EcoWorld Development Group Bhd (EcoWorld Malaysia) says the reopening of its sales gallery will allow the group to move forward with its plans to launch several more phases before the end of the year.
President and chief executive officer (CEO) Datuk Chang Khim Wah, believes that these new product introductions would help to develop a strong sales pipeline for the group in the upcoming year.
"We have been permitted to reopen our sales galleries, and are therefore able to welcome customers to visit us once again to personally view our projects and properties," he said in a statement last week.
EcoWorld Malaysia recorded RM2.873 billion sales in the nine months of its current financial year ended 31, 2021 (3Q FY2021).
By August 31, 2021, sales had reached RM3.11 billion. Total sales achieved by the group in the 10 months of FY2021 is also 35 per cent higher than the RM2.3 billion sales achieved in FY2020.
Chang said that sales have surged by almost RM1 billion since 2Q FY2021, allowing the group to meet its RM2.89 billion full-year target.
"Sales remained strong in all three geographic regions as well as across market segments which indicates the strength of fundamental demand for our projects and products," he said.
In a stock exchange filing last week, EcoWorld Malaysia stated that projects which contributed to revenue in 3Q FY21 were Eco Majestic, Eco Forest and Eco Sanctuary in the Klang Valley; Eco Botanic, Eco Botanic 2, Eco Spring, Eco Summer, Eco Business Park II, Eco Tropics and Eco Business Park III in Iskandar Malaysia; as well as Eco Terraces in Penang.
Chang noted that the group's share of future revenue as at August 31, 2021, remains high at RM4.1 billion, with RM3.72 billion coming from its Malaysian projects.
He also said that the group's attributable share of Eco World International Bhd's (EcoWorld International) future revenue stands at RM386 million as at August 31, 2021.
EcoWorld International, whose major shareholder includes GuocoLand Ltd has 18 existing and upcoming projects in the United Kingdom (UK) and Australia with a total gross development value (GDV) of GBP4.8 billion and AU$716 million respectively.
The company achieved RM338 million sales in 3Q 2021 and a further RM81 million in August 2021, bringing year-to-date sales to RM1.04 billion.
According to the company's president and CEO, Datuk Teow Leong Seng, this plus reserves of RM285 million equals RM1.33 billion on August 31, 2021.
EcoWorld International's sales in Australia and the United Kingdom, according to Teow, improved steadily in the third quarter of 2021.
"Although Yarra One in Melbourne experienced some rescissions, sales in West Village, Parramatta picked up substantially. On a net basis, sales of our Australian projects jumped from A$0.5 million in 2Q 2021 to A$16 million in 3Q 2021 on the back of buoyant local demand. In the UK, our sales grew by five per cent in 3Q 2021 compared to 2Q 2021," he said.
Teow observed that despite the introduction of a two per cent additional foreign buyer stamp duty in April 2021 and the expiration of the stamp duty vacation in June 2021, demand from foreign and local purchasers in London remained stable.
In June 2021, EcoWorld International will open the second phase of Block A03 (known as The Modern) in Embassy Gardens, riding on the strong sales trend.
Comprising 153 private residential units, this represents the final phase of block A03 and the last remaining private residential units in the entire Embassy Gardens development.
The second phase of Block A03 is targeted for completion in early FY2022.
Teow said sales of units in this block will translate into significant cash inflows for the group in the next few months.
"FY2021 has undoubtedly been challenging as new waves of infection swept through the Group's main geographical markets of London, Sydney, and Melbourne. Demand was also soft due to continued border closures. However, as we approach the end of this financial year and as the remaining lockdowns begin to be eased in tandem with rising vaccination rates, we are optimistic that market conditions will steadily improve," said Teow.
Teow asserted that housing prices in Inner London were 2.5 per cent higher in June 2021 than they were a year earlier, an early sign of improved fundamentals.
"We also believe that demand for residential property in London, a major employment centre, has room for further recovery, as more workers return to offices. Some anecdotal signs of stronger demand for residential property in London can be seen in the rental rate growth which turned positive in the second quarter of 2021 for the first time since before the pandemic," he said.
House prices in Sydney and Melbourne similarly rose by five per cent in the 12 months to July 2021.
Price growth and transaction volume could be hampered by the recent reinstatement of lockdown restrictions, but low borrowing rates and an absence of marketed supply could support home values.