A Study on the Relationship between Property Overhang and Housing Satisfaction Amongst Homebuyers in Malaysia

Ting, Isabelle Marie Yar Fern (2021) A Study on the Relationship between Property Overhang and Housing Satisfaction Amongst Homebuyers in Malaysia. Final Year Project (Bachelor), Tunku Abdul Rahman University College.

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Abstract

Following the expeditious development of the world’s economy over the years, the real estate industry in Malaysia has seen to be thriving. Nonetheless, property overhang remains a challenge to the Country’s economy and is defined as housing units that remained unsold for more than nine months and issued with the certificate of fitness for occupation. Similarly, National Property Information Centre (NAPIC) reported an upward trend of property overhang units in 2015 to 2018 with a slight decrease in 2019. Despite having previous studies on homebuyer’s preference in residential property, extensive research must be undertaken to identify what satisfies the homebuyers to address the issue of property overhang. This study focuses on the factors causing residential overhang, factors influencing the level of satisfaction of residential properties and the relationship between these factors. Thus, questionnaire surveys are distributed to respondents and analysed with the Statistical Packages for the Social Science (SPSS) 24.0 software where Cronbach’s Alpha, Descriptive statistics and Bivariate Correlation Analysis is conducted. Results from this study revealed that Loan Financing Challenges, Weakening Purchasing Power as well as the Mismatch between House Prices and Household Income are the primary factors causing residential overhang whilst Parking Convenience, Security and Household Income are the main factors influencing the level of satisfaction of residential properties. Additionally, Bivariate Correlation Analysis indicated positive correlation between the factors whilst minority of the factors displayed a negative correlation with each other. Therefore, a comprehensive understanding of this research study benefits developers, property agents and homebuyers. Future studies may include a study on the impact of property overhang towards the Country and the solutions to overcome such impact to create awareness amongst the developers, real estate industries and the construction industries.