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.