Root cause of demand–supply gap in Malaysian low-cost housing: housing developers perception

Abstract

In 1982, Malaysian Government made it compulsory for housing developers to construct low-cost housing (LCH). Yet, inaccessibility to homes for the low-income groups is high; leading to an increase in LCH demand–supply gap. Therefore, this paper examines housing developers perception regarding the root cause of the Malaysian LCH demand–supply gap. Also, it proffers possible policy solutions to bridge the LCH demand–supply gap. These were achieved through a qualitative approach. The study found five main root-cause of LCH demand–supply gap, which include lax housing state policy and enforcement, lax state registration for low-income group, high development and construction costs, issues surrounding LCH purchase, and leakages in low-cost housing. The paper concludes that the government should lead and create an enabling environment for the commencement of the industrialised building systems. Also, recommended is the proposed cumulative ruling on LCH development, enforcement of computerised open registration system across the states, upward review of ceiling price from RM42,000 to RM65,000/unit among others. As part of the practical implications, this paper is advocating for the transformation of low-cost housing provision for liveable sustainable cities across Malaysia. Also, planned to stir-up relevant stakeholders and bring to the front burners new openings for further research.