Housing Purchase Decisions of Millennials in Malaysia

Teh, Yi Hui (2023) Housing Purchase Decisions of Millennials in Malaysia. Final Year Project (Bachelor), Tunku Abdul Rahman University College.

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Abstract

House serves as a shelter which is one of the bare necessities for everyone to survive. Nowadays, owning a house is regarded as one of the most significant accomplishments for an individual especially among millennials as it represents their identity and status. However, housing problems in Malaysia such as the ridiculously high cost of housing due to the scarcity of land and rapid growth of economy has contributed to the growth of renting culture among millennials. The purpose of conducting this research is to determine the housing purchase power for different household income groups of millennials. Moreover, this study is also to identify the perceptions of millennials on renting or purchasing a house. The factors affecting millennials in purchasing house is also determined in this research study. Quantitative research method has been applied. The primary data was collected from 218 respondents by using purposive sampling method. The respondents involve in this research are the millennials, which is also known as Generation Y, who were born from 1981 to 1996 in Malaysia. The data collected is analysed by using Microsoft Excel and Statistical Package for the Social Science (SPSS) to evaluate research outcomes. At the end of the research, the findings of frequency distribution have revealed that the purchasing power of millennials for household income groups B40, M40 and T20 are considerably low as most of them are still the tenants or home share instead of owning a house. Besides, it is also discovered that most millennials prefer to buy than to rent in future. The main reason for preferring to buy a house is due to the preference of stability. In contrast, among the millennials who prefer to rent in future is mostly due to the fact that the house price nowadays is unaffordable. Moreover, it is also revealed that the factors of location are the most concern by the millennials during the housing purchase decision making process. In a nutshell, the purpose of this study is to help the millennials to understand what will be the factors that must be considered when making a housing purchase decision whether to rent or to buy according to their household income level. Developers also benefit in identifying the preferences of millennials nowadays to develop the residential properties based on their purchasing power and preferences. This research is also conducted in hopes to provide information about the appropriate requirements for renting or selling a property to the investors