Housing affordability of middle income households in Kuala Lumpur

The housing price in Kuala Lumpur is more expensive than other areas in Malaysia. The mismatch between demand and supply is not due to lack of supply, but the constraint is on the supply of housing that can be accessed especially by the middle income households. Apart from housing price and househol...

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Main Authors: Che Hassan, Intan Melati, Abdul Aziz, Faziawati, Abu Bakar, Nor Azlina, Ahmad, Noordin
Format: Article
Language:English
Published: Malaysian Journal of Social Sciences and Humanities (MJSSH) 2019
Online Access:http://psasir.upm.edu.my/id/eprint/80080/
http://psasir.upm.edu.my/id/eprint/80080/1/Housing%20affordability%20of%20middle%20income%20households%20in%20Kuala%20Lumpur.pdf
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author Che Hassan, Intan Melati
Abdul Aziz, Faziawati
Abu Bakar, Nor Azlina
Ahmad, Noordin
author_facet Che Hassan, Intan Melati
Abdul Aziz, Faziawati
Abu Bakar, Nor Azlina
Ahmad, Noordin
author_sort Che Hassan, Intan Melati
building UPM Institutional Repository
collection Online Access
description The housing price in Kuala Lumpur is more expensive than other areas in Malaysia. The mismatch between demand and supply is not due to lack of supply, but the constraint is on the supply of housing that can be accessed especially by the middle income households. Apart from housing price and household income, housing type is also a crucial factor that directly influences housing affordability in Kuala Lumpur. Terraced and high-rise houses are favoured and within affordable means of the middle income groups. Analysis of the housing price index for these two types in Kuala Lumpur plotted against Malaysia Housing Price Index (MHPI) from 2000 to 2016 portrayed that both exceeded the rate of MHPI with a higher value and sharper gradient in the terraced house index, signifying rapid increment in their values. Detail analysis was also carried out on these two types using Price to Income ratio method to calculate housing affordability. Kuala Lumpur seems to fall into the seriously to severely unaffordable household category at Price-Income ratios of 4.27 to 6.76 for terraced and highrise, respectively.
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spelling upm-800802020-09-18T08:57:07Z http://psasir.upm.edu.my/id/eprint/80080/ Housing affordability of middle income households in Kuala Lumpur Che Hassan, Intan Melati Abdul Aziz, Faziawati Abu Bakar, Nor Azlina Ahmad, Noordin The housing price in Kuala Lumpur is more expensive than other areas in Malaysia. The mismatch between demand and supply is not due to lack of supply, but the constraint is on the supply of housing that can be accessed especially by the middle income households. Apart from housing price and household income, housing type is also a crucial factor that directly influences housing affordability in Kuala Lumpur. Terraced and high-rise houses are favoured and within affordable means of the middle income groups. Analysis of the housing price index for these two types in Kuala Lumpur plotted against Malaysia Housing Price Index (MHPI) from 2000 to 2016 portrayed that both exceeded the rate of MHPI with a higher value and sharper gradient in the terraced house index, signifying rapid increment in their values. Detail analysis was also carried out on these two types using Price to Income ratio method to calculate housing affordability. Kuala Lumpur seems to fall into the seriously to severely unaffordable household category at Price-Income ratios of 4.27 to 6.76 for terraced and highrise, respectively. Malaysian Journal of Social Sciences and Humanities (MJSSH) 2019 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/80080/1/Housing%20affordability%20of%20middle%20income%20households%20in%20Kuala%20Lumpur.pdf Che Hassan, Intan Melati and Abdul Aziz, Faziawati and Abu Bakar, Nor Azlina and Ahmad, Noordin (2019) Housing affordability of middle income households in Kuala Lumpur. Malaysian Journal of Social Sciences and Humanities (MJSSH), 4 (3). pp. 185-191. ISSN 2504-8562 https://media.neliti.com/media/publications/322622-housing-affordability-of-middle-income-h-96461572.pdf
spellingShingle Che Hassan, Intan Melati
Abdul Aziz, Faziawati
Abu Bakar, Nor Azlina
Ahmad, Noordin
Housing affordability of middle income households in Kuala Lumpur
title Housing affordability of middle income households in Kuala Lumpur
title_full Housing affordability of middle income households in Kuala Lumpur
title_fullStr Housing affordability of middle income households in Kuala Lumpur
title_full_unstemmed Housing affordability of middle income households in Kuala Lumpur
title_short Housing affordability of middle income households in Kuala Lumpur
title_sort housing affordability of middle income households in kuala lumpur
url http://psasir.upm.edu.my/id/eprint/80080/
http://psasir.upm.edu.my/id/eprint/80080/
http://psasir.upm.edu.my/id/eprint/80080/1/Housing%20affordability%20of%20middle%20income%20households%20in%20Kuala%20Lumpur.pdf