The relastionship between supply (based on number of Housing unit developed by private sector) and demand (based on population) in Malaysia property market
This is preliminary research which based on secondary data such as Property Market Report, Preliminary Count Report, Malaysian Population Distribution and Demographic Report, Yearbook of Statistic Malaysia and Idaman, the Ministry of Housing and Local Government web site. This initial research is...
| Main Authors: | , |
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| Format: | Conference or Workshop Item |
| Language: | English |
| Published: |
2008
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| Subjects: | |
| Online Access: | http://eprints.usm.my/34527/ http://eprints.usm.my/34527/1/HBP3.pdf |
| Summary: | This is preliminary research which based on secondary data such as Property Market
Report, Preliminary Count Report, Malaysian Population Distribution and Demographic
Report, Yearbook of Statistic Malaysia and Idaman, the Ministry of Housing and Local
Government web site. This initial research is conducted to find the reality of the relationship
between supply and demand in residential property market in several townships in Malaysia.
The point to ponder in this research is to see whether a neo classical theory which the forces
in supply and the law of demand in determining market (Harvey, 1996) is relevant to analyze
the property market in the Malaysian context. Does the neo classical theory which indicates
that when there is a demand, there must be a supply, is relevant? Does the increasing
supply consistent with the increasing demand? The neo classical theory explains that the
market will move to an equilibrium level, whereby the level of the quantity of demand is equal
to the supply. The theory assumes that the markets are able to function perfectly and the
market agents are rational, well informed and constantly strive to maximise their economic
well-being. As the result of this preliminaryl study, the research analysis demonstrated that
there is a reverse relationship between demand and supply in residential property market,
that a supply and a demand may not be directly related. It is not necessary that if there is an
increase in demand, there would also be an increase in supply. Thus, the supply is not
influence by the demand or vice versa. |
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