Factors affecting the housing preferences of homebuyers in Kuala Lumpur

Abstract

The Malaysian Property Market Report 2016 reported that Malaysian properties transactions were down, office occupancies were down, and simultaneously unsold units were up. Almost two thirds of the total homes that developers launched remained unsold, comprising 90,491 units at the end of 2016 including of those completed, under construction, and not constructed. In recent years, the declining phenomenon in the property market is getting worse apparently. The reason behind this situation is mainly due to the rising cost of living which causes the purchasing power to be weakened; therefore, to buy a property or even goods for daily use has become difficult as the overall spending power of the Malaysians has decreased. Determining the important factors that impact upon the decision making of the house purchasing process could develop a better understanding for both buyers and home providers which eventually could avoid the ‘unsold’ properties scenario in the market. Hence, the objective of this research is to evaluate the relationship between the three main factors identified which are financial, location, and neighbourhood towards the housing preferences of homebuyers in Kuala Lumpur. A total of 100 respondents, ranged between 25 to 34 years old, responded to the survey, and the results were derived using the multiple regression analysis. The results favour the locational factors that contribute significantly to the determination of a buyer’s preferences when purchasing a house.