Authors: Yoke Ching Chong; Meenchee Hong
Addresses: Graduate School of Business, Universiti Sains Malaysia, Minden, 11800, Penang, Malaysia ' Graduate School of Business, Universiti Sains Malaysia, Minden, 11800, Penang, Malaysia
Abstract: The economic development and urbanisation have surged the housing demand in Penang. However, over supply of houses that far beyond the capability of the people to own, especially young adults, has caused the housing overhang issue in Penang. Hence, mini-apartments have been introduced recently to ease the problem. This paper examines the determinants of willingness-to-pay for a mini-apartment, and attributes of the mini-apartment preferred by potential buyers in Penang. A total of 216 surveys were collected and data were estimated using a logit model. The result shows that size, density and total numbers of household members are significant determinants of willingness-to-pay for a mini-apartment. The findings may assist the housing developers and local authority in understanding the buyer's needs and at the same time assist to diminish the oversupply of unmatched property issues in the market. Hence, land could be efficiently used for sustainable reasons.
Keywords: mini-apartment; stated preference; house; oversupply; Malaysia; willingness-to-pay; sustainability.
International Journal of Sustainable Strategic Management, 2020 Vol.8 No.2, pp.101 - 119
Received: 02 Jul 2019
Accepted: 01 Oct 2019
Published online: 19 Oct 2020 *