Johor Bahru Urbanization and Demographic

Buying a house can be the greatest investment and most significant to buy as a shelter and a symbol of achievement. Property market has interrelated with various industries including construction, employment, manufacturing, or even for government income and distribution. Therefore, when there are disturbances in the market, it may create substantial consequences for the economy and social needs of the individual and the country on the whole. In the 80s and early 90s, real estate property in Malaysia was considered to be the most attractive, profitable investment, such that everyone is badly to get participate in the market. Housing prices rose steeply and plenty of initiatives has been given by government to encourage people in buying a property especially in residential sector. However, after the Asian Financial Crisis in 1997 and the global economic downturn in the late 90’s, the pattern drastically changed and the property market was no longer give a good return for investor ever since.

Subsequent of that scenario, people are starting to concern and discuss about the importance of market and feasibility study before any development can be implemented. Studying the factors which explain boom and boost in property markets is an interesting research area because the performance of this property market especially in housing area has significant impacts on the social and economic conditions of the population on the whole. There have several factors that will influence the changes demand in property market such as increasing demand for accommodation and investment, house prices, household incomes, and demographic features such as age, race, household size, and marital status. In addition, speculative activities also have direct impact to the demand of housing particularly when housing prices are expected to rise due to an imbalance between buyers and sellers. This can cause a self- fulfilling speculative price bubble. Demand in housing systems are significantly shaped by economic and demographic change due this housing has a number of special characteristics like its durability, spatial fixity, heterogeneity, and the extensive involvement of governments in housing and related input markets.

Fast growing in the urban area is not just giving positive impact to the local people but also have other drawback behind the rapid development. Previous research had shown that the major problem for urban people is inadequate affordable housing. The level of wealth is not parallel with the urban fast growth. This chapter will then discuss and give some idea the determination of urbanization, demographic factors which affect demand in housing market as well as how it related with the need of affordable housing in the urban area.