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Accommodation Preferences

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CHAPTER 1 INTRODUCTION

1.1

Introduction The property development industry is considered one of the major industries contributing

significant growth to socio-economic development in Malaysia, as it constitutes an important element of Malaysian economy. The economics of Malaysia has experienced rapid growth with thousands of houses are built every year to fulfill the demand of rising population and economy activities. According to tradingseconomics.com (2011), Malaysia has been undertaking a sustainable economy growth throughout decades, with GDP (Gross Domestic Product) growth of 1.17 percent from 2000 until 2011, achieving an historical high of 5.90 percent in September 2009. Property developers found the potential in property development in Malaysia fascinating due to geographical reality of Malaysia, which provides great opportunity and potential to the housing industry. It is essential to distinguish the factors that affect housing construction costs in Malaysia with the aim of minimizing the construction costs, besides of discovering actions to reduce the high cost of housing. Various authors and the ways to develop alternative building materials to produce cheaper and durable homes have discussed the latter severally.

1

1.2

Background Real Estate and Housing Developers Association (REHDA), the main governmental body

responsible in property development industry in Malaysia, has initiated on 13 October 2000. This organization plays an important role in ensuring the relevant authorities and government agencies respect the developers’ views regarding industry.

Table 1.1: Number of REHDA Members by state (REHDA, 2011)

State Kuala Lumpur Selangor Negeri Sembilan Melaka Johor Perak Kedah Kelantan Pahang Penang Terengganu

Number of Company 114 252 47 70 105 100 80 30 63 79 18

Property can be defined as “an object(s) that belong to

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