The residential market has begun to firm up, and transaction activity will increase by up to three per cent this year, according to Juwai IQI co-founder and group chief executive officer Kashif Ansari.
While the global climate is one of high inflation, increasing interest rates, and ongoing supply chain issues, Kashif believes Malaysia is weathering the storm pretty well, thanks to high commodity prices, exports, and strong employment.
"Developers tell us they are confident about the 2023 to 2025 period. In the third quarter, developer residential starts and planned new supply both hit their highest levels in at least five quarters," he said.
"Developers tell us they are confident about the 2023 to 2025 period. In the third quarter, developer residential starts and planned new supply both hit their highest levels in at least five quarters," he said.
Kashif indicated that residential starts increased by 71 per cent from around 18,000 in the second quarter to 31,000 in the third.
Meanwhile, developers' pipelines for new planned supply increased by 35 per cent to a new high, he said.
According to Kashif, attractive new projects will continue to sell well this year.
Poorly conceived, marketed, or priced projects will suffer, he said.
"Demand has firmed up and buyers are coming into the market...they have plenty to choose from and are discriminating," he said.
Kashif expects Chinese shoppers to return in greater numbers in the second quarter of 2022.
Juwai IQI recently announced its 2022 calendar year statistics, which revealed a 38 per cent increase in completed transactions, US$3.1 billion in sales, and the expansion of its agent network to 20 countries and over 30,000 persons.
Kashif attributed the firm's success to its devotion to Malaysia as the most significant single market.
"With its supportive regulatory environment, entrepreneurial workforce, and fast-moving real estate market, Malaysia provides rich opportunities. We are committed to remaining in Malaysia and continuing to build our technology and data team here," he said.
Kashif disclosed that Juwai IQI conducted 42,912 transactions in 2022, up 38 per cent over the previous year's total of 31,000. Juwai IQI, on the other hand, conducted 22,000 transactions in 2020.
The company also increased its IQI global agent network by more than 9,000 people in the last year, increasing the total number of agents worldwide to more than 30,000.
It now has 52 offices in 20 countries, with operations in Asia, North America, Europe, the Middle East, and Australasia.
Kashif said that working in real estate is both financially and personally fulfilling.
The company's agents and real estate negotiators earned commissions of US$67 million (RM300 million) in Malaysia alone, exhibiting significant development in sales, network expansion, and profitability, he said.
"We see many opportunities to exploit in 2023. We want 2023 to be a year of growth and opportunity for all the agents in our network," he said.
