By Sharen Kaur - Published in NST Property, March 18, 2022
The majority of repeat buyers for Eco World Development Group Berhad's development projects were upgraders. Image of Eco Sanctuary
sharen@nst.com.my
Despite the pandemic, Eco World Development Group Berhad's (EcoWorld Malaysia) sales increased in the last four months due to a strong following of buyers looking for upgrader and luxury homes.
In the first four months of its current fiscal year, which ends October 31, 2022, the group's projects in Klang Valley, Penang, and Johor saw encouraging sales (FY2022).
Sales in all three geographic regions increased significantly when compared to the same period last year, with projects in Iskandar Malaysia experiencing the greatest percentage increase (up 194 per cent), followed by Penang (up by 110 per cent).
Klang Valley projects also performed well, with RM709 million achieved, accounting for 56 per cent of total group sales up to February 28, 2022.
The group's president and chief executive officer, Datuk Chang Khim Wah, said that the end of the Home Ownership Campaign (HOC) on December 31, 2021, had no discernible impact on its sales momentum.
He said that sales continued to be sustained from January to February 2022.
"We are especially pleased with the very strong sales boost received from good take-ups of new phases launched. Over the last two years we had been working hard to expand our product mix and customer base with a focus on attracting new homebuyers and young families that form the bedrock for the long-term growth of vibrant townships," he said.
According to Chang, this will remain an important market for EcoWorld Malaysia.
The new launches that contributed to the group's sales results include the Stoneridge semi-dee, cluster and bungalow homes, and the latest Cheerywood terraces within Eco Majestic.
The other projects include Eco Grandeur's new garden homes in the Regent Garden precinct, as well as its second phase of shopoffices, Utopia; and Eco Horizon's launch of semi-dees and bungalows in the Beldon precinct, as well as new garden homes in the Camdon precinct.
Chang said that sales of the group's completed units also performed well, resulting in further inventory reductions from RM609 million as of October 31, 2021, to RM506 million as of January 31, 2022.
He also said that sales at its four Eco-Business Parks totaled RM154 million as of February 28, 2022, a 43.9 percent increase over the RM107 million achieved in the same period last year.
"The healthy uptick in sales by the group's industrial projects in both Iskandar Malaysia and the Klang Valley is an encouraging sign of broad-based economic recovery," he said.
Chang said the Malaysian Investment Development Authority's recent report on the manufacturing sector's 113.7 per cent investment growth in 2021 also points to better days ahead.
The group anticipates that demand for industrial products will increase further once Malaysia reopens its borders on April 1, 2022, he said.
Chang said that based on sales progress to date, EcoWorld Malaysia is confident that it will meet its FY2022 sales target of RM3.5 billion.
EcoWorld Malaysia has a land bank of approximately 8,318.3 acres with a total gross development value (GDV) of RM87 billion.
It is currently working on 19 projects, with a product portfolio that includes affordable, upgrader, and luxury homes, integrated high-rise developments, and green business parks.
Chang said that the group's focus on increasing value and profitability by introducing higher-margin products is progressing well, as evidenced by the positive response to its recent launches of higher-end residential products mentioned above.
Despite a strong start to FY2022, Chang cautioned that there are still market challenges to overcome, such as inflation caused by rising material and oil prices and potential interest rate hikes.
"EcoWorld Malaysia is certainly not spared from the impact of rising construction costs. However, as a group, we are relatively well-positioned given the maturity of our landbank today with the bulk of our primary infrastructure already completed in prior years," he said.
Chang also said that the group's efforts over the last two years to reinvent its entire business model to be more nimble, agile, and efficient will aid in cost containment.
No comments:
Post a Comment