KUALA LUMPUR: Despite the challenges of Covid-19, Kuala Lumpur-headquartered real estate technology company Juwai IQI reports that Malaysian residential real estate sales in specific market segments are growing quickly.
The company transacted 293% more new project sales in 2021 to date, compared to the same period of 2020. The 2021 sales are 247% higher than during the corresponding period in 2019.
The latest coronavirus restrictions have not caused sales to drop.
Juwai IQI Group Co-Founder and CEO Kashif Ansari said: "The MCO (movement control order) didn't hurt Juwai IQI's sales in Malaysia as one might have expected. On the contrary, our sales went up during that period.
"This is because our technology platform made it possible for us to continue to serve buyers despite the MCO. Since then, we have continued to invest in technology and are building a 1000-person global technology and data team here in Kuala Lumpur.
"Paradoxically, it is because of Covid that many people believe this is a good time to purchase homes. Malaysians have been spending less due to the pandemic-related restrictions. As a result, they have built up more savings and want to put that money to good use by buying a stake in the property market."
Ansari said their recent consumer survey found that 70% of Malaysians have neither lost a job nor had to close a business during the pandemic.
"Most Malaysians are still earning their income but are not spending as much as before the pandemic. Many are using the money for down payments on property instead.
"What many see as the upcoming property boom is another reason people are buying property today. Observers expect that economic, employment and income growth should increase more rapidly in the post-pandemic rebound than the pre-Covid rate," he said.
These conditions tend to coincide with rising property demand and prices, said Ansari, adding that the demand was fuelled by the low interest rates, reintroduction of the Home Ownership Campaign and other property-related initiatives introduced in Budget 2021.
"We foresee a robust market post-pandemic, in which the best positioned and best-designed properties will sell more rapidly and at higher prices. Less attractive homes will also benefit to some degree from the rising demand.