Eco World Development Group Bhd’s entry into Singapore’s private residential market depends heavily on the ability to price its debut project above S$3,000 (RM9,586) per square foot, industry analysts say. The company acquired a 4,283-square-metre leasehold site at Lorong Puntong/Sin Ming Avenue for S$208.1 million (approximately RM667.6 million), reflecting a land cost of S$1,612 per square foot per plot ratio. This purchase set a new benchmark for 99-year Government Land Sales in Singapore’s Rest of Central Region, beating the next highest bid by 11%.
According to CIMB Research, achieving higher launch prices is essential for Eco World to maintain healthy profit margins amid competition from nearby projects such as Thomson Reserve, which is slated to offer 1,268 units starting October 2026, and the existing landed sub-sale market. CIMB highlighted that the relatively compact size of the site may provide Eco World with the necessary operational flexibility to manage the elevated land cost while capitalizing on the site’s strategic location.
The residential development, planned under Eco World’s newly introduced Versione series, is expected to yield around 140 units and launch in 2028. The purchase is projected to increase Eco World’s pro forma net gearing ratio to 32% from 22% as of April 30, 2026, with full payment expected in the first quarter of the 2027 financial year. CIMB Research maintained a “buy” recommendation on Eco World shares, setting a target price of RM2.60, pending further details on the project’s development.
Other market watchers have offered cautious but positive views. MBSB Research described the land acquisition as a strategic move that offers Eco World a manageable initial investment to gain development experience in Singapore. The smaller project scale is expected to allow the group to establish a foothold in the market while controlling exposure. MBSB forecast that net gearing would similarly rise to 0.32 times from 0.22 times but remain at a healthy level. The research house kept its earnings forecasts for fiscal years 2026 to 2028 unchanged and maintained a “neutral” rating with a target price of RM2.09, noting that Eco World’s overall earnings outlook is supported by stable rental income from its Pearl Computing data centre.
Public Investment Bank Research also weighed in, emphasizing that the site benefits from strong connectivity due to major roads, expressways, and the nearby Bright Hill MRT station, which will become an interchange by 2030. The bank kept its earnings estimates steady and maintained a “neutral” stance with a target price of RM2.10, citing Eco World’s consistent profit performance and attractive dividend yield.
Eco World’s expansion into Singapore represents a carefully measured step into a competitive market, with the group aiming to balance pricing strategies and project scale to establish its brand amid well-capitalized local developers. The continued interest from various research firms underscores the project’s significance for Eco World’s regional growth prospects.