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

GENERATION Y HOMEOWNERSHIP

IN SELANGOR, MALAYSIA

MOHD AZHAR AB WAHIDNATIONAL INSTITUTE OF VALUATION MALAYSIA

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

Conclusion

Outline

Research BackgroundThe question of what is the Generation Y homeownership in Malaysia and it has always been a concern especially with the increase of housing price and expenses.

The young generation in focused is the Generation Y which is born in 1980 to 1996.

With the continuous increased home prices, sadly, this generation may have to come to terms that they may never own a home. They actually cannot afford to buy a home without the support of their parents (In Malaysia, property profiting big business, not man in the street, The Sun, August 30, 2011).

Research Aim & ObjectiveThe aim of this research is to identify the Generation Y homeownership specifically in Selangor, Malaysia.In order to achieve the research aim, the following research objectives are established as follows:

To examine the housing preference of Generation Y homeownership;

To identify the location of property of Generation Y homeownership;

To determine the housing price affordable to Generation Y.

Survey LocationThe 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.

The scope of the research therefore will be emphasized and limited to the following areas:

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.

The available data of residential property transactions are provided by the National Property Information Centre (NAPIC), Valuation and Property Services Department, Malaysia.

Research Scope & Limitations

GENERATION Y

HOMEOWNERSHIP

Literature Review

Housing Preferences

Housing

Affordability

Demographic factors influencing homeownership

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Quantitative ; Desktop study ; Secondary Data: Residential Property Transactions Data

Statistical analysis using Excel 2010: PIVOT Table

Descriptive Statistics & Correlation

Research Methodology

The market share of homeownership amongst Generation Y in Selangor is 25%.

Main FindingsIn this research, we are looking into the population and transaction volume of Generation Y specifically in Selangor to understand their market share.

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.

Main Findings

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.

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.

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.

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) .

Main Findings

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 buyers towards the price of affordable residential schemes as compared to the mature residential schemes in the primary/ secondary property market.

Recommendation

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:- Municipal/ City : Cheras Residential Scheme: Bandar Setia Alam

The average housing price affordable to Generation Y in Selangor for:- Landed Properties: RM400,000 (€100,000) Strata Properties : RM250,000 (€60,000)