Factors Contributing to Overhang Problem in Affordable Housing from the Perspective of Housing Developers

Abstract

Several housing schemes have been implemented to increase the availability of affordable housing so that the low-income and middle-income group could have their own first house. Unfortunately, market trends of affordable housing show an increment to overhang housing units. The units have constantly increasingly from year to year, failing to attract the the low-income and middle-income groups. In short, even though the housing schemes have been facilitated financially, it was found that the units experience unsold and contribute to the overhang problem. Housing developers are the main suppliers of housing in Malaysia. They might have their own perspective on the overhang problem that occurs in affordable housing units. Thus, the objective of this research is to identify the factors contributing factors to the overhang problem in affordable housing from the perspective of housing developers. Quantitative research was adopted by using questionnaires surveys. This research employed a simple random sampling method and the sample size for this research is 181. A set of questionnaires had been distributed to housing developers in Selangor. It reveals that house prices, low household income, economy unstable, loan restriction, and past debt obligation as the top five factors contributing to affordable housing overhang in Malaysia. Therefore, this research contributes significant insight into factors that lead to the overhang problem of affordable housing from the perspective of housing developers.