A Study of the Mismatch of Demand-Supply of the Affordable Housing in Klang Valley and Selangor

Cheng, Jia Wei (2020) A Study of the Mismatch of Demand-Supply of the Affordable Housing in Klang Valley and Selangor. Final Year Project (Bachelor), Tunku Abdul Rahman University College.

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Abstract

The demand-supply gap of affordable housing has been a serious issue in Malaysia and if the issue is not resolved, will exacerbate house ownership and accommodation problems in many urban areas throughout the country. With the social progress and economic development, the housing price have increase and resulted in increasing in number of overhang units. However, Household income did not increase accordingly which is one of the main problems affected Malaysian are difficult to afford a house. Various other main reasons such as high household expenses, developer focus on developing high-end or luxuries units and affordable housing built at remoted place also affect the mismatch of demand-supply gap of affordable housing. In this study, the aim is to explore the factors that cause the imbalance of demand-supply of affordable housing. Besides, impacts from this problem is necessary to be study as well for knowing the severity of the problems when it is getting more serious, such as increasing in homelessness, create household stress, weaken the economic growth, impact to children and so on. In addition, effective solution will be study as well for the problems. The report is researched by both literature review and questionnaires for the accuracy of results. Questionnaires have been distributed mainly to people who worked or working in the industry, also included homebuyers for different perspectives. Questionnaire consists of 4 sections which is geographical study, the reasons for occurrence of such event, impacts, and effective solutions. Quantitative methodology is utilised to examine the results acquired from the questionnaire. The results were compared with the literature review to prove the facts of the issues. From the results, respondents ranked the other expenses occupied much from the household income as first amongst all of the reasons. For second ranked reasons, respondents have selected high construction cost, followed by the third ranked reasons is the inaccessibility and inconvenient location of affordable housing. As for the impacts of such issues, respondents chose high transportation expenditure as first impacts, followed by the second impacts of lack of basic need due to high monthly instalment for housing, and the third impacts is the lag of economic growth due to low transaction. For solutions of such issues, Government to implement more planning control on new and upcoming project as first rank solution, followed by Government to reduce the household expenditure and the third ranked solution is the Government to vigorously promote the Rent-to-own scheme and states its benefits.