Factors Influencing the Housing Price: Developers’ Perspective
The housing industry is crucial for sustainable
development of every country. Housing is a basic need that can
enhance the quality of life. Owning a house is therefore the main aim
of individuals. However, affordability has become a critical issue
towards homeownership. In recent years, housing price in the main
cities has increased tremendously to unaffordable level. This paper
investigates factors influencing the housing price from developer’s
perspective and provides recommendation on strategies to tackle this
issue. Online and face-to-face survey was conducted on housing
developers operating in Penang, Malaysia. The results indicate that
(1) location; (2) macroeconomics factor; (3) demographic factors; (4)
land/zoning and; (5) industry factors are the main factors influencing
the housing price. This paper contributes towards better
understanding on developers’ view on how the housing price is
determined and form a basis for government to help tackle the
housing affordability issue.
[1] Tan, T.H., Determinants of Homeownership in Malaysia. Habitat
International, 2008. 30(3): p. 385-414.
[2] Quigley, J.M. and S. Raphael, Is Housing Unaffordable? Why Isn’t It
More Affordable? Journal of Economic Perspectives, 2004. 18(1): p.
191-214.
[3] Tan, T.H., Affordable Housing for First-Time Homebuyers: Issues and
Implications from the Malaysian Experience, in 1st International
Conference on Innovation and Sustainability (ICOIS 2013)2013:
Sunway Resort Hotel, Kuala Lumpur.
[4] Central Bank of Malaysia, Bank Negara Annual Report 2010, 2010,
Central Bank of Malaysia: Kuala Lumpur.
[5] United Nations Human Settlements Programme, The Role of
Government in the Housing Market: The Experience from Asia, in The
Human Settlements Finance and Policies Series2008, United Nations
Human Settlements Programme (UN-HABITAT): Nairobi.
[6] Shuid, S., Low income housing provision in Malaysia: The role of state
and market in 5th Colloquium of Welsh Network of Development
Researchers (NDR) 2008: Newtown Wales, United Kingdom.
[7] Laws of Malaysia, Act 172 Town and Country Planning Act 1976,
Government of Malaysia, Editor 2006, The Commissioner of Law
Revision, Malaysia: Kuala Lumpur.
[8] Agus, M.R., The role of state and market in the Malaysian housing
sector. Journal of Housing and the Built Environment, 2002. 17(1).
[9] National Housing Department, National Housing Policy, 2010, Ministry
of Housing and Local Government Malaysia: Kuala Lumpur.
[10] Consumer Association of Penang, A credible Housing Policy is long
overdue, 2014.
[11] Hashim, Z.A., House Price and Affordability in Housing in Malaysia
Akademika, 2010. 78: p. 37-46.
[12] Ong, T.S., Factors Affecting the Price of Housing in Malaysia. Journal
of Emerging Issues in Economics, Finance and Banking (JEIEFB),
2013. 1(5): p. 414-429.
[13] Waseep, J.V., Housing Policy: The Link between Welfare and Economic
Development. . Journal of Housing and the Built Environment, 2000. 15:
p. 165-181.
[14] Lyndall, B. and E. Chris. The Impact of Infrastructure Charges on New
Housing Cost: An International Comparison. In 18th Annual Pacific
Rim Real Estate Society Conference. 2012. Brisbane, Australia.
[15] Wang, D. and S.-M. Li, Socio-economic Differentials and Stated
Housing Preferences in Guangzhou. Habitat International, 2006. 30(2):
p. 305-326.
[16] Tan, T.H., Sustainability and Housing Provision in Malaysia. Journal of
Strategic Innovation and Sustainability, 2011. 7(1): p. 62-71.
[17] Micheal, H.C.H. and L.H.C. Rebecca, Impact of Accessibility on
Housing Expenditure and Affordability in Hong Kong's Private Rental
Sector. Journal of Housing and the Built Environment, 2002. 17(4): p.
363-383.
[18] Glaeser, E.L., J. Gyourko, and R.E. Saks, Why Have Housing Prices
Gone Up?, in NBER Working Paper No. 11129 2005, National Bureua
of Economic Research: Cambridge.
[19] MacDonald, S., Drivers of house price inflation in Penang, Malaysia:
Planning a more sustainable future, 2011, Penang Institute: Penang.
[20] Hair, J.F., et al., A Primer on Partial Least Squares Structural Equation
Modeling (PLS-SEM) 2013, California: Sage Publications Inc.
[1] Tan, T.H., Determinants of Homeownership in Malaysia. Habitat
International, 2008. 30(3): p. 385-414.
[2] Quigley, J.M. and S. Raphael, Is Housing Unaffordable? Why Isn’t It
More Affordable? Journal of Economic Perspectives, 2004. 18(1): p.
191-214.
[3] Tan, T.H., Affordable Housing for First-Time Homebuyers: Issues and
Implications from the Malaysian Experience, in 1st International
Conference on Innovation and Sustainability (ICOIS 2013)2013:
Sunway Resort Hotel, Kuala Lumpur.
[4] Central Bank of Malaysia, Bank Negara Annual Report 2010, 2010,
Central Bank of Malaysia: Kuala Lumpur.
[5] United Nations Human Settlements Programme, The Role of
Government in the Housing Market: The Experience from Asia, in The
Human Settlements Finance and Policies Series2008, United Nations
Human Settlements Programme (UN-HABITAT): Nairobi.
[6] Shuid, S., Low income housing provision in Malaysia: The role of state
and market in 5th Colloquium of Welsh Network of Development
Researchers (NDR) 2008: Newtown Wales, United Kingdom.
[7] Laws of Malaysia, Act 172 Town and Country Planning Act 1976,
Government of Malaysia, Editor 2006, The Commissioner of Law
Revision, Malaysia: Kuala Lumpur.
[8] Agus, M.R., The role of state and market in the Malaysian housing
sector. Journal of Housing and the Built Environment, 2002. 17(1).
[9] National Housing Department, National Housing Policy, 2010, Ministry
of Housing and Local Government Malaysia: Kuala Lumpur.
[10] Consumer Association of Penang, A credible Housing Policy is long
overdue, 2014.
[11] Hashim, Z.A., House Price and Affordability in Housing in Malaysia
Akademika, 2010. 78: p. 37-46.
[12] Ong, T.S., Factors Affecting the Price of Housing in Malaysia. Journal
of Emerging Issues in Economics, Finance and Banking (JEIEFB),
2013. 1(5): p. 414-429.
[13] Waseep, J.V., Housing Policy: The Link between Welfare and Economic
Development. . Journal of Housing and the Built Environment, 2000. 15:
p. 165-181.
[14] Lyndall, B. and E. Chris. The Impact of Infrastructure Charges on New
Housing Cost: An International Comparison. In 18th Annual Pacific
Rim Real Estate Society Conference. 2012. Brisbane, Australia.
[15] Wang, D. and S.-M. Li, Socio-economic Differentials and Stated
Housing Preferences in Guangzhou. Habitat International, 2006. 30(2):
p. 305-326.
[16] Tan, T.H., Sustainability and Housing Provision in Malaysia. Journal of
Strategic Innovation and Sustainability, 2011. 7(1): p. 62-71.
[17] Micheal, H.C.H. and L.H.C. Rebecca, Impact of Accessibility on
Housing Expenditure and Affordability in Hong Kong's Private Rental
Sector. Journal of Housing and the Built Environment, 2002. 17(4): p.
363-383.
[18] Glaeser, E.L., J. Gyourko, and R.E. Saks, Why Have Housing Prices
Gone Up?, in NBER Working Paper No. 11129 2005, National Bureua
of Economic Research: Cambridge.
[19] MacDonald, S., Drivers of house price inflation in Penang, Malaysia:
Planning a more sustainable future, 2011, Penang Institute: Penang.
[20] Hair, J.F., et al., A Primer on Partial Least Squares Structural Equation
Modeling (PLS-SEM) 2013, California: Sage Publications Inc.
@article{"International Journal of Business, Human and Social Sciences:73016", author = "Ernawati Mustafa Kamal and Hasnanywati Hassan and Atasya Osmadi", title = "Factors Influencing the Housing Price: Developers’ Perspective", abstract = "The housing industry is crucial for sustainable
development of every country. Housing is a basic need that can
enhance the quality of life. Owning a house is therefore the main aim
of individuals. However, affordability has become a critical issue
towards homeownership. In recent years, housing price in the main
cities has increased tremendously to unaffordable level. This paper
investigates factors influencing the housing price from developer’s
perspective and provides recommendation on strategies to tackle this
issue. Online and face-to-face survey was conducted on housing
developers operating in Penang, Malaysia. The results indicate that
(1) location; (2) macroeconomics factor; (3) demographic factors; (4)
land/zoning and; (5) industry factors are the main factors influencing
the housing price. This paper contributes towards better
understanding on developers’ view on how the housing price is
determined and form a basis for government to help tackle the
housing affordability issue.", keywords = "Factors influencing house price, housing
affordability, housing developers, Malaysia.", volume = "10", number = "5", pages = "1658-7", }
