Phase II freeholder and Ballymore’s development partner, EcoWorld International, is continuing to be conservative with its expansion plans, its president and chief executive officer Datuk Teow Leong Seng said. He said that problems with the supply chain have a continuing negative impact on prices and that delays in the construction process could increase the whole cost of a project, including holding costs and overheads that must be paid by the developer. He pointed out that increasing interest rates could enlarge the gap between cost inflation and housing price rise.
Despite continuing market issues with cost rises outpacing house price growth, EcoWorld International reports that property sales activity in the United Kingdom (UK) and Australia have improved in its current fiscal year 2022 (FY2022) compared to last year.
With RM625 million and RM345 million registered respectively, its Embassy Gardens and London City Island projects continue to be the top contributors to sales and reservations. The opening of New Road Triangle in London in August 2022 also contributed RM268 million following the en-bloc sale of the project’s open market and affordable housing components.