1.

0 INTRODUCTION

1.1 BACKGROUND

A house is the largest single asset of most household. To own a house for shelter and also for
comfort have become one of the important things and become a dream for every individual
especially for the ones who already have their own family. In 2016, Malaysia has a population of
31.7 million and Selangor has the largest population in Malaysia which has 19.9% population
according to the Department of Statistics Malaysia. During period of rapid economic growth, house
price will continue to increase and will eventually make it unaffordable and expensive. According to
The Star newspaper, the average housing completion yearly was 100,000 units relative to the
average annual household formation, which are 140,000. This means that the demand for a house
is very high and therefore the house prices become expensive.

Selangor is conducting highly developing action in living quality and economy. There are increase
in population, migrant and immigrant which pressuring housing demand. In the recent years,
economic development has result in increasing demand for residential housing in Malaysia. Most
people are afraid that they are unable to buy a house with such a high property prices. House price
movement are influenced by population which means that population in Malaysia keep increasing
and people need to buy a house to live in but production of housing is slow due to many laws.
Gross domestic product (GDP) is the popular indicator because of the relationship between
macroeconomic and the housing prices (San Ong, 2013). According to the researcher, terraces
increase when the GDP increase. The other factors are labour force and interest rate. If a large
amount of labour force is involved in construction, the cost of housing will increase.
Hence, this research is to run a public survey in Selangor region on highlighting the factors that
cause the house price. By knowing the factors and also the effect of hike in house prices to the
economy, we can come out with a solution for providing an affordable house price in Selangor and
also can be a reference and guidance in the future.

1.2 STATEMENT PROBLEM

To cope with high cost of living, Malaysians should be cautious in making a purchase especially
involving house purchases. Home is an important asset that every family in Malaysia needs to
have. The issue of home problems in Malaysia is not foreign to this globalization. Although housing
demand in this country is high due to the lack of land, the price of houses has become higher that
are unaffordable for ordinary people especially in Selangor. This is due to the private developers
just focus on building homes most Malaysians cannot afford. The Real Estate and Housing
Developers Association Malaysia showed close to half that is 49 per cent of their new launches for
2016 were those price above RM500,000 compared to 37 per cent of launches in the affordable
segment that is between RM250,000 to RM450,000 (Jaymal, 2016). Malaysian developers and
contractors employed foreign workers for many public works that worked lower than local workers
but home prices were still high and unable to be owned by Malaysian citizens. The rise of materials
cost is also one of the reason that cause the increase in house prices to rise from year to year.
Material price is undeniably the highest financial load in any construction industry. Associated with
rise of material production and processing price, contractors can do nothing besides raising the
selling price of their finished unit. Many houses were newly completed in Selangor, but the house
was unsold due to the price being too high. Most high-rise units around the city and suburbs cost
about RM1 million. There is no tenant and unoccupied for up to three years. The owners try to rent
or sell their units and at the same time the developers are also struggling to sell their unsold units.
These complete unsold units are collectively known as a property overhang (Cheng T.L, 2017).

1.3 OBJECTIVE

 To identify the factors that affect the price of houses.

 To investigate the impact on Selangor society on the increasing of house prices.

 To overcome the rise of houses price in Selangor

1.4 RESEARCH QUESTION

 Why does a highly demand houses can lead to a higher price?
 Why do the developers build houses at unaffordable price?
 Why most of the houses rate depends on the economy?

1.5 LIMITATION OF STUDY

There are several potential limitations in this study, the developers cannot control the hike price of
houses in Selangor. This is because, Selangor is one of state drastically advanced among the
other state in Malaysia. As an example, according to the director of WTW KL through The Star
newspaper he said there will be more township projects in Rawang and Puncak Alam, both are in
Selangor. So the price of property might be high than the others state. Next, the massive growth of
population in Selangor makes the house in Selangor highly in demand. So, the developers make a
decision to hike the house price.
2.0 SIGNIFICANCE OF STUDY

The findings of the study will benefit the Selangor citizen to face the obstacles in the future when
they want to buy a house in Selangor. Firstly, they will get more knowledge and information about
the factors of the rises on price of houses in Selangor. This study also will help them to make a
better future planning to buy a house in Selangor. The finding also will help the developer and the
government sector to get the relevant information to overcome these problems efficiently.
Therefore, the developer and government could act accordingly once they have identified the
problem effectively. The developer also can reduce the quantity of unsold houses around the
Selangor by build affordable price houses for Selangor citizen. According to Thean Lee Cheng,
about 56.5% of the condominium and apartments priced more than RM500000 is in overhang
status or the property is unsold yet.

3.0 SCOPE OF STUDY

• Location: Tasik Shah Alam, AEON Bukit Raja and Subang Parade

• Duration of research: March – June

• Respondent: Selangor citizens

4.0 RESEARCH METHADOLOGY

I. Primary data

▪ Observation/survey

This study will be conducted around the Selangor. There are 50 respondents that we
randomly pick to answer the question according to this topic.

▪ Questionnaire

The questionnaire consists of 28 questions related to the hike in price of houses in

Selangor. Some question is open and some are closed ended. The questionnaire
will be including the factors, impact and some solution to deal with this problem.

II. Secondary data

▪ Internet sources

◦ Websites

◦ Newspaper online

◦ Article
 ◦ Journal

III. Analysis data

5.0 FINDING AND DISCUSSION

5.1 Gender

Table 1: Number of Respondents and their Gender

Gender Frequency Percentage
Male 26 52
Female 24 48

TOTAL 50 100

53
52
52
Percentage (%)

51

50

49
48
48

47

46
Yes No

Figure 5.1: Percentage of Respondent According to Gender

According to figure 5.1, the percentage of respondents according to gender is 52% male and 48%
female.
5.2 Range of Age

Table 5.2: Number of Respondent According to Age

Number of respondent
Range of Age Frequency Percentage
21 - 30 21 42
31 - 40 19 38
41 - 50 7 14
51 and above 3 6
TOTAL 50 100

70
62
60
Percentage (%)

50

40
32
30

20

10 6
0
0
Homeowner Renting Living with Rent with an
others but not option to buy
paying rent
Current housing situation

Figure 5.2: Percentage of Respondent According to Age

According to figure 5.2, the percentage of respondents according to age ranged from 21-30 years
old is 42%, 31-40 years old is 38%, 41-50 years old is 14% and 51 and above is 6%.
5.3 Marital status

Table 5.3: Number of Respondents and their Marital Status.

Frequency Percentage
Married 32 64
Single 18 36
TOTAL 50 100

Figure 5.3: Percentage of Respondents and their Marital Status.

According to figure 5.3, the percentage of respondents according to marital status involved in this
questionnaire survey is 64% is already married and 36% is still single.

5.4 Salary

Table 5.4: Number of Respondent and their Salary

Frequency Percentage

RM2000 and below 14 28

RM2001 - RM5000 23 46

RM5001 - RM10,000 9 18

RM10,001 and above 4 8

TOTAL 50 100
 50 46
45
40

Percentage (%)
35
30 28

25
20 18

15
10 8

5
0
RM2000 and RM2001 - RM5001 - RM10,001 and
below RM5000 RM10,000 above

Figure 5.4: Percentage of Respondents and their Salary

According to figure 5.4, the percentage of respondents according to salary from RM2000 and
below is 28%, RM2001 – RM5000 is 46%, RM5001 – RM10,000 is 18% and RM10,001 and above
is 8%.

5.5 Do you own a house?

Table 5: Number of Respondents and their Response

Frequency Percentage

Yes 26 52

No 24 48

70
60
60
Percentage (%)

50

40

30
20 20
20

10

0
Informal loan Formal loan personal cash

Figure 5.5: Percentage of Respondents and their Response

According to figure 5.5, the percentage of respondents who owns a house is 52% while
respondents who does not have a house is 48%.

5.6. If you own a house, which of the following best describe your current housing
situation?

Table 5.6: Number of Respondents and their Current Housing Situation.

Current housing Frequency Percentage
situation
Homeowner 31 62

Renting 16 32

Living with others but 0 0

not paying rent
Rent with an option to 3 6
buy
TOTAL 50 100

60
50
50
Percentage (%)

40

30
28

20 16

10 6

0
RM 300k and RM 301k – RM 401k – RM 500k and
below RM400k RM 500k above
Price range

Figure 5.6: Percentage of Respondents According to Their Current Housing Situation.

According to figure 5.6, the percentage of respondents according to their current housing situation
for homeowner is 62%, renting 32% and rent with an option to buy is 6%. For Living with others but
not paying rent have 0%.
5.7 If you are a HOMEOWNER (Q6), how did you get the house?

Table 5.7: Number of HOMEOWNER gets the House.

HOMEOWNER
Frequency Percentage
Bought the house 23 74.2
Inherited the house 0 0
Built/constructed house 5 16.1
Government subsidy 3 9.7
TOTAL 31 100

Figure 5.7: Percentage of Homeowner gets the House.

From 50 of our respondents, only 31 in HOMEOWNER category deserve to answer this question.
According to figure 5.7, 74.2% the homeowner gets the house by bought the house, 16.1% the
homeowner gets the house by built or constructed house, 9.7% the homeowner gets the house by
government subsidy and 0% the homeowner gets the house by inherited the house.
5.8 If you BOUGHT THE HOUSE (Q7), where did the majority of the funds come from to
pay for the dwelling?

Table 5.8: Number of Respondents who Bought the House and the way they Pay the
Dwelling.

Frequency Percentage

Informal Loan 0 0

Formal Loan 20 40

Personal Cash 6 12

Others 0 0

TOTAL 26 52

45
40
40

35
Percentage (%)

30

25

20

15 12
10

5
0 0
0
Informal Loan Formal Loan Personal Cash Others

Figure 5.8: Percentage of Respondents who Bought the House and the way they Pay the
Dwelling.

According to figure 5.8, the percentage of majority of the funds come from formal loan to pay for
the dwelling is 40%, for the personal cash is 12% while for the informal loan and others is 0%
respectively. The percentage are based on the respondent who bought the house (from question
7).
5.9 if you BUILD/CONSTRUCTED (Q7), how did you pay to build/construct the dwelling?

Table 9: Number of Respondents who Built/Constructed their Houses and the Way they
Pay the Dwelling.

Frequency Percentage

Informal loan 1 20

Formal loan 3 60

Personal cash 1 20

TOTAL 5 100

70 66

60

50
Percentage (%)

40
34

30

20

10

0
Yes No

Figure 5.9: Percentage of Respondents who Built/Constructed their Houses and the Way
they Pay the Dwelling.

According to figure 5.9, the percentage of respondents who pay their dwelling using informal loan,
formal loan and personal cash are 20%, 60% and 20% respectively.
5.10 What is the price range of your house you living in?

Table 5.10: Number of Respondents and the Price Range of their House.

Frequency Percentage

RM 300k and below 25 50

RM 301k – RM400k 14 28

RM 401k – RM 500k 8 16

RM 500k and above 3 6

TOTAL 50 100

100

90 86

80

70
Percentage(%)

60

50

40

30

20 14
10

0
Yes No

Figure 5.10: Percentage of Respondents and the Price Range of their House

According to figure 5.10, the percentage of respondents according to their price range of house for
RM300k and below is 50%, RM301k-RM400k is 28%, RM401k-RM500k is 16% and RM500k and
above is 6%.
 5.11 Do you think the price of houses nowadays is affordable?

Table 5.11: Number of Respondent and their Thought toward House Price Nowadays.

Frequency Percentage
Yes 6 12
No 44 88
TOTAL 50 100

Figure 5.11: Percentage of Respondent and their Thought toward House Price Nowadays.

According to figure 5.11, the percentage of respondent answer yes for this question is 12% and
88% more answer no for this question.

5.12 Do you agree if we say that the rise of house prices will increase the
intergenerational wealth inequality?

Table 5.12: Number of Respondent and their Opinion about the rise of House Prices will
Increase the Intergenerational Wealth Inequality

Frequency Percentage

Yes 45 90

No 5 10

TOTAL 50 100
 100
90
90
80

Percentage (%) 70
60
50
40
30
20
10
10
0
Yes No

Figure 5.12: Percentage of Respondent and their Opinion about the rise of House Prices
will Increase the Intergenerational Wealth Inequality

From figure 5.12, the percentage respondent’s answer yes for the statement about the rise of
house prices will increase the intergenerational wealth inequality is 90%. While respondent’s
answer no is 10%.

5.13 Do you think the increasing interest rate makes home buying less attractive?

Figure 13: Number of Respondents and their Opinion on Effect of Increasing Interest Rate.
Frequency Percentage
Yes 33 66

No 17 34

70 66

60
Percentage (%)

50

40 34
30

20

10

0
Yes No

Figure 5.13: Percentage of Respondents and their Opinion on Effect of Increasing Interest Rate.
According to figure 5.13, the percentage of respondents who says yes and no for their opinion on
effect of increasing interest rate are 66% and 34% respectively.

5.14 The rapid increase in housing prices has caused housing bubble problem. Do you
agree?

Table 5.14: Number of Respondents and their Response according to Increase in Housing
Price has caused Causing Bubble Problem.
Frequency Percentage

Yes 43 86

No 7 14

TOTAL 50 100

100
90 86

80
Percentage (%)

70
60
50
40
30
20 14
10
0
Yes No

Figure 5.14: Percentage of Respondents and their Response according to Increase in Housing
Price has caused Causing Bubble Problem.

According to figure 5.14, the percentage of respondent who voted yes that increase in housing
price has caused housing bubble problem is 86% while for no is 14%.
5.15 Are you satisfied with your house?

Table 5.15: Number of Respondent and their Satisfaction towards their House.
Frequency Percentage
Yes 43 86
No 7 14
TOTAL 50 100

Figure 5.15: Percentage of Respondent and their Satisfaction towards their House.

According to figure 5.15, 86% of our respondent satisfied with their house right now and 14% more
did not satisfied with their house.

5.16 Which type of houses would you prefer?

Table 5.16: Number of Respondent and their Preferred Type of Houses.

Frequency Percentage

Terrace House 31 62

Condominium 5 10

Apartment 6 11

Bungalow 8 16

TOTAL 50 100
 70
62
60

50
Percentage (%)
40

30

20 16
10 11
10

0
Terrace House Condominium Apartment Bungalow

Figure 5.16: Percentage of Respondent and their Preferred Type of Houses.

According to figure 5.16, the percentage of respondents according to their preferred type of houses
for terrace house is 62%, condominium is 10%, apartment is 11% and bungalow is 16%.

5.17 Which criteria that you consider when buying a house? (You may choose more
than one)

Table 17: Criteria that the Citizens will Consider when Buying a House.

Frequency Percentage

Price 42 84
Size 40 80

Security 29 58

No of rooms 17 34

Location 38 75

Parking 17 34
 90 84
80
80 75
70

Percentage (%)
58
60

50

40 34 34
30

20

10

0
Price Size Security No. of Location Parking
rooms

Figure 5.17: Percentage of Respondent and the Criteria that the Citizens will Consider when
Buying a House.

According to figure 5.17, the percentage of respondents who chose price, size, security, number of
rooms, locations and parking from 50 the total of 50 respondents are 23%, 22%, 16%, 9%, 21%
and 9% respectively.

5.18 What factors are most important to you when choosing your home? (You may
choose more than one)

Table 5.18: Number of Respondent According to Factors that is Important when Choosing a
House
Frequency Percentage

Cost I can afford 41 82

Close to work 21 42

Low crime rate 20 40

Like the 18 36
neighbourhood
TOTAL 50 100
 90
82
80

70

Percentage (%)
60

50
42 40
40 36

30

20

10

0
Cost I can Close to work Low crime rate Like the
afford neighbourhood

Figure 5.18: Percentage of Respondent According to Factors that is Important when Choosing a
House

From figure 5.18, the percentage of respondents who choose cost I can afford is 82%, close to
work is 42%, low crime rate is 40% and like the neighbourhood is 36%.

5.19 What do you think is needed to support affordable housing? (Can choose more than
one)

Table 5.19: Number of Respondent and the Solution.

Frequency Percentage
Buy and renovate old houses 20 28.2
to resell
Provide design for affordable 28 39.4
housing
Operate rental house 9 12.7
Subsidized house 14 19.7
TOTAL 71 100
 Figure 5.19: Percentage of Respondent and the Solution.

According to figure 5.19, the percentage of respondent and their solution such as buy and renovate
old houses to resell is 28.2%, provide design for affordable housing is 39.4%, operate rental house
is 12.7% and subsidized house is 19.7%.

5.20 The number of workers involved in the project has influenced housing price.

Table 5.20: Number of Respondent and their Opinion Toward the Number of Workers
Involved in the Project has Influenced the Housing Price.

Frequency Percentage

Strongly Agree 2 4

Agree 24 48

Strongly Disagree 11 22

Disagree 13 26

TOTAL 50 100
 60

50 48

Percentage (%)
40

30 26
22
20

10
4

0
Strongly Agree Agree Strongly Disagree
Disagree

Figure 5.20: Percentage of Respondent and their Opinion Toward the Number of Workers Involved
in the Project has Influenced the Housing Price

From figure 5.20, the percentage of respondents who strongly agreed, agreed, disagreed and
strongly disagree towards the number of workers involved in the project has influenced housing
price are 4%, 48%, 22% and 26% respectively.

5.21 Urban migration had highly caused insufficient house instead of big demand.

Table 5.21: Number of Respondents and their Opinion Toward Urban Migration had Highly
Caused Insufficient House Instead of Big Demand.
Frequency Percentage
Strongly agree 7 14

Agree 40 80
Strongly disagree 0 0
disagree 3 6
TOTAL 50 100
 Disagree 6

Strongly disagree 0

Agree 80

Strongly agree 14

0 10 20 30 40 50 60 70 80 90
Percentage (%)

Figure 5.20: Percentage of Respondents and their Opinion Toward Urban Migration had Highly
Caused Insufficient House Instead of Big Demand

According to figure 5.21, the percentage of respondent that choose strongly agree, agree, strongly
disagree and disagree are 14%, 80%, 0% and 6%.

5.22 I believed the proper infrastructure area contributes to the hike in housing price.

Table 5.22: Number of Respondent who Agree that a Proper Infrastructure Area Contributes
to Hike in Housing Price.
Frequency Percentage

Strongly agree 15 30

Agree 30 60

Strongly disagree 2 4

Disagree 3 6

TOTAL 50 100
 Disagree 6

Strongly disagree 4

Agree 60

Strongly agree 30

0 10 20 30 40 50 60 70
Percentage (%)

Figure 5.22: Percentage of Respondent who Agree that a Proper Infrastructure Area Contributes to
Hike in Housing Price.

From figure 5.22, the percentage of respondent who strongly agree that proper infrastructure area
contributes to hike in housing price is 30%. The one who agree has highest percentage which is
60%. For strongly disagree and disagree has percentage of 4% and 6% respectively.

5.23 I bought a house far from my work place because it is more affordable.

Table 5.23: Number of Respondent and Level of Agreement Toward the Solution for this
Problem.
Frequency Percentage
Strongly agree 13 26
Agree 26 52
Disagree 10 20
Strongly disagree 1 2
TOTAL 50 100
 Figure 5.23: Percentage of Respondent and Level of Agreement Toward the Solution for this
Problem.

According to figure 5.23, the percentage of respondent who strongly agreed, agreed, disagreed
and strongly agreed toward the bought house far from work place is one of the solution for this
problem are 2%, 20%, 52% and 26% respectively.

5.24 I have to live with my parents due to unaffordable house price.

Table 5.24: Number of Respondent and their Opinion Toward Living with their Parents Due
to Unaffordable House Price.

Frequency Percentage

Strongly Agree 10 20

Agree 25 50

Strongly Disagree 2 4

Disagree 13 26

TOTAL 50 100
 Disagree 26

Strongly disagree 4

Agree 50

Strongly agree 20

0 10 20 30 40 50 60
Percentage (%)

Figure 5.24: Percentage of Respondent and their Opinion Toward Living with their Parents Due to
Unaffordable House Price.
.

From figure 5.24, the percentage of respondents who strongly agreed, agreed, disagreed and
strongly disagree towards statement about they have to live with their parents due to unaffordable
house price are 20%, 50%, 4% and 26% respectively.

5.25 Please rank the following items the impact that hit you the most due to hike in price
of houses on 1 – worst to 5 – least worst

Depression

Table 5.25.1: Number of Respondent and the Rank Towards Depression

Frequency Percentage

1 21 42

2 11 22

3 6 12

4 4 8

5 8 16

TOTAL 50 100
 40

16

12
26

1 2 3 4 5

Figure 5.25.1 Percentage of Respondents and the Rank Towards Depression.

From Figure 5.25.1, the percentage of respondents who ranked 1, 2, 3, 4 and 5 towards
depression are 42%, 22%, 12%, 8% and 16% respectively.

Nomadic

Table 5.25.2: Number of Respondent and the Rank Towards Nomadic

Frequency Percentage

1 3 6

2 6 12

3 13 26

4 8 16

5 20 40

TOTAL 50 100
 36

20

20 20

1 2 3 4 5

Figure 5.25.2 Percentage of Respondent and the Rank Towards Nomadic.

From Figure 5.25.2, the percentage of respondents who ranked 1, 2, 3, 4 and 5 towards nomadic
are 6%, 12%, 26%, 16% and 40% respectively.

Late Marriage

Table 5.25.3: Number of Respondent and the Rank Towards Late Marriage

Frequency Percentage

1 2 4

2 10 20

3 10 20

4 10 20

5 18 36

TOTAL 50 100
 90
80
80

70
Percentage (%)

60

50

40

30

20

6 8 6
10
0
0
1 2 3 4 5

Figure 5.25.3 Percentage of Respondents and the Rank Towards Late Marriage

From Figure 5.25.3, the percentage of respondents who ranked 1, 2, 3, 4 and 5 towards late
marriage are 4%, 20%, 20%, 20% and 36% respectively.

Increase Debt Burden

Table 5.25.4: Number of Respondent and the Rank Towards Increase Debt Burden

Frequency Percentage

1 40 80

2 3 6

3 4 8

4 3 6

5 0 0

TOTAL 50 100
 90
80
80

70
Percentage (%)

60

50

40

30

20

6 8 6
10
0
0
1 2 3 4 5

Figure 5.25.4 Percentage of Respondents and the Rank Towards Increase Debt Burden.

From Figure 5.25.4, the percentage of respondents who ranked 1, 2, 3, 4 and 5 towards increase
debt burden are 80%, 6%, 8%, 6% and 0% respectively.

No Assets

Table 5.25.5: Number of Respondent and the Rank Towards No Assets.

Frequency Percentage

1 22 44

2 13 26

3 10 20

4 0 0

5 5 10

TOTAL 50 100
 50
44
45

40

35

30
26
25
20
20

15
10
10

5
0
0
1 2 3 4 5

Figure 5.25.5 Percentage of Respondents and the Rank Towards No Assets.

From Figure 5.25.5, the percentage of respondents who ranked 1, 2, 3, 4 and 5 towards no assets
are 44%, 26%, 20%, 0% and 10% respectively.

5.26 In your opinion as a Selangor citizen, what is the solution that can be taken to
overcome this problem?
Table 5.26.1: Response of Selangor Citizen on The Solution that can be Taken to
Overcome this Problem
Students Response
Citizen 1 Memperbanyakkan rumah mampu milik untuk golongan yang kurang mampu
Citizen 2 Government should do more housing projects with affordable prices so that they
can compete with other developer’s housing projects. This is to provide more
options for the citizens to choose the best house with the most affordable price.
Citizen 3 Saving.
Citizen 4 Membeli harga rumah yang murah dan selesa
Citizen 5 Mengurangkan harga rumah kepada penduduk di sekitar Selangor dan wujudkan
kawasan perumahan yang murah dan senang dimiliki.
Citizen 6 Build affordable house
Citizen 7 Build more affordable house price. Give more easy loan house.
Citizen 8 More subsidized given to the middle/ lower income group
Citizen 9 Increase salary, subsidized house price.
Citizen 10 Buy house early before it become more expensive.
Citizen 11 Wait after government change.
Ctizen 12 Buy a house at suburban area.
Citizen 13 Buy an auction house.
Citizen 14 Memberi bantuan kepada pembeli rumah yang pertama kali dimiliki.
Citizen 15 Start saving from now.
Citizen 16 Build a house with affordable price.
Citizen 17 Subsidized house.
Citizen 18 Build more affordable house.
Citizen 19 Give a affordable house.
Citizen 20 For certain size of house, cap the limit/ceiling
Citizen 21 Bina rumah di kawasan yang kurang membangun
Citizen 22 Government need to provide affordable house project
Citizen 23 Government have to control the price
Citizen 24 Provide more affordable house below rm300000
Citizen 25 Give more opportunity to adults below 30 years to apply house program like
PRIMA.
Citizen 26 More medium cost housing.
Citizen 27 Subsidi kerajaan
Citizen 28 Subsidi harga lebih kepada medium income
Citizen 29 Saving from now
Citizen 30 Government to provide more affordable house project
Citizen 31 - lower the price
- lower the rate (bank)
- give more options on people who are not have more assets.
Citizen 32 Teach their children to start saving
Citizen 33 Buy house now
Citizen 34 Provide more affordable house
Citizen 35 Provide more subsidize house
Citizen 36 Give more easy loan
Citizen 37 Buy house early before the prince more rise
Citizen 38 Saving
Citizen 39 Provide more subsidized house
Citizen 40 Medium cost housing
Citizen 41 Give priority to middle class family to buy subsidized house
Citizen 42 Saving from now
Citizen 43 Change government
Citizen 44 Minta subsidi kerajaan
Citizen 45 Temporary not make a purchase
Citizen 46 As former Selangor citizens, the developers is the one who takes over for all this
problem, but government can overcome this problem by sit and discussing
 Citizen 47 Subsidi kerajaan
Citizen 48 Survey harga rumah dengan sebaiknya sebelum membeli
Citizen 49 Change government
Citizen 50 Mohon subsidi kerajaan.

Table 5.26.2: Number Respondents and their Opinion as a Selangor Citizen about the Solution that
can be Taken to Overcome the Problem.
Solutions Frequency Percentage
Build affordable house 14 28
Subsidized house 11 22
Savings 6 12
Government’s action 5 10
Buy house early before the price 4 8
become more expensive
Medium cost housing 2 4
Buy house at suburban area 2 4
Buy an auction house 1 2
Give more easy loan 1 2
Not related 4 8
TOTAL 50 100

30 28

25
22
Percentage (%)

20

15
12
10
10 8 8

4 4
5
2 2

0
Figure 5.26 Percentage of Respondents and their Opinion as a Selangor Citizen about the Solution
that can be taken to overcome the Problem

According to Figure 5.26, the percentage of respondents who answers build affordable house as
the solution that can be taken to overcome the problem is 28%, for subsidized house is 22%,
savings is 12%, and government’s action is 10%. For buy house early before the price become
more expensive and not related, both have percentage of 8%. Meanwhile, the respondent that
answers medium cost housing and buy house at suburban area have percentage of 4%
respectively.

5.27 In your opinion, what can the developers do about this issue?
Table 5.27.1: Number of Respondents and their Opinion About the Developers’ Action
Toward this Issues.

Citizen Response
Citizen1 Saya amat sokong mengenai isu ini
Citizen 2 Instead of building luxury houses, developers should focus more on building
houses that are affordable for middle income citizens.
Citizen 3 Take a serious action.
Citizen 4 Kos sara hidup meningkat, harga rumah meningkat (miskin bandar)
Citizen 5 Kurangkan penduduk miskin bandar.
Citizen 6 Don’t look for profit too much.
Citizen 7 Make the price house cheaper.
Citizen 8 Reduce the prices of the houses depending on the location.
Citizen 9 Affordable price.
Citizen 10 Build affordable price house for B40 group.
Citizen 11 Follow the government rule for price.
Citizen 12 Build more house affordable price.
Citizen 13 Don’t build house to stylish it can affect the price.
Citizen 14 Menambah lebih banyakrumah mampu milik.
Citizen 15 Don’t build house to stylish it can affect the price.
Citizen 16 Think about customer feeling
Citizen 17 Provide more subsidize house
Citizen 18 Price must be reduce
Citizen 19 Kurangkan tangguhan kerja yang menyebabkan kenaikan harga
Citizen 20 Should there be any mechanism develop by government to decrease the proce,
developer should follow this mechanism -> stop thinking about big profit
Citizen 21 Build more affordable house
Citizen 22 Don’t build house that not affordable
Citizen 23 Build more affordable house for the b40 class
Citizen 24 Provide loan for buyers
Citizen 25 Build more affordable house <300k
Citizen 26 Reduce high end housing
Citizen 27 Harga mampu milik
Citizen 28 Cover 10% deposit
Citizen 29 More subsidize house
Citizen 30 House below RM300000
Citizen 31 -think more about the customer rather think of money
-buat rumah kerana demand bukan sebab keuntungan
Citizen 32 More affordable house
Citizen 33 Provide more affordable house
Citizen 34 Build apartment or condominium
Citizen 35 Don’t take profit too much
Citizen 36 Developers can lower the price as they responsible for the house price
Citizen 37 Build affordable house
Citizen 38 Mencari kawasan yang baru membangun agar harga tanah kurang mahal
Citizen 39 Use properties with average price
Citizen 40 Build within the timeline to reduce risk that may increase the cost
Citizen 41 Build apartment or condominium
Citizen 42 Bina rumah di tapak rata
Citizen 43 Affordable price
Citizen 44 Build affordable house
Citizen 45 Look for lower material cost
Citizen 46 Rearrange the house pricing so that it is affordable for buyers.
Citizen 47 Save cost
Citizen 48 Don’t think about profit only.
Citizen 49 Build houses at kawasan perkampungan
Citizen 50 Lebihkan rumah mampu milik
Table 5.27.2: Number of Respondents and their Opinion About the Developers’ Action Toward this
Issues.

Frequency Percentage
Government rule 1 2
Affordable price 22 44
Profit margin 5 10
Type of houses 5 10
Subsidized house 5 10
Provide loan 2 4
Location 3 6
Material 1 2
Not related 6 12
Total 50 100

Figure 5.27 Percentage of Respondents and their Opinion About the Developers’ Action Toward
this Issues.

According from figure 5.27, the percentage of respondents about the developers’ action toward this
issues related to government rule, affordable price, profit margin, type of houses, subsidized
house, provide loan, location, material and not related is 2%, 44%, 10%, 10%, 4%, 6%, 2% and
12% respectively.
5.28 What can you say to the next generation in the future who wants to buy a house in
Selangor?

Table 5.28.1: Number of Respondent and Their Advised to the Next Generation In the
Future Who Wants to Buy a House In Selangor

Citizen Response
Citizen1 Ambil tindakan yang bijak dengan bekerja keras
Citizen 2 I really think it is okey to rent a house instead of buying one.
Citizen 3 Start saving from now.
Citizen 4 Merebut peluang pekerjaan.
Citizen 5 Jadikan pembelian rumah satu keutamaan.
Citizen 6 Save money
Citizen 7 Buy house first before other things
Citizen 8 Save more and reduce unnecessary expenses
Citizen 9 Don’t married first but buy a house first.
Citizen 10 Belajar rajin-rajin.
Citizen 11 Inherit my house.
Citizen 12 Manage money properly.
Citizen 13 Look up for future.
Citizen 14 Membuat tabungan awal dan membeli rumah yang memenuhi kemampuan
sendiri.
Citizen 15 Manage the saving well.
Citizen 16 Start saving
Citizen 17 Think wisely before buy a house
Citizen 18 Develop to generation saving
Citizen 19 Beli awal-awal rumah mampu milik
Citizen 20 Price for house will keep on increasing and the purchase power will decrease.
Citizen 21 Save money
Citizen 22 Find the same level basis
Citizen 23 You must fight for the right.
Citizen 24 Find a house that price between their budget
Citizen 25 They need to work hard to survive.
Citizen 26 Look outside main areas
Citizen 27 Menabung dan mohon pinjaman dari pihak berwajib
Citizen 28 Menabung mencari rumah sendiri
Citizen 29 Save money from now
Citizen 30 Choose correct location
Citizen 31 Start making investment
Citizen 32 Find house that suitable with salary
Citizen 33 Do not borrow many from shark
Citizen 34 Don’t buy a house in Selangor
Citizen 35 Jadikan pembelian rumah suatu keutamaan.
Citizen 36 Study well, work great, nothing will be expensive.
Citizen 37 Save money.
Citizen 38 Make saving once you start working
Citizen 39 You can just rent first until you have enough money to buy one
Citizen 40 Choose a house that is suitable with your salary
Citizen 41 Don’t borrow money from loan shark. Better loan from bank than loan shark.
Citizen 42 Save money
Citizen 43 Invest more.
Citizen 44 Menyewa rumah adalah lebih baik.
Citizen 45 Look for house that affordable with salary
Citizen 46 Change government.
Citizen 47 Save money
Citizen 48 Do not borrow money from loan shark, make loan from bank
Citizen 49 Save more.
Citizen 50 Start saving from now.

Table 5.28.2: Number of Respondent and Their Advised to the Next Generation In the Future Who
Wants to Buy a House In Selangor

Frequency Percentage
Location 3 6
Work hard 3 6
Saving 18 36
Buy affordable house 7 14
Buy house first before buy anything else 4 8
Study hard 2 4
Rent a house 3 6
Investment 2 4
Loan from bank 3 6
Not related 5 10
TOTAL 50 100
 40 36
35
Percentage (%)

30
25
20
14
15 10
10 8
6 6 6 6
4 4
5
0

Figure 5.28: Percentage of Respondent and their Advised to the Next Generation in the Future who
Wants to Buy a House in Selangor

From figure 5.28, the percentage of the respondent that advised to the next generation in the future
who wants to buy a house in Selangor by saving is 36 %, for buy affordable house is 14%, for not
related with questions is 10% and buy house first before buy anything else is 8%. While
respondent who advised to work hard, find house based on location, rent a house and make loan
from a bank is 6% respectively but for study hard and make some investment only 4 %.

6.0 CONCLUSION

6.1 Gender
Based on the survey, the number of male respondents exceed the number of female respondents.

6.2 Range of age

The respondents were given multiple choices of answer regarding the range of age. Most of the
respondent aged between 21-30 years old while only small amount of the respondents are age 51
and above.
6.3 Marital status.

Majority of the respondent answer our questionnaires is married and followed by single status. This
is because we want to investigate married people compulsory to own a house or not.

6.4 Salary

The respondents were given multiple choices of answer with specific range of their salary. Most of
the respondent in Selangor area salary from RM2001 to RM5000, meanwhile only a small number
of Selangor citizen have salary more than RM10,001. From this respond, we can conclude that
most of Selangor citizen still need to work hard to buy a house for their family because of minimum
range of their salary that cannot afford to buy a current house price nowadays.

6.5 Do you own a house?

The number of respondents who own a house exceed the number of respondents who does not
own a house. This might be due to their marital status. A married citizen tends to buy a house
compared to a single citizen.

6.6 If you own a house, which of the following best describe your current housing
situation?

Most of the respondent current housing situation are homeowner followed by the renting. For the
homeowner, this maybe because they already have permanent work and stable life. Most of the
respondent are from age 21 to 30. So, they may not have high salary and could only rent a house
for living.

6.7 If you are a HOMEOWNER (Q6), how did you get the house?

Majority of the respondent homeowner they bought the house. This is because they might be
having a good financial plan to buy a house. Next, followed by they built or constructed the house
and lastly the own the house by government subsidy such as Pr1ma house program. But, no
homeowner inherited the house from the parent or grandparent.
6.8 If you BOUGHT THE HOUSE (Q7), where did the majority of the funds come from to
pay for the dwelling?

The majority of the funds come from formal loan to pay for the dwelling for the respondent to buy
their current house. Only some of the respondent that afford to buy their current house with their
personal cash. This means that most of the Selangor citizen only can buy a house by making
formal loan such as from bank.

6.9 If you BUILD/CONSTRUCTED (Q7), how did you pay to build/construct the dwelling?

Most of the respondents who own a house by building it pay the construction using formal loan.
This can be related to the respondents’ salary. Those with monthly salary RM10000 below tend to
use formal loan instead of personal cash.

6.10 What is the price range of your house you living in?

Most of the price range of house from the respondent is RM300k and below. This prove that most
of the Selangor citizen could only afford to buy a house that is consider as affordable house.
Because the price for affordable house is below RM300k.

6.11 Do you think the price of houses nowadays is affordable?

Majority of the respondent disagrees with the price of houses nowadays is affordable. This is
because most of houses price around the Selangor area is near to RM1 000 000. So, most of
Selangor have to think twice and not able to own the house.

6.12 Do you agree if we say that the rise of house prices will increase th
intergenerational wealth inequality?

Majority of the respondent agree that the rise of house prices will increase the intergenerational
wealth inequality. This is because only a wealth person could afford to buy a house because of the
expensive price.
5.13 Do you think the increasing interest rate makes home buying less attractive?

Since majority of the homeowner own their house through formal loan, the increasing of interest
rate will be a big burden to them. Hence, most of the respondents agree that the increasing interest
rate makes home buying less attractive.

6.14 The rapid increase in housing prices has caused housing bubble problem. Do you
agree?

Majority of the respondent agreed that the rapid increase in housing prices has caused housing
bubble problem. Only a few of respondents that is not agree. This is because, when the price of
house is too high, the people could not afford to buy the house. So, there will be housing bubble
problem.

6.15 Are you satisfied with your house?

Majority of the respondent satisfied with their house right now. This is because most of them own
their house before the price getting higher. But, they are still some of the respondents did not
satisfied with their house because they bought the house with an expensive price but small in size.

6.16 Which type of houses would you prefer?

Most of the respondent prefer terrace house as their house. This is because terrace house can be
categorized as affordable price compare to bungalow. Only a few respondent choose to have
apartment and condominium as their place to stay. This is because most of people that have family
like to have landed house such as terrace and bungalow house because this type of house is more
safety for their children.

6.17 Which criteria that you consider when buying a house? (You may choose more than
one)

Majority of the respondents chose the price of the houses as their criteria when buying a house.
Which means the price of the houses are very important when a Selangor citizen considering in
buying a house. With the price getting higher, they might be not buying any.
6.18 What factors are most important to you when choosing your home? (You may
choose more than one)

From the survey, most of the respondent choose cost that they can afford as the factors that are
most import when choosing a house. This is because the house price is the very important factors
to consider when buying a house.

6.19 What do you think is needed to support affordable housing? (Can choose more than
one)

From the survey, the majority of the respondent choose to provide a design for affordable housing
is a solution for this issues. Followed by buying and renovate old houses to resell, subsidized
house and operate rental house respectively. This is because nowadays most of the developers
designed the house too stylish but small in size that can affect the house price.

6.20 The number of workers involved in the project has influenced housing price.

Most of the respondent from the survey agreed with if the number of workers involved in the project
has influenced housing price. This is because if the workers increase, the salary payable to
employees will be increases.

5.21 Urban migration had highly caused insufficient house instead of big demand.

Based on the survey, most of the respondents are agree with this statement. Selangor has become
a popular state and youth from every part of Malaysia trying to get a job in Selangor. This may
cause the insufficient house in Selangor.

6.22 I believed the proper infrastructure area contributes to the hike in housing price.

From the survey, most of the respondent agreed that the proper infrastructure area contributes to
the hike in housing price. This is because, when there are a lot of infrastructure in the area, the
higher the price because of there are many facilities in the area.
6.23 I bought a house far from my workplace because it is more affordable.

Based on the survey, we found that the most of respondent agreed with if bought a house far from
the workplace is more affordable. But some of the respondents disagreed with the statement
because maybe they unlikely their workplace far from their house.

6.24 I have to live with my parents due to unaffordable house price.

From the survey, half of the respondent agreed that they have to live with their parents due to
unaffordable house price if they cannot afford to buy their current house. This is because if they
cannot afford to buy a house, they will not have place to stay which means they have to live with
their parents to save their expenses.

5.25 Please rank the following items the impact that hit you the most due to hike in price
of houses.

In this question, the most rated column is the increase in debt. Respondents are mostly own their
house from formal loan. With the price of houses increase, their debt will also increase. No asset is
the second most rated column. Hike in price of houses may cause the citizens prefer to just rent a
house instead of buying it.

6.26 In your opinion as a Selangor citizen, what is the solution that can be taken to
overcome this problem?

We have divided the respondent answers into 10 sub categories. The categories are build
affordable house, subsidized house, savings, government’s action, buy house early before the
price become more expensive, medium cost housing, buy house at suburban area, buy an auction
house, give more easy loan and also not related. From the survey, majority of the respondent
answers build affordable house as the solution that can be taken to overcome this problem.

6.27 In your opinion, what can the developers do about this issue?

From the survey, we have classified the respondent answers into nine sub-categories which is
government rule, affordable price, profit margin, type of houses, subsidized house, provide a loan,
location, material and not related. Majority of the respondent is likely to answer about the
affordable price. They hope the developers build more affordable price of houses in Selangor area
which is they can afford it rather than any sub-categories.

6.28 What can you say to the next generation in the future who wants to buy a house in
Selangor?

We have divided the respondent’s answer into 10 sub-categories which is location, work hard,
saving, buy affordable house, buy house first before buy anything else, study hard, rent a house,
investment, loan from bank and not related things. Most of the respondents from Selangor citizen
give opinion to the next generation to start saving from now if they want to buy a house in the
future because expensive price nowadays. They hope that by starting saving from now, when they
grow up they will have enough money to buy a house for their family.

7.0 RECOMMENDATION

We have survey which consists of 50 respondents and we also have done the data analysis to
determine the factors make price of houses hike. We would to recommend that:

7.1 Manage our financial efficiently.

Nowadays, if we failed to manage our financial we will expose to a lot of

consequences. So, we must have a good financial plan. Example of financial plan
that we can practice is start to make a saving. It is important because we cannot
predict what will happen in the future soon. If we have a saving it might be helps a
lot. Another example of good financial plan is before we go to shopping or buy a
something we must have a list. This is because to make sure that we not buy
something that is not important. Lastly, we should be a good consumer such as
make a comparison or survey of the price first before we make any decision.

7.2 Developers should not only focus on the profit.

Most of developers always focus on the profit. Todays, many of the houses price is
not make a sense such as small terrace house with the price is near to one million.
Meanwhile, the cost of raw materials to build a house is not too expensive. So, the
developers should also concern about the customer feeling.
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9.0 APPENDIX