House Price and Affordability in Housing in Malaysia

Abstract

Residential property market in Malaysia has experienced significant price expansion over the past fifteen years with prices, at several states, expanded at higher rates. As economic theory has explained, house price movements is inherent with the regional economics and regional demographics such as income, cost of capital, stock prices and population change. However, sudden price change could affect home ownership to some extent. Under any circumstances, the need for housing as a basic necessity persist. This article intend to analyse house price movements with regard affordability and availability and to some extent the possibility of wealth creation of house ownership and its influence on consumption. Discussion will also be made on the effect of the recent Budget 2008 on home ownerships. The article will address issues pertaining to affordability level among the sampled states, availability of housing for the lower income earners and wealth created through home ownership. Since the housing industry is an important sector to the Malaysian economy, the health of the housing market is of paramount importance and directly correlated to ability to own and thus, the purchasing power of the public. Pronounced price fluctuation affect ownership thus affordability and availability are much reduced. Sustained price movement can ensure sustainable house ownerships and support the housing market thus affordability level is favourable. Keywords: Affordability, availability, sustainability, wealth, Malaysia. ABSTRAK Pasaran harta tanah kediaman di Malaysia telah mengalami lonjakan harga yang signifikan dalam jangkamasa lima belas tahun dengan terdapatnya beberapa negeri mengalami lonjakan harga dengan kadar yang lebih tinggi. Berdasarkan teori ekonomi, pergerakan harga rumah kediaman mempunyai kaitan secara langsung dengan ekonomi wilayah dan demografi seperti pendapatan, kos modal, harga saham dan bilangan penduduk. Perubahan harga yang mendadak, meningkat atau menurun, mempengaruhi peluang memiliki rumah kediaman. Bagaimanapun, rumah kediaman tetap merupakan keperluan asas kehidupan manusia. Makalah ini bertujuan menganalisis pergerakan harga rumah kediaman di antara negeri-negeri yang dipilih dan kaitannya dengan tahap mampu-milik dan kesediaadaan rumah kediaman dan kemungkinan menjana kekayaan melalui pemilikan dan pengaruhnya kepada penggunaan. Kesan Bajet 2008 ke atas pemilikan rumah kediaman akan turut dibincangkan. Memandangkan industri harta tanah berperanan penting dalam ekonomi negara, kestabilan pasaran harta tanah mempunyai korelasi secara langsung dengan kebolehan pemilikan dan kuasa beli pemilik. Ketidaktentuan harga yang ketara akan mempengaruhi tahap mampu-milik dan kesediaadaan harta kediaman. Pergerakan harga yang mampan akan menyokong pemilikan yang mampan dan pasaran yang stabil. Kata kunci: Mampu-milik, kesediaadaan, mampan, kekayaan, Malaysia.

Cite this work

No public copy is stored for this record, so only the metadata is cited.

Stored only when both papers are in the corpus — 78 citations exist upstream.

Papers that cite the same references — the relational fallback while embeddings are still backfilling.