Investigation of real estate investment decision across demographic groups in Kota Kinabalu

Lo, Wan Thin (2014) Investigation of real estate investment decision across demographic groups in Kota Kinabalu. Masters thesis, Universiti Malaysia Sabah.

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Abstract

In Malaysia, real estate sector has increased the attention of investors. It causes the demand of real estate is continuously rising even though there is limited supply of real estate. Most of the investors expected to improve their standards of living because of financial crisis occurred in Malaysia. For the investor's perspective, real estate investment should be considered as a generating profit tool that could increase the income of investor by owning a property as their asset in future. Besides, the value of real estate is highly ir:tfluenced by the number of demand from investors. There are no chances of abnormal return in the long term due to the investors will invest to the reasonable price level through arbitrage even though the assets prices are not properly valued in the market (Fama, 1998). Higher value of real estate would increase the price of real estate. The condition of raising price in real estate benefits government or banking sector to avoid financial crisis in Malaysia. Hence, the underlying trend of real estate market is positive and stable in Malaysia, which enables increase in real estate requirements due to the population of Malaysia is growing in every year. During 1978 to 1985, it has baby boom to drive high demand of real estate investment in Malaysia. Government or banking sector is highly encouraged local investors invest on real estate as well as foreign investors. Jarad, Yusof & Mohd Shafiei (2010) noted that Malaysia obtained benefits from the development of the real estate industry which developed in local country. Nevertheless, the development of real estate in Malaysia has continued to challenge with various constructions and restrictions (Agus, 1997). It came from several fundamental reasons about the constructions and restrictions such as increasing demand of real estate, continuous changes in technology, increase in the construction cost, issue of environmental policies and concept of innovation on real estate development (Yusof and Zainul, 2007). However, the real estate industry was used the conventional development methods for solving the problems of constructions and restrictions to find the right direction in the trend of real estate market. In the Malaysian real estate industry, the government or banking sector is continuously striving to recover the country's economy by using several methods. Since the past ten years, the investors became extremely cautious on the financial crises and economic recession when they demanding real estate in Malaysia. Furthermore, the real estate transaction has suffered in substantial contraction and declined the value of real estate. However, Malaysian government were started to implement the issue of economic recession and financial crises by using various implementations which is capital controls, rejection of loan offered by International monetary Fund (1M F), pegging local currency and establishing the consultation policy to associates. Other than that, the government established the policy of Real Property Gains Tax (RPGT) as an impOSition to stimulate the real estate market increasing demand of investors in short and medium term. In addition, Malaysian government were introduced the low interest rate policy. It results in the country's economy and financial condition. As mentioned above, the development of real estate could benefit to the local country for recovering the financial crises and economy recession. However, the trend of real estate market should be maintained on stable condition even high performance on real estate transaction. The effect of investor's real estate investment decision would be influence performance of real estate market. For instance, the life insurance demand is positively affected by changes in consumer sentiments (Headen and Lee, 1974). The real estate investment decision is collected from investors who interested to invest on real estate. There are some real estate investment decisions that identified in this study such as types of real estate, sources of awareness, return expectation and period of real estate investment.

Item Type: Thesis (Masters)
Uncontrolled Keywords: Kota Kinabalu,business competition, individual's investment decision,finance strategies, property constructions
Subjects: H Social Sciences > HD Industries. Land use. Labor
Divisions: FACULTY > Faculty of Business, Economics and Accounting
Depositing User: Noraini
Date Deposited: 03 Jan 2018 05:03
Last Modified: 03 Jan 2018 05:03
URI: http://eprints.ums.edu.my/id/eprint/17930

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