KUALA LUMPUR: Real estate technology group Juwai IQI expects the real estate market recovery to begin in the first half (1H) of 2022, as purchases of new and used homes increase.
Its head of the Bumiputera segment, Muhazrol Muhamad, said that the increase in the number of transactions will ultimately lead to upward pressure on prices, especially in the more popular market segments.
“The economic recovery is the first factor that will help boost the real estate market.
“Growth in the manufacturing and service sectors will increase employment and have a positive effect on household income and savings,” he said in a statement today.
Muhazrol said economic growth in 2022 will be driven by continued political support, the expected easing of COVID-19 containment measures and higher demand in the exterior and interior sectors.
In addition, a rebound in the manufacturing sector and in construction and infrastructure projects would boost employment, aside from export growth which would be supported by strong external demand and rising commodity prices.
He said employment is already picking up and will be even stronger this year as unemployment fell from 5.3% in May 2021 to 4.5% in September.
Malaysia is expected to record economic growth of 5.5% to 6.5% in 2022, compared to an estimated growth of 4.5% in 2021.
Meanwhile, commenting on the COVID-19 pandemic, Muhazrol said that although rigorous data on the new Omicron variant is still not available, the world has learned how to deal with the pandemic in the past two years.
“For proof, just look at the hospitalizations linked to COVID which, in Malaysia, is only a quarter of the level of their peak at the start of the year.
“Through testing, vaccination and communication campaigns, the government has effectively reduced the impact of the pandemic.
“There is every reason to believe that the lessons learned from this battle will also help us contain the risks of the new variant,” he added. -Bernama