• each home has its own distinct housing characteristics that can be used to establish housing submarkets in a given location
  • information on housing submarkets provides insight into submarket housing preferences
  • the identified housing preferences enable local governments, real estate developers and individual homeowners make important decisions and design market-appropriate plans
Generally, housings within the same area tend to share similar structural and locational characteristics as well as having the same homebuyers’ preferences. This information provides insight on the existence of housing submarkets. Thus, this study aims to identify the existence of housing submarkets in Johor Bahru and Kulai, Malaysia through the principal component analysis and cluster analysis. A total of 29 housing attributes were involved in this study. The results from the principal component analysis have successfully identified four principal components that represent the basic facility, main infrastructure, less common facility and housing quality characteristics. On the other hand, the cluster analysis managed to identify the existence of four housing submarkets in Johor Bahru and Kulai, where three submarkets showed the characteristics of housing quality, whereas one submarket appeared to have the main infrastructure characteristics. The findings of this study provide valuable information on the existence of four housing submarkets in Johor Bahru and Kulai areas, which will benefit the city governments, real estate developers, mortgage lenders, non-profit organizations, as well as individual homeowners, in making critical choices and developing market-appropriate strategies.
This research was supported by the Ministry of Higher Education (MOHE) through the Fundamental Research Grant Scheme (FRGS/1/2019/SS08/UTHM/02/1). In addition, the authors would like to thank the Department of Town and Country Planning Johor (JPBDJ) and the Valuation and Property Services Department (JPPH) for providing the data used in this research.
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