Neighborhood preferences of house buyers: the case of klang valley, malaysia

This paper attempts to examine the impacts of neighborhood types, as defined by a gated-guarded neighborhood with landscape compound and a freehold tenure neighborhood on residential property values in Klang Valley, Malaysia. A weighted least squares method together with a heteroscedasticity consistent covariance matrix estimator is used to estimate the coefficients of structural, locational, and neighborhood attributes of dwellings on house prices. Results show the gated-guarded neighborhood with landscape compound could increase residential property values by 18.1%. Additionally, the positive perception of a freehold property in the neighborhood could induce a price premium of 23.7%. It is reasonable to believe that neighborhood types play a role in determining residential property values. In order to meet the increasingly affluent and discerning house buyers, developers instead of just offering dream homes in prime locations, they should provide intangible benefits in the neighborhood that just as sought after by today’s house buyers, such as a sense of security in the landscape compound, a feeling of harmony with one’s surroundings, and an infrastructure which supports the lifestyle of house buyers.Neighborhood types, Property prices, Klang Valley, Malaysia

Determinants of homeownership in Malaysia

The housing industry is crucial to the sustainable development in Malaysia. The efficiency and effectiveness of the housing delivery system requires housing provision for all. The housing industry, which had grown rapidly in the 1980s encountered property oversupply recently. The majority of these units remain unsold for reasons beyond price factor, ranging from poor location to unattractive houses. The main objective of this paper is to tackle property oversupply in the country by examining a detailed knowledge of home owning determinants. Homeownership should be encouraged as positive externalities of homeownership can be found in many housing surveys. Homeownership is a complex issue that is the result of many determinants, including housing characteristics (house types and property types), employment and income trends, socio-cultural and demographic descriptors. In addition to determinants, efforts needed to reduce regulatory barriers in the housing delivery system that can significantly increase the cost of producing houses. The government should make home financing more available and affordable by providing subsidies to low income families and creating incentives to save for homeownership. Efforts also needed to extend opportunities to enhance the affordability of homeownership by liberalizing rules and regulation of Employee Provident Fund (EPF) withdrawal.Homeownership, Homeownership Externalities, Malaysia

BASE LENDING RATE AND HOUSING PRICES: THEIR IMPACTS ON RESIDENTIAL HOUSING ACTIVITIES IN MALAYSIA

The construction sector, which had grown rapidly in the early 1990s, encountered slower grows after the financial crisis. The decline in the construction industry, however, is cushioned by the residential property construction. This paper examines empirically whether the increasing trend in residential property construction is related to changes in base lending rate and house prices. Pooled EGLS model (Cross Section Seemingly Unrelated Regression) is used to analyze the impact of lending rate and housing price upon the trading volume of residential housing activities. The results show base lending rate is the key determinant of residential housing activities. However, changes in housing prices may not necessarily influence residential housing activities in the country when there is a mismatch between current and desired housing for all. In view of the substantial number of housing left unsold, several recommendation and precautionary measures for housing provision should be made before it leads to a property glut. This study is crucial to housing developers and policy makers as any housing decisions not always should be made just on the basis of interest rates and house prices, but should pay more attention to the efficiency and effectiveness of housing delivery system in the country.Residential Housing Activities, Base Lending Rate, Housing Price Index

Home owning motivation in Malaysia

The residential property industry, which had grown rapidly in the 1980s, however, encountered overhang problems recently. Overhang of residential units has been getting worse and therefore, precautionary measures must be taken by the housing developers before it leads to a property glut. In order to address property overhang in the country, housing developers must recognize the importance of orienting their activities to consider how and why households are motivated to home owning. Factor analysis of the 25 questions was used to support the grouping of these questions into a smaller number of factors. Factors were used as constructs of the motivation of homeownership. The results conclude that Malaysian householders are motivated to become homeowners because they expect home owning will improve the home environment in which a child lives, improve neighborhood stability through higher properties maintenance and improvement, and longer tenure, and improve social capital and local amenities investments in the neighborhood. The motivation of home owning is crucial to housing developers as they have to be cautious before undertaking any new project. Housing developers should know what the market really wants and plan their products to take cognizance of the changing lifestyles of MalaysiansMotivation, Property overhang, Home owning, Housing provision, Malaysia

Determinants of homeownership in Malaysia

The housing industry is crucial to the sustainable development in Malaysia. The efficiency and effectiveness of the housing delivery system requires housing provision for all. The housing industry, which had grown rapidly in the 1980s encountered property oversupply recently. The majority of these units remain unsold for reasons beyond price factor, ranging from poor location to unattractive houses. The main objective of this paper is to tackle property oversupply in the country by examining a detailed knowledge of home owning determinants. Homeownership should be encouraged as positive externalities of homeownership can be found in many housing surveys. Homeownership is a complex issue that is the result of many determinants, including housing characteristics (house types and property types), employment and income trends, socio-cultural and demographic descriptors. In addition to determinants, efforts needed to reduce regulatory barriers in the housing delivery system that can significantly increase the cost of producing houses. The government should make home financing more available and affordable by providing subsidies to low income families and creating incentives to save for homeownership. Efforts also needed to extend opportunities to enhance the affordability of homeownership by liberalizing rules and regulation of Employee Provident Fund (EPF) withdrawal.Homeownership, Homeownership Externalities, Malaysia

Herzberg's motivation-hygiene theory and job satisfaction in the malaysian retail sector: the mediating effect of love of money

This paper examines what motivates employees in the retail industry, and examines their level of job satisfaction, using Herzberg's hygiene factors and motivators. In this study, convenience sampling was used to select sales personnel from women's clothing stores in Bandar Sunway shopping mall in the state of Selangor. The results show that hygiene factors were the dominant motivators of sales personnel job satisfaction. Working conditions were the most significant in motivating sales personnel. Recognition was second, followed by company policy and salary. There is a need to delve more deeply into why salespeople place such a high importance on money. Further analysis was performed to assess how much the love of money mediates the relationship between salary and job satisfaction. Based on the general test for mediation, the love of money could explain the relationship between salary and job satisfaction. The main implication of this study is that sales personnel who value money highly are satisfied with their salary and job when they receive a raise.Herzberg's motivation-hygiene; job satisfaction; love of money, mediator, pay satisfaction, retailing, Malaysia

Satisfaction and motivation of homeowners towards green homes

Whilst green homes have been constructed by housing developers in Malaysia, developers should determine how satisfied homeowners are with their green homes. This paper first reviews data from a survey to determine the satisfaction level of homeowners towards their residence in terms of green features in Iskandar Malaysia. Next, factor analysis is carried out to identify benefits that motivate households to own green homes, and then followed by logistic regression analysis to determine the effects of motivators on housing satisfaction. Results show that homeowners are most satisfied with the green features of high ceiling, North–South orientation, double-glazed panel glass doors and windows, solar panel system and landscaped parks with facilities. Rain water harvesting system and low-flow water fixtures, on the other hand, are the least satisfied green features among homeowners. Four motivators are found that describe households’ belief about green homes: ‘Financial Incentives’, ‘Healthy and Sustainable Environment’, ‘Energy Efficiency’ and ‘Livability’. The findings also demonstrated that the extent of housing satisfaction may depend on what motivates homeowners to own green homes. It would seem that house buyers do not just demand a typical house to stay in but also sustainable houses that do not compromise the environment

Predicting homebuyers’ intentions of inhabiting eco-friendly homes: The case of a developing country

Malaysian housing developers are still weighing the costs and benefits of building environmentally sensitive homes as many of them are concerned that there is not enough demand for these homes. The objective of this paper is to examine the relative importance of psychosocial, housing and demographic determinants in influencing intention to inhabit eco-friendly homes. The results indicated that a favorable attitude toward environmentally sensitive homes, high control in the ability to purchase sustainable homes, and the role of identification with green consumerism were statistically significant predictors of intention to inhabit such homes. However, social referents’ opinion relating to green and sustainable homes was not significantly related to the intention of inhabiting. The findings also indicated that owners of gated-guarded and detached dwellings, monthly household income and higher educational attainment were significantly related to the likelihood of residing in eco-friendly homes. Housing developers should have to take the lead to generate awareness of sustainability of green homes through education because increasing awareness creates demand for eco-friendly homes, which would in turn push house buyers to go green

Assessing green home performance: The case study from a developing country

This paper reviews data from a survey to determine the satisfaction level of homeowners towards their residence in terms of green features in Iskandar Malaysia. In this survey, 295 copies of questionnaire forms were being distributed to green home owners and 116 forms were returned. Results show that homeowners are most satisfied with the green features of high ceiling, north-south orientation, double-glazed panel glass doors and windows, solar panel system and landscaped parks with facilities. Rain water harvesting system and low-flow water fixtures, on the other hand, are the least satisfied green features among homeowners. Greater knowledge of green home attributes that influence housing satisfaction could lead to better understanding and prediction of decision making in determining homeowners’ needs

The impact of neighborhood types on the prices of residential properties

This paper attempts to examine the impact of neighborhood types on residential property prices in the Klang Valley, Malaysia. Results show that the gated-guarded landscape compound neighborhood could attract higher market prices by 14.26%, and the freehold neighborhood could fetch a 20.68% higher price than the leasehold neighborhood. It is interesting to note that house buyers are willing to pay 23.52% to live in the gated-guarded and freehold neighborhoods. In order to meet the increasingly demanding house buyers, instead of just offering dram houses in prime locations, housing developers should provide intangible benefits in the neighborhood that are just as sought after by today?s house buyers, such as a sense of security, a feeling of harmony with one?s surroundings, and an infrastructure which supports a eco-friendly lifestyle