FACTORS AFFECTING HOUSING PRICES IN MALAYSIA

Abstract

Housing prices in Malaysia are greatly influenced by various factors, both internal and external. The increase in housing prices has led to the existence of affordable housings, especially for the middle-class society. However, this “affordable housing” is no longer affordable to most Malaysians due to a sharp rise in house prices. Therefore, this research aims to determine factors affecting housing prices in Malaysia. This research was carried out by using questionnaire surveys with 100 respondents consisting of homebuyers participated in this survey. Factor analysis has been used and all the 46 items. Accordingly, the factor analysis final outcome was five factors, namely; financial assistance, housing performance, housing motivational, housing market and housing policy. The result obtained has proven that the instrument has high reliability and validity. The findings from this research can be used as a guideline for the policymakers, developers, urban planners, contractors and homebuyers in creating strategies to deliver affordable housing prices in the future.