Neighbourhood factors in private low-cost housing in Malaysia

Residential and neighbourhood satisfaction is an important indicator of housing quality and condition, which affects individuals’ quality of life. The factors, which determine their satisfaction, are essential inputs in monitoring the success of housing policies. This study investigates the factors, such as dwelling units, housing services and neighbourhood facilities and environment, which affect individuals’ satisfaction in private low-cost housing in Malaysia using a case study of a fast-growing state of Penang and less-developed state of Terengganu. The data were obtained from random samples of 795 households living low-cost housing projects developed by private housing developers in Penang and Terengganu. Descriptive and factor analyses were applied to the data. The findings of the study indicate neighbourhood factors are dominant factors that determine the levels of residential satisfaction. The satisfaction levels are generally higher with dwelling units and services provided by the developers than neighbourhood facilities and environment. The contributing factors for the low levels of satisfaction with the neighbourhood facilities and environment are poor public transportation and lack of children playgrounds, community halls, car parks, security and disability facilities. As private developers are profit motivated, less attention has been given to the provision of neighbourhood facilities and environment. This implies the government should monitor the implementation of low-cost housing policies closely in order to improve quality of housing for the residents.