PETALING JAYA (June 24): EcoWorld International has recorded RM283 million sales in 2Q2021 followed by a further RM117 million in May, bringing the year-to-date value of sales contracts exchanged to RM753 million.
Including reserves of RM259 million, this adds up to total sales of RM1.01 billion as at May 31, 2021.
Observing a recovery in local demand across the UK and Australia property markets in 2Q2021, sales of EcoWorld London, a joint-venture that focuses on the outer zones of London, has seen a substantial increase in sales (from £9 million [RM52.12 million] to £24 million) compared to the same quarter in FY2020. In Australia, the West Village project has also seen a marked increase in sales (from A$1 million [RM3.15 million] to A$15 million) over the same period.
EcoWorld International president and CEO Datuk Teow Leong Seng (pictured) said that apart from an increase in contracts exchanged (SPAs signed), the reservation pipeline has also been growing, a sign of markedly improved sentiment.
“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 has boosted confidence among consumers and homebuyers. The improved sales performance is also a clear indicator that the property markets are beginning to recover following the slump induced by Covid-19,” he added.
Nevertheless, as international borders remain closed for the vast majority of global populations, it has affected the sales of projects that traditionally receive strong demand from overseas buyers.
Accordingly, sales performance of the group’s projects in inner London, developed through the EcoWorld-Ballymore joint-venture, was relatively muted due to postponement of international marketing events, Teow highlighted.
However, Teow expects sales performance to improve in the coming quarters as rollout of vaccination programmes continue in many of the global customer markets – which should enable physical marketing activities to be carried out once again in international locations.
“The improving Covid-19 situations in these and other key markets will also allow the group to launch more marketing events to capture the seasonally stronger demand during summer months in the northern hemisphere. Accordingly, we should be on track to achieve our FY2021 sales target of RM2.2 billion by the end of the financial year,” Teow added.
EcoWorld International has also achieved their first repatriation of profits from their EcoWorld-Ballymore joint-venture in April 2021.
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