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Housing Decision: the Choice Between Location, House and Neighbourhood Among Malaysian Generations

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Housing Decision: the Choice Between Location, House and Neighbourhood Among Malaysian Generations MATEC Web of Conferences 266, 01026 (2019) https://doi.org/10.1051/matecconf/2019 26601026 IConBEE2018 HOUSING DECISION: THE CHOICE BETWEEN LOCATION, HOUSE AND NEIGHBOURHOOD AMONG MALAYSIAN GENERATIONS Hafiszah Ismail1,*and Shazwan Mohamed Shaari1 1Centre of Studies for Estate Management, Faculty of Architecture, Planning and Surveying, UiTM, 40450, Shah Alam, Selangor, Malaysia Abstract. Literatures on property development evidence demographics and population as one of the main factors influence property development process. Demographic changes would affect the economic and the property market thus contributes to dramatic change that affects the generations. The differences of attitudes and values between generations resulted diversification of housing decisions and the choice made. The generations are the population categorised by the age cohort; namely The Baby Boomers, Generation X (Gen- X), Generation Y (Gen-Y) and Generation Z (Gen-Z). The aim of this study is to provide an in-depth overview on housing decisions of choices made between location, house and neighbourhood among Malaysian generations. This study employs mixed methods approaches with Selangor, Malaysia as case study. The data were analysed using the Pair-wise and Analytic Hierarchy Process (AHP). The analysis reveals the Malaysian generations’ housing choices as; (1) House; (2) Location and; (3) Neighbourhood. The findings show similarities and differences of housing decision by generations on the choices between location, house and neighbourhood. The findings is significant in providing better understanding to the actors of property development on the main housing choice attraction factors of the generations which useful for better housing provisions. Introduction educational needs. Housing is different from other essential needs. It is unique due to its durability, cost and Generational Differences would reflect difference of diversity which can be passed across generations preferences among generations as result of dissimilarities (Skaburskis, 2002). The distinctive criteria of the on decision made. Diversifications of housing choice housing market which heterogeneous with no central among generations occur as different generations are market compared to the other market making housing as equipped with different needs, taste and preferences. special type of product. Housing markets associates with Some people see housing as a shelter to fulfil their various interrelated factors to make it happen. The fundamental needs only (Bujang et. al. 2010). To most market are not in equilibrium with the actors as initiators individuals, housing represents the largest single do not have inclusive information and the buyers tend to investment of a lifetime and view as one fundamental be as not always being rational that would result the goods for consumer. The buyer behaviour is a study challenges in forecasting changes of the market. The associated with the decision-making process an analysis issue on how demographics drive the demand for of how the purchasers decide in choosing between two housing has been intensely debate and analyze by or more alternative products and the reason on why they numerous researchers internationally but not by decided to finally choose only one. The high volume of generations in specific by comparisions. Mulder (2006) unsold properties in the local housing market is mainly who explores the relationship between population and caused by a mismatch between delivered housing housing emphasis that population change leads to characteristics and potential homebuyer needs (Tan and changing demand of housing. The term population refer Khong, 2012). Hence, detail studies on housing to the generations; the group of people categorised especially by generations were needed for narrowwing according to the year they were born or based on the age the mismatch gap and better housing provisions. The aim groups. For the purpose of this study, the generations of this study is to provide an overview on the housing were referring to name and age cohorts given by Reed decisions of generations in Malaysia. The main findings and Conisbee (2006); The Baby Boomers (born 1946- will show how preferences differ across generations. The 1961), Generation X (Gen-Z) (born 1962-1976), research objectives are; (i) To categorise generations; (ii) Generation Y (Gen-Y) (born 1977-1991) and Generation To explain housing decision; and (iii) To compare the Z (Gen-Z) (born after 1992). housing decisions among Malaysian generations. The Consumer Behaviour Decision Making and Literature Review Housing Consumer Behaviour Housing and Generations Consumer behaviour associates with the selection, purchase and consumption of goods and services for the Housing is more than just a shelter (Ademiluyi, 2010). A satisfaction of their wants (Gajjar, 2013). The traditional house is an asset that was found to be associated with five-stage model suggests that the client typically passes lifestyle which includes economic, social and through five stages; (i) need recognition; (ii) information * Hafiszah Ismail: [email protected] © The Authors, published by EDP Sciences. This is an open access article distributed under the terms of the Creative Commons Attribution License 4.0 (http://creativecommons.org/licenses/by/4.0/). MATEC Web of Conferences 266, 01026 (2019) https://doi.org/10.1051/matecconf/2019 26601026 IConBEE2018 search; (iii) evaluation of alternatives; (iv) purchase made based on residential/housing choice stage referring decision; and (v) postpurchase behaviour. The five-stage to the important factors which influenced the residents’ model implies that the buying process starts long before choice of their present housing. Residential or housing the actual purchase and consequences long afterward choice, to some extend also reflects a preferred lifestyle (Kotler, 2012). Knowledge on housing buyer behaviour (Ge et. al., 2006). Traditionally mobility was associated requires understanding on the consumers’ buying with maximizing economic well-being and quality of life decisions or housing choice. Two (2) main factors factors are becoming an important factor for residents in influence the consumer decision making process are; (1) choosing their residential location (Howley et. al., 2008). the individual (personal); and (2) the social factors. The Likewise, Clark et. al., (2006) establishes that individual (personal) factors are contained by the individuals weight both the quality of the house and the consumer and differ to each person that includes neighbourhood in their decision process. In addition perception, beliefs and attitudes, values, learning, self Kauko (2006, 2007) stressed that the locational factors concept and personality. Social factors which effects the of housing are much more important than the house decision making process include all interactions between itself. In addition, the combination of the physical built consumer and the external environment, family, opinion environment and a sense of neighbourhood were leaders, social class and culture. Dodoo (2007), further important in the process of community development. adds that families as the most important factors of This is important not only to the community as a whole, buying decisions. The other factors shaping the but also to individual residents in any community for purchases of consumer are such as social, cultural, their own personal development (Li, 2007). The decision personal and psychological. The consumer behaviour is to move or stay is influenced by a range of pull and push also an important factor to indicate the decision making factors (Montgomery and Curtis, 2006). The push factors process in buying a house. Livette (2006) suggesting may include an increase in externalities like pollution or generic decision-making process for house-buyer crime, changes in housing affordability, dissatisfaction behaviour model, which comprises the steps in column with the current dwelling or changes in household 1to column 6 (from the left) (Figure 1). structure (as a result of a birth, death or divorce for example). The pull factors often include things like access to good quality public services (like schools and health care facilities), employment, leisure and recreational opportunities or the fulfilment of housing aspirations (Sanchez & Dawkins 2001). This paper focuses on three (3) main housing choice factors; decision between house, location and neighbourhood among the Malaysian generations. Methodology Figure 1: Model of house buyer behaviour (Livette, 2006) This study employs mixed method research strategies with combination of qualitative and quantitative approaches. Mixed methods research is a design for collecting, analyzing, and mixing both quantitative and qualitative research/data) in a single study or series of Figure 2: Sequence of The Housing Choice Decision-Making studies to understand a research problem (Creswell, Process (Adapted from Kim et. al., 2005) 2006; Creswell and Plano, 2007). The reason for adopting mixed methods as this study is under consumer A household’s housing decision-making process behavioural type of study and the advantages of the is tremendously complex and very contingent. Variety of method which according to Cresswell (2009) provides a approaches were used in analysing housing decision better understanding of research problems than either process. According to Kim et. al., (2005), the housing or approach alone. The value that mixed methods add can residential decisions
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