Eco World Development Group Bhd last week announced that it had secured its first property development site in Singapore after winning a tender for a residential land parcel in Bishan for S$208.1 million (approximately RM666 million), marking the Malaysian developer’s entry into the city-state’s property market.
According to Kenanga Investment Bank, the group won the tender called by Singapore’s Urban Redevelopment Authority (URA) for a 46,100 sq ft vacant land parcel at Sin Ming Avenue, Bishan.
The 99-year leasehold site has a maximum permissible gross floor area of approximately 129,100 sq ft and is designated for residential condominium or flat development.
EcoWorld plans to launch the project in 2028 under its new VERSIONE series.
Kenanga maintained a neutral view on the acquisition, noting that the tender consideration translates into a land cost of S$1,612 per sq ft per plot ratio.
This represents an 11% premium over the second-highest bid among seven bidders, suggesting that EcoWorld may have priced the land aggressively.
The research house estimated that EcoWorld would need to sell residential units at above S$3,000 per sq ft to achieve double-digit development margins.
However, property listings in the Bishan area indicate that most residential properties are currently priced below the S$3,000 per sq ft mark, raising questions over the eventual pricing and profitability of the proposed development.
“Product pricing will be key,” Kenanga said, adding that execution risks would also need to be considered as the development represents EcoWorld’s first property project in Singapore.
While the group previously maintained a marketing presence in the city-state, the Bishan development will mark its first direct involvement in property development there.
Despite its cautious assessment of the purchase price, Kenanga said the acquisition forms part of EcoWorld’s longer-term strategy to establish its brand and development track record in Singapore.
A successful execution could position the group to participate in future land tenders and explore potential development partnerships in the Singapore property market.
The research house noted that Singapore continues to offer opportunities supported by steady property sales momentum.
Kenanga said it would continue monitoring the proposed development’s gross development value (GDV), project timeline and other details before making any revisions to its earnings forecasts or target price.
EcoWorld intends to finance the land acquisition through a combination of bank borrowings and internally generated funds.
Kenanga said the group’s net gearing stood at a relatively low 0.22 times as of April 2026.
Assuming the entire acquisition is financed through borrowings, the group’s net gearing is expected to increase to approximately 0.32 times.
The research house maintained its earnings forecasts for EcoWorld, pending further details on the project and its expected development returns.
Kenanga also retained its OUTPERFORM rating and target price of RM2.35 for EcoWorld.
Key risks to its outlook include a slower-than-expected recovery in Malaysia’s property market, changes in mortgage rates and higher construction costs.
