Abstract
Housing affordability has been a major concern issues in Malaysia especially those living in major cities like Kuala Lumpur and Selangor. Purchasing a “dream home” is one of those life accomplishments that top nearly everyone’s bucket list. Searching for a home comes with different considerations; housing market outcomes can be influenced by a range of different factors. In the long run, house prices will tend to converge to the cost of new housing construction. For that reason, this study aims to identify the determinants affecting the purchase decision among middle-income groups. The data was collected through questionnaire survey that was distributed in the Klang Valley area. The data was gathered then analysed using descriptive analysis and inferential statistical tests. Findings identified factors that have driven up the demand for housing, and in particular for home ownership, in recent years. It reveals that the affordable house price factor is the most important consideration in buying a house. This study would shed light for the developers in developing housing schemes based on the consumers’ preferences and could become a basis for the government to revise the current housing scheme policy’s design specifically in Malaysia.
Highlights
A house is one of the basic needs of human beings
This study focuses at this issue; identifying the factor affecting the demand for affordable housing according to consumer preferences among middle-income groups in Klang Valley
The affordable housing situation in Kuala Lumpur is a serious problem with the median multiple at 5.4, which were considered as severely unaffordable in
Summary
A house is one of the basic needs of human beings. It acts as a shelter to support a household living (Samaratunga, 2013). With the continuous increase in property price due to rapid economic growth, it will give a high struggle for the middle-income households to own an affordable house (Liew and Haron, 2013). The government’s effort towards low-cost housing was introduced during the First Malaysian Plan (1966-1970) while the private sectors’ active involvement started during the Second Malaysia Plan (19711975). Both public and private sector have involved in various housing programmes in Malaysia in promoting the welfare for lower income groups. Under the Seventh Malaysia Plan (1996-2000) and Eighth Malaysia Plan (20012005), the government aims to provide adequate, affordable, quality housing and related facilities for all income groups (Economic Planning Unit, 2000). The government is doing its best by continuously promoting affordable housing schemes and improving it from time to time
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