Housing Oversupply in Kuala Lumpur, Malaysia

Chong, Ee Moon (2022) Housing Oversupply in Kuala Lumpur, Malaysia. Final Year Project (Bachelor), Tunku Abdul Rahman University College.

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Abstract

Property overhang in Malaysia has become a significant concern as it has increased year after year. Property overhang is a key source of concern, and it is weighing on the Malaysian property market. Many developers improve property sales by introducing a variety of new projects, even though they only have slow-moving inventory and ongoing projects. The purpose of this research is to investigate the factors influencing the consumers’ intention to purchase a residential property and the effectiveness of different schemes implemented to reduce the issue of oversupply of housing in Kuala Lumpur, Malaysia. Primary data is adopted for this research to fulfil the two objectives. Meanwhile, a questionnaire survey was designed to collect data from respondents using a quantitative method. The data was gathered via a Google Form that was distributed to residents in Kuala Lumpur, Malaysia. Based on the research findings, it shown housing price and location of housing are the most important factors when purchaser would like to purchase a residential property. Besides that, the Home Ownership Campaign (HOC) is the most supported scheme that effectively solving housing oversupply problems in Kuala Lumpur, Malaysia. The housing developer benefits from the first objective of this research. Housing developers would be more aware of purchasers' concerns, allowing them to develop in accordance with market demand rather than continuing to construct residential properties that do not appeal to homeowners' desires. This may be a direct solution to the housing oversupply problem. Apart from that, the government's proposed housing schemes to address housing oversupply concerns, except for the Home Ownership Campaign (HOC), do not work to mitigate the problems of housing oversupply in Kuala Lumpur, Malaysia effectively. Government should realize on this matter to propose schemes that can solve the problems effectively.