Malaysia Property Auction Market : Public’s Tendency toward Auction Market in Klang Valley

Lau, King Wei (2023) Malaysia Property Auction Market : Public’s Tendency toward Auction Market in Klang Valley. Final Year Project (Bachelor), Tunku Abdul Rahman University College.

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Abstract

Property auction is one of the main alternatives for dispose or selling of real estate in many other foreign countries. In Malaysia, the auction mechanism is specifically used to auction distressed property where the financial institutions recover their defaulted loan from the loan borrower. Comparatively, auction is one of the dominant methods of selling real estate in other countries whereas the auction in Malaysia only dominates a small market and auction properties is not the option for investment due to poor perception and lacking of understanding. Hence, the aim of this research is to explore the current real estate auction practices and further understand the tendency and response of the public towards the auction market in Malaysia. To achieve the aim, the research objectives are established which are to examine the public willingness on the foreign auction market application, to investigate the factors affecting the auction sales and to examine the obstacles to the development of the Malaysia property auction market. The google form survey are distributed and are collected from the respondents who are located in Klang Valley. Quantitative approach is applied. A total of 316 responses are collected analysed by using relative important index and cross-tabulation analysis for objective 1 and 3. Objective 2 is analysed by using RII and descriptive analysis. The findings indicate that property inspection, vendor bid and professional and qualified auctioneers are the most agreed factors that would increase willingness in the auction market. Location, accessibility and Malay reserve auction property are the top prioritised factors that would affect the auction sales. In addition, lacking of public awareness, outdated auction laws, and lacking of professional body of auctioneers are the most important factors that would impede the development of auction market in Malaysia. This research could provide a reference for all the real estate practitioners and the public to have better understanding to the current auction market in Malaysia.