Affordability Level and Determinants of Low-Cost Home Ownership in the Federal Territory of Kuala Lumpur
The provision of housing for low-income population has been a key issue in Malaysia. With the rapid rate of urbanisation in recent years, housing problems especially for the urban poor have become even more acute. To understand some underlying factors, the present work is an attempt to study th...
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| Format: | Thesis |
| Language: | English English |
| Published: |
1989
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| Subjects: | |
| Online Access: | http://psasir.upm.edu.my/id/eprint/8020/1/FEP_1989_2_A.pdf |
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| Summary: | The provision of housing for low-income population
has been a key issue in Malaysia. With the rapid rate
of urbanisation in recent years, housing problems
especially for the urban poor have become even more
acute. To understand some underlying factors, the
present work is an attempt to study the determinants
which affect home ownership rate by low-income
households and the affordability level of such
households in the Federal Territory of Kuala Lumpur.
Ordinary least squares and logit analysis are
employed in the analysis of home ownership while the functional form of a Cj/Yi is used in evaluating
affordability where 'a' is the proportion a household
is willing to spend on housing; Cj is the housing cost
associated with a given level of housing service, j;
and Yi is the monthly income of a household at the ith
percentile income distribution.
Home ownership rate of the Federal Territory's
low-income households is largely explained by income
and the household head being Chinese. There is no
difference between male and female-headed households
towards home ownership; so is between public and
private sector employees. Household size also does not
exert much impact.
On affordability issues, the low-income households
of the Federal Territory on the average are able to
spend about 18 percent of their income on housing cost.
The present bank ruling of having one-third of one's
monthly income as monthly housing installment has in
fact induced many poor households to spend beyond their
means. The market price of a low-cost house at M $25,000
is still unaffordable to a majority of the poor
households. For a housing programme to be successful ,
the project design should be one that reflects the true
willingness to pay by house seekers. |
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