An Analysis of Urban Poor and Housing Affordability in Kuala

AN ANALYSIS OF URBAN POOR AND HOUSING AFFORDABILITY IN KUALA LUMPUR, MALAYSIA

Aminah Md Yusof (PhD): Project Leader

Chai Chang Saar (PhD): Researcher

Housing Research Network

Construction Research Alliance

Universiti Teknologi Malaysia (UTM)

81310 Skudai, Johor Bahru

ABSTRACT

Urban poor is related to capability, social exclusion, participation and consensus, human rights and best visualized as a relative to accessibility of house ownership in Malaysia. The research aims to redefine urban poverty in relation to house ownership in Kuala Lumpur, Malaysia. The research employs literature search and a survey undertaken on 939 respondents consisting of 25 to 30 year old working group. The respondents provided suitable cohort for house buyers or potential house buyers. The heterogeneity in connection with geography and isolation, race and ethnicity shown in literature review explains that urban poverty is driven by various factors. In respect to housing. urban poor is best represented as a denial of the right to house ownership. This is due to the incapability to pay, as income obtained is relatively low at the time and place where they belong to. The research reveals that in general, the affordability level for housing is less than 20% of their income.

An analysis of the most frequently transacted houses shows that houses priced at less than RM200, 000.00 dominate the market. However, the survey indicates that the respondents are more willing to buy houses that cost less than RM 100, 000,00. The research also shows that income growth is much slower than house price growth i.e. they are not corresponding one to another. The condition becomes worse especially when the price hike in some commodities is not being considered in accessing the application for future home financing. However, the new regulation by Bank negara is also expected to affect the borrowing ability amongst potential buyers. It is suggested that the initiatives to house the nation should take the willingness and affordability of potential house buyers into account in determining the affordability in relation to housing.