Housing Affordability of Middle Income Households in Kuala Lumpur
Keywords:
middle income, housing affordability, housing price
Abstract
The housing price in Kuala Lumpur is more expensive than other areas in Malaysia. The mismatch between demand and supply is not due to lack of supply, but the constraint is on the supply of housing that can be accessed especially by the middle income households. Apart from housing price and household income, housing type is also a crucial factor that directly influences housing affordability in Kuala Lumpur. Terraced and high-rise houses are favoured and within affordable means of the middle income groups. Analysis of the housing price index for these two types in Kuala Lumpur plotted against Malaysia Housing Price Index (MHPI) from 2000 to 2016 portrayed that both exceeded the rate of MHPI with a higher value and sharper gradient in the terraced house index, signifying rapid increment in their values. Detail analysis was also carried out on these two types using Price to Income ratio method to calculate housing affordability. Kuala Lumpur seems to fall into the seriously to severely unaffordable household category at Price-Income ratios of 4.27 to 6.76 for terraced and high- rise, respectively.
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References
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Zainon, N., Mohd-Rahim, F.A., Sulaiman, S., Abd-Karim, S.B. and Hamzah, A. (2017) Factors Affecting the Demand of Affordable Housing among the Middle-Income Groups in Klang Valley Malaysia. Journal of Design and Built Environment, Special Issue 2017, 1-10.
Zairul, M.N. (2017) flexZhouse: New business model for affordable housing in Malaysia. PhD thesis Delft University of Technology. ISBN 978-94-92516-398
Zyed, Z.S., Aziz, W.N.A. and Hanif, N.R. (2016) Housing affordability problems among youth households. Journal of Surveying, Construction and Property, 7(1), 1-18
Baqutayan, S.M.S. (2016). Is affordable housing an Issue? A case study of housing stress among middle-income group in Malaysia. International and Multidisciplinary Journal of Social Sciences, 5(1), 26-50. doi: 10.17583/rimcis.2016.1871
BNM (2015) Assessing Demand-Supply Conditions in the Malaysian Property Market. Annual Report Bank Negara Malaysia 2015, 33-43. https://www.bnm.gov.my/files/publication/ar/en/2015/cp01_002_box.pdf
Bujang, A.A., Jiram, W.R.A., Abu Zarin, H. and Md Anuar, F.H. (2015) Measuring the Gen Y housing affordability problem. International Journal of Trade, Economics and Finance, 6(1), 22-26
Chiali, K. C., & Choon, A., (2014). People’s perception of affordable housing. Retrieved from: http://www.starproperty.my/index.php/articles/property-news/peoples-perception-of-affordable-housing/
Chong, P.K. (2017) Here's Why Malaysians Can't Afford a House. https://www.bloomberg.com/news/articles/2018-02-11/traders-brace-for-more-turmoil-after-recent-rout-markets-wrap
DOSM (2017) Employment and Salaries & Wages Statistics 2016. Department of Statistics Malaysia. www.dosm.gov.my
DOSM (2017a) Report on household expenditure survey 2016. Department of Statistics Malaysia, October 2017. www.dosm.gov.my
EPU (2015), Strategic Paper 6: Providing Adequate and Quality Affordable House Economic Planning Unit, Prime Minister’s Department, Putrajaya, Malaysia.
EPU (2016). Eleventh Malaysia Plan. Economic Planning UnitJobstreet, 2017; KRI, 2015;
Gabriel, M., Jacobs,K., Arthurson, K., Burke, T. and Yates, J. (2005) Conceptualising and measuring the housing affordability problem. Australian Housing and Urban Research Institute (AHURI). ISBN: 1902941762
Joice, P. (2014) Measuring Housing Affordability. Cityscape Vol. 16, No. 1, Housing, Contexts, and the Well-Being of Children and Youth (2014), pp. 299-308
KRI (2015) Making housing affordable, Khazanah Research Institute. ISBN 978-967-12929-2-1. http://www.krinstitute.org/assets/contentMS/img/template/editor/_FINAL_Full_Draft__KRI_-_Making_Housing_Affordable__with_hyperlink__220815%20(1).pdf
Ling, C.S. and Almeida, S.J (2017) Demystifying the Affordable Housing Issue in Malaysia in Central Bank of Malaysia Annual Report 2016, pp90-99.
Md Sani, N. (2015) Price to Income Ratio Approach in Housing Affordability. Journal of Economics, Business and Management, 3(12), 1190-1193
Md Sani, N. and Rahim, A. (2012) Affordable housing in Kuala Lumpur, Malaysia. International Journal of Academic Research, 4(3), 75-82
Md Yusof, A., Saar, C.C and Johan, J. (2014). An analysis of housing affordability among potential house buyers in the city of Kuala Lumpur. Proceedings of the 19th International Symposium on Advancement of Construction Management and Real Estate, 547-555.
Meen, G. (2018) How should housing affordability be measured? The UK Collaborative Centre for Housing Evidence. http://housingevidence.ac.uk/wp-content/uploads/2018/09/R2018_02_01_How_to_measure_affordability.pdf
Mohd Lizam, Afiqah, N., Omar, A.J. and Burhan, B. (2014) Comparison of empirical models in Malaysia House Price Index Construction. 20 th Annual Pacific RIM Real Estate Society Conference, Christchurch, New Zealand, 19-22 January 2014.
Payscale (2018) https://www.payscale.com/research/MY
Rameli, N., Salleh,D. and Ismail, M. (2016) Homeownership Affordability: An Analysis of Socioeconomic Factors. Research on Humanities and Social Sciences, 6 (6), 56-59
Ramlan, H. and Zahari,E.E. (2016) Review the Issue Of Housing among Urban Dwellers in Malaysia with Special Reference towards Affordability to Home Ownership. Procedia Economics and Finance, 35 (2016), 216 – 223
Rangel, G.R., Ng, J.W.J, Murugasu, M.T and Poon, W.C. (2017) A Micro-level View of Housing Affordability in Malaysia Using an Age Cohort-housing Type Analysis. doi:10.2139/ssrn.3080212
Suhaida, M.S., Tawil, N.M., Hamzah, N., Che-Ani, A.I. Basri, H. and Yuzainee, M.Y. (2011) Housing Affordability: A Conceptual Overview for House Price Index. The 2nd International Building Control Conference 2011. Procedia Engineering 20 (2011) 346 – 353. Elsevier
Tan, Y.K. (2011) An Hedonic Model for House Prices in Malaysia. International Real Estate Society Conference, 15(1),12-15.
Wan Aziz, W.N.A., Hanif, N.R. and Singaravello, K. (2010) A study on affordable housing within the middle income households in the major cities and towns in Malaysia. Retrieved March 30, 2015 from:http://www.inspen.gov.my/inspen/v2/wp-content/uploads/2009/08/Affordable-housing.pdf
Zainon, N., Mohd-Rahim, F.A., Sulaiman, S., Abd-Karim, S.B. and Hamzah, A. (2017) Factors Affecting the Demand of Affordable Housing among the Middle-Income Groups in Klang Valley Malaysia. Journal of Design and Built Environment, Special Issue 2017, 1-10.
Zairul, M.N. (2017) flexZhouse: New business model for affordable housing in Malaysia. PhD thesis Delft University of Technology. ISBN 978-94-92516-398
Zyed, Z.S., Aziz, W.N.A. and Hanif, N.R. (2016) Housing affordability problems among youth households. Journal of Surveying, Construction and Property, 7(1), 1-18
Published
2019-07-14
How to Cite
Che Hassan, I. M., Abdul Aziz, F., Abu Bakar, N. A. and Ahmad, N. (2019) “Housing Affordability of Middle Income Households in Kuala Lumpur”, Malaysian Journal of Social Sciences and Humanities (MJSSH), 4(3), pp. 185 - 191. doi: 10.47405/mjssh.v4i3.223.
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