Identifying Critical Factors of Sale Failure on Commercial Property Types, Shop Houses by Using Multi Attribute Variable Technique

N.I Mohamad,N.M Tawil,I.M Usman,M.M Tahir

doi:10.19026/rjaset.7.666

Abstract

The focus of this research is to identify the critical factors of shop houses sale failure in Bandar Baru Nilai and further up to discover the critical factors of sale failure of commercial property types, shop houses in new township as report by valuation and Property services department (JPPH) showed 5,931 units of shop houses in Malaysia is currently completed but remained unsold where Johor was recorded as the highest with unsold units followed by Negeri Sembilan. Bandar Baru Nilai (a district of Negeri Sembilan) is chosen as research sample for unsold shop houses units due to its strategic location which is near to KLIA, International Sepang Circuit, educational instituitions and surrounded by housing scheme but yet still has numbers of unsold units. Data of the research is obtained from literature review and survey question between developers, local authority, purchasers/tenant and local residents. Relative Importance Index (RII) method is applied in identifying the critical factor of shop houses sale failure. Generally, the factors of sale failure are economy, demography, politic, location and access, public and basic facilities, financial loan, physical of product, current stock of shop houses upon completion, future potential of subsale and rental, developer's background, promotion and marketing, speculation and time.

Highlights

Of building may happen everywhere but with different degree of seriousness like Ramabodu et al (2007) reported in some cities and urban development in South Africa, developments focus strongly on converting offices and even industrial buildings into residential spaces as well as the upgrading of existing stock
Most of the completed and unsold units of shoplots in Negeri Sembilan is situated at the district of Seremban
The development of commercial property cannot stand alone and need to be supported by its surrounding and it is better if the area is a center of attraction

Summary

Introduction

Of building may happen everywhere but with different degree of seriousness like Ramabodu et al (2007) reported in some cities and urban development in South Africa, developments focus strongly on converting offices and even industrial buildings into residential spaces as well as the upgrading of existing stock. In Malaysia, JPPH from its report, showed the scenario of shop houses oversupply in peninsula Malaysia. JPPH report on quarter II, 2011 showed 5,931 units at the value of RM 1.690 billion of completed shop houses remained unsold (Fig. 1). Negeri Sembilan with 622 units unsold shop houses is recorded as the second highest after Johor and this number contibute to 10.5% of overall amount unsold units in Malaysia.

Objectives

Methods

Results