Eco World opens international property gallery, sees continued growth in Iskandar
SINGAPORE: Bursa Malaysia-listed property group Eco World Development Bhd opened its international sales gallery on St Martin’s Drive in Singapore on May 15.
The gallery will allow EcoWorld to better serve customers who have bought, or are interested in buying, its properties, says presi dent and CEO Chang Khim Wah.
There has been “a significant number” of Singaporean small and medium- sized enterprises (SMEs) and multinational corporations (MNCs) looking to expand to its Iskandar business parks, adds Chang.
To help business park customers with setups, applications and end-financing, EcoWorld has also set up a one-stop centre at the sales gallery.
EcoWorld has expanded rapidly since the launch of its first project, Eco Botanic, at Nusajaya, Iskandar Malaysia.
The developer has launched two other townships — Eco Spring and Eco Summer — as well as a green business park called Eco Business Park I.
According to Liew Kee Sin, chairman of EcoWorld, the group will be launching two new projects in Iskandar Malaysia — namely Eco Tropics and Eco Business Park III.
Both are located in the Pasir Gudang corridor.
A third, Eco Business Park II, is in the pipeline.
In 2014 alone, EcoWorld recorded RM1.8 billion ($668 million) in sales from its projects in Iskandar Malaysia.
Liew expects 2015 to see sales hitting similar levels.
Despite the oversupply of high-rise projects in Iskandar, he believes, as a general rule, all investors should exercise caution when investing overseas.
And no matter how bleak a housing market, “there are always selective investments that are jewels”, he argues.
“It’s up to individuals to study the background of the developer, and the concept and design of the development.”
Malaysia’s High Commissioner to Singapore Husni Zai Yaacob stressed in his opening speech that the property market in Iskandar remains “stable and attractive” owing to strong fundamentals.
Husni says he is “not too overly concerned” about the oversupply of housing units in Iskandar as it is only “short-term”.
He attributes the situation to uncertainties over the recent implementation of the Goods and Services Tax, property cooling measures introduced by the Malaysian government last October, and the tighter lending conditions implemented by major banks.
Husni is confident about the future prospects of Iskandar.
From February 2006 to end-2014, foreign direct investment (FDI) in Iskandar amounted to $58 billion.
In 2014 alone, 600,000 jobs were created in Johor and most of it come from Iskandar.
Singapore is the biggest investor in Iskandar, with a total of $5 billion worth of investments.
Liew agrees Iskandar is one of the regions that present potential growth.
Many Singaporean investors, SMEs and MNCs have been actively searching for sites for housing and industrial usage, he adds.
Currently, EcoWorld has 15 projects located in three key economic regions in Malaysia, namely the Klang Valley, Penang and Iskandar Malaysia.
The developer expects to launch its London project, City Island II, by end-May, and a project in Sydney before year-end.
This article appeared in the City & Country of Issue 678 (May 25) of The Edge Singapore.