Establishment of Newly Urbanised Areas (NeUA) and Their Effect to The

ESTABLISHMENT OF NEWLY URBANISED AREAS (NeUA) AND THEIR EFFECT TO THE HOUSING MARKET

Project Leader:
Prof. Dr. Sr. Wan Nor Azriyati Wan Abd Aziz

Project Members:

Dr. Zairul Nisham Musa (UM)

Dr. Sr. Ainoriza Mohd Aini (UM)

Dr. Peter Aning Tedong (UM)

Prof. Dr. Noor Rosly Hanif (UM)

Research Assistant:
Ummu Sholehah Mohd Nor

ABSTRACT

The phenomenon of newly urbanised areas is an important issue in Malaysia, particularly in the Klang Valley region. Households are facing new challenges due to rapid industrialisation, modernisation, and globalisation, which have impacted the housing market. With the rising cost of living in the city, there is now a trend for households to move further into newly urbanised areas (NeUA). Previous research on housing in Malaysia has mainly focused on affordable housing and first-time home buyers in city centers. Given the lack of work on NeUA in Malaysia, it is timely to consider how this trend will impact the housing market. This research aims to investigate the establishment of newly urbanised areas at the periphery of South Klang Valley to meet the increasing population's housing needs. Specifically, the main objective of this study is to identify factors driving the creation of newly urbanised areas. The second key objective is to determine the effect of these areas on house prices. Finally, the third objective is to propose appropriate policy interventions to alleviate the mismatch between demand and supply resulting from these developments. Data collection methods include face-to-face surveys using personally administered questionnaires. A total of 385 respondents currently living in NeUA were identified. The findings of this study show that most respondents enjoy living in their NeUA due to public facilities, easy access to other areas, and highways. NeUA contributes to property price increases, although this depends heavily on the condition of the property market in the respective area. Furthermore, NeUA housing units are priced higher due to the modern and luxury concepts offered by developers. The findings suggest that NeUA developments will be more successful if traffic and transportation planning are emphasised in urban policy.

Keywords: Newly urbanised areas, housing market, property prices