TO PURCHASE OR TO RENT A HOME IN MALAYSIA? A CASE STUDY IN SELANGOR
DOI:
https://doi.org/10.37134/jcit.vol8.1.2018Keywords:
Decision making, Demographic, Financial assessment, Social attributes, Real estateAbstract
The real estate sector in Malaysia has witnessed rapid growth, especially in the residential and commercial segments. This study aims to determine the significant factors leading to the intention to either purchase or rent a house in Malaysia. Demographic factors, financial assessment and social attributes serve as independent variables for decision making concerning purchase or rental of a house. The Rational Choice Theory is applied in this study. Data collected via questionnaire to households’ in several shopping malls in Selangor. The findings reveal that educational qualification and households’ monthly income influence the intention to purchase or rent a house while marital status is not a significant determining factor. Respondents with higher educational qualification and higher household monthly income prefer to purchase a residential property rather than to rent. Financial assessment is a significant factor affecting the intention to purchase or rent a residential property. Implication of this study enables government, bankers, marketers and real-estate developers to take into consideration of demographic factors, financial assessment and social attributes for future strategies formulation toward real estates development in Malaysia.
Downloads
References
Barber, B. M. & Odean, T. (2000). Trading is hazardous to your wealth: The common stock investment
performance of individual investors. The Journal of Finance, 55(2), 773-806.
Chai, D. (2015). BLR to Base Rate: What Does This Mean For Your Home-Buying Dreams? Accessed on 10th
April 2016. Retrieved from https://ringgitplus.com/en/blog/Home-Loans/BLR-to-Base-Rate-What-Does-
This-Mean-For-Your-Home-Buying-Dreams.html
Chin, R. (2014). Home Loan issues, Malaysian Fixed Rate Home Loan, Properties. Accessed on 7th April 2016.
Retrieved from http://homeloaninsurance.com.my/will-based-lending-rate-malaysia-blr-rate-increase/
Iman, A. H. M., Pieng, F. Y. & Gan, C. (2012). A conjoint analysis of buyers’ preferences for residential property.
International Real Estate Review, 15(1), 73-105.
Isaac, D. (1998). Property investment (pp. 1-27). UK: Macmillan Education.
Jain, D. & Mandot, N. (2012). Impact of demographic factors in investment decisions of investors in Rajasthan,
Researchers’ World, 3(2), 81.
Jayakumar, N. & Velmurugan, R. (2016). Acquirer’s preference in the purchase of housing property with
reference to Coimbatore. Global Journal for Research Analysis, 5(2).
Krejcie, R.V. & Morgan, D.W. (1970). Determining sample size for research activities. Educational and
Psychological Measurement, 30, 607-610.
Levin, J. & Milgrom, P. (2004). Introduction to Choice Theory, Curriculum Notes. Retrieved from
http://www.milgrom.net/
Lutfi, L. (2011). The relationship between demographic factors and investment decisions in Surabaya. Journal
of Economics, Business and Accountancy Ventura, 13(3), 213-224.
Mahmood, W. & R. Zakaria. (2007). Profitability and capital structure of the property and construction sectors
in Malaysia, Pacific Rim Property Research Journal, 13, 92- 105.
Makgosa, R. & Mohube, K. (2007). Peer influence on young adults' product purchase decisions. African Journal
of Business Management, 1(3), 64.
Numraktrakul, P., Ngarmyarn, A. & Panichpathom, S. (2012). Factors Affecting Green Housing Purchase. In
17th International Business Research Conference. Toronto, Canada.
Ong, T. S. (2013). Factors affecting the prices of housing in Malaysia. Journal of Emerging Issues in Economics,
Finance and Banking, 1(5), 414-429.
Paco,A. & Raposo, M. (2009). “Green” segmentation: an application to the Portuguese consumer market.
Marketing Intelligence & Planning, 27(3), 364-379.
Reid, C. (2013). To buy or not to buy? Understanding tenure preferences and the decision-making processes of
lower-income households. Cambridge, MA: Joint Center for Housing Studies of Harvard University.
Sanghoon, J., Huynh, D. & Rowe, P. G. (2013). The pattern of foreign property investment in Vietnam: The
apartment market in Ho Chi Minch City. Habitat International, 39, 105-113.
Swan, C. (1995). Demography and the demand for housing-A reinterpretation of the Mankiw-Weil demand
variable. Regional Science and Urban Economics, 25(1), 41-58.
Vermeulen, W. & Van Ommeran, J. (2006). Housing supply and the interaction of regional population and
employment (No.65). CPB Netherlands Bureau of Economic Policy Analysis.
