Evaluation of the requirements of first time buyers in the purchase of affordable housing in Malaysia

Abstract

The overall Malaysian homeownership rate is declining. However, despite the introduction of various schemes and interventions, especially to the first time buyers, the gap between demand and supply is widening unabated. Thus, this research aims to evaluate the requirements of first-time home buyers. Primary data were collected through a cross-sectional survey questionnaire involving 196 homebuyers. House price, crime rate, care for the environment, availability of parking and housing types are the five main requirements of the first time home buyers in the purchase of affordable housing. An exploratory factor analysis generated five underlying clusters named in order of their significance, as price configuration, accessibility, transportation and sustainability. The findings provide fresh insights into addressing housing deficits in Malaysia and beyond. The findings will be useful to urban planners and place managers involved in housing distribution and location management. The housing developers would use this information to plan their housing delivery and design criteria, while home buyers require this to develop or adjust their buying plans. This research will enhance social well-being and increase measures to increase homeowner rates in Malaysia and elsewhere.