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Mitigating housing glut: an application to the Malaysian housing market

Mitigating housing glut: an application to the Malaysian housing market This paper aims to construct a model procedure to mitigate housing glut by using both qualitative and quantitative approach. The model applied in the Malaysian context analyzes the following: information contained in media articles and reports issued by Bank Negara Malaysia (BNM) on the housing market to extract the true picture of the housing glut issue; the relative impact (effectiveness) of housing affordability, housing prices and economic growth in influencing housing glut, and how it can be overcome so that appropriate preferential policies can be taken to mitigate the problem.Design/methodology/approachThis study uses quarterly data from 2000 to 2017 to conduct economic analysis, economic theory analysis and cointegrating regression, whereas information from media-published housing articles and reports issued by BNM are examined and interpreted to draw the true picture of housing glut.FindingsThe results obtained from quantitative analysis show that housing affordability exerts very mild relative effect (0.0097) negatively on housing glut, whereas economic growth and housing price produce a relatively mild positive impact of (0.020) and (0.022), respectively, conflicting to the common consensus that the two factors have a significant effect on housing glut. Qualitatively, the results of this study show that housing glut seems to be relatively larger for affordable housing, which is contrary to the quantitative results, pointing to the existence of other influencing factors.Research limitations/implicationsThere is an imperative need for a third-party survey to gain a comprehensive understanding of the market conditions and buyers’ sentiment and preference.Originality/valueThis study compares both quantitative and qualitative results with expected housing market movements and responses based on conventional wisdom. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Housing Markets and Analysis Emerald Publishing

Mitigating housing glut: an application to the Malaysian housing market

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Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
1753-8270
eISSN
1753-8270
DOI
10.1108/ijhma-04-2020-0037
Publisher site
See Article on Publisher Site

Abstract

This paper aims to construct a model procedure to mitigate housing glut by using both qualitative and quantitative approach. The model applied in the Malaysian context analyzes the following: information contained in media articles and reports issued by Bank Negara Malaysia (BNM) on the housing market to extract the true picture of the housing glut issue; the relative impact (effectiveness) of housing affordability, housing prices and economic growth in influencing housing glut, and how it can be overcome so that appropriate preferential policies can be taken to mitigate the problem.Design/methodology/approachThis study uses quarterly data from 2000 to 2017 to conduct economic analysis, economic theory analysis and cointegrating regression, whereas information from media-published housing articles and reports issued by BNM are examined and interpreted to draw the true picture of housing glut.FindingsThe results obtained from quantitative analysis show that housing affordability exerts very mild relative effect (0.0097) negatively on housing glut, whereas economic growth and housing price produce a relatively mild positive impact of (0.020) and (0.022), respectively, conflicting to the common consensus that the two factors have a significant effect on housing glut. Qualitatively, the results of this study show that housing glut seems to be relatively larger for affordable housing, which is contrary to the quantitative results, pointing to the existence of other influencing factors.Research limitations/implicationsThere is an imperative need for a third-party survey to gain a comprehensive understanding of the market conditions and buyers’ sentiment and preference.Originality/valueThis study compares both quantitative and qualitative results with expected housing market movements and responses based on conventional wisdom.

Journal

International Journal of Housing Markets and AnalysisEmerald Publishing

Published: Jun 23, 2021

Keywords: Affordability; Imbalance; Supply; Demand; Mitigate; Housing glut; A13; C26; F43

References