Over recent years, the imbalance between housing demand and supply, particularly in the highcost housing segment, led to the rapid increase in the house prices. This paper has applied the standard theory of consumer demand and supply supplemented using content analysis method to explain the trend of housing demand and supply of housing market in Malaysia. Sampling in the quantitative content analysis is carried out to achieve the objective. Property Market Status Report in the NAPIC website provide a series data for total housing demand and supply for any house type of terrace, detached, cluster and townhouse in the price range between RM50,000 to RM300,000. All data provided cover from the first quarter until the fourth quarter across the year 2006 to 2015 specifically in Peninsular Malaysia only. Each level of the house price has a different equilibrium price so that developers can use it as an indicator based on the housing type. This research will promote ways to achieve the sustainabiliy in construction output overall so that the scholars can improve the equilibrium price model proposed in order to make the Malaysian housing become an affordable.

The main purpose of this study is to propose the equilibrium price modelling for affordable housing in Malaysia. This paper examines whether the equilibrium price of affordable housing is strongly related with any affordable housing demand factors (house price, housing physical state, monetary status, population changes, location, and infrastructure amenities provided) and affordable housing supply factors (house price, cost of construction, land availability, population changes, location, and government interventions). The empirical data of housing prices are collected from Valuation and Property Services Department of the Ministry of Finance Malaysia from 1995 to 2015. Regression analysis is conducted to see the strength of relationship between the affordable housing demand and supply factors with the affordable housing equilibrium price. The paper is useful for buyer and private developers to know which factors lead to equilibrium price of affordable housing. This paper can serve as a guide for the government in controlling and stabilizing the affordable housing price.

High overhang of housing rates together with the price of houses offered continues to rise lead to Malaysian housing market become very unaffordable. Therefore, it is important to investigate the reason behind the developer’s action in continuing to develop the high-cost housing despite the huge number of unsold housing units in the market in Malaysia. Respondents involved in this study were housing developers from Johor, Selangor and Perak who are currently or previously involved in the high-cost housing development projects that priced above RM300,000. The paper is expected that the developers able to meet the actual housing supply for high-cost housing type.

The absence of concerns about the problem of housing overhang in developer’s inventory can result in the growth rate of supply exceeding the growth rate of demand. The uncertainty of the economic sector at the international level has a direct impact on the economy in Malaysia, especially the real estate sector. This discussion paper applies literature review, analysis as well as regression approach to develop the supply prediction model for high-cost multi-storey houses. The published documents such as GDP per capita, inflation rate, unemployment rate and per centage of housing overhang for 10 years from beginning 2010 until 2020 are analyzed using secondary data analysis before regressed. Based on such findings, the GDP factor resulted in an increase in the percentage of house price supply for categories between RM 300,000 to RM 400,000, RM 600,000 to RM 700,000 and RM 800,000 to RM 900,000. Second, the factor of unemployment rate resulted in an increase in the percentage of house price supply for a category between RM 300,000 to RM400,000. Third, the factor of inflation rate resultsin an increase in the percentage of house price supplyfor categories between RM 400,000 to RM 500,000, RM 700,000 to RM 800,000 and above RM1,000,000. This model allows the developers to predict a better outcome for their housing development project besides to help them easily carry out the feasibility studyphase without wasting time.