Abstract
Over recent years, the imbalance between housing demand and supply, particularly in the high-cost housing segment, led to the rapid increase in the house prices. This paper has applied the standard theory of consumer demand and supply supplemented using content analysis method to explain the trend of housing demand and supply of housing market in Malaysia. Sampling in the quantitative content analysis is carried out to achieve the objective. Property Market Status Report in the NAPIC website provide a series data for total housing demand and supply for any house type of terrace, detached, cluster and townhouse in the price range between RM50,000 to RM300,000. All data provided cover from the first quarter until the fourth quarter across the year 2006 to 2015 specifically in Peninsular Malaysia only. Each level of the house price has a different equilibrium price so that developers can use it as an indicator based on the housing type. This research will promote ways to achieve the sustainabiliy in construction output overall so that the scholars can improve the equilibrium price model proposed in order to make the Malaysian housing become an affordable.
Highlights
In the housing development, one of the important aims is to provide an adequate supply of the housing by focussing on the actual median house price stated by the different regions [1]
In addition to the issues arise reported by the government sector, a study by [13] revealed that the availability and cost of production factors, expectations regarding to the future property demand, prices, and perceived market risk as the major contributor to the oversupply of the housing in Malaysia
Housing demand and supply must be in a balance state to get the equilibrium price in the housing market
Summary
In the housing development, one of the important aims is to provide an adequate supply of the housing by focussing on the actual median house price stated by the different regions [1]. Over the past five years, the annual completion of houses had declined considerably to 80,089 units, far below 166,000 units average net increases in the number of households’ annually. The gap between the housing demand and supply during year 2014 was estimated around 960,000 units across Malaysia which recorded about 50% of the shortage is faced by Sabah and Sarawak. As a sequence, housing supply especially for high-cost units are booming beginning 2013 until 2015 even the sales performance for that housing type is not achieved even. This is happen because the developers can still gain a high margin. Macroeconomic and microeconomic demand and supply factors often overlap significantly toward an overflow of the high-cost housing market [5]. JPN recorded that only 0.4% in the approval for the low-medium cost housing construction, which only involved around 509 housing units
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