Addressing Environmental Perceptions in Condominium Overhang: A Multiple-Case Study
- Noor Farhana Akrisha Ishak
- Zarita Ahmad Baharum
- Ting Kien Hwa
- Norulelin Huri
- 3556-3568
- Sep 8, 2025
- Environment
Addressing Environmental Perceptions in Condominium Overhang: A Multiple-Case Study
Noor Farhana Akrisha Ishak1, Zarita Ahmad Baharum2*, Ting Kien Hwa3, Norulelin Huri4
1,2,4Faculty of Built Environment, Universiti Teknologi MARA, Shah Alam, Selangor, Malaysia.
3Department of Real Estate, Faculty of Built Environment, Tunku Abdul Rahman University of Management and Technology, Jalan Genting Klang, 53300 Kuala Lumpur, Malaysia
*Corresponding Author
DOI: https://dx.doi.org/10.47772/IJRISS.2025.908000289
Received: 31 July 2025; Accepted: 07 August 2025; Published: 08 September 2025
ABSTRACT
Property overhang refers to unsold housing units that remain in the market for extended periods (9 months from the launch date), often posing a persistent challenge despite a decline in recent numbers. Several factors contribute to property overhang, including price, location, external environmental influences, etc. This paper examines the external environmental factors surrounding selected condominiums, which exert both positive and negative impacts on associated unsold properties. Four housing schemes were analyzed: one in Johor and three in the Klang Valley. These locations were chosen based on (1) their status as areas with the highest property overhang, particularly Johor and Klang Valley; (2) the predominance of condominium overhang; (3) a price range between RM500,000 and RM1,000,000; and (4) an overhang rate exceeding 50% of unsold units. The study employs a triangulation method utilizing document analysis, literature reviews, and field observations to evaluate the impact of external environments on these properties. The findings identify 13 external environmental factors influencing the overhang. The shared issues across the housing schemes, including traffic congestion, poor road design, illegal parking, and proximity to village areas and social housing, contribute to negative perceptions and reduce marketability, which could be addressed through improved infrastructure, community integration, and urban design. The results suggest that developers and local authorities should consider these external environmental factors during the planning and development of new housing schemes to reduce the prevalence of property overhangs in the future.
Keywords: External Environment, Condominium Overhang, Multiple-case Study
INTRODUCTION
The overhang of residential and serviced apartment properties in Malaysia should not be taken lightly. The one-decade data on overhang indicates that the overhang will not go away soon (Ishak et. al., 2024a). Ishak et. al. (2024b) found that patterns of factors of property overhang in Malaysia are financial/ economic, information/ data, affordability, buyer preferences, government policies and regulations, connection and distance, neighbourhood, housing feasibility study, developer, and demand.
One critical yet often overlooked factor influencing unsold properties is property stigma. According to Huri et al. (2024), property stigma plays a significant role in perpetuating the overhang, as seen in the case of Clio2 Residence in Malaysia, where stigma-related concerns left numerous units unsold. Chapman et al. (2019) further emphasized that physical or psychological stigma can deeply affect potential buyers’ willingness to purchase or pay for a property. Such perceptions—often linked to factors like environmental surroundings, infrastructure, or prior property reputation—can undermine the marketability of units, leaving them unclaimed for extended periods.
This study investigates the external environmental factors contributing to condominium overhang, with a particular focus on their association with property stigma. This research seeks to uncover key factors influencing unsold properties by employing a data triangulation approach, including literature reviews, document analyses, and direct observations. By doing so, it aims to deepen the understanding of how external environmental elements and stigma intersect, providing insights for policymakers, developers, and future studies.
LITERATURE REVIEW
External Environment Stigma
According to Horgan (2020), housing stigmatization refers to the social process of symbolically denigrating specific housing units based on their inhabitants, characteristics, tenure, and/or location. Previous studies have identified several factors that contribute to the denigration of housing units. One of the studies from Ishak et. al. (2025) mentioned the property stigma factor in residential overhang has three main themes, which are physical stigma, non-physical stigma, and psychological stigma. This study will categorize these elements, and Table 1 will illustrate the external environmental stigma observed in previous research.
Table 1. Property Stigma by the Previous Studies
Theme | Category | Element | Author(s) |
Physical stigma | Natural hazard | Natural disaster area | Rosli et al., 2016 |
Non-physical stigma | Air pollution | Stench | Hajnal, 2017 |
Smell from the industrial zone | Hajnal, 2017 | ||
Proximity to the airport | Belej et al., 2022; Batog et al., 2018 | ||
Lead contamination | Hajnal, 2017 | ||
Noise pollution | Noise due to HVPL | Hajnal, 2017; Ibrahim & Adi Maimun, 2022 | |
Noise due to cell phone towers | Hajnal, 2017 | ||
Noise due to the airport | Belej et al., 2022; Batog et al., 2018; Hajnal, 2017; Ibrahim & Adi Maimun, 2022 | ||
Noise due to the road | Hajnal, 2017; Ibrahim & Adi Maimun, 2022 | ||
Noise due to the railway | Hajnal, 2017; Ibrahim & Adi Maimun, 2022 | ||
Noise due to the industrial zone | Hajnal, 2017 | ||
Noise problems from neighbours | Webb, 2006 | ||
Visual pollution | View pylons building | Aranda et al., 2021 | |
View wind turbines | Aranda et al., 2021 | ||
View HVPL | Aranda et al., 2021; Hajnal, 2017; Ibrahim & Adi Maimun, 2022 | ||
View cell phone towers | Ibrahim & Adi Maimun, 2022 | ||
Traffic congestion | Traffic causes the industrial zone | Hajnal, 2017 | |
Distance | Proximity to the stigmatized property | Bering et al., 2017 | |
Proximity to the unnatural death unit | Chang & Li, 2018 | ||
Proximity to the sex offender area | Chang & Li, 2018; Chapman & Ludlum, 2014 | ||
Proximity to the airport | Belej et al., 2022; Batog et al., 2018; Hajnal, 2017 | ||
Proximity to the waste dump | Hajnal, 2017 | ||
Proximity to the industrial zone | Hajnal, 2017 | ||
Property under construction | Hajnal, 2017; Ibrahim & Adi Maimun, 2022; Rosli et al., 2016 | ||
Proximity to HVPL | Ibrahim & Adi Maimun, 2022 | ||
Proximity to landfill | Ogban & Akujuru, 2018 | ||
Proximity to contaminated land | Ogban & Akujuru, 2018; Webb, 2006 | ||
Proximity to the airport | Belej et al., 2022; Batog et al., 2018 |
Natural Hazards
Natural hazards such as floods, earthquakes, and landslides are significant factors impacting property value assessments. Properties located in disaster-prone areas often experience stigmatization, which can reduce their marketability and overall value. Rosli et al. (2016) highlight that these areas are frequently viewed as risky investments. The effects of natural disasters can leave a lasting impact on the physical environment, making it difficult for affected areas to regain their previous market value.
Air Pollution
Air pollution, particularly from industrial zones, poses a considerable challenge for nearby residential areas. Hajnal (2017) discusses how industrial emissions negatively affect property values, asserting that unpleasant odours contribute to the stigmatization of adjacent residential properties. Furthermore, studies conducted by Belej et al. (2022) and Batog et al. (2018) demonstrate that properties close to airports are also subjected to air pollution, resulting in decreased property values due to concerns over air quality.
Noise Pollution
Noise pollution is another critical factor affecting property values. Sources such as high-voltage power lines, cell phone towers, and industrial areas contribute to noise pollution, leading to negative perceptions of nearby residential properties (Hajnal, 2017; Ibrahim & Adi Maimun, 2022). In addition, noise generated by airports, roads, and railways exacerbates this issue, further diminishing property values (Belej et al., 2022; Batog et al., 2018; Hajnal, 2017; Ibrahim & Adi Maimun, 2022). Furthermore, even noise from neighbours, as highlighted by Webb (2006), can contribute to the stigmatization of properties.
Visual Pollution
Visual pollution, characterized by unsightly structures such as pylons, wind turbines, high-voltage power lines, and cell phone towers, also plays a role in the depreciation of property values. Aranda et al. (2021) and Hajnal (2017) emphasize that the negative visual impact of these structures detracts from the aesthetic appeal of residential areas. Ibrahim & Adi Maimun (2022) further examine the effects of visual pollution, noting that the presence of these structures can lead to long-term stigmatization and decreased property desirability.
Traffic Congestion
Traffic congestion, often resulting from proximity to industrial zones, airports, and waste dumps, has been identified as a factor in the decline of residential property values. Hajnal (2017) discusses the impact of traffic congestion, noting that it not only affects air quality but also contributes to noise and visual pollution, thereby compounding the negative effects on property values.
Distance
Numerous studies have shown that the proximity of residential properties to stigmatized sites affects their market value and desirability. Properties located near stigmatized units, such as those associated with unnatural deaths (Chang & Li, 2018) or areas housing sex offenders (Chapman & Ludlum, 2014), often experience reduced demand due to psychological and safety concerns. Similarly, proximity to airports (Belej et al., 2022; Batog et al., 2018), waste dumps (Hajnal, 2017), and landfills (Ogban & Akujuru, 2018) can result in noise pollution, unpleasant odours, and environmental risks, all of which decrease property values. Industrial zones (Hajnal, 2017) contribute to noise, air, and visual pollution, while high-voltage power lines (Ibrahim & Adi Maimun, 2022) raise health concerns related to electromagnetic exposure. Additionally, contaminated lands (Ogban & Akujuru, 2018; Webb, 2006) and properties under construction (Rosli et al., 2016) pose health risks and present temporary disruption, further diminishing their appeal.
The findings from the literature review highlight the complex interplay between external environmental factors and property stigma. While factors like noise, air, and visual pollution often co-occur, they interact differently depending on the specific context of the property. Moreover, proximity to stigmatized elements like industrial zones and waste facilities amplifies the negative perceptions already associated with pollution and congestion.
Understanding the influence of these factors is critical for addressing property overhangs. Developers, policymakers, and local authorities must consider these external environmental elements during the planning and construction phases to mitigate the potential for property stigma. Further research should prioritize local contexts to develop region-specific strategies for minimizing the impact of environmental stigma on residential properties.
METHODOLOGY
This study employs a qualitative research design to achieve its objectives. A descriptive approach was selected to provide clear and comprehensive insights into the experiences and perceptions associated with condominium overhangs (Sandelowski, 2010). This approach is particularly suited for investigating topics with limited prior exploration (Doyle et al., 2020).
Research Setting
The study focuses on housing schemes identified through the National Property Information Centre (NAPIC) 2022 data on strata residential overhangs. Housing schemes were selected from Johor and Klang Valley—regions with the highest recorded residential overhangs. Johor was chosen due to its 2020 record of 15,938 unsold units, the highest nationwide, while Klang Valley followed closely with 13,811 unsold units. The inclusion and exclusion criteria used for sample selection are detailed in Table 2.
Table 2. The Inclusion and Exclusion Criteria
Sample | Inclusion Criteria | Exclusion Criteria |
Strata residential overhang | Housing schemes in Johor and Klang Valley | Housing schemes excluding Johor and Klang Valley |
Condominium properties | Non-condominium properties | |
Price range of RM500,000 – RM1,000,000 | Price outside the RM500,000 – RM1,000,000 range | |
Overhang category above 50% unsold units | Overhang category below 50% unsold units |
Data Collection
Data collection involved direct observations conducted across four (4) housing schemes: one from Johor and three from Klang Valley. Each observation lasted approximately two hours and provided in-depth insights into the external environments of the selected schemes. According to Sileyew (2019), observational research offers high validity by allowing researchers to collect detailed information on behaviours, settings, and environmental factors. During these observations, the researcher documented elements of the external environment impacting the properties under investigation.
Data Analysis
This study adapted the five-phase process by Bingham and Witkowsky (2022) as shown in Figure 1. While the five-phase data analysis process offers a more general framework for qualitative analysis, researchers can adapt elements of this approach to complement methodology-specific analysis processes, such as those used in narrative inquiry, grounded theory, and phenomenology (Bingham, 2023).
Figure 1. The five-phase process (adapted by Bingham and Witkowsky, 2022)
Hence, to enhance the reliability and validity of findings, this study utilized triangulation, a critical method for ensuring rigour in qualitative research (Noble & Heale, 2019). Specifically, data triangulation was adopted, which involves incorporating a variety of data sources, including time, location, and individuals, to corroborate findings and reduce the risk of bias or misinterpretation (Hales, 2010). This approach compensates for weaknesses in individual data sources by leveraging the strengths of others, ensuring a holistic understanding of the subject (Johnson et al., 2020). The triangulation process enabled the cross-verification of data from literature reviews, document reviews, and field observations, supporting the accuracy and credibility of the study’s conclusions.
FINDINGS AND DISCUSSION
Four housing schemes contributed to the findings of this study. The housing scheme was identified using a property market report published by the National Property Information Centre (NAPIC). The findings from direct observation revealed thirteen (13) elements of property stigma.
Document Review
Lunenburg and Irby (2008) suggested that documents derived from organizational or institutional arrangements are often produced through studies conducted within relevant organizations or institutions. These documents provide valuable insights and serve as a foundation for research by offering structured and systematic information. Yin (1994) further emphasizes the importance of such documents in the research process, highlighting that the inclusion of exact names, references, and detailed accounts of events enhances the credibility and accuracy of the research.
Ishak et. al. (2024a) found trends in residential and serviced apartment overhang in Malaysia by property type (2013–2022) as shown in Figure 1. The overhang for serviced apartments and condominiums/apartments increased markedly, peaking at 23,978 and 17,162 units respectively in 2022, while landed properties, particularly 2–3-storey terraces, experienced a steady decline. The relatively stable overhang in landed housing compared to high-rise units suggests a potential shift in buyer preference towards landed properties, highlighting the need for targeted policy interventions to balance market supply with demand.
Figure 2. Volume of Overhang Residential and Serviced Apartments Properties Trend by Type of Property (Source: NAPIC, various years)
This study used a property market report for 2022 to analyse the status of various housing schemes across different states. The selected housing schemes, as shown in Table 3, were chosen based on specific inclusion and exclusion criteria that align with the research objective.
Table 3: Selected Housing Scheme (NAPIC, 2022)
State | No of Launches | No of Unsold | % of Unsold | Phase | Housing Scheme | Launching Date |
Johor | 355 | 206 | 58% | Tower 3 | HS1 | 6/13/2015 |
Selangor | 207 | 153 | 74% | Phase 4 | HS2 | 5/13/2017 |
Kuala Lumpur | 187 | 143 | 76% | – | HS3 | 7/31/2017 |
Kuala Lumpur | 243 | 123 | 51% | – | HS4 | 9/12/2015 |
Based on the observations, for the number of launches vs. unsold units: Johor recorded the highest number of launches (355) but a relatively low percentage of unsold units (58%). This suggests that despite a larger supply, market demand was better than in the other regions. In contrast, Kuala Lumpur, with 243 and 187 launches, shows unsold percentages of 51% and 76%, respectively, indicating varied market success despite a smaller scale of launches.
In terms of unsold percentage, Selangor and Kuala Lumpur (HS3) exhibit very high percentages of unsold units (74% and 76%), signalling significant market challenges. This suggests potential overpricing, poor location desirability, or external environmental issues. Johor’s 58% suggests moderate performance but still highlights market difficulties compared to a typical desired sell-through rate.
The timeline of launches shows that the projects were launched between 2015 and 2017. Properties launched in 2015 (Johor’s HS1 and Kuala Lumpur’s HS4) still record high unsold percentages after more than seven years on the market, raising questions about the long-term market appeal. HS3 in Kuala Lumpur, launched in 2017, exhibits the highest unsold percentage (76%), highlighting a possibly worsening trend in marketability for that period in the Kuala Lumpur property market.
The data presented demonstrate several notable strengths. Primarily, the tabulated figures provide a clear and comprehensive snapshot of unsold residential units as a proportion of total launches. This allows for comparative analysis across different regions, thereby facilitating a spatial understanding of the overhang issue. Furthermore, the inclusion of project-level information, such as project names, development phases, and launch dates that enables a more granular investigation into temporal trends and the progression of sales performance over time.
However, several limitations must be acknowledged. Firstly, the data’s scope is constrained, as it focuses on only four selected housing schemes. This narrow coverage may not sufficiently represent the broader property overhang landscape across the entire market. Secondly, the dataset lacks critical contextual variables such as pricing structures, locational attributes, target buyer demographics, and prevailing macroeconomic or local market conditions, all of which are essential for a more holistic interpretation of the overhang phenomenon. Thirdly, environmental determinants are notably absent; the data do not consider external environmental influences such as surrounding land use, infrastructure availability, or exposure to physical or social detriments, which may significantly affect the marketability of the properties in question.
This data offers a valuable starting point for examining property overhang, but would benefit significantly from richer contextual and market information to inform robust conclusions
Direct Observation
Figure 3 illustrates the findings from direct observation of four (4) housing schemes. The findings with specific case studies (HS1–HS4) link each issue to the identified housing schemes.
Figure 3. Property Stigma in Condominium Overhang
Housing Scheme 1 (HS1) – Johor
Factors contributing to the overhang: firstly, isolation and proximity to cemeteries: HS1 is characterized by its isolated location, likely compounded by cultural stigmas associated with its proximity to cemeteries. Such associations may deter buyers due to superstitions and perceptions of reduced desirability. Isolated houses in HS1 often face challenges due to their perceived inaccessibility, lack of amenities, and inconvenience of having to travel longer distances for daily necessities, which can deter potential buyers. The study by Lee and Lee highlights that the location environment is a critical factor influencing satisfaction with the selling price of houses, which in turn affects buying intentions (Lee & Lee, 2014).
Secondly, the proximity to vacant land and forest/bushes, whereby the presence of undeveloped or vacant land near HS1 gives the area an unfinished, neglected appearance, potentially reducing its appeal. Buyers may also perceive vacant land as risky or unsafe. A study in Buffalo, New York, highlighted that neighbourhood vacancy density significantly reduced housing sales prices over time, suggesting that the presence of abandoned properties can deter potential buyers and decrease property values (Yin & Silverman, 2015). While green spaces are generally valued, they can also bring negative externalities, such as nuisances from wildlife, which can lower property prices in certain areas (Broitman et al., 2017). HS1 near the untreated forest areas may attract wildlife such as snakes or insects, which can become a nuisance or even a danger to residents. Concerns about safety and the need for pest control can make properties less attractive, leading to longer selling times.
These issues highlight how HS1’s surroundings reduce its liveability and buyer interest. Addressing the isolation through improved connectivity and repurposing nearby land for community use could mitigate some of these concerns.
Housing Scheme 2 (HS2) – Selangor
The contributing factors include, firstly, high road usage and traffic congestion: HS2 suffers from excessive road usage during peak hours, which can deter potential residents who value convenience and tranquillity. The narrow road design exacerbates traffic challenges. Barthelemy (2016) pointed out that urban density is a critical determinant of congestion, with higher population densities typically leading to increased traffic congestion during peak hours. This is because more people living in a concentrated area often results in more vehicles on the road at the same time, and deterioration of the overall quality of life, which can lead to unsold units. Secondly, due to the proximity to social housing and village areas where buyers may perceive the proximity to social housing and village areas as undesirable due to perceived socio-economic disparities or concerns about security. In Nanjing, similar findings were observed where urban village disamenities negatively affected neighbouring residential properties, further supporting the notion that proximity to urban villages can initially hinder the saleability of houses (Hussain et al., 2021).
These factors point to infrastructure and planning issues in HS2. Local authorities could collaborate with developers to widen roads, reduce congestion, and enhance the integration of nearby social housing to improve perceptions. This congestion not only reduces traffic efficiency but also contributes to increased noise and exhaust emissions, which are significant urban health concerns (Xu et al., 2024).
Housing Scheme 3 (HS3) – Kuala Lumpur
An important key contributor is the proximity to abandoned projects and illegal car parking: HS3 is negatively influenced by its proximity to abandoned projects, which creates an impression of neglect and instability. Abandoned projects often carry a stigma, which leads to concerns about the overall quality of the neighbourhood. Prospective buyers may associate nearby properties with neglect or poor development planning, reducing their willingness to invest. Studies by Çubukçu & Kahraman (2024) mentioned that the spatial characteristics of housing abandonment, such as the density and distribution of abandoned buildings, can influence the attractiveness of a neighbourhood. In historic environments, for example, clusters of abandoned buildings can deter investment and reduce the appeal of the area.
Additionally, illegal car parks contribute to further disorganization and reduce the neighbourhood’s appeal. Tsakalidis & Tsoleridis (2015) said the presence of illegally parked vehicles decreases the available road space for moving traffic, effectively reducing road capacity. This can lead to longer travel times. Besides that, illegal parking can obstruct the view of drivers and pedestrians, increasing the likelihood of accidents (Termida et al., 2019). Secondly, noise pollution from roads and construction as the ongoing construction noise and traffic from busy roads in this urban location, adds to the discomfort of potential buyers. This is evidenced in Collaco et al. (2020) whereby living within 500 meters of a major roadway is linked to chronic respiratory symptoms, with a 35% decrease in activity limitations for every kilometre further from the road.
HS3’s challenges highlight the importance of managing abandoned projects and implementing sound urban planning in dense metropolitan areas like Kuala Lumpur. Developers could reclaim abandoned areas and create organized parking facilities to improve appeal.
Housing Scheme 4 (HS4) – Kuala Lumpur
The key contributors include proximity to industrial zones and noise pollution: HS4 faces noise pollution not just from busy roads but also potentially from nearby industrial zones, making it less appealing to buyers. A study in Malaysia indicated that construction noise negatively affected community health, with residents expressing dissatisfaction with noise levels (Jani & Nasim, 2023). Furthermore, construction activities by nature generate substantial noise pollution, which can adversely impact the liveability and desirability of nearby residential areas. As stated by Massey & Bande (2024), residents near construction sites report disturbances that contribute to anxiety, depression, and headaches.
Secondly, illegal parking and narrow cul-de-sac road design as narrow, cul-de-sac road design as the prevalence of illegal car parks, create additional frustration for buyers and reduce traffic efficiency. HS4, situated near cemeteries, can evoke a complex interplay of emotions and perceptions. Some individuals may find meaning and connection in such proximity, while others may experience discomfort or fear due to cultural or spiritual beliefs about death (Casas et al., 2024). The perception of cemeteries as zones of risk and insecurity, including fears of theft or spiritual disturbances, can deter potential buyers (Klaufus, 2021).
In HS4, addressing industrial noise through zoning regulations or sound barriers and improving road design could significantly reduce the property’s stigma.
The shared issues across the housing schemes (HS1–HS4) include traffic congestion during peak hours, poor road design (cul-de-sacs and narrow roads), illegal parking, proximity to village areas, and proximity to social housing. These factors reduce the desirability and marketability of developments, affecting daily living conditions and contributing to negative perceptions. High road usage leads to congestion, while inadequate road design and illegal parking hinder mobility and safety. The proximity to village areas and social housing creates cultural and socio-economic stigmas that further deter potential buyers. Addressing these issues through better infrastructure planning, integration of communities, and targeted urban design improvements can enhance the appeal of these housing schemes and reduce the overhang of unsold properties.
Addressing the property overhang issues in the selected housing schemes (HS1–HS4) requires targeted, location-specific strategies to tackle their unique challenges. While all schemes face shared issues, such as traffic congestion and poor urban design, each also has distinct circumstances that demand customized solutions.
For HS1, the primary concerns are its isolation and the stigma associated with its proximity to vacant land and forested areas. To mitigate these challenges, improving accessibility through enhanced public transport links is essential. This could include the introduction of bus routes, shuttle services, or connecting the area to broader transportation networks to reduce the sense of seclusion. Additionally, the vacant land surrounding HS1 should be repurposed into community spaces or recreational areas, such as parks, playgrounds, or sports facilities. Such initiatives would not only improve the liveability of the area but also foster a stronger sense of community, enhancing its overall market appeal.
In HS2, traffic congestion and road network inadequacies are significant barriers to desirability. To address this, expanding the road infrastructure and implementing traffic management systems can help alleviate congestion. Integrating nearby social housing into a broader urban plan is equally important to reduce the socio-economic stigma associated with proximity to lower-income areas. By fostering greater connectivity and ensuring that social housing is developed alongside high-quality community amenities, the area can project a more inclusive and appealing identity.
HS3 faces specific challenges due to its proximity to abandoned projects and issues with illegal parking. These abandoned projects should be reclaimed and redeveloped into functional spaces, such as residential units, retail spaces, or public facilities, to revitalize the neighbourhood. Stricter parking regulations and the development of formalized parking spaces are also crucial to address illegal parking, which creates a disorganized environment. Combined with improved road management strategies, these measures can enhance the scheme’s overall appeal and usability.
For HS4, noise pollution from nearby industrial zones and road traffic is a pressing issue. Implementing urban noise mitigation strategies, such as sound barriers, acoustic insulation for nearby residences, or landscaped buffers, can significantly improve the quality of life for residents. Redesigning the road network to optimize traffic flow would address congestion and inefficiencies, while formalizing parking spaces can help resolve issues related to illegal parking. Together, these interventions would enhance liveability and reduce the stigma associated with HS4’s location.
Each housing scheme reflects unique challenges that exacerbate property overhang, underscoring the need for tailored interventions based on local conditions. By addressing both the shared and unique issues affecting HS1–HS4, developers and local authorities can transform these schemes into more desirable and marketable residential areas, reducing the prevalence of unsold properties while fostering sustainable and inclusive community development.
POLICIES IN MALAYSIA TO MITIGATE PROPERTY STIGMA
As shown in Table 4, these policies collectively aim to mitigate property stigma by addressing housing accessibility, environmental factors, urban transformation, and community development. By implementing these initiatives, the government supports the revitalization of neighbourhoods and positive perceptions of properties, ultimately leading to greater stability and growth in the real estate market. Each of these policies is backed by examples of successful programs that lead to improved community perceptions and property values.
Table 4. Policies in Malaysia to mitigate property stigma
Policies | Justification | Sources |
National Housing Policy | This policy addresses property stigma by promoting inclusive housing developments and ensuring that housing projects are well-planned, accessible, and integrated into vibrant communities. | Ministry of Housing and Local Government (KPKT). (2018). National Housing Policy 2018-2025. |
Urban Transformation Programme (UTP) | Designed to revitalize urban areas in Malaysia, improve infrastructure, and enhance public amenities. By upgrading public transport facilities and infrastructure, the UTP addresses the distance factor that contributes to property stigma. | Jabatan Perancangan Bandar dan Desa (JPBD). (2018). Malaysia’s Urban Transformation Programme – Policy Overview. |
Environmental Quality Act 1974 | By enforcing pollution controls and promoting sustainable practices, the Environmental Quality Act addresses environmental stigma, enhancing properties’ desirability. | Department of Environment, Malaysia. (2020). Environmental Quality Act 1974. |
Community Development Policy | Focuses on enhancing community engagement and social cohesion through local initiatives. The policy encourages collaboration between local authorities, NGOs, and residents, which helps counter stigma associated with certain neighbourhoods. | Ministry of Rural Development Malaysia. (2015). National Community Development Policy. |
CONCLUSION
In conclusion, this study highlights the complex interplay between external environmental factors and the phenomenon of property overhang in the Malaysian real estate market. The analysis of selected housing schemes (HS1–HS4) reveals several shared challenges that contribute to negative perceptions and reduce the marketability of these properties. Factors such as high road usage during peak hours, poor road design, illegal parking, and the proximity to social housing and village areas significantly influence buyer perceptions, ultimately resulting in unsold units. The presence of pollution, noise, and isolation compounds these issues, reinforcing cultural and socio-economic stigmas that deter potential homeowners.
To address these challenges and mitigate property overhang, a multi-faceted approach is necessary. Developers, urban planners, and local authorities must collaborate to improve infrastructure, optimize road design, and implement effective parking management systems. Moreover, addressing social and cultural perceptions, particularly those related to proximity to abandoned projects, social housing, and rural areas, can help reframe negative associations. By investing in the repurposing of vacant land, enhancing community amenities, and fostering a more cohesive environment, the attractiveness of these housing schemes can be significantly improved.
Ultimately, overcoming property overhang is not solely a matter of addressing physical infrastructure, but also involves shifting perceptions and creating an environment where potential buyers see value and liveability. Through proactive, thoughtful planning and engagement with local communities, these issues can be addressed, ensuring that future housing developments are not only sustainable but also socially and economically viable. This paper contributes to a deeper understanding of the external factors influencing the marketability of housing developments in Malaysia and provides recommendations for reducing the stigma and enhancing the success of future residential projects.
ACKNOWLEDGEMENT
This research was funded by the Ministry of Higher Education through the Fundamental Research Grant Scheme (Grant No. FRGS/1/2022/SS06/UITM/02/29) and Universiti Teknologi MARA.
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