MCO Causes Properties to Be Snapped Up, Data Shows
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If you're waiting for property prices to drop to buy, consider this transaction data.
Real estate tech firm, Juwai IQI, has recently announced an increase of 293% year on year on its new home sales despite the impact of the Covid 19 pandemic.
Its transaction data indicated that the figure was 247% higher compared to the same period in 2019.
The co-founder and CEO of Juwai IQI Group Kashif Ansari said that ironically, many people saw the pandemic period as a good opportunity to buy houses.
With the Movement Control Order (MCO) in place, the spending power amongst Malaysians has dropped. In return,
many have built up more savings and are looking into property investment as a result.
The implementation of the MCO did not affect Juwai IQI’s sales in Malaysia but instead saw an increase during the unprecedented period. The boom in the property market to the group's technology platform, allowed customer service to continue despite the MCO.
In mid-May this year, the company finalised a whopping US$88 million (RM364 million) in new residential project sales across Malaysia, 75% higher than the recorded US$50 million in a week.
Observers expect economically, employment and income growth to increase more rapidly post-pandemic than the pre-Covid-19 rate. These conditions, however, tend to coincide with the rising property demand and prices.
Buyers today place much more emphasis on lifestyle and amenities than in the past. Projects that offer resort-style living will benefit from this new emphasis on quality of life.
A robust market post-pandemic will see the best positioned and best-designed properties being snapped up rapidly and at a higher price. Low interest rates, the reintroduction of the Home Ownership Campaign (HOC) and other property-related initiatives have fuelled the demand for property.
This pandemic has made us all realise that unexpected and unprecedented events can happen at any time. Real estate buyers and investors see real estate as a relatively low-risk way to build up a nest egg.