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Article
Publication date: 27 July 2018

Syed Putra Syed Abu Bakar and Mastura Jaafar

The purpose of this paper is to examine the effects of land banking strategy and market analysis towards the performance of Malaysian housing developers.

Abstract

Purpose

The purpose of this paper is to examine the effects of land banking strategy and market analysis towards the performance of Malaysian housing developers.

Design/methodology/approach

Through in-depth interviews, participants shared their opinions on success factors of housing development firms with a focus on land banking and market study. Content analysis was performed on the data, identifying the connection between both strategies and their superior performance.

Findings

The study presents interesting findings in that it lends support to the existing literature as such land banking and market analysis do affect the business competitiveness of housing developers. Albeit subjective in nature, the comments received from respondents are revelatory and have implications for the level of performance perceived by the organisations, as well as the experience of housing entrepreneurs in assembling the land bank and gauging the housing market.

Practical implications

Though not a substitute for quantitative problem solving, this piece of work serves as a corroborative evidence to improve the satisfaction of homebuyers, industry players and policymakers. The paper ends by recommending that the study be repeated in Malaysia, this time with the involvement of other stakeholders, to enrich the findings.

Originality/value

To the best of authors’ knowledge, this is the first research performed in the Malaysian context in which the strategies of private housing developers comprising land banking and market analysis were explored in relation to business success. Hence, the present study not only contributes to the existing property literature, but also makes an important contribution to the business performance and firm competitiveness in the lens of Malaysian entrepreneurs.

Details

Property Management, vol. 36 no. 5
Type: Research Article
ISSN: 0263-7472

Keywords

Article
Publication date: 4 September 2019

Syed Putra Syed Abu Bakar, Mastura Jaafar and Masitah Muhibudin

The purpose of this paper is to investigate the impacts of entrepreneurial learning on the performance of Malaysian private housing developers. Although the extant literature on…

Abstract

Purpose

The purpose of this paper is to investigate the impacts of entrepreneurial learning on the performance of Malaysian private housing developers. Although the extant literature on learning epistemology is quite voluminous, the focus within the housing entrepreneurship remains limited. With this lacuna, the investigation on the perceptions of learning propensity among residential developers is deemed timely.

Design/methodology/approach

Using snowball sampling, interviews were conducted with ten perceived successful private housing developers in Malaysia to understand the antecedents and consequences of entrepreneurial learning in steering their business toward excellence.

Findings

The research outcomes revealed that all the interviewed respondents concurred with the importance of entrepreneurial learning within the organization to strive for business success. The interviewed housing developers highlighted the significance of learning interest in their daily works to achieve business competitiveness and gain competitive edge against rivals. Through continuous learning, positive ideas and ethos could be instilled within the uncertain business environment.

Research limitations/implications

From an empirical standpoint, the sample was limited to private housing developers in one country. This limits the scope of generalization. Further studies, comparing between public and private developers in multiple contexts should be undertaken. Besides that, the research is based on a relatively small sample of ten respondents and the use of snowball sampling may have meant that the respondents would only tend to present a particular view of the industry.

Practical implications

The results raise interesting impacts on business success for scholars and entrepreneurs to ponder upon. The research contributes new knowledge about the effects of entrepreneurial learning toward the competitiveness of housing developers, by looking at the whole aspects of development process. A better understanding on how business knowledge could be retrieved from the perspectives of Malaysian housing developers is posited to be pragmatically employed.

Originality/value

Concomitantly with the above proposition, the study offers a novel insight into learning capabilities of Malaysian private housing developers that may be useful for global references. Understanding firm’s resources and capabilities is emergent that warrants further clarifications on entrepreneurial learning within housing development firms. The paper successfully illuminates comprehensive issues that have responded to this shortfall.

Details

Journal of Engineering, Design and Technology , vol. 18 no. 1
Type: Research Article
ISSN: 1726-0531

Keywords

Article
Publication date: 26 May 2020

Hassanudin Mohd Thas Thaker and Mohamed Ariff

This study aims to explore the issue of residential price in Malaysia from a supply-side perspective. The views are directly obtained from medium and small-scale developers in…

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Abstract

Purpose

This study aims to explore the issue of residential price in Malaysia from a supply-side perspective. The views are directly obtained from medium and small-scale developers in Malaysia.

Design/methodology/approach

We used the semi-structured interview for analysis purpose. The samples are from property developers (medium and small-scale developers) and a single respondent from the Malaysian National House Buyers Association. We used the judgmental sampling method to choose respondents for this study. The interview results went through content analysis in order to derive common themes, resulting in the identification of four main themes.

Findings

First, developers view that the residential market is growing at a good pace, albeit slowly. However, the issue of unaffordability and construction costs remains to haunt the progress of property development in Malaysia. Second, from supply-side perspectives, there are several main reasons why the residential prices in Malaysia are uncontrollable: (1) costs of construction, (2) taxes, (3) existing units, (4) location and (5) urbanization. The third theme is the government support in catering to the needs and wants of middle- and lower-income earners. Most respondents agreed that the government has been providing low-cost houses supported by various incentives. Finally, on price control strategies for residential units, recommended suggestions are as follow: embracing different methods of construction styles, promote the uses of local materials instead of relying on imported materials, continuously review rules and regulations, provide more incentives and to build partnerships between the government and private companies on affordable housing projects.

Practical implications

The research is expected to present solid findings and claimsseveral significant contributions, especially policy-wise. We believe this contribution will enrich the existing literature on residential market. The present study is also predicted to produce noteworthy findings to all stakeholders in the real-estate industry, such as potential home buyers and existing house owners to housing developers, marketers and government policy regulators, as well as academic institutions.

Originality/value

This study is expected to enrich the existing literature available in the context of real-estate finance such as property price and property policy in emerging economies like Malaysia. One distinguishing factor which differentiates this study from others in the literature is the feedbacks obtained from medium and small-scale developers, therefore deemed to be more solid and reliable. The current research in real-estate finance is mainly focused on empirical analysis and we believe this study will offer a breakthrough view on the matter of residential market in Malaysia.

Details

Property Management, vol. 38 no. 4
Type: Research Article
ISSN: 0263-7472

Keywords

Article
Publication date: 15 May 2018

Jeffrey Boon Hui Yap and Xin Hua Ng

The purpose of this paper is to explore the affordability of Malaysian housing market, sufficiency of affordable housing and factors influencing the housing affordability in…

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Abstract

Purpose

The purpose of this paper is to explore the affordability of Malaysian housing market, sufficiency of affordable housing and factors influencing the housing affordability in Malaysia.

Design/methodology/approach

In this study, qualitative research approach was adopted. Semi-structured interviews were conducted with ten industry practitioners from developers and real estate agencies and further validation with three industry experts.

Findings

The findings reveal that housing affordability is a grave concern to average Malaysians, and the supply of affordable housing is insufficient in the current residential property market. Income, property price, land cost and demand and supply are identified as significant factors affecting housing affordability.

Research limitations/implications

The research findings provide an insight rather than definitive information, as the small sample size could limit the generalizability of the findings. Future research can include participants from the public sector and focus on the policy options.

Practical implications

This paper provided numerous policies to ensure successful deliverability of affordable housing which eases government to partner with private sector to formulate a systematic framework for implementation of affordable housing programs and schemes.

Social implications

There is a need for government to pay more attention to housing needs of middle-income groups. Also, the government is urged to ensure transparent balloting process in every implementation of affordable housing programs.

Originality/value

The paper emphasised the issues of undersupply of affordable housing and mismatch of property price and income. The paper also highlights the key reasons behind high housing affordability index. Hence, it is hoped that this paper will encourage positive debate and gain some attention from the policymakers, practitioners and researchers in Malaysia and beyond.

Details

International Journal of Housing Markets and Analysis, vol. 11 no. 3
Type: Research Article
ISSN: 1753-8270

Keywords

Article
Publication date: 25 February 2014

Chyi Lin Lee

This study aims to extend the current literature by examining the inflation-hedging effectiveness of Malaysian residential property in the short run and long run. Malaysia is an…

1999

Abstract

Purpose

This study aims to extend the current literature by examining the inflation-hedging effectiveness of Malaysian residential property in the short run and long run. Malaysia is an emerging market and has some unique characteristics. Therefore, a dedicated study in this market is critical.

Design/methodology/approach

The analysis of this study involves two stages. The first stage is to estimate the inflation-hedging ability of Malaysian residential property in the short run. The Fama and Schwert model was employed. Thereafter, the long-run inflation-hedging effectiveness was assessed by using a dynamic ordinary least squares (DOLS) model.

Findings

The Fama and Schwert tests reveal that Malaysian residential property does provide some satisfactory hedge against the expected inflation component over the short run. However, variations are evident among different types of residential property. The DOLS results provide strong evidence to support that housing is an effective hedge against the expected inflation in the long run, whereas no comparable evidence is found for the unexpected inflation component.

Practical implications

The findings enable more informed and practical investment decision-making regarding the role of housing in inflation risk management.

Originality/value

This paper is the first study to offer empirical evidence of the inflation-hedging attributes of Malaysian residential property. Moreover, the inflation-hedging effectiveness of different types of residential property is also compared for the first time.

Details

International Journal of Housing Markets and Analysis, vol. 7 no. 1
Type: Research Article
ISSN: 1753-8270

Keywords

Article
Publication date: 18 January 2024

Nor Nazihah Chuweni, Nurul Sahida Fauzi, Asmma Che Kasim, Sekar Mayangsari and Nurhastuty Kesumo Wardhani

Sustainability represents innovative elements in determining the profitability of real estate investments, among other factors, including the green component in real estate…

Abstract

Purpose

Sustainability represents innovative elements in determining the profitability of real estate investments, among other factors, including the green component in real estate. Evidence from the literature has pointed out that incorporating green features into residential buildings can reduce operational costs and increase the building’s value. Although green real estate is considered the future trend of choice, it is still being determined whether prospective buyers are willing to accept the extra cost of green residential investment. Therefore, this study aims to investigate the effect of housing attributes and green certification on residential real estate prices.

Design/methodology/approach

The impact of the housing attribute and green certification in the residential sectors was assessed using a transaction data set comprising approximately 861 residential units sold in Selangor, Malaysia, between 2014 and 2022. Linear and quantile regression were used in this study by using SPSS software for a robust result.

Findings

The findings indicate that the market price of residential properties in Malaysia is influenced by housing attributes, transaction types and Green Building Index certification. The empirical evidence from this study suggests that green certification significantly affects the sales price of residential properties in Malaysia. The findings of this research will help investors identify measurable factors that affect the transaction prices of green-certified residential real estate. These identifications will facilitate the development of strategic plans aimed at achieving sustainable rates of return in the sustainable residential real estate market.

Practical implications

Specifically, this research will contribute to achieving area 4 of the 11th Malaysia Plan, which pertains to pursuing green growth for sustainability and resilience. This will be achieved by enhancing awareness among investors and homebuyers regarding the importance of green residential buildings in contributing to the environment, the economy and society.

Originality/value

The regression model for housing attributes and green certification on house price developed in this study could offer valuable benefits to support and advance Malaysia in realising its medium and long-term goals for green technology.

Details

International Journal of Housing Markets and Analysis, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1753-8270

Keywords

Article
Publication date: 10 April 2019

Jeffrey Boon Hui Yap, Chin Weng Tan, Siaw Chuing Loo and Wah Peng Lee

The purpose of this paper is to determine the significance of branding management by property developers in the Malaysian housing market and to examine the pivotal brand identity…

Abstract

Purpose

The purpose of this paper is to determine the significance of branding management by property developers in the Malaysian housing market and to examine the pivotal brand identity traits of property developers.

Design/methodology/approach

An explanatory sequential mixed-methods research approach was adopted. The quantitative data from the questionnaire survey were subjected to descriptive statistics, and the ranking with category of significance of the hypothesised branding traits was determined using relative importance index technique. The findings were further validated through semi-structured interviews with five experienced industry practitioners.

Findings

Results showed that the extremely significant (ES) branding identities are value for future investment and location, while the very significant (VS) traits are quality assurance, near to supporting infrastructure, reliability, professionalism, experience, warranties and technical ability. Industry experts affirmed the prospect of exploiting branding in enticing property buyers.

Research limitations/implications

It is reasonable to infer that good branding positively stimulates buyer’s decision-making on purchasing residential property. This study attempts to discover the critical brand identity traits for property developers apt in the context of Malaysian housing market.

Practical implications

Apart from the archetypal locational and financial factors, the findings suggested that top developers should emphasise innovative family-oriented design with an acceptable level of quality score for brand differentiation to further enhance the future value of their end products.

Originality/value

The efficacy of brand management in the housing market has not yet been fully explored in research. This paper is expected to offer more profound insights into the strategic brand management towards “branded” property developers in the context of Malaysia and perhaps other countries with comparable backgrounds.

Details

International Journal of Housing Markets and Analysis, vol. 12 no. 4
Type: Research Article
ISSN: 1753-8270

Keywords

Article
Publication date: 8 October 2018

Wee-Lee Tan and Yen-Nee Goh

This study aims to investigate the role of psychological factor affecting Malaysian consumers’ purchase intention towards green residential buildings and to examine whether the…

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Abstract

Purpose

This study aims to investigate the role of psychological factor affecting Malaysian consumers’ purchase intention towards green residential buildings and to examine whether the purchase intention affects their willingness to pay for such buildings.

Design/methodology/approach

In general, a total of 304 respondents participated in the survey of this study and they are from three states in Malaysia, namely, Penang, Selangor and Johor. The Statistical Package for the Social Sciences (SPSS) and partial least square structural equation modelling (PLS-SEM) analyses were performed on the latent variables.

Findings

This study concludes that the main factors influencing consumer purchase intention towards green residential buildings include the attitude towards green residential buildings, the perceived moral obligation, the environmental concern, the perceived value, the perceived self-identity and the financial risk. These do not include subjective norms, perceived behavioural control, performance risk and psychological risk. Subsequently, the purchase intention was found to be an essential predictor of consumers’ willingness to pay for a green home in a green residential building.

Research limitations/implications

Psychological factors are noteworthy determinants in assessing consumer purchase intention toward green residential building in Malaysia.

Originality/value

Going green has become prevalent among Malaysian households, and it should be embraced for promoting green living such as purchasing a green home. This study is expected to provide insights to property developers in designing their marketing and promotion strategies. As for the government sector, the findings are important in view of the recent government blueprint focused on building a sustainable city in near future.

Details

International Journal of Housing Markets and Analysis, vol. 11 no. 5
Type: Research Article
ISSN: 1753-8270

Keywords

Article
Publication date: 3 October 2016

Hassanudin Mohd Thas Thaker and K. Chandra Sakaran

This study aims to explicitly explore the criteria or attributes that would influence buyer decision on purchasing residential property in Malaysia.

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Abstract

Purpose

This study aims to explicitly explore the criteria or attributes that would influence buyer decision on purchasing residential property in Malaysia.

Design/methodology/approach

Generally, a total of 80 respondents participated in this study, and they hail from two states in Malaysia, namely, Kuala Lumpur and Selangor. This study has structured the respondents’ demographic profiles into different categories such as gender, age, marital status, race, education, type of buyer and income level. For the purpose of analysis, this study has incorporated a versatile fuzzy approach known as the analytic hierarchy process to fulfil the objective of study. From the previous literatures, the extracted variables consist of home amenities, location, pricing, developer, financing, structural factor and community amenities.

Findings

The results from priority vector indicate that buyers give higher rank to the pricing (0.2330) criteria as the most influencing factor in buying residential property, followed by other criteria such as community amenities (0.1450), location (0.1430), financing (0.1420), structural factor (0.1260), home amenities (0.1060) and developer (0.1040) in Kuala Lumpur and Selangor. In addition, the consistency index of 0.00384, which is lower than 0.10 (rule of thumb), postulates that the respondents clearly understood the question requirements and there is no inconsistency involved in the result.

Research limitations/implications

This study attempts to discover how all those seven elements influence buyer decision on purchasing residential property. The results indicate that the outcome seems to be reliable and justifiable with the current period in the context of Malaysia housing sector.

Originality/value

This study is expected to provide more insights into the consistency of attributes that influence the purchase of residential property in the context of Malaysia. The points highlighted in this study are expected to benefit various parties such as potential home buyers, housing developers, marketers and government policy regulators, as well as academic institutions, to design a better policy or blueprint that can enhance the development of the housing sector in Malaysia.

Details

International Journal of Housing Markets and Analysis, vol. 9 no. 4
Type: Research Article
ISSN: 1753-8270

Keywords

Article
Publication date: 28 August 2019

Amy Soon and Consilz Tan

This paper aims to investigate the housing preference and housing affordability in Malaysian housing markets. There is a lack of research on the gap between supply and demand of…

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Abstract

Purpose

This paper aims to investigate the housing preference and housing affordability in Malaysian housing markets. There is a lack of research on the gap between supply and demand of houses in this market. Urbanization has increased the demand of houses in urban areas. However, the high demand in residential units increases the housing price which causes the affordability level dropped. Besides, the residences that provided by developers do not meet the expectation of the home buyers. There are three attributes that examined in this research to understand the home buyers’ preference.

Design/methodology/approach

This paper provides quantitative analysis on the housing affordability and the home buyers’ preference. This paper presents the results on the home buyers’ housing affordability and buying preference on houses. In addition, the study further confirmed the significant relationship between monthly income and type of preferred house, as well as monthly income and range of housing affordability using cross-tabulation analysis.

Findings

The findings indicated that the housing price in the current market is not affordable by most of the homebuyers and there are certain attributes that important to home buyers which should not be neglected.

Research limitations/implications

This paper helps to shed light on the planning of Malaysian housing policy especially on the issue of providing affordable housing in urban areas.

Practical implications

Policymakers shall consider the elements of economics, social acceptance and feasibility of Malaysian housing policies to achieve sustainability in Malaysian housing markets. With the current government’s move to promote housing affordability amongst B40 income groups, local government and housing developers should work together in addressing housing demand in accordance to states and ensure that there is a more targeted housing policy.

Social implications

With the detailed analysis on the home buyers’ preference, it helps to promote sustainable housing developments in meeting basic housing needs and preference.

Originality/value

This is the first study to examine relationship between Malaysian housing affordability with monthly income and type of preferred house. In the meantime, the housing affordability is compared with mean housing price and type of perceived affordable house. The paper presented homebuyer’s preference in housing for the consideration of government and housing developers in providing affordable housing.

Details

International Journal of Housing Markets and Analysis, vol. 13 no. 3
Type: Research Article
ISSN: 1753-8270

Keywords

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