Property market to start recovering from 1H 2022: Juwai IQI

KUALA LUMPUR (Jan 5): Real estate technology group Juwai IQI expects the recovery in the property market to begin in the first half (1H) of 2022 as purchases of both new and second-hand residences increase.

Its head of Bumiputera segment Muhazrol Muhamad said the rise in the number of transactions would eventually lead to an upward price pressure especially in the most popular market segments.

“The recovering economy is the first factor that will help drive the property market. “Growth in the manufacturing and services sectors will increase employment and have a positive effect on household income and savings,” he said in a statement Monday (Jan 3).

Muhazrol said the economic growth in 2022 would be driven by the continued policy support, expected relaxation of Covid-19 containment measures, and higher demand in the external and domestic sectors.

Additionally, a rebound in the manufacturing sector and construction and infrastructure projects would boost employment, apart from export growth which would be supported by high external demand and increase in commodity prices.

He elaborated that employment is already recovering and will be even stronger this year while unemployment has dropped from 5.3% in May 2021 to 4.5% in September.

Malaysia is projected to record an economic growth of 5.5% to 6.5% in 2022 compared with an estimate growth of 4.5% in 2021.

Meanwhile, commenting on the Covid-19 pandemic, Muhazrol said, while rigorous data on the new Omicron variant is still not available, the world has learnt how to manage the pandemic over the past two years.

“For proof, just look at Covid-related hospitalisation which in Malaysia is just one-quarter of the level of their peak earlier this year. “Through testing, vaccination, and communication campaigns, the government has effectively reduced the pandemic’s impact.

“There is every reason to believe that lessons learnt in this battle will also help us to contain risks from the new variant,” he added.

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