New industrialised housing model for young starters in Malaysia

Abstract

Young people are currently facing a considerable risk when it comes to increasing house prices and interest rates as a substantial portion of their monthly income. This is due to the fact that they now have a responsibility in making monthly repayments of their housing loans. The current housing market in any part of the world does not allow the price to be affordable and at the same time, it does not give the freedom for buyers to customise their current and future needs for their house. To achieve this freedom, a new business model for young starters needs to be created to allow flexibility. This should not only cover the physical elements of the house such as the unit-envelope wall, structural components, services, but must also take into account the flexibility in terms of tenure contracts associated with finance and repayment by the inhabitants. This paper specifically investigates the current issues faced by young starters in Malaysia in terms of the affordability towards current housing ownership, quality of conventional housing and customisation options of existing dwellings. Subsequently, based on the literature and secondary data, this study proposes a new business model that would be imperatively able to close the gap in the housing industry in Malaysia for young starters to own homes. This study illustrates the first part of the bigger research that looks into the current problems and proposes a conceptual business model before testing it in the Malaysian housing market by using focus group studies.