Project Proposal: Property Market analysis of House price in Urban and Rural area in Malaysia

Introduction

A. The problem statement

In Malaysia, the housing development activities are governed by private and public sector

both for the facility of low cost, medium cost and high cost houses (Sengupta & Shaw, 2017). In

relation to housing price, an increase trend in Malaysia has been observed that is derived by varied

factors such as gross domestic product, construction cost, inflation rate, interest rate and real

property gain tax. In urban areas of Malaysia, the demand of the residential houses has increased

as a result of rapid economic development. In the last ten years of data, the Malaysian residential

property market has had a good price expansion which has made the prices of housing very high

both in rural and urban areas. The key problem that has been undertaken for investigation purpose

in this research study is related with analyzing the property market of Malaysia in terms of housing

prices in urban and rural areas of Malaysia.

B. A rationale for the research Statement of the research objectives

The key research statement selected for this study is to determine the impact of changes in

housing prices in rural and urban Malaysia on the property market of the region. The key rationale

behind selection of this research statement is that the housing prices in Malaysia have been

experiencing great rise in the recent years and this rise has resulted in changing demand in the

property market of Malaysia. The rural and urban housing property market has also affected in

distinct ways by this increase in housing prices.

Key Research objectives of the study in this context are presented below:

 To analyse the current situation of property market of Malaysia

 To evaluate the reasons of increase in housing prices in both rural and urban market of

Malaysia
  To examine the impact of increased housing prices on the property market of Malaysia

C. Hypothesis

H1: House price in Urban and Rural area in Malaysia has affected the property market in

positive way

H0: House price in Urban and Rural area in Malaysia has affected the property market in

negative way

D. Definition of terms

The key terms used in this research study are housing prices, and property market. The

property market refers to the market of real estate where buying, selling and renting activities are

governed for residential and commercial properties. The housing prices mainly refer to the prices

of housing affordability in a particular market or economy.

E. Summary

Overall, this research proposal introduction has provided a clear statement of the key

problem that has been undertaken in this research study for investigation purpose. Along with this,

the research proposal introduction has defined the key objectives of the research study and the

hypothesis developed for testing the research problem. The introduction section has presented the

definition of the key terms.

A (brief) Review of the Relevant Literature

A. The importance of the question asked

The research question asked is very much significant as these are based on realistic

research topic.

B. The current status of the topic

 There is ample literature studies have been conducted on the subject of property market of

Malaysia which have provided a strong base for having background knowledge on the subject.

C. The relationship between the literature and problem statement

According to Ong, (2013), property market of Malaysia has witnessed the huge expansion

in the housing price. Expansion of Price has the direct correlation with the Gross Domestic Product

(GDP). Malaysia has maintained a good GDP in last years, and hence the price of houses also has

been increased. The main reason behind the expansion of housing price is immigration of rural

people to the urban area. The living standard of people has increased and hence they want to live

in urban areas. The lack of land has caused to the constructor for increasing the price. Expansion

of housing price is based on the principle of demand and supply. The demand for houses is very

large in comparison to the available houses. Moreover, the constructor is not getting the land for

constructing new houses and hence the supply of houses is restricted. People are willing to pay

more than the actual rate of houses due to the shortage of houses in the urban area. These reasons

provide the opportunity to the constructor to increase the price of houses according to them.

Property market of Malaysia has shown a tremendous growth due to the increased housing prices.

Price of rental houses also has been increased which also enhances the business of property market

(Ong, 2013).

Mariadas, Selvanathan and Hong (2016) have explored that increasing population is the

main reason behind the increasing price of houses. Price expansion has enforced the property

market to reform the policy according to the current situation. The Malaysian government should

increase the foreign direct investment in the property market to make it more efficient so that

common people of Malaysia also can buy houses in the urban area (Mariadas, Selvanathan &

Hong, 2016).
D. Summary

The literature review has provided significant information about the research context in

terms of impact of housing prices in Malaysia on property market.

Method

A. Participants

For the primary data collection purpose in a research study, selection of the appropriate

participants is crucial in a research study to determine the collection of the most reliable and

credible data and information (Thomas, Nelson & Silverman, 2011). As this research study is

mainly related to property market analysis of Malaysia, the data collection in the research study

will be done through survey method and participants of the survey will be property market dealers

of Malaysia who are dealing in both rural and urban areas. The sample size will be 50 property

market dealers of Malaysia. The selection of the participants will be done on the basis of random

sampling strategy.

B. Research design

The research design that will be suitable for conducting survey in the research study will

be exploratory research design (Thomas, Nelson & Silverman, 2011). The exploratory research

design is quite investigative in nature and the subject of this research study is also to investigate

the impact of housing price in rural and urban housing in Malaysia on the property market and

hence this research design best fits in the research study for primary data collection purpose.

C. Data collection plans

1. Operational definitions

The primary data collection methods are those which help to have collection of first hand

data that does not exist yet. Under primary data collection, survey method is related with field
survey under which primary data is collected from a large sample with the help of questionnaire

development (Supino & Borer, 2012). The questionnaire will be developed in this research study

for conducting survey with the property market dealers of Malaysia.

2. Reliability and validity of instruments

The survey questionnaire is the most important and reliable instrument of the data

collection process because it facilitates the data collection process under the premise of the

questions that are developed by the researchers with the exploration of the wider literatures sources

and key research objectives that are developed on the basis of the key research problem defined

(Supino & Borer, 2012).

3. Results of Pilot Studies

In order to ensure the feasibility of the data collection process in the research study, pilot

study proves the most beneficial approach. Pilot study is conducted on a very small sample to

verify the feasibility of the conductance of data collection process (Supino & Borer, 2012). In this

regard, the pilot study for the survey data collection process in this research will be conducted with

the 5 researchers who have studied on the property market condition of Malaysia in terms of

housing prices.

D. Proposed analysis of data

The data analysis is a very crucial process in the research work. As the data collection in

this research study is governed through primary data collection method of survey questionnaire

and hence, the data analysis in this research will be governed through statistical methods as it will

be a numerical data. The statistical analysis of the data will be governed with the application of

some statistical models and tools. The statistical model that will be applied in this research study
for data analysis purpose will be regression analysis model. Along with this ARIMA model will

also be applied in this research study for data analysis purpose.

E. Results of data

The research of the data will be presented with the help of graphs and tables generated in

the SPSS software for application of regression model and ARIMA model. The interpretation of

the data tables will be presented in descriptive form (Marczyk, DeMatteo & Festinger, 2005).

Implications and limitations

This research study will have wider implications in for the property market of Malaysia in

terms of determining the real impact of changing housing prices in rural and urban market of

Malaysia. The research will also have impact of some key limitations. The first key limitation is

that there is no use of qualitative data in this research study that can provide a strong base to

maintain strong validity and reliability of the research results. Secondly, the research study is focus

on rural and urban market both so interpreting the results of changing housing prices is complex

as both markets have distinct impact of housing prices in Malaysia.

 References

Marczyk, G., DeMatteo, D., & Festinger, D. (2005). Essentials of Research Design and

Methodology. NJ: John Wiley & Sons Inc.

Mariadas, P.A., Selvanathan, M., & Hong, T.K. (2016). A Study on Housing Price in Klang Valley,

Malaysia. International Business Research 9(12), 103-109.

Ong, T.S. (2013). Factors Affecting the Price of Housing in Malaysia. Journal of Emerging Issues

in Economics, Finance and Banking 1(5), 414-429.

Sengupta, U., & Shaw, A. (2017). Trends and Issues in Housing in Asia: Coming of an Age.

Taylor & Francis.

Supino, P.G., & Borer, J.F. (2012). Principles of research methodology: a guide for clinical

investigators. Springer Science & Business Media.

Thomas, J.R., Nelson, J.K., & Silverman, S.J. (2011). Research methods in physical activity.

Human Kinetics.
 Appendices

Timeline

Research Activities Dec Jan Feb Mar Apr May Jun Jul
Proposal Develop
Proposal Approve
Introduction
Literature Review
Data Collection
Data Analysis
Conclusion & Recommendaiton
Proofreading
Final Submission