BRIDGING THE SUPPLY AND DEMAND GAP FOR AFFORDABLE HOME OWNERSHIP IN MALAYSIA: THE ROLES OF GOVERNMENT AND FINANCIAL INSTITUTIONS
DOI:
https://doi.org/10.21837/pm.v17i9.595Keywords:
Malaysia, homeownership, government housing effort, affordable homes, home financingAbstract
Promoting homeownership remains a conundrum in a developing economy in Malaysia. Despite significant initiatives pursued by the government, more needs to be done to promote affordable and sustainable homeownership further. Khazanah Report (2018) provides evidence that housing affordability in Malaysia is worsening compared to one reported in 2015.This study therefore aims to empirically assess the role of government in terms of designing policies to promote the supply of affordable homes and the role of financial institutions in terms of providing home financing. The finding reveals that existing housing policies and government programmes have a significant role in promoting homeownership. The finding further suggests that building and completing more units of affordable homes (as captured by housing stocks) and promoting innovative home financing products (both conventional and Islamic) are the most significant variables in promoting homeownership in Malaysia.Downloads
References
Abdullahi, B. C., Wan, N. A., Abdullah, A. A., Beksin, A. M., Alashwal, A. M., & Deraman, R. (2011). Sustainable housing policy and low-income group housing: the Malaysian Experience. Australian Journal of Basic and Applied Sciences, 5(6), 170-180.
Adam, A. G. (2015). Land readjustment as an alternative land development tool for periurban areas of Ethiopia. Property Management, 33(1), 36-58.
Amin, H. (2008). Choice criteria for Islamic home financing: Empirical investigation among Malaysian bank customers. International Journal of Housing Markets and Analysis, 1(3), 256-274.
Ayoade, O., & Ahmed, V. (2014). An assessment of land use sources of barriers and the community-based housing model in the UK. International Journal of Housing Markets and Analysis, 7(4), 539-558.
Bank Negara Malaysia, B. N. M. (2016). Annual Report 2009. Retrieved from http://www.bnm.gov.my/files/publication/ar/bm/2016/ar2016_buku.pdf
Barakova, I., Bostic, R. W., Calem, P. S., & Wachter, S. M. (2003). Does credit quality matter for homeownership? University of Penn Law & Econ Research Paper 0340.
Baqutaya, S. A., Ariffin, 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.
Baer, L., & Kauw, M. (2016). Behavior of land markets and restrictions on housing access in Buenos Aires between 2003 and 2013. International Journal of Housing Markets and Analysis, 9(4), 538-553.
Claussen, C. A. (2013). Are Swedish houses overpriced? International Journal of Housing Markets and Analysis, 6(2), 180-196
Costello, G. (2014). Land price dynamics in a large Australian urban housing market. International Journal of Housing Markets and Analysis, 7(1), 42-60.
Garriga, C., Gavin, W. T., & Schlagenhauf, D. (2006). Recent trends in homeownership. Federal Reserve Bank of St. Louis Review, 88(5), 397-411.
Gu, G., Michael, L., & Cheng, Y. (2015). Housing supply and its relationships with land supply. International Journal of Housing Markets and Analysis, 8(3), 375-395.
Hamid, A., & Masood, O. (2011). Selection criteria for Islamic home financing: A case study of Pakistan. Qualitative Research in Financial Markets, 3(2), 117-130.
Hui, E. C.-M. (2004). An empirical study of the effects of land supply and lease conditions on the housing market. Property Management, 22(2), 127-154.
Iblher, F., & Lucius, D. I. (2003). Innovative real estate financing in Germany - A financial desert? Property Management, 21(1), 82-96.
Irumba, R. (2015). An empirical examination of the effects of land tenure on housing values in Kampala, Uganda. International Journal of Housing Markets and Analysis, 8(3), 359-374.
Ismail, A., Bujang, A. A., Jiram, W. R. A., Zarin, H. A., & Jaafar M. N. (2015). Factor affecting the housing financing of Bumiputera in Iskandar, Malaysia. Journal of Economics, Business and Management, 3(11), 1031-1036.
Kagochi, J. M., & Mace, L. M. (2009). The determinants of demand for single family housing in Alabama urbanized areas. International Journal of Housing Markets and Analysis, 2(2), 132-144.
Kajuth, F., Knetsch, T. A., & Pinkwart, N. (2016). Assessing house prices in Germany: Evidence from a regional data set. Journal of European Real Estate Research, 9(3), 286-307.
Kasanga, R. K. (1995). Land tenure and regional investment prospects: The case of the tenurial systems of Northern Ghana. Property Management, 13(2), 21-31.
Kassim, S. H., Majid, M. S. A., & Yusof, R. M. (2009). Impact of monetary policy shocks on the conventional and Islamic banks in a dual banking system: Evidence from Malaysia. Journal of Economic Cooperation and Development, 30(1), 41-58.
Khazanah Research Institute. (2015). Making housing affordable. Kuala Lumpur: Author
Kryvobokov, M. (2004). Urban land zoning for taxation purposes in Ukraine. Property Management, 22(3), 214-229.
Lee, C. L. (2009). Housing price volatility and its determinants. International Journal of Housing Markets and Analysis, 2(3), 293-308.
Malik, S., & Wahid, J. (2014). Rapid urbanization: Problems and challenges for adequate housing in Pakistan. Journal of Sociology and Social Work, 2(2), 87-110.
Meera, A. K. M., & Abdul-Razak, D. (2005). Islamic home financing through musharakah mutanaqisah and al-bay ’ bithaman ajil contracts: A comparative analysis. (n.p.): (n.p.)
Mohammad, S., & Ghauri, K. (2015). Why interest-rate cannot benchmark for Islamic financial product pricing? Benchmarking: An International Journal, 22(7), 1417-1428.
Osman, M. M., Yusop, S. W. M., Shuid, S., & Abdullah, M. F. (2017). Housing affordability index for districts in Perak. Advanced Science Letters, 23(7), 60496052.
Oyewole, M. O. (2010). Housing development finance through cooperative societies.
International Journal of Housing Markets and Analysis, 3(3), 245-255.
Painter, G., & Redfearn, C. L. (2002). The role of interest rates in influencing long run homeownership rates. Journal of Real Estate Finance and Economics, 25(2/3), 243-267.
Phang, S.-Y. (2010). Affordable homeownership policy. International Journal of Housing Markets and Analysis, 3(1), 38-52.
Phang, S.-Y., & Helble, M. (2016). Housing policies in Singapore. Asian Development Bank Institute, Working Paper 559.
Mariana Mohamed Osman, Noor Suzilawati Rabe, Farah Eleena Zainudin (2018). Perception of residents in the state of Selangor on affordable housing price with the expected criteria. Advanced Science Letters, 24 (11). , 0 pp. 7053-7056. ISSN 1936-6612
Phibbs, P.., & Young, P. (2005). Housing assistance and non-shelter outcomes. AHURI Final Report; no.74. Melbourne: Australian Housing and Urban Research Institute.
Piazzesi, M., & Schneider, M. (2009). Momentum traders in the housing market: Survey evidence and a search model. NBER Working Paper no. 14669, January 2009.
Poon, J., & Garratt, D. (2012). Evaluating UK housing policies to tackle housing affordability. International Journal of Housing Markets and Analysis, 5(3), 253271.
Rowley, S. & Ong, R. (2012). Housing affordability, housing stress and household wellbeing in Australia. AHURI Final Report; no.192. Melbourne: Australian Housing and Urban Research Institute.
Shiller, R. J. (2007). Understanding recent trends in house prices and home ownership.
Cowles Foundation for Research in Economics, Discussion Paper No. 1630.
Smolo, E., & Hassan, M. K. (2011). The potentials of musharakah mutanaqisah for Islamic housing finance. International Journal of Islamic and Middle Eastern Finance and Management, 4(3), 237-258.
Taltavull de La Paz, P., & White, M. (2016). The sources of house price change: Identifying liquidity shocks to the housing market. Journal of European Real Estate Research, 9(1), 98-120.
Tameme, M., & Asutay, M. (2012). An empirical inquiry into marketing Islamic mortgages in the UK. International Journal of Bank Marketing, 30(3), 150-167.
Udechukwu, C.E. (2008). Obstacles to individual home ownership in Nigeria.
International Journal of Housing Markets and Analysis, 1(2), 182-194.
Usman, H., & Lizam, M. (2016). Determinants of intention of using mortgage in financing home ownership in Bauchi, Nigeria. International Journal of Housing Markets and Analysis, 9(3), 320-339.
Zainal, N. R., Kaur, G., Ahmad, N. A., & Khalili, J. M. (2012). Housing conditions and quality of life of the urban poor in Malaysia. Procedia - Social and Behavioral Sciences, 50, 827-838.
Zhu, H. (2006). The structure of housing finance markets and house prices in Asia. Bank for International Settlement, Quarterly Review, December 2006.
Downloads
Published
How to Cite
Issue
Section
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.
