GENERATION Y HOMEOWNERSHIP IN SELANGOR, MALAYSIA

Transcription

1 GENERATION Y HOMEOWNERSHIP IN SELANGOR, MALAYSIA MOHD AZHAR AB WAHID NATIONAL INSTITUTE OF VALUATION MALAYSIA

2 Outline Background Objectives Survey Location Scope & Limitations Literature Review Methodology Main Findings Recommendation & Conclusion

3 Research Background concern especially with the increase of housing The price young generation in focused is the Generation Y and expenses. The young generation in focused is the Generation Y which is born in 1980 to (In Malaysia, property profiting big business, not man in the street, The Sun, August 30, 2011).

4 Research Aim & Objective The aim of this research is to identify the Generation Y homeownership specifically in Selangor, Malaysia. Ø To examine the housing preference of Generation Y homeownership; Ø To determine the housing price affordable to homeownership; Ø To determine the housing price affordable to Generation Y.

5 Survey Location The study will cover the residential property transactions in all municipals in Selangor. Selangor is chosen as a study area because of the highest number of residential property transacted in Malaysia.

6 Research Scope & Limitations The scope of the research therefore will be emphasized and limited to the following areas: q The age group for Generation Y is set at 15 years old to 33 years old. It is determined by the definition of Generation Y and the common age after secondary education. q The available data of residential property transactions are provided by the National Property Information Centre (NAPIC), Valuation and Property Services Department, Malaysia.

7 Literature Review Housing Preferences Housing Affordability Affordable Housing GENERATION Y HOMEOWNERSHIP Lending Policy Demographic factors influencing homeownership

8 Research Methodology Quantitative ; Desktop study ; Secondary Data: Residential Property Transactions Data Statistical analysis using Excel 2010: PIVOT Table Descriptive Statistics & Correlation

9 Main Findings In this research, we are looking into the population and transaction volume of Generation Y specifically in Selangor to understand their market share. The market share of homeownership amongst Generation Y in Selangor is 25%.

10 Main Findings The pertaining question on the homeownership amongst Generation Y is always as an issue especially on when is the period of time they can own one to achieve their dreams. It can be said that the access to homeownership amongst Generation Y for the age group of 30 to 33 years old is higher. This is mainly because this group will have a higher income along their progress in their work career, and with that they would be able to save money for their down payments and afford to pay for the instalments.

11 Main Findings Condominium & Apartment is the highest number of homeownership amongst Generation Y based on the analysis done. This is mainly because decisions on homeownership at the initial stage of their work life is primarily on workplace location or their earlier commitment for homemaking with a lower income to name a few reasons.

12 Main Findings Having established the type of properties and locations of residential property amongst Generation Y in Selangor, it is important to understand the characteristics of these residential schemes by looking at the key drivers of housing preference by the Generation Y. Bandar Setia Alam is the most preferred location of Generation Y homeownership in Selangor.

13 Main Findings The housing price affordable to the Generation Y in Selangor for strata properties is RM250,000 ( 60,000). Meanwhile, the affordable house for the Generation Y in Selangor for landed properties is RM400,000 ( 100,000).

14 Recommendation It is recommended for the researcher to investigate on the determinant factors of price as set by developers on the affordable housing schemes, the performance of the sales and the acceptance of Generation Y home b u y e r s t o w a r d s t h e p r i c e o f affordable residential schemes as compared to the mature residential schemes in the primary/ secondary property market.

15 Conclusions Among the homeowners in Selangor, 25% are Generation Y. Based on the data, the age group of 30 to 32 years old dominates the homeownership amongst Generation Y in Selangor. The most preferred type of property is Condominium & Apartment. The main choice of location of Generation Y in Selangor is:- Ø Municipal/ City : Cheras Ø Residential Scheme: Bandar Setia Alam The average housing price affordable to Generation Y in Selangor for:- ü Landed Properties: RM400,000 ( 100,000) ü Strata Properties : RM250,000 ( 60,000)