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Determinants of homeownership in Malaysia

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  • Tan, Teck Hong

Abstract

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.

Suggested Citation

  • Tan, Teck Hong, 2008. "Determinants of homeownership in Malaysia," MPRA Paper 34950, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:34950
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    References listed on IDEAS

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    Cited by:

    1. Megat Mohd Ghaza Rahman & Maryanti Mohd Raid & Asmma' Che Kasim & Khadijah Hussin, 2015. "Impact Of Indoor Environmental Quality And Innovation Features On Residential Property Price And Rent In Malaysia: A Review," ERES eres2015_133, European Real Estate Society (ERES).
    2. Teck Hong Tan, 2022. "Perceived Environmental Attributes: Their Impact on Older Adults’ Mental Health in Malaysia," IJERPH, MDPI, vol. 19(6), pages 1-13, March.
    3. Tan, Teck Hong, 2011. "Measuring the willingness to pay for houses in a sustainable neighborhood," MPRA Paper 30446, University Library of Munich, Germany.
    4. Salleh, Alia, 2023. "Does the culture of property normalise eviction and demolition? The case of Kampung Sungai Baru, Kuala Lumpur," LSE Research Online Documents on Economics 118023, London School of Economics and Political Science, LSE Library.
    5. Tan, Teck Hong & Khong, Kok Wei, 2012. "The Link between Homeownership Motivation and Housing Satisfaction," MPRA Paper 46890, University Library of Munich, Germany.
    6. Aizawa, Toshiaki & Helble, Matthias, 2016. "Determinants of Tenure Choice in Japan: What Makes You a Homeowner?," ADBI Working Papers 625, Asian Development Bank Institute.
    7. Teck-Hong Tan, 2014. "Satisfaction and Motivation of Homeowners Towards Green Homes," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 116(3), pages 869-885, May.

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    More about this item

    Keywords

    Homeownership; Homeownership Externalities; Malaysia;
    All these keywords.

    JEL classification:

    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand

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