Overview on built environment planning: Residential overhang factors in malaysia affordable housing

Abstract

Abstract Affordable housing remains a prevalent issue in the country. The definition suggests affordable housing as adequate housing in quality, location, and known as not so costly that prevents its occupants from meeting other essential living needs. In the effort of providing sufficient affordable housing, various affordable housing programs, namely Residensi Wilayah and PR1MA, are currently in the market with the aims to develop and deliver new affordable housing, which targeted the middle-and low-income group. Although the lacking of affordable housing persists, the severe glut in the property market has also records to reach an all-time high. The overhang crisis in the country became an infamous issue in the country with the slow market, which led to the increase in the overhang unit’s statistics year over a year which partially in affordable housing segmentation. It is highlighted that the overhang in affordable housing has shown significant rising despites of its strong demand. This paper attempts to examine the overhang issue in affordable housing in Malaysia and related factors. This research will add up some points of discussion as regards the impact of the Covid-19 Pandemic towards the issue of affordable housing and the strategies in reducing the overhang issue during the pandemic. A review of the past literature related to the topics was carried out and data derived from journals, reports, and websites were gathered and examined to establish the framework on this issue and to identify the overhang factors in affordable housing. The developers are urged to build houses that can cater to the demand of buyers in terms of the property type, location, and also price range. The overhang units did not attract the target market while the product mismatch is one of the contributing factors. Other related factors are affordability, high living costs, and stagnant income growth, cooling measures, financing, unsuitable location, accessibility, the lack of timely and accurate data of buyer’s preference including the shift in demand towards the better-quality project. A study on the overhang factors of affordable housing is needed to resolve the issue, or else, the overhang issue will be worsened and will create a lot of negative impacts in the future. At the end of the research, the list of the property overhang factors and its framework able to be identified and to be used as guidelines and references to the public.