Factors lead to overhang in affordable housing: A content analysis in qualitative approach

Abstract

Housing issue is one of the key challenges and has its social repercussions if not well managed. The numerous affordable housing programs have been introduced and intended to increase the supply of affordable housing. The programs are meant to alleviate the affordable housing issue in the country. Although the lacking units of affordable housing persists, the slow market trends have also led to an increase in overhang units. The number of property overhang partly in affordable housing units were reported increased continuously year over year and does not attract the target market nor able to cater the housing needs of the targeted house buyers. Industry players were of the opinion that the perceived slow demand in low cost housing units are mainly due to difficulty in securing financing, unsuitable location as well as a shift in demand towards better quality projects and other factors. The purpose of this study is to identify the current overhang scenario in affordable housing and factors that lead to the issues. There is a need to have an in-depth study in addressing the issues. Otherwise, the overhang will exert pressure on prices and rental in the market and gives impact in near future.

Can Malaysia’s National Affordable Housing Policy Guarantee Housing Affordability of Low-Income Households?

“…Usually, the dwelling conditions such as housing size and facilities do not meet the national housing standards, consequently affecting the quality of life of residents. Unsold housing is also caused by the large concentration of lowincome groups, the poor management of building facilities, and inadequate maintenance, resulting in poor living environments [68]. Hence, to effectively rehabilitate the abandoned or vacant housing, affordable housing should be redesigned and rehabilitated in line with the market demand, and facilities and services should be strengthened, thereby ensuring a better quality of life for residents, and improving the quality of their living environment.…”

Modelling Property Overhang Using Stigmatised Property Dimensions

“…In addition, there is structural stigma, also known as institutional stigma. Developers' reputations are vital in attracting buyers (Rahim et al, 2019). Potential house buyers are a variety of developers with poor track records in delivering properties on schedule and new launches at higher prices than nearby similar properties (Rahim et al, 2019).…”

“…Developers' reputations are vital in attracting buyers (Rahim et al, 2019). Potential house buyers are a variety of developers with poor track records in delivering properties on schedule and new launches at higher prices than nearby similar properties (Rahim et al, 2019). Another institution is a local authority responsible for the planning permission approval on an area of development (Said et al, 2017).…”

A Survey on Homebuyers Behaviour towards the Housing Market in Klang Valley

“…In Malaysia, housing price in the current market is not affordable by most of the homebuyers and there are several significant attributes that are important to home buyers which should not be neglected [4]. The housing market's imperfection, which is exacerbated by various external factors such unethical speculation by developers, has contributed to the market failure for affordable homes [5]. Any variations in the housing market including house price volatility are important components of the overall economy and the welfare of the society [6].…”