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2.0 An Abstract…………………………………………………………………………….3
11.0 References…………………………………………………………………………….10
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RESEARCH TOPIC
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1.0 THE RESEARCH TITLE
2.0 ABSTRACT
Overpriced houses could be found anywhere in Malaysia. Property prices are still considered
too expensive despite its design and area. Besides, the prices have continued to rise from
time to time which most probably might lead to property overhang. There could be many
hidden reasons behind this issue. Generally, Government of Malaysia will always keep the
economic growth on track, thus, property overhang issue shall be monitored continuously
because this issue would affect national economic as well. Therefore, this proposal aims to
identify the reasons why property prices in Kuching, Sarawak are so high. Briefly, this research
will be conducted in Kuching, Sarawak and data collection will be based on interviews and
questionnaires which would be distributed to specific locals. Purposive sampling will be
applied to collect relevant data so that the data collected would be more accurate and reliable.
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3.0 INTRODUCTION
Overpriced houses are currently a common issue in Malaysia. A few factors have led
the national properties being labelled as expensive and unaffordable by average Malaysia.
One of the factors is when the properties are over supplied while there is a lack of demand
(Daily Express Online, 2020). Besides, Daily Express Online (2020) also highlights that
the slow growth of economy such as slow rise of household income over the years have
accelerated to properties overhang.
Generally, overpriced houses can lead to property overhang. There are many
possibilities that a house can be overpriced. For example, a house can be considered as
overpriced if the value of neighbouring properties do not match with the price offered as
house prices should be comparable (The Guild of Professional Estate Agents, 2016). In
Cambridge Dictionary, the word “overpriced” could be defined as “too expensive”.
Therefore, basically an overpriced house could also be considered as property that is too
expensive. Meanwhile, according to the definition by the National Property Information
Centre (NAPIC) (2019), overhang is defined as residential units which have been awarded
with Certificate of Completion and Compliance (CCC) but remained unsold for more than
nine (9) months after launch.
In conclusion, this research will identify the answers behind overpriced houses and to
suggest the solutions to solve the affordability issue. This is a significant issue that must
be highlighted by the Government of Malaysia to help Malaysians overcome this issue as
well as to increase contributions in nation’s economic growth.
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4.0 PROBLEM STATEMENT
Housing affordability is one of the housing issues in Malaysia. Demand and houses
availability do exist but the affordability has been raising a question mark. There are a few
common ways to encourage people to buy houses such as building more affordable houses,
however this alternative is not effective or sustainable enough (The Edge, 2018). In addition,
The Edge (2018) also examined that another solution is to loosen financing procedures and
allow people to borrow more money from the bank or lengthen the mortgages.
Besides, talking about financial and income, the director of Khazanah Research Institute
(KRI), Dr Suraya Ismail said that according to their research, no normal average salary
increment in the industry could catch up with the escalation of Malaysian residential properties
(Tan, A. L., 2019). Other than that, Christian Tan (2019) reportedly stated that the government
wants to ensure more people can earn a house at an affordable price but not by lowering down
property prices that have been transacted.
Moreover, Christian Tan (2019) also stated that Malaysia is a country with high household
debts. Due to that, the rate of unemployment remains low and there are very little speculative
activities pushing up property prices. However, the former Minister of Finance, Lim Guan Eng
said that household debt is under control for 2019 with stable incomes (Free Malaysia Today,
2019). Currently, household debt as measured by the household debt-to-gross domestic
product (GDP) ratio, increased at a rapid pace in the second half of 2019, primarily driven by
loans for the purchase of residential properties (Jaafar, S. S., 2020).
Last but not least, according to The Star Online (2018), low and middle income families or
households have limited options in owning a house because houses priced between
RM250,000 and RM1mil seem to dominate the residential market. Therefore, with an industry
already suffering from the impact of a market crash, the government now has to balance
increasing the availability of mid-to-luxury homes, where demand has decelerated against the
low supply of affordable housing in urban areas where chronic demand continues to grow
(Hock, T. J., 2018).
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5.0 AIM OF RESEARCH
This research aims to identify the reasons behind overpriced houses which might lead to
property overhang in Malaysia.
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8.0 SCOPE OF RESEARCH
This research is focusing on the reasons behind overpriced houses in Kuching, Sarawak.
Therefore, the scope and limitation are as the followings:
2. Collecting data from interviews and questionnaires associating with potential buyers
and young married couples.
3. Potential buyers would be from B40 and M40 families meanwhile young married
couples aged around 25 years old to 30 years’ old whom wish to buy a house despite paying
rent.
4. The types of overpriced houses would be single storey terrace houses, double storey
terrace houses and three (3) bedroom apartments.
6. This research will be conducted in Kuching, Sarawak as the access to data will be
easier and faster to be achieved.
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9.0 RESEARCH METHODOLOGY
A preliminary study was carried out to determine the research topic, to identify the aim of
research and to define the objectives and the scope of study by reviewing journals, thesis,
articles, latest news and others.
The preliminary study helped to determine the data sources and the analysis technique
that can be used to comprehend and to enhance this research so that the data collected could
be more accurate and reliable.
Data collection will be collected through interviews and questionnaires which would be
distributed to B40 and M40 families and married young couples. The respondents would be
25 families from B40, 25 families from M40 and 50 young married couples since these people
might be the ones who are struggling to buy their own houses.
Purposive sampling will be applied to collect specific data regarding the aim of this
research as this method could help to gain detailed and in-depth knowledge about Malaysians
interest in buying a house. Figure 1 below shows the summary of how this research will be
conducted.
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10.0 TENTATIVE CHAPTER HEADINGS
Acknowledgement.
Content
Table/Graph list
Picture/Map list
Chapter 1: Introduction.
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11.0 REFERENCES
1. Four reasons why M'sian homes are too expensive: Daily Express Online - Sabah's
Leading News Portal. (2020, February 17). Retrieved April 27, 2020, from
http://www.dailyexpress.com.my/interest/337/four-reasons-why-m-sian-homes-are-
too-expensive/
2. Hock, T. J. (2018, December 1). What will be done to tackle Malaysia's housing
issues? Retrieved April 28, 2020, from
https://www.freemalaysiatoday.com/category/opinion/2018/12/01/what-will-be-done-
to-tackle-malaysias-housing-issues/
3. Housing in Malaysia: An issue of affordability, not availability. (2018, September 26).
Retrieved April 28, 2020, from https://www.edgeprop.my/content/1427870/housing-
malaysia-issue-affordability-not-availability
4. How to Spot an Overpriced House. (2016, July 28). Retrieved from
https://www.irwinfisher.co.uk/news/post-how-to-spot-an-overpriced-house-
1469696345
5. Jaafar, S. S. (2020, April 3). BNM Annual Report 2019: Household debt continues to
expand, but credit risks largely contained. Retrieved April 28, 2020, from
https://www.theedgemarkets.com/article/bnm-annual-report-2019-household-debt-
continues-expand-credit-risks-largely-contained
6. Kana, G. (2019, October 25). House prices beyond affordability of most Malaysians.
Retrieved April 28, 2020, from https://www.thestar.com.my/business/business-
news/2019/10/25/house-prices-beyond-affordability-of-most-malaysians
7. Key Statistics. (n.d.). Retrieved from http://napic.jpph.gov.my/portal/key-statistics
8. Tan, A. L. (2019, January 30). It's not a wage problem, houses are just too expensive.
Retrieved April 27, 2020, from https://www.edgeprop.my/content/1466755/it’s-not-
wage-problem-houses-are-just-too-expensive
9. Tan, C. (2019, March 14). Property market issues of today, explained. Retrieved April
28, 2020, from
https://www.freemalaysiatoday.com/category/leisure/2019/03/16/property-market-
issues-of-today-explained/
10. The Star Online. (2018, September 15). Too costly to be affordable. Retrieved April
28, 2020, from https://www.thestar.com.my/opinion/letters/2018/09/15/too-costly-to-
be-affordable-houses-unsold-due-to-unaffordability
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