing Covid-19 pandemic.

“The continued strong sales momentum we have been experiencing since the middle of last year is very heartening indeed. We are particularly encouraged by the fact that recovery has been broad-based with our projects in every single region performing well,” said the group’s president and chief executive officer (CEO) Datuk Chang Khim Wah.

Chang attributed the strong rebound experienced by the group to strong take-ups on all the new projects and products launched in the second quarter of 2021 (2Q 2021), namely Eco Botanic 2 in Iskandar Malaysia, Co-Home at Eco Horizon and Eco Grandeur, and the second phase of ErgoHomes and Garden Homes at Eco Forest. “Homeowners are increasingly drawn to the many unique selling points of EcoWorld’s Signature DNA and the comprehensive lifestyle amenities available within a 10 km radius of each project,” he said in a statement.

Chang said the group’s industrial business park also did well in spite of the current challenging times.

As at May 31, 2021, total sales achieved by the group’s four Eco Business Park projects totalled RM227 million, higher than the RM220 million achieved for the full financial year 2020 (FY 2020).

“This encouraging result, currently driven mostly by local business owners and industrialists, suggests that there are sectors of the Malaysian economy that are continuing to grow even amidst the challenges posed by Covid-19,” he said.

Chang is upbeat that once the Full Movement Control Order (FMCO) is lifted and travelling restrictions are relaxed, both consumer and business confidence will recover strongly and this would result in continuous positive sales momentum.

EcoWorld Malaysia had secured 88 per cent of its full-year sales target of RM2.875 billion within the first seven months of the current financial year, despite the ongoing FMCO imposed by the government to combat the Covid-19 pandemic.

As at May 31, 2021, (seven months into the current financial year), total year-to-date sales has reached RM2.53 billion, which is 10 per cent higher than the RM2.3 billion sales achieved in FY2020.

The group recorded RM1.32 billion sales in 2Q 2021, which is almost double the sales of RM706 million achieved in 1Q 2021.

Future revenue from Malaysian projects alone increased substantially from RM2.99 billion as at February 28, 2021, to RM3.77 billion as at May 31, 2021.

Including EcoWorld Malaysia’s share of future revenue from Eco World International Bhd (EcoWorld International), total future revenue from projects undertaken in Malaysia and overseas stands at RM4.21 billion as at May 31, 2021.

Chang said the future revenue position of RM4.21 billion provides the group with both near-term cashflow and earnings visibility.

Meanwhile, for EcoWorld International, there has been a recovery in local demand across the UK and Australia property markets in the second quarter of FY2021 (2Q FY21), said its president and CEO Datuk Teow Leong Seng.

Sales of EcoWorld London, the group’s joint-venture that focuses on the outer zones of London, has seen a substantial increase in sales, increasing from £9 million to £24 million in 2Q FY21 compared to the same quarter in FY2020.

Teoh said in Australia, the group’s West Village project saw a marked increase in sales, jumping from A$1 million to A$15 million over the same period.

“Apart from an increase in contracts exchanged with SPAs (Sales & Purchase Agreement) signed, the reservation pipeline has also been growing, a sign of markedly improved sentiment. This enabled our total sales and reservations up to May 31, 2021, to exceed the RM1 billion mark,” he said in the statement.

Teoh said overall the group saw better sales thanks to the positive turn of events to the reopening of economic sectors following mass vaccinations in the UK and the effective containment of the pandemic in Australia which boosted confidence among consumers and homebuyers.

He added that the improved sales performance is also a clear indicator that the property markets are beginning to recover following the slump induced by Covid-19.

If it wasn’t for the international borders remaining closed, EcoWorld International would have performed better.

Teoh said the closure of international borders for the vast majority of global populations affected sales of projects that traditionally receive strong demand from overseas buyers.

Accordingly, the sales performance of the group’s projects in inner London, developed through the EcoWorld-Ballymore joint-venture, was relatively muted due to the postponement of international marketing events.

“Looking ahead, we believe that sales performance will improve in the coming quarters as rollout of the vaccination programmes continue in many of our global customer markets. Further, the return of office workers should also lift demand for our projects that are located close to major employment centres. This includes London City Island and Wardian London, which are near Canary Wharf. Similarly, Yarra One, which is just 5km away from Melbourne CBD should also experience an uplift in demand as economic activities resume with greater strength,” he said.

Teoh said looking ahead with the improving Covid-19 situations, the group should be on track to achieve its FY2021 sales target of RM2.2 billion by the end of the financial year.

Source: NST