MODELLING HOUSING MISMATCH FOR AFFORDABLE HOUSING DEMAND AND SUPPLY IN MALAYSIA

Authors

  • Ahmad Fawwaz Saleh Centre for Sustainable Planning and Real Estate (SUPRE), Faculty of Built Environment, UNIVERSITI MALAYA, MALAYSIA
  • Ainoriza Mohd Aini Centre for Sustainable Planning and Real Estate (SUPRE), Faculty of Built Environment, UNIVERSITI MALAYA, MALAYSIA
  • Rohayu Ab Majid College of Built Environment, UNIVERSITI TEKNOLOGI MARA, MALAYSIA
  • Muhammad Hadi Mustafa Centre for Sustainable Planning and Real Estate (SUPRE), Faculty of Built Environment, UNIVERSITI MALAYA, MALAYSIA
  • Ain Farhana Jamaludin Centre for Sustainable Planning and Real Estate (SUPRE), Faculty of Built Environment, UNIVERSITI MALAYA, MALAYSIA

DOI:

https://doi.org/10.21837/pm.v22i32.1511

Keywords:

Housing mismatch, affordable housing, product factors, spatial geographical location, regulation and requirement, hire regulatory cost

Abstract

The housing mismatch between housing demand and supply in recent years has become a crucial agenda for enhancing the availability of affordable housing in Malaysia. This research paper presents a study on the factors that affect individuals and housing developers that keep them from owning and supplying affordable housing. This cross-sectional study validates the existence of a housing mismatch in Malaysia from a view of housing demand and supply. This study employed 400 respondents on housing demand and 120 respondents from housing developers who represented housing suppliers. The Partial Least Square Equation Modelling (PLS-SEM) method was used to develop the model and validate the data. By performing the composite reliability and convergent validity through PLS-SEM, 25 attributes from housing demand and 22 attributes from housing supply were found significant for the development of the structural housing mismatch model. The final output was established by findings their coefficients determination, path coefficient, effect size and predictive relevance towards variables of housing mismatch. The result indicates five factors with nine attributes in housing demand and 11 attributes from housing supply contributed to the existence of a housing mismatch at 12%. Finally, by incorporating an analysis of the significant findings, it becomes clear that identifying the features of housing mismatch from both sides enables the government to have strategic interventions. This underlines the importance of recognising the key features in guiding authorities aimed at minimising housing disparities.

Downloads

References

Abdullah, H. (1992). Everything the Condominium Developer Should Have Told You. Pelanduk Publication (M) Sdn Bhd.

Ariff, K., Dasimah, O., & Zaharah, M. (2016). “The Relationship between Youth Activities and Outdoor Features in Urban Neighbourhood Space.” Procedia - Social and Behavioral Sciences, 234, 271–79. DOI: https://doi.org/10.1016/j.sbspro.2016.10.243

Adzhar, S. A., Rahim, N. A., Basrah, N., Majid, R. A., and Mustafar, S. (2021). Overview on built environment planning: Residential overhang factors in Malaysia affordable housing. The 5th International Conference on Rebuilding Place IOP Conf. Series: Earth and Environmental Science 881. DOI: https://doi.org/10.1088/1755-1315/881/1/012018

Bangura, M., & Lee, C. L. (2024). The impact of negative gearing on the investment decisions of housing investors: the case of Greater Sydney. Journal of Housing & Built Environment, 39, 21-48. DOI: https://doi.org/10.1007/s10901-023-10069-3

Bank Negara Malaysia (BNM). (2012). Financial Stability And Payment System Report ; Development in the Housing Market and Implication on Financial Stability. Bank Negara Malaysia Publishers. www.bnm.gov.my.

Bank Negara Malaysia (BNM). (2015). The Financial Stability and Payment System Report 2015. Bank Negara Publishers. www.bnm.gov.my.

Bank Negara Malaysia, BNM (2017). Affordable Housing: Challenges and the Way Forward. Box article in 4rd Quarterly Bulletin, Kuala Lumpur.

Bank Negara Malaysia (BNM). (2018). The Financial Stability and Payment System Report 2015. Bank Negara Publishers. www.bnm.gov.my.

Baqutaya, S., Ariffin, A.S., & Raji, F. (2016), Affordable Housing Policy: Issues and Challenges among Middle-Income Groups. International Journal of Social Science and Humanity, 6(6):433-436. DOI: https://doi.org/10.7763/IJSSH.2016.V6.686

Bramley, G. (2007), The sudden rediscovery of housing supply as a key policy challenge. Housing Studies, Vol. 22 No. 2, pp. 221-41. DOI: https://doi.org/10.1080/02673030601132847

Bintoro, B., P., K., Susanto, T., Mihardja, E., J., Putra, J., C., P., and Ihsan, M. (2019). Criteria for Medium Segment Vertical Housing Selection: User Perspective. The International Journal of Integrated Engineering. 11 (9), 181-191

Bloxham, P., Kent, C. & Robson, M. (2011). Asset prices, credit growth, monetary and other policies: An Australian case study, NBER Working Paper Series, Cambridge DOI: https://doi.org/10.3386/w16845

Chen, B., Chen, Y., Chen, Y., Gao, J. (2022). Model of Demand of Human Settlement Environment for Rural Houses in North China: A structural Equation Modelling Approach. Building. 12(7), 926; https://doi.org/10.3390/buildings12070926 DOI: https://doi.org/10.3390/buildings12070926

Cohen, J., Cohen, P., West, S. G., & Aiken, L. S. (2013). Applied multiple regression /correlation analysis for the behavioral sciences. Routledge. DOI: https://doi.org/10.4324/9780203774441

Cohen, J. (1983). The cost of dichotomization. Applied Psychological Measurement, 7, 249-253. DOI: https://doi.org/10.1177/014662168300700301

Daud, M., A., Rosly, S., A., and Sori, Z., A. (2022). Understanding Issues of Affordable Housing In Malaysia To Attract Investment: An Exploratory Investigation. Journal of the Malaysian Institute of Planners, 20 (1), Pg 1-12. DOI: https://doi.org/10.21837/pm.v20i20.1074

Davenport, J. L. (2003). The Effect of Supply and Demand Factors on the Affordability of Rental Housing. Bloomington, USA: Illinois Wesleyan University.

Faizul, A. M. R., Zainon, N., Sulaiman, S., Lou, E., Zulkifli, N. H., Ayob, M. F. (2019). Factors Affecting The Ownership Of Low-Cost Housing For Socio-Economic Development In Malaysia. Journal of Building Performance, 10(1), 1-13

Fazli, A. I., Bajunid, & Ghazali, M. (2012). Affordable Mosaic Housing : Rethinking Low-Cost Housing. Procedia - Social and Behavioral Sciences, 49, 245–56. DOI: https://doi.org/10.1016/j.sbspro.2012.07.023

Geh, M. (2016, April 29). “A Mismatch between Demand and Supply.” pg 6.

Goh, K Chen., Goh H. Hwan., Yap, A. B. K., Masrom, Md. A. N., Mohamed, S. (2016). Barriers and Drivers of Malaysian BIPV Application: Perspective of developers. Procedia Engineering, 180 (2017), 1585-1595. DOI: https://doi.org/10.1016/j.proeng.2017.04.321

Gopalan, K., And Venkataraman, M. (2015). Affordable hosuing: Policy and Practice in India. IIMB Management Review. 27(2), 129-140 DOI: https://doi.org/10.1016/j.iimb.2015.03.003

Hair, J. F., Ringle, C. M., & Sarstedt, M. (2011). PLS-SEM: Indeed, a silver bullet. Journal of Marketing Theory and Practice, 19(2), 139-152. DOI: https://doi.org/10.2753/MTP1069-6679190202

Hair, Jr, J. F., Hult, G. T. M., Ringle, C., & Sarstedt, M. (2013). A primer on partial least squares structural equation modeling (PLS-SEM): Sage Publications.

Hilmi, M., A. Hadi, Edie E.S. & Saleh. A. F. (2017). Charactheristic quality Impacting Landed Housing Price: Better Homes, Better Livehood. Environment –Behaviour Proceeding Journal, 2 (5). DOI: https://doi.org/10.21834/e-bpj.v2i5.702

Ismail, A., Mamat @ Ghazali, S. N. A., & Anthony Jiram, W. R. (2023). Housing Affordability Stress Among The Middle- Income (M40) Group In Johor Bahru. Planning Malaysia, 21(27). https://doi.org/10.21837/pm.v21i27.1296 DOI: https://doi.org/10.21837/pm.v21i27.1296

Jamaluddin, N. Baizura., Y. A. Abdullah, & Hazlina, H. (2016).Encapsulating the Delivery of Affordable Housing: An Overview of Malaysian Practice. EDP Science, 47(66), 1–8. DOI: https://doi.org/10.1051/matecconf/20166600047

Khoo, E. (2020, September 1). Cover Story: Buying a house during challenging times. The Edge Malaysia. https://www.theedgemarkets.com/article/cover-story-buying-house-during-challenging-times

Lee, A., K., L., Sinnakkannu, J., and Ramasamy, S., R. (2021). Housing bubble, affordability and credit risk to banks: a Malaysian perspective. Journal of the Asia Pacific Economy. 26 (4), 619-652 DOI: https://doi.org/10.1080/13547860.2020.1786960

Lee, M., Lee, C. L., Ming-Long, L., & Liao, C. (2017). ‘Price linkages between Australian housing and stock markets: Wealth effect, credit effect or capital switching? International Journal of Housing Markets and Analysis, 10(2), 305–323. DOI: https://doi.org/10.1108/IJHMA-05-2016-0037

Likert, R. (1932). A technique for the measurement of attitudes. Archives of Psychology, 140, 5-55.

Majid, R., Rosli, S., & Md. Nasir, D. (2012). “The Impact Of Buyers ’ Demography On Property Purchasing.” Journal of Surveying, Construction & Property, 3, 1–18. DOI: https://doi.org/10.22452/jscp.vol3no2.1

Majid, R. A., Said, R., Rahim, N. A., Saleh, A. F., & Suryanto, T. (2023). Modelling Housing Demand factors for Affordable Units in Malaysia. International Journal of Sustainable of Construction Engineering and Technology, 14 (5), 267-277. DOI: https://doi.org/10.30880/ijscet.2023.14.05.021

Mark William Massyn Robert McGaffin Francois Viruly Nicole Hopkins , (2015),"The challenge ofdeveloping higher density, affordable housing in the inner city of Cape Town", International Journal ofHousing Markets and Analysis, Vol. 8 Iss 3 pp. 412 – 428

Massyn, M. W., McGaffin, R., Viruly, F., and Hopkin, N. (2015). The challenge of developing higher density, affordable housing in the inner city of Cape Town. International Journal of Housing Markets and Analysis, 8 (3), 412-428

Maybank (2017). Application of housing loan. Retrieved from: Official Website of Maybank, [April 2017]

McCluskey, W. J., Deddis, W. G., Lamont, I. G. and Borst, R.A. (2000). The application of surface generates interpolation models for the prediction of residential values. Journal of Property Investment & Finance. 18(2), 162-176. DOI: https://doi.org/10.1108/14635780010324321

Mohamad, W. S. S. W., Rahman, Abd. Nor, A. S., and Ridzuan, M. R. (2018). Adequacy of Low-Cost Housing: A Study of the People’s Housing Programme (PHP) at Kuala Lumpur. Journal for Social Science. 22, Pg 8-21, ISSN: 2600-7568.

Mohd Khan, S. J., Mohd Daud, S. N., Mat Yusoff, M. Y., Chyuan, W. W., & Che Johari, E. E. (2024). Property Market and The Financial Sector: Exploring Malaysia’s Scenario in Times Of Crisis. Planning Malaysia, 22(30). https://doi.org/10.21837/pm.v22i30.1449 DOI: https://doi.org/10.21837/pm.v22i30.1449

Mujaheed, H. M., Norbaya, A., Hariza, A. H. (2021). A Review on affordability in Malaysia: Are we doing fine?". Malaysian Journal of Concumer and Family Economics, Vol. 26.

Mustapha, N. A., and Ali, S. (2021). A conceptual Framework for minimising middle-income housing mismatch. Malaysian Journal of Sustainable Environment. 9(1), 77-98 DOI: https://doi.org/10.24191/myse.v9i1.17293

Mukhtar, M. M., and Amirudin, R. (2016). The Success Criteria of Public Housing in Nigeria. International Journal of Built Environment and Sustainability. 3(2), 102-110 DOI: https://doi.org/10.11113/ijbes.v3.n2.126

Mark William Massyn Robert McGaffin Francois Viruly Nicole Hopkins, (2015),"The challenge of developing higher density, affordable housing in the inner city of Cape Town", International Journal of Housing Markets and Analysis, Vol. 8 Iss 3 pp. 412 - 428

Mark William Massyn Robert McGaffin Francois Viruly Nicole Hopkins, (2015),"The challenge of developing higher density, affordable housing in the inner city of Cape Town", International Journal of Housing Markets and Analysis, Vol. 8 Iss 3 pp. 412 - 42 DOI: https://doi.org/10.1108/IJHMA-11-2014-0049

NAPIC. (2018). “Property Market Report 1H 2018”. 1-12

NAPIC. (2022). "Property Market Report 1H 2022. https://napic.jpph.gov.my/portal

National Property Information Centre (NAPIC) (2022), Property Market Status Report. First Quarter/ Q1 Year 2022 [Property Overhang Q1 2022], Ministry of Finance Malaysia.

Naqib, A., I. (2019, September 3). No affordable housing, no approvals. The Edge Financial Daily. https://www.theedgemarkets.com/

Olanrewaju, Abdullateef, Abdul Rashid, Abdul Aziz, Seong Yeow, and Lee Lim. (2016). “Market Analysis of Housing Shortages in Malaysia.” Procedia Engineering, 164(June) 315–22. DOI: https://doi.org/10.1016/j.proeng.2016.11.625

Olanrewaju, A. & Tan C. W., (2017) "An Exploration of Determinants of Affordable Housing Choice", International Journal of Housing Markets and Analysis, 10(5), 703-723

Olanrewaju, A., Lim, X. Y., Tan, S. Y., Lee, J. E., and Adnan, H. (2018). Factors affecting housing prices in Malaysia: Analysis of the supply side. Journal of the Malaysian Institute of Planners, 16(2) 225-235 DOI: https://doi.org/10.21837/pm.v16i6.477

Tan C. W., (2017) "An Exploration of Determinants of Affordable Housing Choice", International Journal of Housing Markets and Analysis, 10(5), 703-723 DOI: https://doi.org/10.1108/IJHMA-11-2016-0074

Pitros, C., & Arayici, Y. (2016). How to identify housing bubbles? A decision support model. International Journal of Housing Markets and Analysis, 9(2), 190–221. https://doi.org/10.1108/IJHMA-01-2015-0002 DOI: https://doi.org/10.1108/IJHMA-01-2015-0002

Rahim, F. A. M., Zainon, N., Sulaiman, S., Lou, E., Zulkifli, N. H., and Ayob, F. M. (2019). Factors Affecting the Ownership of Low-Cost Housing for Socio-Economic Development in Malaysia. Journal of Building Performance. ISSN: 2180-2106. 10 (1).

Rahman, N. A. Y. A., Saraf, M. H. M., Che Pin, S. F., Suratman, R. and Samsudin, S. (2021). Practical Issues in Development Charge: Perspective of Property Developers. Asia Proceedings of Social Science. 7(1). 87-91 DOI: https://doi.org/10.31580/apss.v7i1.1779

Ramli, F., Zainal, R., & Ali, M. (2020). Oversupply of The High-Cost Housing in Malaysia. Malaysian Journal of Sustainable Environment, 7(2), 91-106. DOI: https://doi.org/10.24191/myse.v7i2.10266

Rosli, H., Samat, N., & Abu Bakar, M. A. (2024). Accessibility to Workplace and Housing Location Choice Among the Low-Income Group: A Case Study of Pulau Pinang, Malaysia. Planning Malaysia, 22(30). https://doi.org/10.21837/pm.v22i30.1426 DOI: https://doi.org/10.21837/pm.v22i30.1426

Shawn, Ng. (2018, May 4). Price, Location and Product Mismatch in Housing Supply. The Edge Property. https://www.edgeprop.my/content/1319305

Saieed, Zunaira. (2016, Jan. 30). PR1MA sets realistic targerts. The Star. httpss//thestar.com.my/business

Saleh, A. F., R.,Majid., N. Ab., Rahim. & M.D., Omar. (2022). Housing Supply Model for affordable homes in Malaysia.Environment –Behaviour Proceeding Journal, 2(5). DOI: https://doi.org/10.21834/ebpj.v7i22.4159

Saleh, F., Ting K. H., & R., Majid. (2016). Housing Mismatch Model in Suburban Areas. Procedia - Social and Behavioral Sciences, 234, 442–51. DOI: https://doi.org/10.1016/j.sbspro.2016.10.262

Saleh, A. F., Ting K. H., R., Majid. & Masri. H. (2017). Attributes of Housing Mismatch Framework in Urban Areas. Environment –Behaviour Proceeding Journal, 2(5). DOI: https://doi.org/10.21834/e-bpj.v2i5.701

Sarstedt, M., Ringle, C. M., & Hair, J. F. (2014). Partial least squares structural equation modelling: A useful tool for family business researchers. Journal of Family Business Strategy, 5(1), 105–115. DOI: https://doi.org/10.1016/j.jfbs.2014.01.002

Sarstedt, M. Hair Jr, J. F., Cheah, J. H., Becker, J. M., and Ringle, C. M. (2019). How to specify, esitmate and validate higher-order construct in PLS-SEM. Australasian Marketing Journal (AMJ), 27(3), 197-21 DOI: https://doi.org/10.1016/j.ausmj.2019.05.003

Shaqra, A. A. E., Nurwati, B., & Ruhizal, R. (2015). “Residents’ Perception of the Affordability of Private Housing Schemes: Lessons from Aden, Yemen.” Procedia -Social and Behavioral Sciences, 202(2015), 389–99. DOI: https://doi.org/10.1016/j.sbspro.2015.08.243

Suraya, I., Wai, C. C. W., Hamid, H. A., Mustapha, N. F., Ho, G., Theng, T. T., Kamaruzuki, M. N., & Firouz, A. M. M. (2019). Rethinking Housing: Between State, Market and Society: A Special Report for the Formulation of the National Housing Policy (2018-2025).

Tan, T. H. (2011). Neighbourhood Preferences of House Buyers: The case of Klang Valley, Malaysia. International Journal of Housing Markets and Analysis International Journal of Housing Markets and Analysis, 4, 58-69. DOI: https://doi.org/10.1108/17538271111111839

Thaker, H., M., T. (2021). Housing Prices and Affordability in Malaysia; A look into the supply-side drivers of housing prices. Spotlight on Research (Volume 5). https://university.sunway.edu.my/explore/spotlight/

Thean L. C. (2017) Housing the Nation. News Straits Times. Retrieved from https://www.thestar.com.my/business/business News/2017/07/15/housing-the-nation/.

Thean, L. C. (2020). Building on Effective Demand. News Straits Times. Retrieved from https://www.thestar.com.my.

Tiwari, S., and Kaushik, S. (2014). User Category Based Estimation of Location Popularity using the Road GPS Trajectory Databases. Geoinformatica: An International Journal (GIIJ), 4(2), 20-31

Urbach, N., & Ahlemann, F. (2010). Structural equation modelling in information systems research using partial least squares. Journal of Information Technology Theory and Application, 11(2), 5-40.

Wen, H., Bu, X., & Qin, Z. (2014). Spatial Effect of Lake Landscape on Housing Price : A Case Study of the West Lake in Hangzhou , China. Habitat International, 44:31–40. DOI: https://doi.org/10.1016/j.habitatint.2014.05.001

World Economic Forum. (2019). Insight Report: Making Affordable housing a Reality in Cities; Cities, Urban Development & Urban Services Platform in Collaboration with PWC. https://www3.weforum.org/docs/WEF_Making_Affordable_Housing_A_Reality_In_Cities_report.pdf

Zulkarnain, S. H., Nawi, A. S., & Mohd Aini, A. (2023). THE EFFECTS OF COVID-19 ON RESIDENTIAL PROPERTY PRICES IN MALAYSIA. PLANNING MALAYSIA, 21(26). https://doi.org/10.21837/pm.v21i26.1270 DOI: https://doi.org/10.21837/pm.v21i26.1270

Zhang, Y. & Shing, H. (2006), The London Congestion Charge and Property Prices: An Evaluation of The Impact on Property Prices Inside and Outside the Zone, MPRA Paper 4050, University Library of Munich, Germany.

Zainon, N, Mohd-Rahim, F.A., Sulaiman, S., Abd-Karim, S. B., Hamzah, A. (2017). Factors Affecting the Demand of Affordable Housing Among the Middle-Income Groups in Klang Valley Malaysia. Journal of Design and Built Environment Special Issue, 17(2). DOI: https://doi.org/10.22452/jdbe.sp2017no1.1

Zainul, E., And Idris, A. N. (2017, December 22). Developers’ Margin woes to stay. The Edge Financial Daily. https://www.theedgemarkets.com

Downloads

Published

2024-07-29

How to Cite

Saleh, A. F., Mohd Aini, A., Ab Majid, R., Mustafa, M. H., & Jamaludin, A. F. (2024). MODELLING HOUSING MISMATCH FOR AFFORDABLE HOUSING DEMAND AND SUPPLY IN MALAYSIA. PLANNING MALAYSIA, 22(32). https://doi.org/10.21837/pm.v22i32.1511

Most read articles by the same author(s)

1 2 > >>