INVESTIGATING THE CORRELATION BETWEEN PROPERTY OVERHANG AND HOUSING SATISFACTION AMONG HOME BUYERS IN MALAYSIA
DOI:
https://doi.org/10.21837/pm.v23i35.1684Keywords:
residential, property overhang, housing satisfaction, homebuyers, affordabilityAbstract
The Malaysian real estate sector has flourished due to the rapid advancement of the global economy in recent years. Nevertheless, property overhang continues to threaten the nation’s economy. This study seeks to enhance developers’ comprehension of purchasers’ preferences by assessing the correlation between characteristics contributing to residential overhang along with variables affecting satisfaction levels with residential buildings. Questionnaire surveys were distributed to 157 developers and property agents, of which 110 were completed and returned. Similarly, 148 surveys were distributed to homebuyers, with 110 responses received. The data was evaluated using the Statistical Package for the Social Sciences (SPSS) version 24.0, where Bivariate Correlation Analysis was performed. The study’s results indicated a positive correlation between the majority of the parameters, while a few exhibited a negative correlation with one another. Future research may examine the effects of property overhang on the nation and provide strategies to mitigate these effects, therefore raising awareness among developers, the real estate sector, and the construction sector.
Downloads
References
Abdul Ghani, S. and Lee, Y.F. (2015) Exploring the perception of lifestyle housing development in Malaysia [Paper presentation]. The Asia Pacific Network for Housing Research (APNHR) 2015., 09 - 12 April 2015, Asia Cultural Complex, Gwangju, South Korea.
Al Shawabkeh, R. K., Alzouby, A. M., Rjoub, A., Alsmadi, M., AlKhamaiseh, M., Shboul, D., Smadi, A., Al-Bzour, A., Al-Omari, R., & Alobaidat, E. (2020). Evaluating the satisfaction rate for affordable housing in non-gated residential area (NGR): the case of Al-Sharq housing project in Zarqa-Jordan. International Journal of Housing Markets and Analysis, 14(1), 192–217. https://doi.org/10.1108/ijhma-10-2019-0105 DOI: https://doi.org/10.1108/IJHMA-10-2019-0105
Aigbavboa, C. (2016). Assessing beneficiaries’ needs and expectations as a determinant of residential satisfaction in South Africa. Housing Care and Support, 19(1), 10–22. https://doi.org/10.1108/hcs-01-2016-0001 DOI: https://doi.org/10.1108/HCS-01-2016-0001
Au-Yong, C. P., Ali, A. S., & Chua, S. J. L. (2018). A literature review of routine maintenance in high-rise residential buildings. Journal of Facilities Management, 17(1), 2–17. https://doi.org/10.1108/jfm-10-2017-0051 DOI: https://doi.org/10.1108/JFM-10-2017-0051
Bank Negara Malaysia. (2024). Monetary and Financial Developments. Retrieved February 2, 2024, from https://www.bnm.gov.my/
Bardan, H. S. (2019). Starting pay of graduates reflective of current labour market. In Malaysian Employers Federation. Retrieved August 8, 2023, from http://www.mef.org.my/Attachments/PR190329.pdf
Bause, K., Radimersky, A., Iwanicki, M., & Albers, A. (2014). Feasibility studies in the product development process. Procedia CIRP, 21, 473–478. https://doi.org/10.1016/j.procir.2014.03.128 DOI: https://doi.org/10.1016/j.procir.2014.03.128
Cheah, S. L., & Almeida, S. J. (2016). Demystifying the Affordable Housing Issue in Malaysia. In Bank Negara Malaysia. Retrieved August 4, 2020, fromhttps://www.bnm.gov.my/files/publication/ar/en/2016/cp04_002_box.pdf
Chin, K. S. (2016). Attributes influencing home buyers’ purchase decision: A study of residential property in Setia Alam. [Master’s thesis, UTAR, Malaysia]. UTAR Institutional Repository. http://eprints.utar.edu.my/2078/1/FYP_2nd_submission.pdf
Choong, W. W., & Cham, Q. W. (2015). Preferred Housing Attributes among Elderly in Malaysia. Retrieved July 22, 2023, from http://www.prres.net/papers/Wai_Preferred_Housing_Attributes.pdf
David-Pur, L., Galil, K., & Rosenboim, M. (2020). To decrease or not to decrease: The impact of zero and negative interest rates on investment decisions. Journal of Behavioral and Experimental Economics, 87, 101571. https://doi.org/10.1016/j.socec.2020.101571 DOI: https://doi.org/10.1016/j.socec.2020.101571
Department of Statistics Malaysia. (2024). Malaysia Economic Performance First Quarter 2024. Retrieved March 2, 2024, from https://belanjawan.mof.gov.my/pdf/belanjawan2024/economy/economy-2024.pdf
Faure, A. P. (2014). Interest Rates 1: What are Interest Rates? SSRN Electronic Journal. https://doi.org/10.2139/ssrn.2542083 DOI: https://doi.org/10.2139/ssrn.2542083
Guo, Z. (2013). Home parking convenience, household car usage, and implications to residential parking policies. Transport Policy, 29, 97–106. https://doi.org/10.1016/j.tranpol.2013.04.005 DOI: https://doi.org/10.1016/j.tranpol.2013.04.005
Israel, G. D. (2003). Determining Sample Size. Retrieved August 25, 2023, from https://www.tarleton.edu/academicassessment/documents/Samplesize.pdf
Jaafar, M., Hasan, N. L., Mohamad, O., & Ramayah, T. (2005). The determinants of housing satisfaction level: A study on residential development project by Penang Development Corporation (PDC). Jurnal Kemanusiaan, 3(2). Retrieved from https://jurnalkemanusiaan.utm.my/index.php/kemanusiaan/article/view/144
Karim, N. S. A., Maimun, N. H. A., Noor, N. A. M., Yusoff, N. S. M., & Abdul Rahman, M. S. (2017). Oversupply Causes of Double Storey Terrace Houses in Johor Bahru. International Journal of Real Estate Studies, 11(3), 31–36.
Lee, R. (2019). Housing affordability and property overhang Two sides of the same coin? Retrieved August 2, 2023, from https://www.theedgemarkets.com/article/cover- story-housing-affordability-and-property-overhang-two-sides-same-coin
Leh, O. L. H., Mansor, N. A., & Mohamed Musthafa, S. N. A. (2016). The housing preference of young people in Malaysian urban areas: a case study Subang Jaya, Selangor. Geografia: Malaysian Journal of Society & Space, 12(7), 60–74.
Lim, P. I., & Chang, Y. F. (2018). Preference of residential typologies of urban Malaysians. Planning Malaysia, 16(7), 171-181. https://doi.org/10.21837/pmjournal.v16.i7.509 DOI: https://doi.org/10.21837/pmjournal.v16.i7.509
Maidin, A. J., & Ali, B. B. M. (2009). Powers of the Local Authority in Regulating Land Planning and Development Control: Whither Control. Planning Malaysia, 7(1), 133–147. https://doi.org/10.21837/pmjournal.v7.i1.75 DOI: https://doi.org/10.21837/pmjournal.v7.i1.75
Majid, R., Said, R., & Daud, M. N. (2012). The Impact Of Buyers’ Demography On Property Purchasing. Journal of Surveying, Construction & Property, 3(2), 1–18. DOI: https://doi.org/10.22452/jscp.vol3no2.1
Ng,S. (2020). What shall we do with the property overhang? EdgeProp. Retrieved August 2, 2023, from https://rehdaselangor.com/wp-content/uploads/20200131_What_shall_we_do_with_property_overhang-min.pdf
Olanrewaju, A., & Woon, T. C. (2017). An exploration of determinants of affordable housing choice. International Journal of Housing Markets and Analysis, 10(5), 703–723. https://doi.org/10.1108/ijhma-11-2016-0074 DOI: https://doi.org/10.1108/IJHMA-11-2016-0074
Perinetti, G. (2019). StaTips Part VI: Bivariate correlation. South European Journal of Orthodontics and Dentofacial Research, 6(1). https://doi.org/10.5937/sejodr6-21664 DOI: https://doi.org/10.5937/sejodr6-21664
Plecher, H. (2020). Urbanisation in Malaysia 2019. Retrieved August 1, 2020, from https://www.statista.com/statistics/455880/urbanization-in-malaysia/
Poh, C. (2019). Ample supply of affordable homes but not in the right location, says Zerin. Retrieved August 3, 2023, from https://www.theedgemarkets.com/article/ample- supply-affordable-homes-not-right-location-says-zerin
Rahim, N. A., Adzhar, S. M., Basrah, N., Majid, R. A., & Mustafar, S. (2019). Factors lead to overhang in affordable housing: A content analysis in qualitative approach. IOP Conference Series Earth and Environmental Science, 385(1), 012073. https://doi.org/10.1088/1755-1315/385/1/012073 DOI: https://doi.org/10.1088/1755-1315/385/1/012073
Ramlan, H., & Zahari, E. E. (2016). Review the Issue of Housing among Urban Dwellers in Malaysia with Special Reference towards Affordability to Home Ownership. Procedia Economics and Finance, 35, 216–223. https://doi.org/10.1016/s2212-5671(16)00027-7 DOI: https://doi.org/10.1016/S2212-5671(16)00027-7
Rameli, N., Salleh, D., & Ismail, M. (2016). Homeownership Affordability: An Analysis of Socioeconomic Factors. Malaysian Journal of Social Sciences and Humanities, 6(6), 56–59.
Reid, S. (2015). Exploring social interactions and sense of community in multi-owned properties. International Journal of Housing Markets and Analysis, 8(4), 436–450. https://doi.org/10.1108/ijhma-02-2015-0006 DOI: https://doi.org/10.1108/IJHMA-02-2015-0006
Schober, P., Boer, C., & Schwarte, L. A. (2018). Correlation Coefficients: appropriate use and interpretation. Anesthesia & Analgesia, 126(5), 1763–1768. https://doi.org/10.1213/ane.0000000000002864 DOI: https://doi.org/10.1213/ANE.0000000000002864
Segal, S. & Gerstel, D. (2020). The Global Economic Impacts of Covid-19. Retrieved July 2, 2023 from https://www.csis.org/analysis/global-economic-impacts-covid-19
Sia, M. K., Yew, V. W. C., Lim, Z. Y., & Dongqing, Y. (2018). Facilities and maintenance services for sustainable high-rise living. Facilities, 36(7/8), 330–348. https://doi.org/10.1108/f-03-2017-0037 DOI: https://doi.org/10.1108/F-03-2017-0037
Statistics Solutions. (2020). Conduct and Interpret a Bivariate (Pearson) Correlation. StatisticsSolution. Retrieved March 2, 2021, from https://www.statisticssolutions.com/bivariate-correlation/
Soon, A., & Tan, C. (2019). An analysis on housing affordability in Malaysian housing markets and the home buyers’ preference. International Journal of Housing Markets and Analysis, 13(3), 375–392. https://doi.org/10.1108/ijhma-01-2019-0009 DOI: https://doi.org/10.1108/IJHMA-01-2019-0009
Tan, T. H. (2009). Home owning motivation in Malaysia. Journal of Accounting, Business and Management, 1(1), 1–27.
Tan, T. H. (2011). Neighborhood preferences of house buyers: The case of Klang Valley, Malaysia. International Journal of Housing Markets and Analysis, 4(1), 58–69. https://doi.org/10.1108/17538271111111839 DOI: https://doi.org/10.1108/17538271111111839
Tan, T. H. (2012a). Meeting first-time buyers’ housing needs and preferences in greater Kuala Lumpur. Cities, 29(6), 389–396. https://doi.org/10.1016/j.cities.2011.11.016 DOI: https://doi.org/10.1016/j.cities.2011.11.016
Tan, T. H. (2012b). Housing satisfaction in medium- and high-cost housing: The case of Greater Kuala Lumpur, Malaysia. Habitat International, 36(1), 108–116. https://doi.org/10.1016/j.habitatint.2011.06.003 DOI: https://doi.org/10.1016/j.habitatint.2011.06.003
Tan, T. H., & Cheah, Y. Y. (2012). Locational, Neighborhood, Structural and Socio- Cultural Attributes of Housing in Homeownership Decisions. Retrieved August 7, 2023, from http://eprints.sunway.edu.my/144/
Thanaraju, P., Khan, P. A. M., Juhari, N. H., Sivanathan, S., & Khair, N. M. (2019). Factors affecting the housing preferences of homebuyers in Kuala Lumpur. Planning Malaysia, 17(1), 138-148. DOI: https://doi.org/10.21837/pmjournal.v17.i9.593
Zelazowski, K. (2017). Housing Market Cycles in the Context of Business Cycles. Real Estate Management and Valuation, 25(3), 5–14. https://doi.org/10.1515/remav-2017-0017 DOI: https://doi.org/10.1515/remav-2017-0017
Downloads
Published
How to Cite
Issue
Section
License
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 Unported License.
Copyright & Creative Commons Licence
eISSN: 0128-0945 © Year. The Authors. Published for Malaysia Institute of Planners. This is an open-access article under the CC BY-NC-ND license.
The authors hold the copyright without restrictions and also retain publishing rights without restrictions.
