Factors affecting price of houses from different stakeholders perspective

Abstract

Fast economic development has resulted in associate increasing demand for residential housing among urban areas in Malaysia. Looking at the housing price in Malaysia, the price has increased dramatically. The purpose of this study is to provide an analysis on the factors affecting price of houses from different stakeholders. The objectives of this study are to determine the critical factors that affecting price of house, to rank the factors affecting price of houses according to the different stakeholder’s perspective and to provide an analysis on the factors affecting price of houses. There are four types of stakeholders included in this study which are from group of purchaser or buyer, developer or client, contractor or subcontractor and architect or consultant. The objectives are to identify the critical factors that influence price of house, to rank the affecting factors according to the different perspectives and to provide analyse on the affecting factors. Three parts of questionnaire survey were prepared; section A mainly on demographic information, section B is about ranking the selected influence factors and section C asking about respondent opinions. Questionnaire survey using face-to-face approach was conducted and a total of 60 responses were collected. Quantitative analysis was used to analyse the ranking factors in section B while thematic analysis used to analyse respondents point of views towards the current price of houses and other factors affecting price of houses as stated in Section C. The result showed that the top three factors that influence the housing price from the buyer or purchaser perspective is location of the house, land ownership price for development and eligibility of home loan, meanwhile from the developer or client’s perspective are land ownership price for development, gross domestic product and location of the house. Finally, from the contractor or sub-contractor perspective are land ownership price for development, location of the house and cost of construction materials meanwhile from the architect and consultant perspective are location of the house, gross domestic product and land ownership price for development. This study provide insight on the distribution of housing prices component and help in providing information for future study on regulating the house prices in Malaysia.