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Mitigating housing glut: an application to the Malaysian housing market

Chee Yin Yip (Faculty of Business and Finance, Universiti Tunku Abdul Rahman, Kampar, Malaysia)
Abdelhak Senadjki (Faculty of Business and Finance, Universiti Tunku Abdul Rahman, Kampar, Malaysia)
Hui Nee Au Yong (Faculty of Business and Finance, Universiti Tunku Abdul Rahman, Kampar, Malaysia)
Azira Abdul Adzis (School of Economics, Finance and Banking, Universiti Utara Malaysia, Sintok, Malaysia)

International Journal of Housing Markets and Analysis

ISSN: 1753-8270

Article publication date: 29 July 2020

Issue publication date: 23 June 2021

418

Abstract

Purpose

This paper aims to construct a model procedure to mitigate housing glut by using both qualitative and quantitative approach. The model applied in the Malaysian context analyzes the following: information contained in media articles and reports issued by Bank Negara Malaysia (BNM) on the housing market to extract the true picture of the housing glut issue; the relative impact (effectiveness) of housing affordability, housing prices and economic growth in influencing housing glut, and how it can be overcome so that appropriate preferential policies can be taken to mitigate the problem.

Design/methodology/approach

This study uses quarterly data from 2000 to 2017 to conduct economic analysis, economic theory analysis and cointegrating regression, whereas information from media-published housing articles and reports issued by BNM are examined and interpreted to draw the true picture of housing glut.

Findings

The results obtained from quantitative analysis show that housing affordability exerts very mild relative effect (0.0097) negatively on housing glut, whereas economic growth and housing price produce a relatively mild positive impact of (0.020) and (0.022), respectively, conflicting to the common consensus that the two factors have a significant effect on housing glut. Qualitatively, the results of this study show that housing glut seems to be relatively larger for affordable housing, which is contrary to the quantitative results, pointing to the existence of other influencing factors.

Research limitations/implications

There is an imperative need for a third-party survey to gain a comprehensive understanding of the market conditions and buyers’ sentiment and preference.

Originality/value

This study compares both quantitative and qualitative results with expected housing market movements and responses based on conventional wisdom.

Keywords

Acknowledgements

Authors wish to thank the Ministry of Higher Education, Malaysia for the financial support for this study through the FRGS research grant reference FRGS/1/2018/SS03/UTAR/02/5).

Citation

Yip, C.Y., Senadjki, A., Au Yong, H.N. and Abdul Adzis, A. (2021), "Mitigating housing glut: an application to the Malaysian housing market", International Journal of Housing Markets and Analysis, Vol. 14 No. 3, pp. 498-522. https://doi.org/10.1108/IJHMA-04-2020-0037

Publisher

:

Emerald Publishing Limited

Copyright © 2020, Emerald Publishing Limited

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