Housing Market in Malaysia and Factors Influencing to the Market

Introduction

Nowadays, human needs for housing increase as the population of each country become larger. Therefore there are so many companies which are offering houses. Housing market is almost the same with any other business markets. However, this kind of market involves a big amount of consumer’s spending, and it might be the largest amount of money that human can spend in their life. As time goes by, the prices of the houses are expensive and it’s going to rise and rise again over the period. This kind of condition is due to the inflation, population growth, and increasing material costs which is used in the houses industry.

The demands and supplies of the houses in Malaysia are affected by some different factors. However, it’s not only in Malaysia, there is also same situation in the other countries. The consideration of many aspects will be affecting the demand of houses. It may be about the prices of the houses and the other substitutes properties (e.g., flats, condominiums, and etc), the location, size, or the models of the houses. Therefore, the buyers have to think wisely in choosing the house they want to buy because this house is very necessary to us, as a buyer. House is where we live and build family. The trading of houses also can be used as investment, this is why the prices of house keep rising.

This report will give some informations about factors influencing the demand and supply of the housing market in Malaysia. Besides, this will records the main trends in the housin market in the last 5 years and an evalation of future trends in the housing market in Malaysia.

1. Key factors influencing the housing market in Malaysia

The market of products generally consists of the demand and supply. The demand comes from consumer whereas the supply is provided by the seller of the products. If the demand and supply are combined, it will cross with each other and get into a meet point. That’s what we call market equilibrium.

1.1. Demand factors...