Abstract
The housing demand of the middle-income group cannot be ignored as they are the majority of the population in Malaysia which is about 40% out of the population. However, there is a mismatch between the supply and middle-income housing demand. The developer has always been eager to develop high-end products instead of affordable housing. This circumstance leads to the insufficient supply of middle-income housing. The mismatch is not only in terms of housing price, but also does not meet their housing preferences towards other housing attributes. Accordingly, this paper attempts to develop a conceptual framework for minimising middle-income housing mismatch. Thus, this paper reviewed the existing literature on the housing mismatch occurrences and the strategies to overcome this situation through government intervention. Almost all evidences from the studies indicate government, developer behaviour and buyer preferences have contributed to the middle-income housing mismatch occurrences. The findings were compiled through the creation of a conceptual model. Government intervention, developer behaviour and buyer preferences are included in the model as aspects that cause the housing mismatch occurrences. Significantly all these three aspects should interrelate with each other so that the potential of housing mismatch occurrences is low.
Highlights
The housing sector in Malaysia has always received special attention through various forms of housing policies and programmes
The paper attempts to develop a conceptual framework for minimising the gap in middle-income housing mismatch occurrences by emphasizing the aspect of government intervention, developer behaviour and buyer preferences
The government should create a win-win situation to avoid any losses to the developer and at the same time could provide sufficient supply housing to the middle-income population
Summary
The housing sector in Malaysia has always received special attention through various forms of housing policies and programmes. There are still issues such as accessibility, housing affordability, and quality that need to be considered. One of the central issues in the housing market is the existence of housing mismatch (Saleh et al, 2016). The developer has supplied more high-end units in the market to the point where it is almost impossible for the middle-income group to own their first property and this has contributed to the mismatch between supply and demand (Tobi et al, 2020). There is a mismatch between what has been supplied in the market and middle-income groups affordability. This issue basically has been tackled by providing affordable housing schemes but it seems that the mismatch still exists. Why does mismatch still exist? Why do those units remain as no takers even when it is affordable?
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