Study on the Relationship between Urbanization and Housing Development Needs in Seremban 2, Negeri Sembilan, Malaysia

Study on the Relationship between Urbanization and Housing Development Needs in Seremban 2, Negeri Sembilan, Malaysia

Haryati Shafii*¹., Nor Fazlin Mohd Azahar¹, Azlina Md Yassin² & Haidaliza Masram²

¹Department of Construction Management, Faculty of Technology, Management and Business, University Tun Hussein Onn Malaysia Johor, Parit Raja. 86400, Batu Pahat, Johor, Malaysia

²Department of Real Estate Management, Faculty of Technology, Management and Business, University Tun Hussein Onn Malaysia Johor, Parit Raja. 86400, Batu Pahat, Johor, Malaysia

*Corresponding Author

DOI: https://dx.doi.org/10.47772/IJRISS.2025.90300073

Received: 27 February 2025; Accepted: 03 March 2025; Published: 31 March 2025

ABSTRACT

Urbanization is the process by which a growing fraction of a population moves into urban areas, resulting in the development and growth of cities. The shortcomings in the implementation of land use planning practices for housing development have arguably contributed to the impact of urbanization on housing development needs in Seremban 2, Malaysia. The objective of this research is to analyse the relationship between urbanization and housing development needs in Seremban 2, Negeri Sembilan. This study employed quantitative methods, which required a sample size of 191 respondents in the residential area Section J @ Sri Carcosa Seremban 2 to obtain their perspective on the impact of urbanization on housing development needs. SPSS software has been utilized for the relationship between urbanization and housing development needs. From the analysis, the impact shows Seremban 2 is an easily accessible area and has become the focus for the suburbs that are significant with the authority and construction firm’s practices for minimizing the impact of housing development needs. The findings from this study offer an effective land use planning system and produce more low-cost houses for the community in Seremban 2. The study concludes with practical recommendations derived from the implementation of practices to minimize the impact of urbanization on housing development needs in Seremban 2, Negeri Sembilan.

Keywords: Urbanization, Housing Development Needs, Practices, Impact & Relationship

INTRODUCTION

Urbanization is the process by which a growing fraction of a population moves into urban areas, resulting in the development and growth of cities. It entails the transfer of people from rural to urban areas or the transformation of rural to urban areas through the construction of infrastructure and the pursuit of economic endeavours. It has an impact on the entire society because it moulds and serves as evidence of the countries [1]. It is also known as a gradual growth in the number of people living in towns and cities. It is heavily influenced by the idea that cities and towns have accomplished greater economic, political, and social mileage than rural places [2].

Due to urbanization in developing nations, excessive housing developments are being constructed, especially in rural areas because of the rapid demand for population growth. Land use became hardly planned among the authorities and construction companies to provide well-structured residential areas for the community and the suburbs. In developed urban areas, various forms of housing are being built to accommodate the growing population. Housing is a big concern for everyone in the world because a country’s prosperity is mirrored in the quality of life its citizens experience [3]. Housing is one of the key markers of welfare as it offers protection and has a significant potential to grow the construction sector, create jobs, and aid in capital development. For the year 2000, the Malaysian construction sector, which includes housing, contributed around 3.4% to the country’s Gross Domestic Product (GDP). Housing is more than just a roof; it’s the opportunity for better lives and a better future [4].

Malaysia recognizes the importance of current planning mechanisms in urban areas for housing development. Town planning can limit housing development by identifying land for future development and implementing policies on intensity, design, and land-use zoning. Also, through development control, the local planning authority establishes procedures to be followed, processing requirements, planning standards, and guidelines, and the duration of its activities to preserve, monitor, and protect the environment. Delays in planning approvals, a lack of consistency in decision-making, poor development plan content, and a lack of workforce resources are some of the issues with the development control process [5].

The problem statement of this study is increased population rate in major urban areas has put a strain on housing development. Furthermore, a lack of land supply has resulted in issues such as a lack of open spaces, and recreational areas, and an insufficient provision of community facilities within housing areas [6]. Most planners believed that economic factors in determining land location, particularly housing demand, had received insufficient attention. As a result, housing zones are created that do not accurately reflect actual demand [7]. Other factors contributing to oversupply identified by respondents include poor implementation [8], enforcement, locational disadvantages, and unaffordable housing prices [9]. Overplanning, and land expansion [10]. This research has focused on how urbanization has an impact on housing development needs or demand by implementing a land use planning system while considering the authority’s practices on urban planning major in Seremban 2, Negeri Sembilan, Malaysia. Therefore, this research aims to analyse the relationship between urbanization and housing development needs in Seremban 2, Negeri Sembilan. The hypothesis of this research is:

H0: The authority and construction firms’ practice of minimizing the impact of urbanization on housing development needs in Seremban 2, Negeri Sembilan is not significant with the impact of urbanization on housing development needs in Seremban 2, Negeri Sembilan.

H1: The authority and construction firms’ practice of minimizing the impact of urbanization on housing development needs in Seremban 2, Negeri Sembilan is significant to the impact of urbanization on housing development needs in Seremban 2, Negeri Sembilan.

This research is significant to explore because, from the literature review, more of the study focuses on the impact of urbanization on residential. However, a study on the relationship between urbanization and housing development needs in Seremban 2, Negeri Sembilan is limited to explore. Therefore, this study tries to expose these issues with data analysis from fieldwork.

Definition and Concept

Urbanization

Urbanization was the process through which people moved from rural to urban areas, enabling cities and towns to grow. It is often referred to as a slow increase in the population of towns and cities. The notion that urban areas have made more progress than rural areas in terms of economic, political, and social spheres has a significant impact on it [11]. The idea of urbanization [12] has been divided into four categories, each of which refers to instead of the current sentence.

1. An increase in the population or a certain percentage. For instance, in Malaysia, a town is regarded as a city if it has a population of more than 10,000.
2. The expansion of the city’s footprint through the construction of new structures, commercial spaces, and urban settlement areas, as well as the development of the transport system and network, and an uptick in urban activity.

iii. Structural modifications as well as the economic activities of the local populace, that is, the transition from primary to secondary and tertiary economies.

1. A shift in the population’s attitudes and behaviours from more traditional to more modern metropolitan ones [13].

Malaysia’s housing requirement between 2006 and 2010 is 709,400 homes. Twenty thousand units are allotted from that solid total for the hardcore poor, persons living below the poverty line, whose need for housing is extremely pressing. Low-income earners receive 165,400 units of low-cost housing, while low-medium-income earners receive 85,505 units [14].

Malaysia’s population is expected to reach 32.7 million in 2022, up from 32.6 million in 2021, with an annual population growth rate of 0.2 percent [13]. Due to the decrease in non-citizens from 2.6 million in 2021 to 2.4 million in 2022, the population growth rate has decreased. This is consistent with the travel restrictions put in place by many nations when the COVID-19 pandemic spread over the world in 2020 and 2021. The population of Citizens increased from 30.0 million in 2021 to 30.2 million in 2022, while the growth rate fell from 0.8% to 0.7% during that time (Table 1).

Table 1. Shows precisely the number of the population and the annual population growth rate by state, from 2021 to 2022

Sources: [13]

Housing         

The supply-demand imbalance is caused by inefficiency in the construction and building industry, as well as some loopholes in housing law and administration, such as insufficient lands for housing, delays in the release of lands for housing, or obstacles in planning or agreement [15]. The demand for medium-cost housing units has been growing. Based on the case study for urbanization in the Kajang Town Malaysia, Kajang Municipal Council, Kajang’s population is rapidly growing, posing a challenge to municipal management. Since 1970, migration of people from rural to urban areas has resulted in a high demand and supply, particularly in the residential sector. Economic development in Selangor has resulted in numerous job opportunities through various development projects [16].

The majority of the land in Kajang is freehold. Many residents prefer to purchase homes in freehold communities. One of the benefits of freehold ownership is the security of tenure. Every year, the population in Kajang grows, and so does the housing area. Each municipality in Selangor strives to meet housing demands for people of all income levels [17]. High-cost housing units, on the other hand, are in greater demand than other types of units. Because the majority of the city’s residents are middle-income, housing demand and supply are out of balance. Furthermore, private developers in Kajang appear to be more interested in profit than in addressing home buyer affordability through the development of three-story houses, semi-detached, and bungalows [17].

The urbanization and industrialization processes in Malaysia are the cause of housing concerns [18]. Many immigrants from rural areas are involved in these activities. This led to a significant increase in housing demand, particularly among immigrants from lower- and middle-income groups. In the urban region, it therefore led to housing issues. Urbanization and industrialization are the key causes that have increased demand for housing in metropolitan areas, particularly from lower- and middle-income groups [19]. It’s also emphasized the multidimensional nature of housing, noting that the notion includes more than just walls and a roof, such as [20]:

1. A specific location concerning work and services.
2. Neighbours and the surrounding area.

• Property rights and personal privacy.

1. Income and investment opportunities.

The Impact of Urbanization on Housing Development Needs

Housing Sprawl in Malaysia

The five-year Malaysian Plans (MP) series has summed up the rise in the number of homes being planned and built by both public and private developers [21]. Out of 2,552 launched residential projects, there are only 580 unsuccessful housing developments. This indicates that unreliable property development firms, including those owned by the government, are responsible for the destiny of over 23% of Malaysian purchasers [21]. Due to the outlying areas’ spacious residential lots and cheaper housing construction costs than in the city centre, people are more likely to relocate from high-density areas there. To save money on housing, huge numbers of middle-class workers commute from their suburban homes to the city [23].

Urban sprawl is a phrase that is frequently used in academic discourse and holds a long history, although its exact definition has not yet been established. Numerous research on sprawl has origins in Non-Asian nations, making it impossible to adopt solutions in terms of both theory and practice [24]. Urban sprawl is the most harmful type of urban expansion that has been taking place at an unprecedented rate and endangering sustainable growth [25]. As a result of urbanization, resources like land, water, and building materials are becoming scarcer, which raises the cost of housing and infrastructure. As a result of urbanization, the city begins to deteriorate, making it impossible for the local government to meet citizens’ needs for services [21].

Unstable Rental Homes

As urbanization increases, so do the renters. Considering growing land prices, renters’ top concern is being evicted by the landlord, however, other concerns include financial hardship, family conflicts, and government confiscation [22]. The way urban dwellers view the future may change because of this viewpoint. Access to public services, employment, and financial credit are all hampered by insecure housing, all of which can greatly raise the quality of life. To ensure that the formal housing and land markets have an appropriate supply, municipal governments should enhance urban land management. Along with formal rental agreements that provide tenants with legal protection, regulations that prohibit rental evictions should be in place [22]. According to the Manager of Director VPC Alliance (KL) Sdn. Bhd., most prospective buyers will be on the fence, and the market is not likely to recover until the middle of 2022, assuming herd immunity is obtained by then and political stability exists [25].

Housing Needs and Housing Demands

Instead of being driven by desires, housing consumption should be driven by necessities. Rich individuals are more drawn to live in suburban residential developments while the poor live in the city centre, because of the overconsumption of housing, which causes environmental damage. The development of hillsides has grown unsafe and discourages efforts to build sustainable homes [26]. In addition, it is asserted that the rising cost of housing is due to housing demands rather than needs, which has an impact on the urban poor living in squatters’ areas.

When a person or family does not make a serious effort to demand adequate housing, their housing needs are not being addressed [27]. Addressing housing needs empowers individuals and allows them to live in adequate housing despite potential financial hardship [28]. Estimates of housing demands are typically based on passing housing auditions for urban desirable housing because it does not take financial capacity into account. Perhaps among all durable items, housing has the longest lifespan [29]. Housing availability is related to housing supply and demand [30]. Insufficient housing availability to meet the demand and needs of low-income people is typically a contributing factor to housing issues. Through the construction industry, the housing sector indirectly supports the nation’s economic growth. As a result, the government has consistently placed a premium on the construction of decent homes at fair prices [31]. The stock that has been passed down from the past essentially determines how many units are available and diminishes in value over time very gradually [32]. The increased population growth in urban areas will put stress on to development of land as the demand for housing and services also keeps increasing [32].

Housing not only meets the basic human need for shelter, but it also serves as a key driver of family life quality. Malaysia’s housing policies in the context of housing development, Structure plans and local plans are both types of plans [33]. The structure plan is typically a long-term plan for the next 15-20 years, which may produce changes in the market and economy [34]. In Malaysia, a survey conducted by the Real Estate and Housing Developers Association Malaysia (REHDA) recently revealed that the Malaysian housing market is currently cooling off, with the number of unsold properties gradually increasing compared to previous years’ data [35]. The huge volume of unsold houses in the local housing market reflects a key difficulty that local housing developers are currently facing [35].

The high number of unsold houses in the local housing market is mostly due to a mismatch between supplied dwelling attributes and possible homebuyer needs [36]. This statement is supported and mentioned by previous research, that the lack of urbanization process is one of the methods to change the community lifestyle, including the attitude of the homebuyers [36]. Affordable housing is a problem in cities throughout the world [37]. Housing supply in cities will have to rise to suit the needs of various urban household types and income levels [38]. Many issues might arise if the demand for urban housing is not satisfied by enough supply. The most noteworthy is a considerable increase in property prices that has occurred significantly quicker than income growth [39]. Based on estimation, 25 million units of affordable housing will be required by 2030. Home prices will continue to grow unless real estate significantly increases home construction. Home prices will continue to grow unless real estate significantly increases home construction.

The lack of affordable housing is a problem in cities throughout the world [37]. Housing supply in cities will have to rise to suit the needs of various urban household types and income levels [38]. Many issues might arise if the demand for urban housing is not satisfied by enough supply. The most noteworthy is a considerable increase in property prices that has occurred significantly quicker than income growth [39]. Based on estimation, 25 million units of affordable housing will be required by 2030. Home prices will continue to grow unless real estate significantly increases home construction.

The demand for housing in cities is being determined by rapid urbanization and the ensuing demographic shifts. The unexpected increase in housing demand creates several difficulties [38]. To satisfy the needs of various urban household types and income levels, the supply of housing in cities will need to be increased. Cities are not only inhabited by the wealthy. Homes are in demand across a range of income levels. Ten million units are currently in short supply in urban areas. By 2030, it is predicted that 25 million affordable housing units will be needed. Home prices will continue to grow unless real estate significantly increases the number of homes being built [39]. Photo 1 is an example of one of the new properties of residential in Seremban 2.

 Photo 1. Represents the new property of residential in Seremban 2

Sources: [45]

Residential demand in Malaysia is showing improvement and the local property market remains resilient despite the uncertainty in global projections [39]. The housing demands of Malaysia are dictated by population increase and household size formation. As a result, without adequate population growth, demand for real estate will stagnate [40]. Terraced house demand is still robust, with a +29% year-on-year increase in demand and a +1.6% increase in asking price. Demand for high-rise housing climbed by 5% year on year. However, asking prices to have fallen because numerous sellers have lowered their asking prices to attract buyers [41]. Referring to Table 2 shows that the terrace house has the highest housing demand in Malaysia with affordable asking prices.

Table 2. Housing Demands in Malaysia: National Demand of All Property 19.2% Year-on-Year

Notes: National Demand Includes the Following Property Types: Semi-D, Bungalows, Clusters, Townhouses, Flats, and Apartment.

Source: [41]

In summary, Table 3 shows a performed literature review that has been extensively covered in existing research. From the previous research, the study looks for valuable insights and the uniqueness of the chosen topic.

Table 3. Literature Review Summary of the Impacts of Urbanization on Housing Development Needs

METHODOLOGY AND STUDY AREA

The primary data used in this study is a quantitative method that consists of a survey form involving the Seremban 2, Negeri Sembilan residential area. These data have been gathered using questionnaires and scientific sources. Secondary data have been gathered from websites, books, journal articles, and surveys.

Population Size, respondent and questionnaire

This research will be carried out by the residents of Seremban 2 Section J @ Sri Carcosa house in Seremban 2 District in Negeri Sembilan. Table 3 is used to calculate the population estimate. [42] describe the methods used in the study. [42] mention a sample size of 191 is sufficient for a total population of 380. Among 380 residents of Seremban 2 Section J @ Sri Carcosa, a stratified random sample of 191 was chosen. A sample size of 191 is sufficient for a total population of 380 [43]. Table 3 depicts the population (N) and sample (S) [42].The respondent’s involvement is critical in this research since it allows the researcher to access and collect information connected to the research via the survey questionnaire. The respondent of this research is from Section J @ Sri Carcosa residential area in Seremban 2 District in Negeri Sembilan in Seremban 2 District, Negeri Sembilan.

The researcher constructed a questionnaire form using a literature review technique. This Google form was distributed to 191 respondents in housing residential Seremban 2 Section J @ Sri Carcosa via email and in person. The timeframe for data collection is from September 2023 until January 2024. The challenge during fieldwork is data collection because some of the respondents take time to respond and give back a questionnaire. Therefore, fieldwork takes five months to complete fieldwork. The questionnaire is divided into two sections: Section A and Section B. Section A consists of the respondent’s demographic while Section B is concerned with the first objective which is the impact of urbanization on housing development needs in Seremban 2, Negeri Sembilan construct of three sections (Impact of Urbanization, Housing Needs, Land Availability) (but in an article just discuss for two section only) with a total of 15 questions.

The collected data will be analysed in SPSS to identify the data frequency and percentage as the method to the first objective while coefficient correlation analysis is the method to the second objective for the relationship that exists between urbanization and housing development needs in Seremban 2, Negeri Sembilan. The survey questionnaire is used in conjunction with an evaluation scale which is a 5 5-point which is a 5-point Likert scale with five answer options, which are Strongly Disagree, Disagree, Neutral, Agree, and Strongly Agree.

• Strongly Disagree
• Disagree
• Natural
• Agree
• Strongly Agree

Respondent

The respondent’s involvement is critical in this research since it allows the researcher to access and collect information connected to the research via the survey questionnaire. The respondent of this research is from Section J @ Sri Carcosa residential area in Seremban 2 District in Negeri Sembilan in Seremban 2 District, Negeri Sembilan.

Sample Technique in Quantitative Research

It is a term used in research to define the number of persons involved in a study to reflect a population. In research, the sample size is the total number of participants who participated in the study. Overall, the sample size accurately represents the population. Researchers have used a stratified sampling technique.

Focused on residential in Seremban 2. Table 3, which contains the population (N) and sample (S) values calculated using [43] sample, can be used to get the sample size value. According to Table 3, the population is 380 residents. The sample size required for this research is 191 respondents from the residents of Seremban 2 Section J @ Sri Carcosa residential area.

Coefficient Correlation Method Analysis

Table 4 shows a type of correlation coefficient that measures the intensity and direction of a relationship between two variables, which is a number between -1 and 1. In other words, it shows how comparable two or more variables’ measurements are across a dataset [43]. Any positive or negative values between 0.21 and 0.40 are considered small but have a definite relationship [44]. Positive or negative values between 0.41 and 0.70 were considered moderate correlations, while positive or negative values between 0.71 and 0.90 indicated a high correlation.

Table 4. Type of correlation coefficient

Study Area

Furthermore, Figure 1 indicates the city house planning for Seremban 2 which has been labelled as a land use zone for development until 2045. Orange colour is the existing housing that has been constructed since 2005 while the peach colour indicates the proposed housing. Developers and contractors need to ask permission in city planning based on the Subsection 2 (1) Act of Urban and Rural Planning 1976 (Act 172) for any housing development needed. Therefore figure 2 is about the hold of The Plan Map of Seremban, Negeri Sembilan.

Figure 1.  Seremban 2 Housing Development Plan

Figure 2. The Plan Map of Seremban, Negeri Sembilan

Sources: Figure 1 & 2 [45]

Data Analysis and Discussion of The Relationship Between Urbanization and Housing Development Needs in Seremban 2, Negeri Sembilan

Data analysis for the questionnaire using SPSS to identify the frequency, percentage, and correlation coefficient to examine and test the relationship between two variables. Table 5 explains the total of a distributed questionnaire, which is 191 respondents, and the researcher has received the feedback of 160 respondents. Thus, the questionnaire return rate is 84%.

Table 5. Questionnaire Return Rate

Table 6 explains the respondent’s background. Among the items discussed are occupation, length of stay, average total household income, house type, house ownership, monthly house payment, and number of households. All the data obtained are analysed and explained based on frequency values and percentages (%).

Referring to the respondent’s demographic, most of the residents who live in Seremban 2 Section J @ Sri Carcosa are working in the private sector (30.6%). The longest residents were found staying in Seremban 2 for almost 15 years (29.4%). Meanwhile, the average total household income is RM1001 to RM3000 (34.4%) which still can afford housing in such urban areas. They mostly buy (52.5%) a house type in a terrace (60%). Hence, the house payment for month is mostly below RM1000 (46%). In addition, most of these residents stay for only 3 people in the house.

Table 6. Respondent Demographics

Table 7 shows the result of the Pearson Correlation to analyse the relation between urbanization and housing development needs. This analysis is to test the strength of the correlation between the independent variables, based on the variable construct (Impact of Urbanization, Housing Needs, and Land Availability). The result of the hypothesis would be based on the authority and construction firms’ practices of minimizing the impact of urbanization on housing development needs in Seremban 2, Negeri Sembilan with the impact of urbanization on housing development needs in Seremban 2, Negeri Sembilan.

Table 7. Pearson Correlation Results

Note, N=160, correlation tests are two-tailed.

**: Correlation is significant at the 0.01 level (2 tailed)

MI: The authority and the construction firms’ practices of minimizing the impact of urbanization on housing development needs (Dependent)

SL: Shortage of low-cost housing (Independent Variable)

LP: Lack of land use planning system (Independent Variable)

HA: Seremban 2 is filled with housing areas than industrial and commercial areas (Independent Variable)

SU: Seremban 2 becomes focus for the suburban (Independent Variable)

EA: Seremban 2 is an easily accessible area (Independent Variable)

SH: Urbanization has increased the slum housing (Independent Variable)

PC: Pearson Correlation

Referring to Table 7, the size of the correlation based on Pearson’s coefficient where the impact of urbanization in the dependent variable shows its independence which Seremban 2 is an easily accessible area where (r=0.256, n=160, p<0.05) demonstrates the highest correlation with the authority and the construction firms practices of minimizing the impact of urbanization on housing development needs. However, it indicates a low positive correlation. The second highest correlation with the independent variable was found as Seremban 2 became a focus for the suburban (r=0.253, n=160, p<0.05), but also indicates a low positive correlation.

For detailed explanation, the result shows that the correlation between Independent Variable SU Seremban 2 becomes the focus for the suburban with Dependent Variable MI’s The authority and the construction firms’ practices of minimizing the impact of urbanization on housing development need a significant = (r=0.256, n=160, p<0.05). The result also shows that correlation with the independent variable EA Seremban 2 is an easily accessible area with dependent variable MI the authority and the construction firms practice of minimizing the impact of urbanization on housing development needs significantly with value (r=0.253, n=160, p<0.05), but also indicates a low positive correlation.

Table 8 show of hypothesis result, the significant independent variable was found for Seremban 2 is an easily accessible area and Seremban 2 became focus for the suburban that both have significant values, however their PC shows 0.253 and 0.256 which leads to low positive correlations for the authority and construction firms practices of minimizing impact of urbanization on housing development needs. In short, even though all the independent variables have significant values with the dependent variable, unfortunately, there are all low positive correlations. Overall, the authority and construction firms practice of minimizing the impact of urbanization on housing development needs in Seremban 2, Negeri Sembilan is significant with the impact of urbanization on housing development needs in Seremban 2, Negeri Sembilan.

Table 8. Result and Hypothesis of Coefficient Correlation between Urbanization and Housing Development Needs in Seremban 2, Negeri Sembilan.

CONCLUSION

The relationship between urbanization and the need for housing development shapes the spatial planning process. It necessitates a comprehensive approach that considers demographic trends, community needs, infrastructure, and environmental sustainability. The correlation has shown a significant hypothesis between urbanization and housing development needs in Seremban 2. The research area has become the focus for suburban, especially from the Bangi, Klang Valley, and Kuala Lumpur populations, thus the housing demand has increased, making the authority and construction firms provide their best practices to improve the land use planning system mainly for housing development.

ACKNOWLEDGMENTS

Special Thanks to Faculty of Technology, Management and Business (UTHM), University Tun Hussein Onn Malaysia (UTHM) for sponsorship and support to the writing and publication of the research article. Special thanks too to the respondents at Nilai 2, Seremban for their full commitment answering the questionnaire for this research.

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