Assessing housing preferences of young civil servants in Malaysia: do location, financial capability and neighbourhood really matter?

Purpose - The purpose of this study is to examine the key factors that influence the housing preferences of young civil servants in Malaysia. Design/methodology/approach - A self-administered questionnaire was distributed to 400 respondents who fulfilled the eligibility criteria of civil servant working in Malaysia aged between 20 and 40 years, and currently renting a house, or staying with friends, immediate family or relatives. Data were analysed via exploratory factor analysis and Pearson correlation. Findings - The results reveal that financial capability is the factor that most strongly influences the housing preferences of young civil servants, followed by neighbourhood and location. Young civil servants are highly inclined to consider the monthly repayment amount as the most important issue when deciding to buy a house. Furthermore, they prefer to buy a house in a neighbourhood that ensures high security and protection against crime. Practical implications - Housing developers should develop affordable housing in suitable neighbourhoods and locations to match homebuyers’ preferences to avoid a mismatch between housing demand and supply, which is obviously one of the greater risks of unsold homes. Originality/value - Given the lack of focus on this precise research sample (i.e. young civil servants), the study is justified in terms of its originality, as it examines a specific cohort by focussing on the correlations of location, financial capability and neighbourhood with housing preferences of young civil servants in Malaysia. These insights are invaluable, as this group has not been the specific focus of research.