Date of Award

4-7-2026

Thesis Type

PhD

Document Type

Thesis

Divisions

Faculty of Built Environment

Department

Department of Real Estate

Institution

Universiti Malaya

Abstract

Rapid increases in property prices, driven by urbanisation and speculative demand, have far outpaced stagnant wage growth, rendering homeownership increasingly unaffordable. This issue is compounded by current financing practices that grant loans based only on present house values, without factoring in future property appreciation. Strict lending criteria further limit access, especially for households with unstable incomes or weak credit histories. This gap underscores the need for a new approach that incorporates future value and reverse mortgage principles into government-led home financing strategies. This study uses a quantitative deductive approach that is conducted in three phases. Phase 1 surveys low-income households, analysed using the Relative Importance Index (RII) and Exploratory Factor Analysis (EFA). Phase 2 applies the Vector Error Correction Model (VECM) to examine long-term relationships between house prices and macroeconomic variables. Phase 3 integrates simulation techniques to design an innovative financing model. The findings reveal Financial Market Factors and Household Financial Capacity as key influences, cointegration between financing variables and house prices, and an innovative financing model that adjusts LTV ratios and shares risk mechanisms that reduce initial borrowing amounts. Simulations show a 38.9% reduction in loan principals compared to traditional models. Overall, the study offers a robust framework for sustainable and inclusive homeownership, providing valuable insights for policymakers to ease financial burdens on low-income households in Malaysia.

Initial

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Additional Information

Thesis (PhD) – Faculty of Built Environment, Universiti Malaya, 2026.

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