Land use Planning System and Housing Development Process in Malaysia

LAND USE PLANNING SYSTEM AND HOUSING DEVELOPMENT PROCESS IN MALAYSIA

ALIAS BIN RAMELI

UNIVERSITI TEKNOLOGI MALAYSIA

LAND USE PLANNING SYSTEM AND HOUSING DEVELOPMENT PROCESS IN MALAYSIA

ALIAS BIN RAMELI

A thesis submitted in fulfilment of the requirements for the award of the degree of Doctor of Philosophy (Urban and Regional Planning)

Faculty of Built Environment Universiti Teknologi Malaysia

DECEMBER 2009

iii

To my beloved mother and father, wife, Ratnawati Aman, children, Nur Amira Faqihah Nur Izzah Farhana Nur Alisa Fatihah Mohamad Anwar and all the family members.

Thank you for your contributions, patience, sacrifices and continuous prayers.

May Allah reward them accordingly.

iv

ACKNOWLEDGEMENT

Praise upon Allah, the Almighty and the Most Merciful, for giving me the determination and strength in completing this research.

In preparing this thesis, I was in contact with many people, researchers, academicians and practitioners. They have contributed towards my understanding and thoughts. In particular, I wish to express my sincere appreciation to my main thesis supervisor, Associate Professor Dr. Foziah binti Johar, for her encouragement, guidance and critics. I am also very thankful to my co-supervisor Professor Dr. Ho Chin Siong for his guidance, advices and motivation. Without their continued support and interest, this thesis would not have been the same as presented here.

I am also indebted to the Director General of Federal Department of Town and Country Planning and Public Service Department for granting leave and funding my Ph.D. study. My appreciation also to the Director of Johor State Town and Country Planning Department and his staff, colleagues from Melaka Project Office, Johor Bahru City Council, Central Johor Bahru Municipal Council, Kulai Municipal Council, Pasir Gudang Municipal Council, principals of planning consultants and all the government and private town planners in the study area. I would also like to extend my gratitude to Professor Stephen Hamnett and all staff of the University of South Australia for their assistance and advices while attending the research placement program. Thanks also goes to Professor Emeritus John W. Dickey from Virginia Polytechnic Institute and State University for sharing information on the United States housing development process and practice.

My fellow post-graduate students should also be recognized for their support.

My sincere appreciation also extends to all colleagues who have provided assistance at various occasions. Their views and tips are useful indeed. Unfortunately, it is not possible to list all of them in this limited space. Lastly, I am grateful to all my family members, especially to my dear wife, for their contributions, encouragement and perseverance throughout this study.

v

ABSTRACT

The role of land use planning system in housing development is not only to meet housing needs, but to also encourage the efficiency of the housing market system. The effectiveness of land use planning in Malaysia, however, is questionable due to the existence of housing oversupply. The shortcomings in the practice of housing planning have arguably contributed to the problem. The veracity of the argument has been proven in this empirical research conducted in the Johor Bahru Conurbation area. The research studied the effectiveness of the land use planning system measured in triangulation by examining the process of preparing development plans and the outcomes of planning control, followed by an analysis of the perceptions of respondents. Content analysis was applied to analyse selected structure plans, local plans and housing application files. The perceptions of town planners were analysed based on a structured questionnaire survey. To further explore the issues in the planning of housing supply, in-depth interviews were conducted with senior town planners. The research shows weaknesses occurring at several stages, beginning with the activities of housing forecast and formulation of housing policies, followed by the determination of land area and distribution of locations for future housing development. The situation was further exacerbated by the inefficiency of the local planning authority in approving new housing applications. The study also reveals several issues inherent in the processes of the planning of housing supply. Among them are the difficulty in considering and forecasting `effective demand’ for housing, vagueness of policies on housing control and the problems related to the compliance of land use zoning. The study also found that the ineffectiveness of the planning system occurred due to over emphasis on meeting housing needs, while ignoring other important aspects, i.e. households ‘effective demand’, housing preferences and local housing market demands. The findings of the research indicate an urgent need for a change in the approach and practice of housing planning in the development plans and planning control. This can be achieved with the improvement of current housing planning activities as well as through enhancing responsiveness of the local planning authority to market demand mechanisms without neglecting the fundamental goal of meeting housing needs.

vi

ABSTRAK

Peranan sistem perancangan guna tanah di dalam pembangunan perumahan tidak hanya kepada menyediakan keperluan perumahan yang mencukupi, tetapi juga menggalak kecekapan sistem pasaran perumahan. Keberkesanan sistem perancangan di Malaysia walau bagaimanapun dipertikaikan apabila berlakunya lebihan penawaran perumahan.

Kelemahan amalan semasa perancangan dilihat menyumbang kepada permasalahan tersebut. Kebenaran tanggapan tersebut terbukti melalui kajian empirikal di kawasan Konurbasi Johor Bahru. Kajian ini mengukur keberkesanan sistem perancangan secara triangulasi melalui pemeriksaan terhadap proses dan hasil rancangan pemajuan dan kawalan perancangan serta melalui analisis persepsi responden. Analisis kandungan telah digunakan bagi mengumpul dan menganalisis maklumat di dalam rancangan struktur, rancangan tempatan dan failfail permohonan perumahan. Persepsi responden dianalisis berdasarkan kepada kajian soalselidik berstruktur yang dijalankan ke atas perancang bandar. Bagi mendapatkan kefahaman mendalam tentang isu yang berlaku di dalam perancangan penawaran perumahan, sesi temuduga telah dijalankan ke atas perancang bandar berpengalaman. Kajian ini mendedahkan bahawa kelemahan berlaku di pelbagai peringkat, bermula daripada aktiviti unjuran dan penggubalan dasar diikuti oleh penentuan keluasan tanah dan pengagihan lokasi pembangunan perumahan.

Ketidakcekapan pihak berkuasa perancang tempatan di dalam meluluskan permohonan baru perumahan telah memburukkan keadaan tersebut. Kajian ini juga mendedahkan beberapa isu di dalam proses perancangan penawaran perumahan.

Antaranya ialah kesukaran untuk mengambilkira aspek-aspek ‘permintaan berkesan’ semasa aktiviti unjuran perumahan, penggubalan dasar kawalan perancangan yang tidak komprehensif dan permasalahan berkaitan pematuhan zon guna tanah. Kajian ini juga mendapati ketidakberkesanan sistem perancangan berlaku kerana mekanisma sedia ada terlalu memfokus kepada memenuhi keperluan perumahan sehingga mengabaikan aspek-aspek ‘permintaan berkesan’, pilihan isirumah dan permintaan pasaran setempat. Penemuan kajian ini menunjukkan perlunya perubahan dari segi pendekatan dan amalan perancangan perumahan di dalam rancangan pemajuan dan kawalan perancangan. Ia boleh dicapai melalui penambahbaikan ke atas aktiviti sedia ada serta perlu lebih responsif kepada aspek-aspek permintaan dan pasaran tanpa mengabaikan matlamat asas menyediakan keperluan perumahan yang mencukupi.

vii

TABLE OF CONTENTS

CHAPTER

1

TITLE

PAGE

VERIFICATION

ii

DEDICATION

iii

ACKNOWLEDGEMENT

iv

ABSTRACT

v

ABSTRAK

vi

TABLE OF CONTENTS

vii

LIST OF TABLES

xvi

LIST OF FIGURES

xx

LIST OF ABBREVIATIONS

xxii

LIST OF APPENDICES

xxiii

INTRODUCTION

1

1.1

Introduction

1

1.2

An Overview of the Role of Malaysian Planning System in Housing Development

4

1.3

Housing Development Issues in Malaysia

6

1.4

Research Problems

9

1.5

Research Questions

11

1.6

Research Aim and Objectives

11

1.7

Scope of the Research

12

1.8

Research Methodology

14

1.9

Structure of the Thesis

15

viii 2

LAND USE PLANNING SYSTEM AND HOUSING DEVELOPMENT PROCESS: A THEORETICAL FRAMEWORK

18

2.1

Introduction

18

2.2

Background of the Land Use Planning System

19

2.2.1 Definition of Land Use Planning

19

2.2.2 The Land Use Planning System Framework

20

2.2.3 The Approach of Land Use Planning

24

Legislation and Mechanism of Land Use Planning

27

2.3.1 United Kingdom

28

2.3.2 The United States

31

2.3.3 Malaysia

32

The Implementation of Land Use Planning System in Malaysia

34

2.4.1 Preparation of Development Plans

34

2.3

2.4

2.4.1.1 National Physical Plan

35

2.4.1.2 Structure Plan

36

2.4.1.3 Local Plan

38

2.4.1.4 Special Area Plan

40

2.4.2 Process and Procedures of Planning Control 2.5

40

The Significance of Land Use Planning System in Development Process

43

2.5.1 Development Process and Its Models

44

2.5.2 Rationale for Land Use Planning to Intervene in the Development Process 2.6

Land Use Planning System and Housing Supply Process

50 52

2.6.1 Relationship Between the Operations of Land Use Planning and Market System in Housing Supply Process

53

2.6.2 The Role of the Land Use Planning System in Housing Supply Process

56

2.6.3 Requirement to Fulfil Housing `Needs’ and `Demand’ in the Planning of Housing Supply

59

2.6.4 The Importance of Market Demand in the Planning of Housing Supply 2.7

Conclusion

62 63

ix 3

THE PROCESS OF PLANNING AND CONTROLLING OF HOUSING SUPPLY IN MALAYSIA

65

3.1

Introduction

65

3.2

Housing Development Process in Malaysia

66

3.3

The Planning of Housing Supply

70

3.3.1 The National Physical Plan: Outcomes, Strategy and Policies on Housing Supply

70

3.3.1.1 The Outcomes on Housing Conditions, Committed Development and Projection

71

3.3.1.2 Formulation of Strategy and Policies on Housing Supply

74

3.3.2 Structure Plan: The Activities and Aspects Related to the Planning of Housing Supply

76

3.3.2.1 The Survey of Existing Housing Condition

76

3.3.2.2 Forecasting of Future Housing Requirement

78

3.3.2.3 Preparation of the General Proposals to Improve the Process of Housing Planning and Development 3.3.2.4 Formulation of Housing Planning Policy

80 81

3.3.3 Local Plan: The Activities and Aspects Related to the Planning of Housing Supply

84

3.3.3.1 The Survey of Existing Housing Condition

84

3.3.3.2 Forecasting of Future Housing Requirement

87

3.3.3.3 Determination of Land Requirement for Future Housing Development

88

3.3.3.4 Distribution of Suitable Locations for Future Housing Development

88

3.3.3.5 Outlining the Planning Guidelines and Standards to Control the Housing Development 3.4

The Controlling of Housing Supply

90 92

3.4.1 The Process and Procedure of Controlling Housing Supply

3.5

92

3.4.2 Factors to be Considered in Controlling Housing Supply

93

The Objectives of Planning and Controlling of Housing Supply

95

x 3.6

The Framework of the Planning and Controlling of Housing Supply

3.7 4

100

RESEARCH METHODOLOGY

102

4.1 4.2 4.3 4.4 4.5 4.6 4.7

Introduction Purpose of the Research Research Framework and Design Research Approach The Research Model Research Strategy Method of Data Collection 4.7.1 Content Analysis of Planning Documents 4.7.1.1 Documents of Structure Plan 4.7.1.2 Documents of Local Plan 4.7.1.3 Housing Development Application Files 4.7.2 Questionnaire Survey 4.7.3 In-depth Interview Reliability and Validity Data Analysis 4.9.1 Data Analysis from Pro-Forma 4.9.2 Data Analysis from Questionnaire

102 103 104 110 113 114 116 116 117 119 120 122 125 126 130 130 133

4.9.3 Data Analysis from In-depth Interview

135

Problems and Limitations of the Study

137

BACKGROUND OF THE CASE STUDY AREA

139

5.1

Introduction

139

5.2

General Background of the Study Area

139

5.3

Urban Settlement and Land Use Composition

143

5.4

Housing Development Profiles

144

5.4.1 Existing Housing Stock

144

5.4.2 Total Housing Supply

146

5.4.3 Current and Future Housing Requirement

150

5.4.4 Housing Market and Demand

152

4.8 4.9

4.10 5

Conclusion

96

5.5

The Mechanism of Planning and Controlling of Housing Development

155

5.5.1 Preparation of Development Plan

155

xi 5.5.2 The Process and Procedure of Housing Development Control 5.6

5.7 6

157

Housing Development Issues

161

5.6.1 High Rate of Housing Vacancy

162

5.6.2 Surplus of Committed Housing Supply

162

5.6.3 High Rate of Overhang and Unsold Housing Units

164

Conclusion

165

EVALUATION OF THE EFFECTIVENESS OF THE PROCESS OF PLANNING AND CONTROLLING OF HOUSING SUPPLY

166

6.1

Introduction

166

6.2

Analysis of the Effectiveness of Structure Plan in Planning Housing Supply

166

6.2.1 The Housing Supply Issues

167

6.2.2 Objectives of the Planning of Housing Supply

169

6.2.3 General Proposals on the Planning of Housing Supply

170

6.2.4 The Comprehensiveness of the Housing Forecasting Activity

173

6.2.4.1 The Application of Housing Forecasting Technique

173

6.2.4.2 The Aspects Considered in Forecasting Future Housing Requirement

173

6.2.4.3 Time-frame of the Housing Forecast

174

6.2.4.4 Outcome of the Housing Forecast

175

6.2.4.5 The Level of Comprehensiveness of Housing Forecast

175

6.2.5 The Comprehensiveness of Housing Planning Policy’s Formulation

177

6.2.5.1 Formulation of Policies Related to the Planning and Controlling of Housing Supply

177

6.2.5.2 Level of Comprehensiveness of the Housing Planning Policy Formulation

178

6.2.6 Achievement of the Structure Plan Towards Realising the Objectives of Housing Planning

180

xii 6.3

Analysis of the Effectiveness of Local Plan in Planning Housing Supply

182

6.3.1 The Housing Supply Issues

183

6.3.2 Objectives of the Planning of Housing Supply

184

6.3.3 Proposals Related to the Planning of Housing Supply

186

6.3.4 The Comprehensiveness of the Housing Forecasting Activity

188

6.3.4.1 The Application of Housing Forecasting Technique

189

6.3.4.2 The Aspects Considered in Forecasting Future Housing Requirement

189

6.3.4.3 Time-frame of the Housing Forecast

190

6.3.4.4 Outcome of the Housing Forecast

191

6.3.4.5 The Level of Comprehensiveness of Housing Forecast

191

6.3.5 Comprehensiveness of the Determination of Future Housing Land Area

192

6.3.5.1 The Practice of Determination of Future Housing Land Area

193

6.3.5.2 The Level of Comprehensiveness of the Determination of Future Housing Land Area

194

6.3.6 Comprehensiveness of the Distribution of Future Housing Location

196

6.3.6.1 The Factors Considered in Distributing Location for Future Housing

196

6.3.6.2 Outcomes of the Distribution of Future Housing Location

197

6.3.6.3 Level of Comprehensiveness of the Distribution of Future Housing Location

197

6.3.7 Achievement of the Local Plan Towards Realising the Objectives of Housing Planning 6.4

199

Analysis of the Effectiveness of the Planning Control Process in Controlling Housing Supply

201

6.4.1 Profile of the Study Samples

201

xiii 6.4.2 Background of Housing Development Application

202

6.4.2.1 Date of Planning Approval

202

6.4.2.2 Size of Housing Development

203

6.4.2.3 Category of Housing Development

204

6.4.2.4 Types of Housing Development

205

6.4.3 Comprehensiveness of the Process of Housing Planning Control

206

6.4.3.1 Compliance to the Proposed Land Use Zone

206

6.4.3.2 Consideration on the Aspects of Effective Demand, Market Demand and Balancing the Supply and Demand of Housing

207

6.4.3.3 Imposition of Conditions for Development Phase, Density,

Category

and

Type

of

Housing

Development

208

6.4.3.4 Level of Comprehensiveness of the Process of Housing Planning Control

209

6.4.4 Achievement of the Planning Control Process Towards Realising the Objectives of Housing Planning 6.5 7

Conclusion

211 212

TOWN PLANNERS’ PERCEPTIONS TOWARDS THE PROCESS OF PLANNING AND CONTROLLING OF HOUSING SUPPLY

215

7.1

Introduction

215

7.2

Background of Respondents

215

7.3

Perceptions Towards the Practice of Housing Planning in Structure Plans

217

7.3.1 The Practice of Forecasting of Future Housing Requirement 7.3.2 The Practice of Formulating Housing Planning Policies 7.4

217 219

Perceptions Towards the Practice of Housing Planning in Local Plans

221

7.4.1 The Practice of Forecasting of Future Housing Requirement 7.4.2 The Practice of Determining Future Housing Land Area

221 223

xiv 7.4.3 The Practice of Distributing Housing Locations

225

7.5

Perceptions Towards the Practice of Housing Planning Control 226

7.6

Perceptions Towards the Effectiveness of Planning Mechanisms in Planning and Controlling Housing Supply

228

7.6.1 The Effectiveness of the Structure Plans in Forecasting Future Housing Requirement

228

7.6.2 The Effectiveness of the Structure Plans in Formulating Housing Planning Policies

230

7.6.3 The Effectiveness of the Local Plans in Forecasting Future Housing Requirement

231

7.6.4 The Effectiveness of the Local Plans in Determining Future Housing Land Area

232

7.6.5 The Effectiveness of the Local Plans in Distributing Future Housing Locations

234

7.6.6 The Effectiveness of the Process of Planning Control in Controlling and Approving Housing Supply 7.7

Perceptions Towards the Fulfilment of the Objective of Meeting Housing Needs

7.8

237

Opinions on the Strengthening of the Planning of Housing Supply

7.9

235

238

Issues in the Process of Planning and Controlling of Housing Supply

240

7.9.1 The Suitability of Forecasting Housing Demands

240

7.9.2 The Appropriateness of Formulating Policy to Consider Market Demands in the Planning Control Process

245

7.9.3 The Causes of the Failure of Distribution of Future Housing Land Area

248

7.9.4 The Appropriateness of Considering the Expected Market Demand in Distributing Housing Location

251

7.9.5 The Causes of the Non-Compliance in the Process of Housing Approval 7.10

Conclusion

253 256

xv 8

CONCLUSION

260

8.1

Introduction

260

8.2

Research Findings

260

8.2.1 The Forecasting of Future Housing Requirement

261

8.2.2 Formulation of Housing Planning Policy

262

8.2.3 Determination of Future Housing Land Requirement

263

8.2.4 Distribution of Future Housing Location

264

8.2.5 The Process of Housing Planning Control

265

8.2.6 Achievement of the Objectives of Housing Planning

266

8.3

Policy Implications

267

8.4

Framework to Improve the Process of Housing Planning

269

8.5

Contributions of the Research

274

8.6

Areas for Further Research

276

8.7

Conclusion

278

REFERENCES

280-300

APPENDICES A-L

301-332

xvi

LIST OF TABLES

TABLE NO.

1.1

TITLE

Comparison between housing supply and

PAGE

housing need in

Peninsular Malaysia in year 2000 and 2005 1.2

Housing targets and achievements for the period of Seventh and Eighth Malaysia Plans

1.3

4.1

Characteristics of the research purposes

4.2

Differences between quantitative and qualitative research approaches

91 103

111

Measurement criteria for the analysis of comprehensiveness of housing planning activity in the structure plan

4.4

85

Additional aspects related to the control of planning and development of housing in the local plan manuals

4.3

83

The aspects of existing housing conditions that need to be surveyed during preparation of a local plan

3.5

79

The examples of policy statement related to the planning of housing supply

3.4

72

The outcomes of future housing forecast stipulated by the DP Manual 1981 and SSP Manual 2001

3.3

9

Comparison between the total housing supply and the total housing need in Peninsular Malaysia, 2000-2005

3.2

9

Number and percentage of unsold housing units in Malaysia from year 2003 to 2007

3.1

8

Number, percentage and value of overhang housing units in Malaysia from year 2000 to 2007

1.4

7

131

Measurement criteria for the analysis of comprehensiveness of housing planning activity in the local plan

132

xvii 4.5

Measurement criteria for the analysis of comprehensiveness of planning control process in controlling housing supply

132

5.1

Size of study area by local authority

141

5.2

Previous and projected JBC population by local authority

142

5.3

Previous and projected household number and size for the study area

142

5.4

Distribution of housing stocks by local authority in 2003

145

5.5

Housing development categories by local authority, 2003

145

5.6

Housing composition and price category for planned housing stocks by local authority, 2003

5.7

146

Distribution of committed housing units by local authority until 2003

147

5.8

Total housing supply by local authority until 2003

148

5.9

Housing supply by category, 2006

148

5.10

Future housing requirement by local authority until 2020

150

5.11

Sales performance by price range for newly housing launches in the study area in 2005 and 2006

153

5.12

Preparation of structure plan in the study area

156

5.13

Preparation of local plan in the study area

157

5.14

Low-cost housing composition and price control in the State of Johor

6.1

160

Statements of objectives related to the planning and controlling of housing supply in the study area’s structure plans

6.2

169

Statements of general proposals to overcome the issues of housing supply

6.3

171

Application of forecasting techniques in the study area’s structure plans

6.4

The

aspects

173 considered

in

forecasting

future

housing

requirement in the study area’s structure plans 6.5

Level of comprehensiveness of the study area’s structure plan in forecasting future housing requirement

6.6

174

176

Policies related to the planning and controlling of housing supply in the study area’s structure plans

178

xviii 6.7

Level of comprehensiveness of the study area’s structure plans in formulating policies on the planning and controlling of housing supply

6.8

180

Achievement of each structure plan towards realising the objectives of housing planning

6.9

181

Statements of the objectives related to the planning and controlling of housing supply in the study area’s local plans

185

6.10

Proposals related to the planning of housing supply

187

6.11

Application of forecasting techniques in the study area’s local plans

6.12

The

189 aspects

considered

in

forecasting

future

housing

requirement in the study area’s local plans 6.13

Level of comprehensiveness of the study area’s local plan in forecasting future housing requirement

6.14

196

Level of comprehensiveness of the study area’s local plans in distributing future housing location

6.18

195

Considering factors in the distribution of locations for future housing development in each local plan

6.17

193

Level of comprehensiveness of the study area’s local plans in determining future housing land area

6.16

192

Status of determination of future housing land area in the study area’s local plans

6.15

190

199

Achievement of each local plan towards realising the objectives of housing planning

200

6.19

The number of samples by local planning authority

202

6.20

Date of planning approval

203

6.21

Size of the land area in housing applications by local planning authority

203

6.22

Range of total housing unit by local planning authority

204

6.23

Range of percentage of the category of housing development

205

6.24

Range of percentage of the type of housing development

206

6.25

The compliance of housing approval to the proposed land use zone

207

xix 6.26

Imposition of conditions for density, category and types of housing development

6.27

209

Level of comprehensiveness of the process of housing planning control

210

7.1

Category of respondents and their working organisation

216

7.2

Respondents’ perceptions towards the level of effectiveness of structure plan in forecasting future housing requirement

7.3

Respondents’ perceptions towards the level of effectiveness of structure plan in formulating housing policy

7.4

232

Respondents’ perceptions towards the level of effectiveness of local plan in determining future housing land area

7.6

230

Respondents’ perceptions towards the level of effectiveness of local plan in forecasting future housing requirement

7.5

229

233

Respondents’ perceptions towards the level of effectiveness of local plan in distributing locations for future housing development

7.7

Respondents’ perceptions towards the level of effectiveness of the housing planning control process

7.8

234

236

Respondents’ opinions on the most suitable planning mechanism to be incorporated the aspects of housing demand

239

xx

LIST OF FIGURES

FIGURE NO.

1.1

TITLE

PAGE

The scope of measurement of the effectiveness of land use planning system in planning and controlling housing supply

13

2.1

The activity systems

21

2.2

Land development systems

22

2.3

The environmental systems

22

2.4

Framework of land use planning system

23

2.5

Hierarchy and function of development plans in Malaysia

35

2.6

Ratcliffe’s (1978) Linear model of land development process

46

2.7

The development pipeline model

48

2.8

Conceptual model of the political economy of housing development

55

2.9

The role of the planning system in housing supply process

57

3.1

Housing development process in Malaysia

68

3.2

The framework of the process of planning and controlling of housing supply

97

4.1

Steps in the quantitative and qualitative researches

104

4.2

The framework for the hypothetico-deductive research method

105

4.3

The Research Process

107

4.4

The flow of research design

108

4.5

The research model for assessing the effectiveness of the process of planning and controlling of housing supply

114

4.6

The process of gathering data from an in-depth interview

126

4.7

The process of analysing data from an in-depth interview

136

5.1

Map of the case study area

140

5.2

Percentage of land use composition of the study area, 2003

144

xxi 5.3

Distribution of housing supply by existing stock, committed and proposed in the study area

149

5.4

Future housing land requirement for the study area until 2020

151

5.5

Comparison of housing sales performance between the study area, Johor State and Malaysia in 2004, 2005 and 2006

5.6

152

Percentage of housing property transactions according to type, 2006

154

5.7

The process of development approval at the first stage SBKS

158

5.8

The process of development approval at the second stage SBKS

159

5.9

Comparison between the committed housing supply and the total housing supply with the housing needs in the study area

163

6.1

Housing supply issues discussed in each structure plan

167

6.2

Housing supply issues discussed in each local plan

183

7.1

Respondents’ perceptions about the implication of inaccuracy of structure plan’s housing forecast to the existence of housing oversupply

7.2

218

Respondents’ perceptions about the implication of the absence of policy to consider the market demand to the existence of housing oversupply

7.3

220

Respondents’ perceptions about the implication of inaccuracy of local plan’s housing forecast to the existence of housing oversupply

7.4

222

Respondents’ perceptions about the implication of inaccuracy of determining housing land area to the existence of housing oversupply

7.5

224

Respondents’ perceptions about the implication of the weakness of the distribution of housing location to the existence of housing oversupply

7.6

226

Respondents’ perceptions about the implication of the weakness of planning control process to the existence of housing oversupply

8.1

227

Framework for the improvement of the process of planning and controlling of housing supply

270

xxii

LIST OF ABBREVIATIONS

Act 172

Malaysian Town and Country Planning Act 1976

GP

Government Planner

JBC

Johor Bahru Conurbation

JPBD

Jabatan Perancangan Bandar dan Desa

KPKT

Kementerian Perumahan dan Kerajaan Tempatan

LP

Local Plan

LPA

Local Planning Authority

MBJB

Majlis Bandaraya Johor Bahru

MDK

Majlis Daerah Kulai

MDJBT

Majlis Daerah Johor Bahru Tengah

MPJBT

Majlis Perbandaran Johor Bahru Tengah

MPJB

Majlis Perbandaran Johor Bahru

MPKu

Majlis Perbandaran Kulai

NEAC

National Economic Action Council

NPP

National Physical Plan

NPPC

National Physical Planning Council

PBT

Pihak Berkuasa Tempatan

PP

Private Planner

RoS

Report of Survey

SAP

Special Area Plan

SBKS

Serah Balik dan Kurnia Semula

SP

Structure Plan

SPC

State Planning Committee

SSP

State Structure Plan

TCPD

Town and Country Planning Department

USA

United States of America

UK

United Kingdom

xxiii

LIST OF APPENDICES

APPENDIX

TITLE

PAGE

A

The process of structure plan preparation

301

B

The process of local plan preparation

302

C

The process and procedures of planning control

303

D

Pro-forma (1) of content analysis of structure plan

304

E

Pro-forma (2) of content analysis of local plan

306

F

Pro-forma (3) of content analysis of housing development application

310

G

Questionnaire form

312

H

Set of in-depth interview

323

I

The statement of housing supply issues in the study area’s structure plans

J

Policies related to the planning and controlling of housing supply in the study area’s structure plans

K

L

325

327

The statement of housing supply issues in the study area’s local plans

328

List and background of respondents (in-depth interview)

329

1

CHAPTER 1

INTRODUCTION

1.1

Introduction Recognising housing as an important economic sector has not only raised a

debate about the extent of housing investment benefits to the economic development, but also led to the discussion of how efficient and effective its delivery system operates (von Einsiedel, 1997).

There are numerous factors, such as economic

performance, fiscal policy, government intervention and policies and market system that arguably influenced the efficiency of the process of housing development (Monk et al., 1996; Hull, 1997; Chan, 1997b; Bramley, 2003; Ratcliffe et al., 2004). It is also equally important to relate it with the operation of the land use planning system.

Previous studies, for example by Pearce (1992), Hull (1997), Asiah (1999), Adams and Watkins (2002) and Carmona et al. (2003), had discussed extensively the role and importance of land use planning activities in housing development.

The

significance of the system in housing development was also translated in the form of relationship between planning process and development process. This can be seen in various models of development process, such as the development-pipeline model (Barrett et al., 1978), linear model of the land development process (Ratcliffe, 1978) and model of development and the planning process (Bramley et al., 1995). In relation to this, although it is generally accepted that the land use planning system plays a pivotal role in achieving sustainability, efficiency and effectiveness of

2 housing development (Golland and Gillen, 2004; von Einsiedel, 1997; Chan, 1997), the capability and the way it is operated still generate various debates.

The first debate is about the ability of the system to intervene and influence the process of housing market. Von Einsiedel (1997) stresses that although most of the housing activities are shaped by market forces, the planning system also has its own role especially in governing its production process. According to Short et al.

(1986), the planning system can limit the powers of housing market because the housing development process is bound by rules and policies set by the system. In another perspective, Rydin (1993) clarifies that the planning system not only operates to encourage the efficiency of housing market, but also plays a role to rectify failures of the housing market. Bramley et al. (1995), on the other hand, observes that some of the problems and failures in housing market were affected and exacerbated by the unresponsiveness of activities in the planning system.

The second debate is about the nature of housing planning which focuses on meeting housing needs. Nicol (2002) argues that meeting housing needs alone is insufficient to achieve a more integrated and effective housing development. This argument was supported by Golland and Gillen (2004), stressing that the housing requirements are not only driven by population trend but also influenced by affordability and effective demand of household. In order to ensure the local housing requirement is adequately and successfully met, Nicol (2002) suggests the operation of planning system should fulfil both objectives of meeting housing needs and housing demand.

The third is on the extent to which the planning system considers the criteria of market demand. Hull (1997) stresses that apart from playing a role in meeting housing needs and household effective demand, the planning system should also look at the importance of the market demand criteria. The significance of market demand was also addressed by Bramley et al. (1995) by proposing the planning process to formulate policies and procedures which are sensitive to the needs of the market demand. In similar tone, Golland and Gillen (2004) emphasise the necessity for the planning process to understand the consumer’s `taste’ in the housing market.

Stressing on the above arguments, Healey (1992) proposes three approaches in

3 achieving the housing planning goals by the planning system consisting of following the market, managing the market and creating the market.

The subsequent argument is that the planning system constrained the efficiency of housing development. According to Rydin (1993), Monk et al. (1996) and Asiah (1999), planning controls have often been considered as a constraint since they restrict the supply of housing land, the location of housing development, the type and density of the development as well as the timing the development could take place. Grigson (1986), however, views that the planning system does not restrict the development of housing. According to Grigson, the planning system operates orderly by allocating sufficient land for future housing and ensuring it is calculated on the basis of actual need, worked out in the light of demographic projections and household formation statistics.

Next, is the extent to which the planning system plays its role in allocating the quantity and locations of housing and controlling the production of new housings.

Rydin (1993) stresses that the planning system should operate to allocate sufficient land for housing and response efficiently to the planning applications for such development.

According to Pearce (1992), the housing planning goals are

considered achieved if the planning decisions may assure an adequate and continuous supply of land for housing and provide acceptable choices at the available and preferable locations. The extent of its effectiveness, however, is queried by Hull (1997). Hull perceives the process of forward planning and regulations for housing planning still suffers from lack of reliable information on market indicators and current flow between the housing markets and the levels of production of housing stock. Hull (1997) and Pearce (1992) thus propose that the process of forward planning and planning control should seriously consider the importance of market mechanisms in planning and making decisions for housing development.

The above debates, although try to argue the role and capability of planning system in housing development in various perspectives, but if read between the lines, is actually centred at the problems of managing housing supply. In this respect, the operation of planning system is seen to have concentrated only on meeting the broad housing needs by neglecting the aspects of household effective demand and market

4 demand in planning and controlling housing supply. The planning system is also argued to have failed to effectively play its role in deciding the total supply of housing and housing land, allocating suitable locations for housing and controlling the production of new housing supplies. Since there are a lot of arguments about the capability of the planning system in managing housing supply, it is thus necessary to explore this profoundly, particularly in the context of the Malaysian planning system.

1.2

An Overview of the Role of Malaysian Planning System in Housing Development The government of Malaysia recognises housing as a basic population needs

and as a key component in the social sector and in the urban economy (Nooraini, 1993; Chan, 1997a; Goh, 1997b; Asiah, 1999; Ibrahim, 2008). This has led to the formulation of policies and programmes aimed to provide adequate, decent, affordable and accessible housing that are equipped with basic amenities (Ahmad Zakki, 1997; Goh, 1997b; Asiah, 1999) as well as to ensure the housing industry operates efficiently and effectively (Chan, 1997a; 1997b).

In brief, the housing sector was given an emphasis in various plans at the federal level, particularly in the five-year Malaysia plans. Indeed, specific document on housing policies and strategies, namely the National Housing Policy is being formulated. This document which is currently (until end of 2009) in the draft form, will act as a mechanism to administer, facilitate and control the process of housing development throughout the country (KPKT, 2005). Simultaneously, more than 20 pieces of legislation ranging from laws on land and buildings to the environment and workers’ safety were enacted by the government to govern the process of housing development (Chan, 1997b; KPKT, 2005).

Besides these mechanisms, the process of housing development in Malaysia is also governed by the land use planning system. The system, as guided by the provisions in the Town and Country Planning Act 1976 (Act 172), provides a statutory power to the federal and state governments as well as local authorities to

5 formulate policies, strategies and measures related to the planning of housing development. In general, the role of the planning system in housing development is divided into two stages, namely the stage of planning and stage of controlling (Alias, 2006).

At the planning stage, the aspects of housing development are incorporated in the preparation of development plans such as the national physical plan (NPP), structure plan (SP), local plan (LP) and special area plan (SAP). The NPP prepared at the national level (Peninsular Malaysia in particular) set the aim, objectives and principles of national planning which need to be achieved, including aspects related to housing and settlement development. This plan also formulates various development strategies, policies and implementation measures to guide the state and local authorities in planning housing development.

The NPP’s policies and strategies are subsequently translated in the SP for each state, particularly for the states in Peninsular Malaysia. The SP will examine the current housing conditions and identifies issues and problems related to housing and forecasts future housing requirement. In addition, it will formulate policies and general proposal covering various aspects of housing planning to be enforced by the local planning authorities (LPAs). The process of housing planning then continued in the LP studies prepared by the LPA. Unlike the NPP and SP, the focus of housing planning in the LP is more detailed, i.e. by concentrating on specific areas, whether in the context of one district, one local authority or certain urban areas. In this plan, in-depth study on housing is carried out, comprising the examination of current housing profiles such as existing stocks, committed development and occupancy rate, identification of issues, problems and potentials for housing development and forecasting of future housing requirements for the planned areas. Besides, it is also a function of LPs to determine the total quantity, land area and suitable locations for future housing.

The SAP, the fourth hierarchy in the Malaysian development plan system, also has a specific role in planning housing development, particularly for the housing areas which require urgent actions for improvement or redevelopment. Through this

6 plan, the LPAs may prepare a management plan to ensure housing development in certain areas is being implemented in an orderly manner.

Besides development plans, the planning control mechanism also plays a role to complement the process of housing planning by assessing, controlling and monitoring the applications of housing development. The process and procedure to control and monitor the development, inclusive of housing developments, were stated in Part IV, Act 172. The provision under section 18(1) for instance, states that, “no person shall use or be permitted to use any land or building, otherwise than in conformity with the local plan�. This provision clarifies that any development, inclusive of housing development, should be in line with the proposals as stipulated in related LPs. The above explanation shows that the current planning system through development plans and planning control plays a significant role in guiding the process of housing development in Malaysia. Nevertheless, its effectiveness in planning and controlling housing supply is still arguable. The existence of surplus of housing supply, as explained in the next section, is explicitly related with the weakness and ineffectiveness of the implementation of mechanisms in the planning system.

1.3

Housing Development Issues in Malaysia The Malaysian housing sector faces various problems. Housing oversupply

recorded throughout the country has been an issue of regular debates by planning and property players. The seriousness of the issue is attested by statistical data on housing in various reports, such as the NPP, the five-year Malaysia plans, the population and housing census as well as the property market reports.

Figures involving the comparison between housing need and housing supply produced by the NPP (Table 1.1) clearly show that there is a surplus of housing

7 supply in Peninsular Malaysia for the year 2000 and 2005. The figures indicate that out of a total of 5,338,000 units of housing supply (including existing and committed housing units), essentially only 3,941,200 were required to fulfil the Peninsular Malaysia’s housing need for the year 2000. This means that the remaining 1,396,800 units approved by the planning authorities are actually an oversupply. The issue of oversupply also existed in 2005, which is indicated by a surplus of new housing approvals of 755,000 units (JPBD Semenanjung Malaysia, 2003b).

Table 1.1:

Comparison between housing supply and housing need in Peninsular Malaysia in year 2000 and 2005

Region

Housing Supply 2000

Housing Need 2000

Total Surplus 2005

Northern Region

1,473,300

1,110,400

1,253,100

Central Region

2000

2005

362,900

219,300

2,108,200

1,503,000

1,830,700

605,200

277,500

Southern Region

956,600

583,100

671,000

373,500

285,600

Eastern Region

799,900

744,700

828,100

55,200

(28,200)

5,338,000

3,941,200

4,583,000

1,396,800

755,000

Total

Source: Adapted from JPBD Semenanjung Malaysia (2003b) The phenomenon of housing oversupply can also be related to the figures on housing development achievement as reported in the Seventh and Eight Malaysia Plans. Table 1.2 shows that the construction of housing exceeded the need for housing units as targeted in the plans. During the period of Seventh Malaysia Plan (1996-2000), a total of 859,480 units were constructed, compared to 800,000 units targeted to meet the housing needs for the period (Government of Malaysia, 2001).

Similar situation existed during the Eighth Malaysia Plan period, where a total of 844,043 units were constructed far exceeding the actual housing need of 615,000 as targeted in the plan (Government of Malaysia, 2006). These figures, from economic perspective show that the performance of housing development in Malaysia is encouraging, but in another perspective, it indicates that the supply of housing has exceeded the actual need of housing for both periods.

8 Housing targets and achievements for the period of Seventh and Eighth

Table 1.2:

Malaysia Plans Housing Programme

Seventh Malaysia Plan (1996-2000) Target (units)

Achieved (units)

Eighth Malaysia Plan (2001-2005)

Achievement (%)

Target (units)

Achieved (units)

Achievement (%)

Public sector

230,000

121,624

52.9

312,000

188,669

60.5

Private Sector

570,000

737,856

129.4

303,000

655,374

216.3

Total

800,000

859,480

107.4

615,000

844,043

137.2

Sources: Adapted from Government of Malaysia (2001; 2006) The existence of excess supply not only leads to the imbalance between housing supply and need, but also affected the housing occupation rate and the performance of housing market. Figures recorded in the Population and Housing Census indicates that the occupancy rate of housing in Malaysia in year 2000 is only 86.7 percent (Department of Statistics Malaysia, 2001). This means that around 13.3 percent of the housing stocks were unoccupied or vacant.

The effect of oversupply on housing market can be depicted through data on overhang and unsold properties. Statistics published by the Department of Valuation and Property Services for the year 2000 to 2007 display a persistence pattern of overhang in the housing property market. A total of 51,348 units were identified as overhang in the year 2000 with a total worth of RM6.6 billion. The latest figure for 2007 also puts 23,866 or 20.17 percent of the total 118,317 completed launched units, in the category of overhang with a total worth of RM3.82 billion (Table 1.3).

Further aggravating the issue is the statistics on total unsold housing composing of under construction and un-constructed units which proves a disturbed state in the Malaysian housing market. The figures for 2007 display around 70,103 or 41.45 percent of the 169,122 housing units launched as unsold. High unsold rates are also traceable in 2003, 2004, 2005 and 2006, respectively amounting to 71,154 (36.12%), 83,811 (36.32%), 82,853 (37.87%) and 75,424 (38.97%) units (Table 1.4).

9 Table 1.3: Number, percentage and value of overhang housing units in Malaysia from year 2000 to 2007 Year

Total Unit Launched

Overhang Units

Overhang Rate (%)

Overhang Value (RM Mil.)

2000

n.a.

51,348

n.a

6,609.37

2001

179,030

40,977

22.90

5,528.68

2002

277,231

59,750

21.60

7,882.03

2003

69,805

9,300

13.30

1,336.15

2004

82,343

15,558

18.90

1,817.70

2005

95,714

19,577

20.45

2,632.89

2006

144,938

25,645

17.69

4,183.55

2007

118,317

23,866

20.17

3,816.84

Sources: Valuation and Property Services Department (2001; 2002; 2003; 2004; 2005; 2006; 2007; 2008) Table 1.4: Number and percentage of unsold housing units in Malaysia from year 2003 to 2007 Year

Total Unit Launched

Total Unsold Unit

Unsold Rate (%)

2003

196,980

71,154

36.12

2004

230,767

83,811

36.32

2005

218,727

82,853

37.87

2006

193,531

75,424

38.97

2007

169,122

70,103

41.45

Sources: Valuation and Property Services Department (2004; 2005; 2006; 2007; 2008)

1.4

Research Problems The issue of housing oversupply has sparked lively discussions and debates.

The National Economic Action Council (NEAC) has identified the process of speculative demand and supply by private developers and loopholes in the planning system as major factors affecting the issue (Kerajaan Malaysia, 1999a; 1999b).

Likewise, Chin (2003), Abdul Ghani (2004) and Mohd Talhar (2004) blame the weakness on the planning approval process, where housing applications are permitted without due consideration of the actual demand. Moreover, Mohd. Fadzil

10 (2005) has identified the non-compliance practices to the housing planning policies and guidelines in the development plans as a main factor contributing to the issue.

According to these arguments, the planning process and practice do influence as well as contribute to the issue of housing oversupply. The veracity of the arguments is in line with the views of several researchers in the field of housing development and production process. Grigson (1986), Monk et al. (1996), Nicol (2002), Bramley et al. (1995) and Hull (1997) had addressed that besides other influential factors, it is strongly possible for the issue to have been aggravated by the weakness and ineffectiveness of the planning system.

The influence of the planning system on the housing oversupply was also mentioned by Ho (1994) and Asiah (1999). Asiah argues that the existence of oversupply is contributed by the weakness and ineffectiveness of the planning activities in the development plans and development control process. According to Asiah (1999), the development plans prepared by planning authorities have not only failed to examine and determine the total supply, land requirement and suitable areas for housing development, but also failed to consider the aspects of household effective demand in the process of housing planning.

With respect to development control process, Asiah (1999) perceives the process as being inefficient in monitoring the approval of housing development applications. Ho (1994) also poses similar view by arguing that the issue occurs due to failure of the planning approval process to balance and match the supply of housing to the demand.

Based on the above problems and arguments as well as debates about the capability of the planning system in governing the process of housing development, as discussed in section 1.1, it is rational to explore empirically the extent to which the land use planning system plays its role in the process of housing supply.

11 1.5

Research Questions The existence of the above problems attracted this research to further explore

the extent of the effectiveness of current land use planning system and practice in planning and controlling housing supply. In relation to this, several questions are felt necessary to be explored. The main questions are as follows: (i)

What are the role of land use planning system and mechanisms in the housing supply process?

(ii)

How effective are the preparation of development plans in planning housing supply?

(iii)

To what extent does the housing planning control process complies with the provisions of development plans and how effective is the process in controlling housing development applications?

(iv)

To what extent does the operation of the planning mechanisms achieve the main objectives of housing planning?

(v)

What are the issues and problems that exist in the process of planning and controlling of housing supply?

1.6

Research Aim and Objectives The aim of this research is to evaluate the effectiveness of the process of

planning and controlling of housing supply and to identify the weaknesses, issues and problems that exist in carrying out the process. In achieving the aim and answering the questions of the research, the following objectives were set: (i)

To identify the specific roles of land use planning system and mechanisms in the housing supply process.

(ii)

To evaluate the effectiveness of the preparation of development plans in planning housing supply.

12 (iii)

To determine the extent to which the housing planning control process complies with the provisions of development plans and how effective is the process in controlling housing development applications.

(iv)

To determine the extent to which the operation of planning mechanisms achieve the main objectives of housing planning.

(v)

To identify the issues and problems that exist in the process of planning and controlling of housing supply.

(vi)

To propose a framework to improve the process of planning and controlling of housing supply.

1.7

Scope of the Research This research tries to explore the relationship between the operation of land

use planning system and the process of housing development with a special emphasis on the aspect of housing supply. Exploring the relationship is important, in line with the role played by the land use planning system in the process of housing development, particularly at the stage of pre-construction or pre-development (Asiah, 1999; Ratcliffe et al., 2004). In this research, land use planning system refers to the main functions of planning, namely forward planning and planning control. In the context of Malaysian planning system, it refers to the development plan and planning control mechanisms as enacted in Act 172.

The significance of the relationship is translated in this research by evaluating the effectiveness and achievement of the implementation of planning mechanisms, i.e. SP, LP and planning control, in planning and controlling housing supply. The effectiveness of the NPP and SAP, which also act as an important planning mechanism in the Malaysian land use planning system, however, is not evaluated empirically in this research.

Nevertheless, the roles of both plans in planning

housing supply are explored at the literature review stage.

13 The effectiveness of each mechanism is measured based on the implementation of activities related to the planning and control of housing supply conducted by the mechanisms (Figure 1.1). For SP and LP, the effectiveness are measured based on the comprehensiveness of specific activities conducted in the said plans, namely forecasting of future housing requirements, formulation of housing planning policies, determination of total land area and distribution of locations for future housing supply. Similarly, the effectiveness of planning control is measured based on the comprehensiveness of activities related to the controlling and approving of housing development applications.

EFFECTIVENESS OF LAND USE PLANNING SYSTEM IN PLANNING AND CONTROLLING HOUSING SUPPLY

EFFECTIVENESS OF STRUCTURE PLAN

EFFECTIVENESS OF LOCAL PLAN

EFFECTIVENESS OF PLANNING CONTROL

Activities related to housing supply planning

Activities related to housing supply planning

Activities related to housing supply control

Forecasting of future housing requirement Formulation of housing planning policies

Forecasting of future housing requirement Determination of total housing land area Distribution of locations for future housing development

Controlling and approving of housing development applications

Figure 1.1: The scope of measurement of the effectiveness of land use planning system in planning and controlling housing supply In relation to the evaluation of achievement of planning mechanisms, the main housing planning objectives, namely meeting housing needs, fulfilling effective housing demand, considering the criteria of market demand and balancing the supply and the actual demand of housing, were applied as measurement criteria. In addition, it is also part of the scope of this research to explore the perceptions and views of town planners about the practice, level of effectiveness and problems in planning and controlling housing supply in the study area.

14 This research is seen able to enrich the empirical research in the context of the relationship between the operation of planning system and the process of housing supply. It will widen and complement the scope of previous studies by Rydin (1985), Ho (1994), Asiah (1999) and Ibrahim (2008) who managed to incorporate various aspects related to the planning of housing supply in their researches. Rydin (1985), Asiah (1999) and Ibrahim (2008) had discussed the effects of the planning system on housing production and land released for housing, while Ho (1994) emphasized on the problems of abandoned housing projects and mismatch of demand and supply in housing development.

1.8

Research Methodology This research comprises five main stages, namely preliminary study,

literature review, data collection, data analysis and the stage of synthesising and concluding the research findings. (i)

Preliminary study involves a basic understanding of the research field and issues related to housing supply planning, identifying the background of problems, selecting the appropriate area as a case study, designing questions, aim and objectives of the research and determining the scope, approach and methods of the research.

(ii)

The literature review for this research is divided into two parts. The first part focuses on the background of land use planning system and its roles in the process of housing supply. The second part emphasises on the process, activities and important aspects related to the planning of housing supply as conducted in the preparation of development plans and planning control.

(iii)

Data collection for this research involves primary and secondary data. The secondary data involves a collection of statistical figures on existing and committed housing supply, housing need, status of housing market and level of housing occupancy for the national, state (Johor State) and case study area.

It also involves a collection of information on SP, LP and housing development applications as well as procedures, policies and guidelines for

15 housing development. As for primary data, they were collected by applying three methods as follows: (a)

Conducting content analysis on seven (n=7) SPs, seven (N=7) LPs and eighty-two (n=82) housing development applications.

(b)

Conducting questionnaire survey on sixty-one (N=61) respondents involving all town planners in the study area.

(c)

Conducting an in-depth interview with sixteen (n=16) experienced town planners in the study area.

(iv)

Data collected from the content analysis, questionnaire survey and in-depth interview were analysed using quantitative and qualitative techniques. Data from the questionnaire survey was analysed quantitatively in the form of descriptive statistics. For the data collected through the in-depth interview and content analysis, they were analysed qualitatively by transcribing, listing and quoting the actual statements or views.

(v)

At the last stage, the results of the quantitative and qualitative analysis from all three methods of data collection were synthesised to conclude the findings of the empirical research on the study area.

Detailed explanation on the methodology of the research will be discussed in

chapter 4.

1.9

Structure of the Thesis This thesis is structured into eight chapters. Chapter one presents an overview

of the role of the land use planning system and mechanisms in planning housing supply, the existence of housing oversupply and statements of research problems. It also discusses the questions, aim, objectives and scope of the research as well as provides a brief explanation on the methodology applied in this research.

16 Chapter two elaborates the definitions, framework and approaches of the land use planning system, its rationales to intervene in the development process and some theoretical perspectives on the relationship between land use planning and the housing supply process. This chapter basically tries to clarify that the land use planning system through its mechanisms and activities have an important role in the process of housing development, particularly in respect of planning housing supply.

Chapter three discusses in depth about the functions of planning mechanisms in planning and controlling housing supply. It explains about the activities and important aspects related to housing supply that need to be conducted and considered during preparation of structure and local plans and at the stage of planning control.

This chapter also elaborates the main objectives of housing planning that need to be achieved by the operation of the planning system and mechanisms.

Chapter four elaborates the aspects related to the methodology applied in the research. It covers a discussion on the purpose, framework and design, approach and strategy of the research. A thorough explanation is given to the subjects of data collection and data analysis, with a particular emphasis on the application of methods, stages and techniques of collecting and analysing the data. This chapter also discusses the aspects of reliability and validity of the empirical research and highlights several limitations and problems encountered while conducting this research.

Chapter five specifically focuses on the background of Johor Bahru Conurbation as the case study area. It clarifies the general background in terms of size of land area, population and household size and administration of local authorities, followed by discussion on urban settlement and land use composition, housing development profiles and mechanisms for the planning and controlling of housing supply. This chapter also reveals several issues related to housing supply faced by the study area.

Chapters six and seven present the results of the data analysis from the empirical research in the study area. In chapter six, the results of content analysis on SP, LP and housing development applications are presented in detail. It focuses on

17 the results of the comprehensiveness of each housing planning activity and the achievement of the planning mechanisms in realising the objectives of housing planning.

Chapter seven presents the findings of the quantitative and qualitative analyses conducted through questionnaire surveys and in-depth interviews. In this chapter, the analysis of the planners’ perceptions towards the effectiveness of the process of housing supply planning is divided into three parts. The first part discusses respondents’ perceptions on the practice of housing supply planning, while the second part presents the perceptions on the effectiveness of the planning mechanisms in planning and controlling housing supply. The third part focuses mainly on the issues and problems that exist in the housing planning process as viewed by several experienced town planners.

Finally, chapter eight synthesises and summarises the results from each method of analysis and concludes the findings of the research. This chapter also discusses the implication of the findings on the theoretical fundamentals and practice of urban planning and outlines several recommendations to improve and strengthen the process of planning and controlling of housing supply. The chapter ends by highlighting the contributions of the research and proposing ideas for further research.

18

CHAPTER 2

LAND USE PLANNING SYSTEM AND HOUSING DEVELOPMENT PROCESS: A THEORETICAL FRAMEWORK

2.1

Introduction The land use planning system, through the mechanisms of development plan

and planning control, and the housing market system are among the systems that exist and influence the efficiency and effectiveness of the process of housing development (Bramley et al., 1995; Golland, 1998). Previous literatures had proven that there are a close interaction between the activities of land use planning with the activities of housing market, particularly with regard to the structure, operation and outcomes of housing supply. Even in the situation of imperfection and housing market failure, it becomes a function of the land use planning to rectify the failure by properly governing the process of planning and controlling of housing development.

The significance and the extent to which the land use planning system plays a role in the housing development process and housing supply will be given an emphasis in this chapter. This chapter also examines the definition, framework, legislation and mechanism of land use planning as well as the extent to which the system is implemented. This chapter will provide the framework of the housing planning system. It also serves as the background to the next chapter in understanding the process of planning and controlling of housing supply.

19 2.2

Background of the Land Use Planning System ‘Land use planning’, ‘urban planning’, ‘physical planning’ and sometimes

just ‘planning’ are among the terminology used to represent the role and activity of town and country planning. Nevertheless, in the context of literatures and studies about the relationship between the field of town and country planning and the process of housing development, for instance in Healey (1983), Ball (1983), Bramley et al. (1995) and Asiah (1999), the term ‘land use planning’ is more frequently used.

This research adopts the similar term by exploring it in a broader perspective, that is the system of land use planning.

2.2.1

Definition of Land Use Planning Healey et al. (1988) defines land use planning as a set of instruments and

institutional arrangements that constitute a framework for the management of land use change. Ratcliffe (1981), on the other hand, defines land use planning as a system concerned with taking an objective and rational view of future conditions, assessing what the society desires its destiny to be, forecasting the amount of change, estimating the degree of control required and formulating a policy to take account of this destiny, change and control. According to Ratcliffe (1981), the concern of land use planning is not only on the population growth and land use change, but also on the human behaviours and other activities which are involved in the urban development.

Land use planning is also defined as a mechanism for the government to exercise its intervention on the urban development process (Greed, 1996c; Ibrahim, 1998; Eddie and Vivian, 2003). According to Ibrahim (1998) and Greed (1996c), the government intervention in the process of urban development is important to achieve certain goals that relate to the public interest. It is land use planning that helps government to promote a more convenient, attractive and equitable pattern of development than the kind of development produced through unregulated markets (Self, 1998).

20 Rydin (1985), in another perspective, defines land use planning as statutory obligation that need to be enforced by LPA in accordance with the town and country planning legislations. According to Rydin (1985), it is the responsibility of the authority to guide and monitor land use developments by performing development plans and carrying out development control duties effectively.

In a broader perspective, Ratcliffe (1981) describes land use planning as the system to secure a sensible and acceptable blend of conservation and exploitation of land as the background or stage for human activity. According to Ratcliffe (1981), land use planning involves the process of establishing the desires of the community, formulating them in a manner that facilitates comprehension and discussion, preparing a policy for their adoption, regulating the degree and proportion of public services, initiating action where necessary and continually examining the effect of the adopted policy and making adjustments if required.

In the light of the above definitions, land use planning may be summed up as a statutory government intervention instrument for the management of land use change in the process of urban development to achieve goals and objectives in promoting a more convenient, attractive and equitable pattern of development for the interest of public. This understanding is in line with the aim of land use planning, that is “to plan and arrange all the different land uses in order to achieve their best relationship to each other and to make the most efficient and effective use of land in the best interest of people� (Goh, 1991:28).

2.2.2

The Land Use Planning System Framework Land use planning deals with several systems that influence the physical

structure of the city (Ibrahim, 1998; Foziah, 2002). According to Chapin and Kaiser (1979), urban land use planning is influenced by three key systems, namely activity systems, land development systems and environmental systems. Activity systems are concerned with how man, through his institutions such as households, firms and governments, organizes his affairs in the pursuit of human needs and how these

21 institutions interact with one another in time and space. Activity systems determine demands for various urban spaces such as housing, recreation, commercial and infrastructure (Figure 2.1).

ACTIVITY SYSTEMS Activity Agents

Individuals and households

Activity Systems Household-sustaining activities Socialization activities Social interaction activities Recreational activities Rest and relaxation activities Goods – producing activities Service activities to individuals, households, firms and institutions

Firms

Institutions

Human development activities Basic public service activities Activities for the welfare of special groups

Figure 2.1: The activity systems Source: Chapin and Kaiser (1979:29) The land development systems focus on processes that convert space and adapt them for use of the activity systems. The principal agents in the development systems include pre-development landowners, developers, consumers, financial intermediaries and public agencies. They relate to the supply side of the urban development process (Figure 2.2).

The third system that influences the urban land use development is the environmental systems. These environmental systems provide the niche for human existence and the habitat and resources to sustain man. These include plants, animal life system and the fundamental processes relating to water, air and matter.

Environmental systems function both to constrain and to enhance the functioning of the other two systems (Figure 2.3).

22 LAND DEVELOPMENT SYSTEMS

Development Agents

Predevelopment landowners

Development Systems Land marketing (assessment of utility of continuing land in present state vs. return from selling or leasing it)

Developers

Land conversion or re-conversion

Consumers

Purchasing or leasing locations and facilities

Financial intermediaries

Acquisition and development – financing transactions Review and approval of land use and development

Public agencies

Figure 2.2: Land development systems Source: Chapin and Kaiser (1979:30)

ENVIRONMENTAL SYSTEMS Agents of Nature

Environmental Systems

Biotic-the plant and animal communities

Ecosystem processes (energy flow from sun to plants, through the food chain to herbivores to carnivores and dissipation; nutrient cycle from pool to plants, through the food chain and back to the nutrient pool)

Abiotic-water, air and matter

Hydrological system Aerological system Geological system

Figure 2.3: The environmental systems Source: Chapin and Kaiser (1979:31)

23 These key systems play an important role in the establishment of the land use planning framework. According to Chapin and Kaiser (1979), the goals of urban development that relate to public interest such as sustainability, health safety, convenience, efficiency, energy conservation, environmental quality, social equity and amenity are very much influenced by the interplay of the systems together with economic and population growth and urban planning and guidance system (Figure 2.4).

GOALS OF LAND USE PLANNING (Sustainability, Health and Safety, Convenience, Efficiency and Energy Conservation, Environmental Quality, Social Equity and Amenity

KEY URBAN LAND USE SYSTEMS Aspatial

Spatial

Economic and Population Growth

Land Use Pattern

Activity Systems

Development Systems

Environmental Systems

URBAN PLANNING AND GUIDANCE SYSTEM (decision guides and action instruments)

Planning Activities

Political Activities

Figure 2.4: Framework of land use planning system Source: Adapted from Chapin and Kaiser (1979:65)

24 The urban planning and guidance system through planning activities and political activities acted as decision guides and action instruments in the land use planning system. According to Ibrahim (1998), planning activities refer to the preparation of development plans and planning studies that are used as guides for the purpose of planning decisions. The decision to adopt a particular plan and approval of development proposal is made by the state or local authority concerned. In ensuring the proposed land use development complies with the planning guides, a proper exercise of development control by planning authorities is required. This shows planning activities as one of the components in the urban planning and guidance system play a pivotal role to complement the land use planning system.

2.2.3

The Approach of Land Use Planning The adoption of land use planning approach varies depending on the context,

experience and practice of the urban development process, in particular places and time (Ibrahim, 1998). It began with the model of ‘blue print’ physical planning or master planning approach before shifted to the procedural planning approach. The model of ‘blue print’ planning is one of the earlier approaches which tries to solve the urban problems through the medium of the plan or blue print. It was widely applied before 1960s based on the public agreement on the value and policy direction in managing the urban environment changes (Ibrahim, 1998; Foziah, 2002).

‘Blue print’ planning could be regarded as an exercise in physical, influenced by the urban design tradition of planning (Taylor, 1998; 1999). It incorporates the elements of urban design, architecture, engineering and consideration to the management of public area (Healey, 1982; Foziah, 2002). The approach incorporates the principles of urban management into the physical planning programs and attempts to influence or direct all activities related to the physical environment for the benefit of public. It employs land use map and zoning, density control, building control and planning standards to regulate urban development process (Ibrahim, 1998).

25 The approach can be traced in urban development process in Britain until the 1960s through the activities of producing comprehensive

master plans,

neighbourhood design, garden cities and utopian ideals for cities (Healey, 1982; Goh, 1991, Hobbs, 1996). Similar approach was adopted in the Malaysian context through preparation of general town plan as enacted in the Town Board Enactment (Cap 137) and previous planning enactments (Goh, 1991). Due to its physical nature and rigidity, the ‘blue print’ planning was regarded as a failure as it is unable to deal with various social issues such as urban poverty, unemployment and urban inequalities (Ibrahim, 1998).

The approach of land use planning was gradually substituted by procedural planning in line with the development of urban planning profession and the influence of social scientific methodology (Ibrahim, 1998) as well as due to increasing of awareness of interrelationship between the factors of physical, social, economy and environment in urban development (Foziah, 2002). Through the procedural planning approach, the focus of land use planning was shifted from a prominently physical design exercise to the rational procedure of producing plans and control over the development of urban area (Ibrahim, 1998).

The approach of procedural planning was conceived to become a fundamental paradigm of planning (Healey et al., 1982). According to Ibrahim (1998), procedural planning emphasises on solving urban problems based on rational procedures and methods for decision making. The procedures and methods applied have led the planning process to form the goal and objectives to be achieved, analyse urban problems and conditions systematically, formulate and evaluate various policies and proposals, monitor performance and achievement of urban development process constantly and make an adjustment whenever necessary to the existing policies and proposals (Chapin and Kaiser, 1979). This approach makes land use planning a continuous process of managing urban change.

The approach was translated in the preparation of urban development plans.

In the UK, it was adopted in early 1970s through preparation of SP and LP, as legislated by the 1968 Town and Country Planning Act (TCPA) (Healey, 1983). It was also incorporated and institutionalized in the Malaysian land use planning

26 system immediately after the formulation of Act of 172 in 1976 (Goh, 1991). The Act requires the preparation of SP and LP to follow the rationale procedures and methods through systematic analysis of strategic sectors, identification of problems and issues and derivation of proposals on the basis of the findings. The approach also provides an opportunity to the public to comment on the findings and make suggestions to streamline the proposals in development plans (Foziah, 2002).

The effectiveness of the procedural planning, particularly in Malaysian context, however was argued from various angles.

Ibrahim (1998) argues that

although the approach is ideal in fulfilling the requirement of rational model, effective application of the approach is inhibited due to limited information available and political circumstances. The preparation of development plans according to the approach was also time consuming because of the numerous procedures that need to be followed before the plan could be gazetted (Abdul Munit, 1996). The procedures not only limit development plans to cope with the changes and growth of the economy and urban development rate but also led the plans to focus on the process of preparation, with less thought given to develop the proposals (Goh, 1991; Ibrahim, 1998). Consequently, poor quality plan have in some cases been produced which eventually curbed the effective implementation of many policies and proposals in the plans (Abdul Munit, 1996).

The procedural planning approach remains in the system of land use planning until today. Nevertheless, it changes from time to time in terms of scope and practice. A growing awareness on sustainability at the end of 1980s and early 1990s has expanded the scope and practice of land use planning (Ratcliffe et al., 2004). The introduction of sustainable development concept in 1987 by the World Commission on Environment and Development (The Brundtland Commission) and the declaration of the United Nation’s Conference on Environment and Development (The Rio Declaration) at Rio de Janeiro in 1992 which issued an Agenda 21 led land use planning to accommodate a more environmentally aware agenda (Ibrahim, 1998; Foziah, 2002; Ratcliffe et al., 2004).

Certain principles from the Rio Declaration and Agenda 21 were incorporated in the land use planning process. In Britain, the 1990 Town and Country Planning

27 Act and the 1991 Planning and Compensation Act provide a framework for plan-led environmental planning. Through the acts and several planning policy guidance, a greater emphasis was given to physical and environmental issues and sustainable development aspects (Greed, 1996c).

An effort to incorporate the concept of sustainable development into the land use planning practice was also done in Malaysia. The amendment to the Act of 172 in 1995 had stressed the need for better environmental protection through new provisions on preservation of the natural topography, protection of trees, conservation and rehabilitation of buildings of historical significance and architecture merit and cultural heritage (Zainuddin, 1995). The amendment requires the preparation of LP to provide measures for the preservation and enhancement of natural features in the planned areas (Foziah, 2004). The amendment had also led developers to prepare and submit development proposal report (DPR) when submitting an application for planning approval. The report needs to underline measures to preserve natural features and indicate the impact of the proposed development on the surrounding areas (Zainuddin, 1996; Ibrahim, 1998).

The application of procedural planning approach has continually changed to suit the new methods and thoughts in urban development.

The technique of

sequential approach as has been in practice in the UK (Zainul, 2005; Khairiah, 2006; 2008), the concepts of smart growth and new urbanism as adopted in the USA (Emily, 2005; Berke et al., 2006), the idea of compact city (Ho, 2007) and the key principles of new urban planning as declared in the Vancouver’s World Planners Congress in 2006 (Vancouver Declaration) (Hague et al., 2006) are among the ingredients which shift the scope and practice of urban land use planning throughout the world, including Malaysia.

2.3

Legislation and Mechanism of Land Use Planning Bramley (2003) describes land use planning as an administrative system

which is governed by a set of regulations and mechanisms. For comparison, this

28 section explores the legislations and mechanisms related to land use planning as formulated and adopted in three different countries, namely United Kingdom (UK), United States (US) and Malaysia.

2.3.1

United Kingdom In the UK, the 1947 TCPA was considered as a revolutionary legislation that

provides a legal tool for the practice of land use planning and development control (Healey, 1983). This legislation introduces a comprehensive planning controls and required local authorities to prepare land use plans (Prior, 2000; Hobbs, 1996). Land use plans prepared under the 1947 Act indicate the broad patterns of land use for the planned areas (Lambert, 1996; Hague, 2000).

After 1947, the UK planning legislation went through several amendments to cope with the new town planning practice and institutional arrangements (Hobbs, 1996). Nevertheless, the formulation of the 1968 TCPA was seen as a landmark to the evolution of UK’s planning legislation. The 1968 Act introduces a significant reform to the system of plan preparation by introducing the mechanisms of SP and LP (Healey, 1983). The 1968 Act requires the county council or the Greater London Council to prepare SP which among others need to outline the statement of strategic and long-term planning objectives and policies covering various land use sectors.

The LP needs to be prepared by a city, district or borough councils, providing a more detailed and short-term list of policies to be applied specifically to individual sites (Jones and Watkins, 1999; O’Sullivan, 2003). The 1968 Act also provides that the LP policies and proposals need to be in conformity with the SP and central government advices (Ratcliffe et al., 2004).

The 1968 Act has led the implementation of land use planning to be exercised under two distinct but interconnected subject areas, dealing first with the production of planning policies and then how those policies feed into the development control system, whereby decisions are made on individual planning applications (Ratcliffe et al., 2004). The reforms of 1968 Act are subsequently consolidated into the TCPA,

29 1971 which basically remained the principal of planning legislation provided by the 1968 Act (Ratcliffe et al., 2004; Hobbs, 1996).

The introduction of the new TCPA in 1990 (1990 Act) and the Planning and Compensation Act in 1991 had changed the scope and practice of the UK’s land use planning. These Acts, as mentioned above, provided a framework which heralded a return to plan-based planning, with greater emphasis on environmental issues.

According to Hobbs (1996), despite the return to plan-led planning, central government still sought to restrict the form and content of statutory plans to land use and development matters.

Significant changes involving the planning legislation and mechanism have also existed in 1986 and 1995. In 1986, the unitary development plan was introduced in line with the abolishment of Greater London Council and six metropolitan counties, where their powers were passed on to the London boroughs and the metropolitan district councils (Greed, 1996b; 1996d). The requirement and principles for preparing the plan was legislated in the 1990 TCPA (Mohd. Anuar, 1991; Greed, 1996d). The plan was subsequently produced by other district councils in England, Scotland and Wales in 1995 and later years following the abolishment of some county and regional councils (Ratcliffe et al., 2004).

The latest reform to the UK’s planning legislation was made in 2004 through the formulation of the Planning and Compulsory Act. The 2004 Act introduces the local development framework (LDR) to replace the previous system of county level SPs and district level LPs, and unitary development plans for Unitary authorities.

The LDR system is intended to suit the different needs of a particular area and can be easily updated, replacing previous development plan system which was perceived too inflexible and difficult to change in a timely manner (Ratcliffe et al., 2004).

Besides development plans, the UK planning legislations, since 1947 TCPA, also give an emphasis to the provisions related to development control activity. The gist of the legislation with regard to the activity is that planning permission is required for carrying out ‘development’ (Ball, 1983; Mohd. Anuar, 1991; Ratcliffe, et al., 2004). The definition of development under the legislations is “the carrying

30 out of building, engineering, mining or other operations in, on, over or under land, or the making of any material change of use of any buildings or other land”. This definition remained unchanged since 1947 (Mohd Anuar, 1991).

The broad definition, however, has been refined in the 1971 TCPA and later in the 1990 TCPA by bringing in certain types of activity within the definition (S. 55(3)) and excluding from control other defined activities (S. 55(2)). In addition, the subordinate legislations, i.e. General Development Order 1988 (GDO), Use Classes Order 1987 (UCO) and Special Development Orders (SDO) and the Secretary of State for the Environment decisions through various administrative devices further strengthened the process of development control in the UK (Mohd Anuar, 1991; Ratcliffe, et al., 2004).

Another important aspect contained in the UK development control system is regarding the method of decision making for new planning applications. In the UK, plans (development plans) have always been advisory only and act as one of the considerations taken into account in making development decisions (Bramley et al., 1995; Lambert, 1996). It means that in making decisions on development planning, authorities are also required to take account of ‘other material considerations’. This aspect has existed since the 1947 Act and incorporated in the 1971 Act (S. 29) and 1990 Act (S. 70(2)). The 1947, 1971 and 1990 Acts provided that, the decision maker, in this context refers to LPA, “shall have regard to the provisions of the development plan so far as material to the application and to any other material consideration” (Foziah, 2002; Ratcliffe et al., 2004).

The provision of the aspect was slightly changed by the introduction of the Planning and Compensation Act, 1991. This Act under Section 26, which was later carried over into the Planning and Compulsory Act, 2004 provides that “where in making any determination under the Planning Acts regard is to be had to the development plan, the determination shall be in accordance with the plan unless material consideration indicate otherwise” (Ratcliffe et al., 2004:44). Although the 1991 Act gives legislative force to follow development plans, principally the discretionary system in approving the applications for development still exist (Bramley et al. 1995).

31 2.3.2

The United States The US land use planning system is quite different from what has been

practised in the UK (Asiah, 1999). In fact, its land use planning mechanism and legislation vary from one state to another (Ho, 2003). In general, its land use planning mechanism consists of the General Plan and Area Plan. The General Plan is a comprehensive long-term physical plan that details the planning and controlling of subdivision and zoning for the local government areas. This plan contains planning elements, such as land use zoning, traffic circulation, public facility and open space.

The Area Plan is prepared for specific areas within the General Plan. This plan is basically similar to the mechanism of the British LP (Ho, 2003). Through the plans, suitable land use zoning and conditions for the planned areas will be determined (Monk et al., 1991; Foziah, 2002).

Both plans are prepared according to several regulations such as zoning ordinance, subdivision ordinance, official maps and Building Code. The zoning ordinance defines the specific zoning and regulates the height, setbacks, floor area ratio, minimum lot size and density. The subdivision ordinance will set the subdivision controls and standards for infrastructure development comprises of road alignment, water supply, sewerage system and other development control parameters. The official maps will control and restrict the property development in areas planned for public facilities. For the Building Code, it contains standards on building to regulate improvement of buildings in urban property developments (Ho, 2003).

In relation to development control, the US basically practises regulated planning system (Foziah, 2002). The system will bind decision makers to follow land use zones, conditions and other requirements stipulated in the general and area plans when making consideration on each development proposal. According to Faludi (1987), the system has an advantage because it gives certainty to land owner and developer as well as to decision makers. In addition, the system also provides a right to the third party to object to the planning decisions if any development approval contradicts with the approved plans (Foziah, 2002).

32 2.3.3

Malaysia Land use planning activities in Malaysia are governed by several planning

legislations. As a British colony, its legislations have tended to use British planning legislations (Foziah, 1986). Its transition can be traced from the pre-British colonial, during the British colonial and post-independence period until the formulation of Act of 172 in 1976. The first piece of planning legislation in Malaysia can be traced back to 1881 involving an environmental control and fire preventive measures. It was introduced by the British’s States Council after a large part of Kuala Lumpur was destroyed by a fire (Quazi, 1986; JPBD Semenanjung Malaysia, 2002).

Later, in 1890, a Sanitary Board was set up to improve municipal and health services. Through this Board, several by-laws related to planning activities such as submission of plan for new building and amendment plan for old building were introduced. These governmental steps can be viewed as the forerunners of planning legislation in Malaysia. In fact, these were the only rules and regulations which were available for the first time to control town environment.

In 1917, Town Improvement Enactment was endorsed which gave a power to the Sanitary Board to implement town development and redevelopment. The Enactment was subsequently replaced by Town Planning Enactment 1923 and Town Planning Enactment 1927. In 1929, the 1927 Town Planning Enactment has been abolished and most parts of the enactment were incorporated in the Part IX of the Sanitary Boards Enactment 1929 (JPBD Semenanjung Malaysia, 2002).

In 1935, Sanitary Boards Enactment 1929 was reviewed and combined with the ‘Sanitary Boards Enactment, Cap 137’ of the Laws of Federated Malay States, 1935 (F.M.S Cap 137) (JPBD Semenanjung Malaysia, 2002). This enactment for the first time incorporated a section on town planning (Part IX of CAP 137) (Quazi, 1986). In 1947, the enforcement of the development control regulations has been strengthened by the formulation of the Town Board Enactment, 1947 (Cap 137).

Cap 137 which provides planning legislation in Part IX, empowers every Town Board to prepare a general town plan for the area under its jurisdiction to be used as the basis of land use zoning (JPBD Semenanjung Malaysia, 2002).

33 The general town plan as prepared according to Cap 137 was found to be purely physical in its scope and was only confined to ensuring that new development conformed to the prescribed plan. The system was argued not capable of coping with the changing circumstances and insensitive to other socio-economic needs (Bruton, 1982; Quazi, 1986). These weaknesses have led to the formulation of TCPA (Act 172) in 1976. The Act marked an important milestone in the evolution and progress of urban and land use planning in Malaysia (Goh, 1991; Wan Mohamad Mukhtar, 2004), though it is labelled as a copy or imported version of the 1971 British TCPA (Goh, 1991; Abdul Munit, 1996; Zainah, 2007).

The Act introduces a new system of development plan, comprise SP and LP and development control replacing provisions in Cap 137 (Wan Mohamad Mukhtar, 1996).

In addition, the 1976 Act also represents an effort on the part of the

government to introduce a uniform planning legislation and comprehensive planning techniques to be implemented by the State and LPAs in Peninsular Malaysia (JPBD Semenanjung Malaysia, 2002).

The 1976 TCPA provides the responsibility for each State Authority to formulate and implement a general policy in respect to the planning of the development and use of all lands and buildings within the jurisdiction of every local authority (S. 3, Act 172). It also provides the power to every local authority to act as a LPA (S. 5(1), Act 172). Among the responsibilities of the LPA are to regulate, control and plan the development and use of all lands and building within its area.

Since its inception, the Act has been amended four times, including the two major amendments in 1995 and 2001, to keep abreast with new developments and requirements of the activity of land use planning (Wan Mohamad Mukhtar, 2004).

The first amendment was in 1993 (through Act A866), aimed to conform to the provisions of the Sewerage Services Act, 1993 (Act 508). In 1995, the second amendment (Act A933) was done due to several environmental issues that occurred in Malaysia at the particular period (Zainuddin, 1996). The third amendment in 2001 was cited as TCP (Amendment) 2001 (Act A1129). The amendment was in response to the economic crisis that hit the country hard in 1997. The government felt that the land use planning system through an integrated physical and resource planning

34 approach is best suited to assist in overcoming the economic crises through greater control over the property development activity (Wan Mohamad Mukhtar, 2004). The latest amendment (Act A1313) was in 2007, aimed to incorporate provisions of the Solid Waste and Public Cleansing Management Act 2007 (Act 672).

The 1976 Act and its amendments were established and streamlined the system of forward planning through a four-tier development plan, namely NPP, SSP, LP and SAP. They also guided the activities of development control through the mechanisms of planning control, development charge and appeal board. The planning mechanisms provided by the legislations were continually used as tools to plan, monitor and control the activities of land use and property development in Malaysia, including for housing development (Alias, 2006). The details of how the mechanisms are prepared and implemented will be discussed in the next section.

2.4

The Implementation of Land Use Planning System in Malaysia The implementation of the land use planning system is influenced by the

provisions of current planning legislations adopted by each country (Greed, 1996c).

In Malaysia, its implementation, as briefly discussed in the above section, is quite similar as in the UK. It firstly deals with the activity of forward planning, through preparation of development plans, followed by the activities of planning control.

Development plans become the basis for future development, while planning control act as the control tool. Both subjects will be further discussed below.

2.4.1

Preparation of Development Plans The preparation of development plans begin at the National level through

NPP, followed by the SP prepared at the State level, and LP and SAP at the local level (Figure 2.5). As a statutory mechanism, preparations of the plans, in terms of form, content and procedure, are guided by the provisions of Act 172.

It is

35 important to note that although the planning legislation in Malaysia is quite similar to the UK, some of the practices in preparing development plans are more inclined towards the US. The preparation of LPs, for instance, were frequently argued similar to the concept of zoning plan as applied in the US (Asiah, 1999).

NATIONAL LEVEL

National Physical Plan (NPP)

Formulate planning strategies and policies at the National level to guide the planning activities at State and local levels.

STATE LEVEL

State Structure Plan (SSP)

Formulate planning policies and general proposals related to development and use of land in the particular State.

Local Plan (LP)

Formulate comprehensive development plan in the form of future land use zoning and implementation measures in the LPA areas.

Special Area Plan (SAP)

Special plan to carry out a detailed treatment for development, redevelopment, improvement, conservation or for the purpose of management of certain areas.

LOCAL LEVEL

Figure 2.5: Hierarchy and function of development plans in Malaysia Source: Adapted from Wan Mohamad Mukhtar (2004:73).

2.4.1.1 National Physical Plan The NPP focuses on the formulation of planning strategies and policies for the development and use of land in the country, particularly in Peninsular Malaysia.

Its main function is to strengthen the national planning framework by providing a spatial dimension to the national socio-economic policies as formulated in the FiveYear Malaysia Plan and other national plans (Wan Mohamad Mukhtar, 2004). The other functions of NPP are to coordinate sectoral agencies by providing the spatial expression to sectoral policies, form the framework for the regional, state and local planning and provide physical planning policies (Government of Malaysia, 2005).

36 According to Section 6B(2) of Act 172, the NPP should contain the following aspects: (i)

Written statement formulating strategic policies for the purpose of determining the general directions and trends of the physical development of the nation.

(ii)

Such indicative plans as may be required to clarify the strategic policies, and

(iii)

Such other matters as may be prescribed or as the NPPC may in particular case specify.

In the process of formulating planning strategies and polices, the NPP has to

identify and consider several macro strategic issues related to various sectors from physical, economic, environment and social development which was faced in the country (Government of Malaysia, 2005). In the context of land use planning, the NPP has provided a national planning direction to be implemented and enforced at the State and local levels.

2.4.1.2 Structure Plan The national planning strategies and policies formulated by the NPP are subsequently incorporated in the preparation of SSP which covers the entire area of a respective State. The preparation of SSP enacted under the Act of A1129 basically replaces the old version of SP which only covers the administrative areas of LPA. The SSP focuses on the formulation of policies and general proposals related to the improvement of the physical living environment, management of traffic and socioeconomic well-being, promotion of economic growth and facilitating sustainable development (S. 8(3), Act 172). Its objective is to encourage integrated development between the aspects of social, economy and physical in accordance with the national development strategies and policies (Wan Mohamad Mukhtar, 1996).

There are seven closely related functions performed by the preparation of SP as follows (JPBD Semenanjung Malaysia, 1981; Wan Mohamad Mukhtar, 1996): (i)

Interpreting national, state and regional policies.

(ii)

Establishing aims, policies and general proposals.

37 (iii)

Providing framework for local plans.

(iv)

Indicating special area plans.

(v)

Providing guidance for development control.

(vi)

Providing basis for coordinating decisions, and

(vii)

Highlighting main planning issues.

In terms of the form and content, preparation is guided by several manuals

and rules, namely Manual on Function, Form and Content of Development Plans 1981, Manual of State Structure Plan 2001 and Development Plans (Structure and Local Plans) Rules 1985. As stated in the manuals, the total subject or sector involved in the preparation of SP should cover 10 – 15 sectors, including the sector related to housing planning. In terms of the preparation process, it involves several stages and procedures as described in Appendix A. The preparation of SP either covers the LPA areas or the whole State were perceived as a comprehensive planning tool to outline the physical and land use development policies and strategies (Wan Mohamad Mukhtar, 2004). In other perspective, Bruton (1982) assumes that SP was established as the strategic planning vehicle which translates national social, economic and physical objectives into a physical development strategy and provides a framework for the production of more detailed local land use plans to guide the implementation of land use development.

Nevertheless, the process of SP preparation in Malaysia has not been excluded from criticism particularly in terms of preparation period, content and its effectiveness. Goh (1991) comments that most of the SP preparation took too long time to complete and cover too many topics. The long period has caused the completed plan to become obsolete and could not be implemented effectively. It has also delayed the process of LP preparation which eventually affected and give negative impact to the process of land use and property development (Asiah, 1999).

Abdul Munit (1996), on the other hand, queries about the effectiveness of the SP policies by arguing that there were many policies which were not fully implemented.

In relation to this, Foziah (2002) argues that the issue existed due to lack of cooperation among the implementing agencies as well as the numerous policies which are not practical to be implemented.

38 2.4.1.3 Local Plan The implementation of land use planning is continued through preparation of LP and SAP at the local level by LPAs. LP is prepared to translate and detail out the strategies and policies set out by the SP (Hunud Abia and Ainul Jaria, 2004; Wan Mohamad Mukhtar, 1996; 2004). It is specified in the Act 172, under Section 12(8) that the LP’s proposals must conform to the approved SP. Currently, in line with the provision of the Section of 12(2) of Act 172, i.e. where a SP for the State has come into effect, the LPA has to prepare the LP for the whole of its area.

The 2001 amendment Act has changed the approach of preparing the LP from urban based to the LPA based. Nevertheless, in practice the LPA based LP has been prepared simultaneously covering more than one LPA area in each district. Its rationales are to speed up the process of preparation, reduce the cost of study as well as to enable the development information and proposals be coordinated for the whole district. This new version of LP is known as the district LP (DLP) (Wan Mohamad Mukhtar, 2004).

The principal aim of the LP as clarified by Hunud Abia and Ainul Jaria (2004) is to prepare a comprehensive development plan in the form of future land use zoning and implementation measures. Proposal of land use zoning, similar to the concept of zoning plan as contained in the US’s General Plan and Area Plan, exists in the Malaysia’s LP though its preparation originated from the UK’s LP. Legislatively, the LP should consist of a map and a written statement to formulate in detail proposals for development and use of land, protection and improvement of the physical environment, preservation of the natural topography, improvement of the landscape, preservation and enhancement of character and appearance of buildings, improvement of communication and management of traffic system (S. 12(3) of Act 172).

The scope and content of LP, besides guided by the provisions in Act 172, also need to refer to the Development Plans (Structure and Local Plans) Rules 1985 and several manuals, such as DP Manual 1981, Manual of Local Plan Preparation 1993 (LP Manual 1993) and its amended versions of 1999, 2001 and 2002. These

39 manuals specify that LPs may cover various scopes and sectors of study, including sector related to housing, a whole range of planning issues and deals with more specific development proposal and development control criteria (Wan Mohamad Mukhtar, 2004). The common functions of LP as stated in the DP Manual 1981 are as follows (JPBD Semenanjung Malaysia, 1981): (i)

To apply the SP’s development strategies and policies – LPs must conform to the approved SP and develop the proposals and implementation measures.

(ii)

To refine the SP’s development control policies – LPs will refine the broad guidance on development control as prescribed in the SP by allocating land for specific development purposes, defining the areas to which particular development control conditions will be applied and explaining conditions in terms of standard and other criteria to enable the public and private sector developers and property owners be equipped with a precise and clear information.

(iii)

To coordinate the land use and property development - Proposals in the LPs can be used as a basis for coordinating and estimating public and private development and expenditure.

(iv)

To highlight the local and detailed planning issues for public attention – LPs will draw attention to more detailed planning issues in the planned areas.

Thus, it enables developers and property owners to be aware of how their interests will be affected and where opportunities lie. This is done through the consultation stage during the initial study and public objection stage after finishing the draft of LP.

The preparation of LP either in the context of urban based or LPA based needs to go through several procedures. It begins with the preparation of the term of reference by the LPA, followed by the inception and sectoral (technical) reports (Wan Mohamad Mukhtar, 1996). Prior to that, as stated in Section 12A of Act 172, the LPA should take steps to publicise the LP that will be prepared in their area related to the objectives, purposes and matters that the LPA proposes to include in the plan and make the public aware that they have an opportunity of making representations to the LPA. The detailed process in preparing a LP is shown in Appendix B.

40 2.4.1.4 Special Area Plan The preparation of the SAP, which is the fourth tier of the development plan, is enacted in Section 16B of Act 172. This provision provides responsibility for the State Director of TCP or the particular LPA to prepare a plan for special area to carry out a special or detailed treatment through development, redevelopment, improvement, conservation or management practice. The understanding on SAP was further elaborated in the Guideline of Special Area Plan, 2004 prepared by Federal TCPD. The guideline defines SAP as a short-term development plan for implementation purposes. The guideline also specifies that the main outcome of SAP is a development action plan comprising of the layout plans and management plan for development programmes, which include proposals for development phase, cost, implementer agency and implementation approaches.

The SAP can be prepared during the preparation or upon the coming into effect of a SP or LP. In terms of the preparation process, as stated in Section 16B(3), the SAP should be prepared in the same manner as the preparation of a LP. In addition, it is also stated in the provision that the SAP has the same effect like a LP. Considering this plan is still new, thus there is not much criticism on the content, scope and the extent of its effectiveness. In general, the SAP can act as a useful planning mechanism for LPAs to plan and manage particular areas which need special development programmes (Wan Mohamad Mukhtar, 1996).

2.4.2

Process and Procedures of Planning Control Act 172 has introduced a mechanism of planning control to be enforced by

the LPAs to ensure the land use development is in line with the policy and proposals formulated by development plans. Prior to 1976, planning control activities were implemented according to Part IX (S. 145) of the Town Board Enactment. This Enactment empowered the Board to refuse submission of plan for any new building or any new private street, unless such plan is in conformity with the general town plan (Ismail, 2003).

41 Act 172 empowers each LPA to control land use development within their areas through the procedure of planning permission. In order to guide and enforce the procedure, the Act firstly explained the definition of carrying out ‘development’ that requires planning permission. Under the Section 2(1), ‘development’ was defined as “carrying out of any building, engineering, mining, industrial or other similar operation in, on, over, or under land, the making of any material change in the use of any land or building or part thereof, or the subdivision or amalgamation of land”.

The definition is basically quite similar to the one legislated in the UK planning legislations (section 2.3.1).

In line with the definition, all development applications, including housing development, need to go through the procedure of planning permission and must first obtain approval from the LPA before it is permitted to be developed (Alias, 2006).

This requirement is also in accordance with the provision of Section 19(1) which stated that “no person, other than a local authority shall commence, undertake, or carry out any development unless planning permission in respect of the development has been granted to him”. The provision explains that all development activities are prohibited except after the planning permission to carry out development is obtained from the approving authority.

In enforcing planning control, reference need to be made to the proposals and implementation measures, including proposal for future land use zone, stipulated in the LP (Alias, 2006). This requirement was legislated under Section 18(1) which states that “no person shall use or be permitted to use any land or building otherwise than in conformity with the local plan”. Besides LP, Act 172 under Section 22(2) also provides other matters that the LPA should take into consideration when dealing with any application for planning permission. This includes: (i)

Provisions of structure plan.

(ii)

Directions given by the SPC (including guidelines, standards and other planning requirements approved by the SPC).

(iii)

Provisions that the LPA thinks are likely to be made in any development plan under preparation or to be prepared.

(iv)

Development proposal report (DPR), and

(vi)

Objections by the neighbouring land owners (Section 21, Act 172).

42 In addition, it is also enacted in Act 172, under the Section 22A, that if the application for planning permission involves certain development categories, as below, an advice from the NPPC (S. 22A) is required: (i)

The development of a new township for a population exceeding ten thousand or covering an area of more than one hundred hectares.

(ii)

A development for construction of any major infrastructure or utility, and

(iii)

A development affecting hill tops or hill slopes, in an area designated as environmentally sensitive in a development plan.

In relation to the approval of planning permission, it is stipulated in Act 172

that the LPA, after taking into consideration all matters under Section 22(2) and Section 22(2A), may grant planning permission either absolutely or subject to conditions as LPA thinks fit to impose, or refuse to grant planning permission (S. 22(3)). It is also legislated that the LPA should not grant planning permission if the development in respect to which the permission is applied for would contravene any provision of the development plan (S. 22(4)(a)).

With regard to the process and procedures for the planning application, it is specified in the Act that such application need to be submitted to the LPA together with the documents, plans and fees as stipulated in the Planning Control (General) Rules (PCGR) enacted by each State. The DPR, in addition to the documents and plans required, also needs to be submitted by the applicants. The detailed process and procedures for the application of planning permission are shown in Appendix C. Similar to the preparation of development plans, the implementation of planning control in Malaysia was also debated, particularly in terms of considerations for decision making, efficiency and its effectiveness. Asiah (1999) highlights that discretionary practice by the decision makers exist in making decision for planning permission, though legislatively decisions should be made in accordance with the LP and other requirements stipulated in Act 172.

Asiah (1999), however, does not see the practice as negative on the reason that discretion and opinions of the approving authority in considering planning

43 applications may contribute to a better decision, compared to referring only to the proposals of development plans. Similar view is shared by Foziah (2002) by arguing that as the outcomes of LP are still not fully achieved as expected by the planning legislation, it is rational for the approving authority to practise discretionary in deciding planning decisions.

In relation to the efficiency and effectiveness of the planning control procedures, Mohd Anuar (1991) who studied the development control system in Johor Bahru, revealed that there are many aspects, such as certainty, time factor, procedure, administration, accountability and coordination which are still inefficient and ineffective. Furthermore, he also revealed several issues and problems faced by the planning control activity, namely delay in processing and approving planning applications, complexity at the consultation process, lack of proper dissemination of information on planning procedures and requirements and political influence or interference in deciding planning decisions.

The subsequent sections will further explore the implementation of land use planning system by discussing its significance and role in development process and process of housing supply.

2.5

The Significance of Land Use Planning System in Development Process There are numerous ways in which government can influence the process of

development. The government can intervene by imposing regulations through land use planning system which determines and restricts the quantity, types, forms and locations of development (Asiah, 1999; Ibrahim, 2008). In order to understand clearly the role of land use planning in development process, this section will discuss the models of development process and the rationales for land use planning to intervene in the development process.

44 2.5.1

Development Process and Its Models Allinson and Claydon (1996:36) define development process as ‘the means

by which land and property are transformed into a more profitable or socially beneficial purpose’. In the process of transformation, both land and property developments need to go through a complex and diverse process. According to Ismail (1999) and Ratcliffe et al. (2004), it is complex because in the process there are many agencies, public and private, large and small, under taking development in a variety of organizational forms and legal entities. Its process is argued as diverse as it involves a vast number of business across a wide range of sectors, having different aims, objectives and modes of operation (Ratcliffe et al., 2004).

The process of plan making and development control under the land use planning system also forms one of the most crucial and complex components in the development process (Greed, 1996b; Ratcliffe et al., 2004). In the light of complexity of the development process, various models have been established since the mid-1950s to represent and simplify the wide variety of the land development process, each with its own theoretical frameworks, forms and components (Gore and Nicholson, 1991; Healey, 1991a; Ratcliffe et al., 2004; Abdul Hamid, 2007).

According to Healey (1991a), the models can be grouped into four as follows: (i)

Equilibrium models - assume development activity is structured by economic signals about effective demand, as reflected in rents, yields, etc. These are derived directly from the neo-classical tradition in economics.

(ii)

Event sequence models - focus on the management of stages in the development process. These are derived primarily from an estate management preoccupation with managing the development process.

(iii)

Agency models - focus on actors in the development process and their relationships. These have been developed primarily by academics seeking to describe the development process from a behavioural or institutional point of view.

45 (iv)

Structure models - focus on the forces which organize the relationship of the development process and which drive its dynamics. These are grounded in urban political economy.

In order to examine the relationship between land use planning and the

development process, models that focus on the sequence of events are more significant to be highlighted. Thus, the significance of specific events, including land use planning activities and the complexity of relationship that makes development happens can be assessed (Adams, 1994).

Basically, there are many ways to describe the sequence of events of the development process. Ratcliffe et al. (2004) divides development process into five phases, i.e. concept and initial consideration, site appraisal and feasibility study, detailed design and evaluation, contract and construction, and marketing, management and disposal.

In this five-phase process, the planning authority and other statutory agencies play a significant role in site appraisal and feasibility study (Ratcliffe et al., 2004). At this phase, the developers apart from making sure that all the initial inquiries are made in respect of preparing and submitting applications for planning approval and building regulation consent, it is also essential for them to create a positive climate within which the development can progress. At the phase of detailed design and evaluation, the developers have to go through the process of preparing detailed plan, submitting the planning application and obtaining final approvals, including planning permission.

The event sequence models can be examined in more detail by exploring the linear event-sequence model (Ratcliffe, 1978) and the development pipeline model (Barrett et. al., 1978). In the linear event-sequence model, Ratcliffe (1978) considers the linear sequence framework by highlighting a detailed sequence of events. The model, as shown in Figure 2.6, describes development process commences from site identification and ends with the management and disposal stage in a complex and comprehensive manner.

46

Decision or instruction to develop Analysis of supply

Analysis of demand Search for sites

Identification of suitable sites

Preliminary development appraisal Not acceptable

Acceptable Detailed viability study

Not acceptable

Acceptable Approach to local authority

Site assembly Option to purchase

Negotiation

Compulsory purchase

Unsuccessful

Application for planning permission

Successful Successful

Final acquisition of outstanding interests

Unsuccessful Appeal

Preparation of development programme

Appointment of professional team

Negotiation

Tender

Building contract Construction contract Commissioning of building Retention in portfolio and subsequent management

Sale to institution

Hand over to client

Figure 2.6: Ratcliffe’s (1978) Linear model of land development process Source: Gore and Nicholson (1991:707)

47 In the model, an application for planning permission is stated as one of the important events that need to be undertaken before the preparation of development programme. The comprehensiveness of the model, however, is debated by Gore and Nicholson (1991) and Healey (1992). Gore and Nicholson (1991) argues that a series of land development stages do not reflect the true nature of most events in the land development process. They also argued that the imposition of a rigid sequence, which hinders the identification of any relationships between events in different stages was not fully explored by the model.

Healey (1992) similarly argues that Ratcliffe’s linear model had failed to address the diversity and flexibility that characterises most of the land development investment. The reason is that the actual sequence of events in the development process is subjected to considerable differences of roles, interests and strategies of various actors. These differences and variety of agents’ behaviour were not fully incorporated in the model. As a result, the model tends to neglect the cyclical nature of the land development process and omit the complexity of agents’ behaviour.

In the development pipe-line model, Barrett et al. (1978) considers the cyclical nature and the interactive aspects of the development process. Within the model, activities and decisions are grouped into three sets of events, i.e. development pressure and prospects, development feasibility and implementation. The model also illustrates a series of external factors which influence the efficiency and capacity of each event (Figure 2.7).

Activity in the development pipeline begins only when it is triggered by broader economic, political and demographic factors. Economic growth, taxation incentive and the impact upon land requirements of long-term trends in population growth, household formation and associated factors, may all create development pressure and prospects (Adams, 1994). At this stage, the development process may face possible problems in relation to sources and financial arrangements, early physical and infrastructural difficulties, environment and cultural values and overall demand and supply of the proposed development (Ismail, 1999).

48

ECONOMIC GROWTH INVESTMENT PROSPECTS

taxation incentives LONG-TERM TRENDS

population mobility household structure leisure, etc.

LAND REQUIREMENTS

residential industrial commercial public services, etc.

FINANCIAL INSTITUTIONS

• Source of finance for development • Finance for occupiers • Investment funds

EXISTING SUPPLY OF LAND

¤

STOCK OF LAND IN PARTICULAR PATTERN OF USES

taking stock

CONSUMPTION OR INVESTMENT IN PRODUCT

use LAND REQUIRED IDENTIFIED AND ALLOCATED

opportunity public

private

aspirations

TA TI ON

EV D

PLANNING APPLICATIONS

EN

private

Construction Industry

construction

EM

plans

PL

public

E

disposal of development

D

IM

intentions

R SU ES S PR T T EC N E SP PM PRO O EL

N A

DEVELOPMENT FEASIBILITY s t a n d a r d

OWNERSHIP: owner and developer; owner willing to sell; options; compulsory purchase - Acquisition PUBLIC PROCEDURES: appeals; outline permission and development brief - Detailed consent PROJECT VIABILITY: assembly costs, demand, and disposal terms - Funds available PHYSICAL CONDITIONS:

site requirements; infrastructure - Site prepared and serviced

MARKET CONDITIONS: consumer preference; demand - Likely purchasers identified

INVESTMENT PROSPECTS

Figure 2.7: The development pipeline model Source: Adapted from Barrett et al. (1978)

Conditions satisfied land ready to develop Conditions not satisfied loss of potential development

49 At the stage of development feasibility, five specific aspects, namely ownership, public procedures, project viability, physical conditions and market conditions, need to be thoroughly monitored and tested. According to Adams (1994), all these five streams must be successfully negotiated, if development is to occur. The model neither implies a particular sequence of events within or between streams, nor infers that any one stream is more important than another. Such factors vary from one development to another type of development.

The stage of implementation comprises all essential works carried out in assembling all the material resources available, professional expertise and entrepreneurship to commence the actual development projects. At this stage, various rules (such as financial and planning rules and requirements), resources (such as land rights, financial, labour and expertise) and ideology (values, concept, perspective and paradigms of land development and policies) will be considered and put together by actors in the development process (Ismail, 1999). Besides, the efficiency of related agencies, particularly local authority is also important at this stage to ensure a smooth process of the production of the development projects.

In the model, the role of land use planning can be seen in the first side of the pipeline, namely development pressure and prospect, through the activities of monitoring, controls and approval of planning applications. These activities require planners and planning authority to asses development applications in detail, not superficially. According to Adams (1994), it is incorrect, for example, to allocate land for specific uses such as sheltered housing or for high-technology industry simply because sites are ideal in physical terms. Thus, it is essential for the planners and planning authority to consider whether relevant external factors, working through development pressure and prospects, are likely to generate sufficient need or demand for the particular types of development in the locations identified before giving an approval to the development applications submitted by developers.

The event-sequence models clearly depicted that the mechanism of land use planning, particularly development control, plays a significant role in the process of development. This point will be further discussed in the next section by elaborating the rationales for land use planning to intervene in the development process.

50 2.5.2

Rationale for Land Use Planning to Intervene in the Development Process As a form of government intervention, land use planning has a specific

function to intervene in the development process albeit most of the activities in the process are dominated by the private sector (Solesbury, 1974; Ball, 1983; Adams, 1994; Lambert, 1996). This is in line with the view by Pearce (1992) who describes that the goals of development will be effectively achieved through an intervention by land use planning system. Through such intervention, resources in the development process can be distributed more fairly (Healey, 1983). The intervention also helps to produce a better urban environment and facilitate economic growth than that which could be generated by the market alone (Adams, 1994; Greed, 1996c).

Although there are many reasons for land use planning to intervene in the development process, the central rationale basically focuses on the failure and imperfection of the market system in operating the process.

Solesbury (1974),

Healey (1983) and Adam and Watkins (2002) note that the market alone fails to allocate resources effectively. In particular, the market fails to provide public goods such as public amenities, control the impact of externalities or provide services unattractive to private enterprise (Solesbury, 1974). Yitachel (1989) similarly expresses that land use planning intervention will helps in shaping market behaviour, enhance equity, efficiency and sustainability in the built environment that would otherwise be generated by the market.

In relation to this, Adams (1994) contends that urban land use development should be plan-led rather than market-led. According to Adams (1994), plan-led does not mean that land use planning should replace the market but work through it. This argument is supported by Self (1998) and Ractliffe and Stubbs (1998) who pose that land use planning should not only follow market trends but play a role to justify and assist the market to become more efficient. Even, Frieden (1989) and Campbell and Fainstein (1996) see land use planning as helping the market along.

The capability of land use planning to intervene effectively in the development process, however, was argued in many angles. Adams (1994) and

51 Greed (1996d) argue that although land use planning intervention is needed to overcome the market imperfections and failure, there is still not enough evidence to indicate that land use planning produces better outcomes than market operation.

Pearce (1992) addresses that the failures in the market process have not been properly tackled by the land use planning system. Even, according to Healey (1993) the operation of markets is given little attention in the operation of land use planning.

In another perspective, Campbell and Fainstein (1996) elaborate that although land use planning intervention is substantial in replacing the chaos of the market, there were also views which hold the reverse belief that the market should replace the chaos left by the planning. The argument arises due to assumption that land use planning system itself creates inequalities and inefficiencies in the development process (Pearce, 1992).

In view of the arguments, Adams (1994) suggest the planners as one of the actors in development process to facilitate the renewed search for better land use planning intervention by grasping the values and behaviours of the market operations. In other words, land use planning should be more responsive to the market fundamentals by understanding the market demand factors in the property development process (Hague et al., 2006).

In practice, there are many ways where land use planning can intervene in the development process. It is not only limited to the development control activity to monitor and approve the planning permission as indicated in most models of event sequence development process, but also involved other planning instruments, such as development plans and development promotion. In brief, development plans provide a context for control decisions by stating the strategies and principles that the planning authority should adopt in seeking to manage land use change. A development plan also indicates where an authority wishes to encourage development by allocating land for specific uses. Such guidance provides a framework for the land market by helping the developers to know in advance, what is likely to be acceptable on their own land as well as on neighbouring land (Adams, 1994).

52 As for development control, as a main activity in the development process, it provides an administrative mechanism for the planning authority to exercise discretion on specific development proposals by deciding in each case whether to uphold the development plan or depart from it. Development control thus enables landowners, developers or investors to challenge the development plan, after it adoption. The planning authority may try to control the form of a development process as well as its location, specifying requirements for matters such as access, design, development time-frame, quantity required and external appearance (Adams, 1994).

The development promotion which is accepted as one of the land use planning activities, particularly in the UK’s planning framework also plays a significant role to enable land use planning interacts with the development process (Adams, 1994). Through the activity, it helps authorities to seek opportunities and potentials to stimulate development and investment within their areas by promoting and marketing locations, making land available to developers and providing grants and subsidies.

The significance of land use planning system in development process will be further elaborated in the next section by exploring its relationship and roles in the context of housing development, particularly in relation to the process of planning and controlling of housing supply.

2.6

Land Use Planning System and Housing Supply Process This section emphasises on the relation between the land use planning system

and the aspect of housing supply. Attention is given to understand the relationship of land use planning operation and market system operation, the roles of land use planning, requirement to fulfil housing needs and housing demand and the importance of market demand criteria in the process of housing supply.

53 2.6.1

Relationship Between the Operations of Land Use Planning and Market System in Housing Supply Process The land use planning system through the mechanisms of development plan

and planning control and the market system as operated in the housing production process are among the systems which exist and influenced the structure, process and outcomes of housing supply (Bramley et al., 1995; Golland, 1998). According to Maclennan (1991), Healey (1992) and Adams and Watkins (2002), the operation of the systems, in relation to the production of housing supply, are not separated but interrelated and complement each other.

The argument is supported by Rydin

(1993), von Einsiedel (1997) and Bramley (2003). Rydin (1993) stresses that the housing development goals can only be achieved through a good interaction between the operation of land and housing markets by house-builders with the activities of land use planning administered by local authorities.

Von Einsiedel (1997) argues that although most of the activities in housing production process are shaped by the market forces, the planning system also has a specific role especially in governing the approval of housing supply. Indeed, von Einsiedel (1997) perceives that both the demand and supply in housing market are affected by the regulatory, institutional process and policies set by the land use planning system.

Bramley (2003), on another perspective, clarifies that the approval of housing supply as determined at the planning stage becomes a basis for the successfulness of the operation of housing market system. Bramley’s argument meant that if the housing supply is properly planned, controlled and approved by the land use planning mechanisms, it will help the housing market system to operate efficiently.

That is, it is difficult for the housing market system to operate efficiently without the proper planning of housing supply.

With regard to the role of the market system, theoretically in laisser-faire economy, the system should be operated to achieve equilibrium between demand and supply (Maclennan, 1982; Harvey 1993; Adams, 1994; Bramley 1996; Nicol, 2002).

However, in the actual operation of housing market, it often fails to provide a

54 balanced situation between demand and supply (Bramley, 2004). Imperfection of the housing market system which is distorted by external influences, such as speculation activity by housing developers, vagueness and incomprehensiveness of housing policies set by the authority, changes in finance policy and interest regulation as well as volatility in macro and micro economic performance had contributed to the market failure (Adams, 1994). Moreover, inadequate information about needs and demands for future housing development supplied by land use planning activities was also argued to have contributed to housing market failure (Bramley et al., 1995).

As the result of imperfection and failure, the housing market will be in a perpetual state of disequilibrium, where a balance between supply and demand is difficult to achieve. Even, Adams (1994) argues that it is never achieved. According to Adams, the housing market has always moved from shortage to overprovision and back to shortage. In the situation of imperfection and failure of the housing market, Rydin (1993) and von Einsiedel (1997) stress that it is justified for the land use planning to rectify the failure by properly governing the process of planning and controlling of housing supply.

According to Healey (1983), the land use planning system can play a role to overcome the housing market failure by providing a development framework within which market can operate, removing the uncertainties of the unfettered market. In addition, Rydin (1993) suggests that land use planning should play its role to gather information about future trends and regulating the supply of housing land to prevent such speculative swings in new housing supply.

The relationship between land use planning, as a government intervention tool and the housing market system may also be reviewed in a broader perspective, particularly in the context of institutional and political economy of housing development. In the institutional context, the relations between government and market, within which planning system operates, have faced criticism. Planning is often criticised for being insufficiently aware of the impact of its policies on the market (Healey 1992; Adams and Watkins, 2002) and relatively unresponsive to market demand in the way that it supplies new housing (Bramley et al., 1995).

55 In the light of this, Moor (1983), von Einsiedel (1997) and Satsangi (2000) highlight that to improve housing delivery system and to ensure its development goals are achieved, planning should be more concerned on how the housing market works as well as the results of its operation. Through understanding how the housing market works and how it fails, it gives land use planning a powerful set of lever to improve the performance of the housing sector (von Einsiedel, 1997).

In the context of political economy of housing development, the government through land use planning system is seen as a solution to the housing development problems and the market as a way of meeting housing development objectives. This can be understood through examining the conceptual model developed by Golland and Gillen (2004) as in Figure 2.8 below.

Quantity

Equity

The market

The Government

Choice

Space (Location)

Figure 2.8: Conceptual model of the political economy of housing development Source: Adapted from Golland and Gillen (2004:67) The model shows that the pressures on quantity, choice, space or location and equity in housing development can be absorbed through the interrelationship of the ‘government’ and ‘market’ mechanisms. In the model, Golland and Gillen (2004) clarify that the close relationship between both mechanisms or ‘government-market mix’ are integral to enable housing developments be managed properly.

Furthermore, both mechanisms also need to play their roles effectively because any mistake will give an effect to the operation of the other mechanism. For

56 example, new policy decisions related to housing land use zoning formulated either by the state or local governments may affect the market for housing lands. The uncontrolled market in releasing housing land, similarly give an effect and restrict the government to enforce its housing policies effectively (Rydin, 1993).

The discussion above indicates that a close relationship between the operation of land use planning and the operation of market system are necessary to ensure the process of housing development, particularly in relation to the aspect of supply, is carried out efficiently and effectively. The significance of housing market system will be detailed out in Section 2.6.4 by exploring the criteria of market demand that need to be considered in planning housing supply.

2.6.2

The Role of the Land Use Planning System in Housing Supply Process The system, activity and mechanisms of land use planning play a pivotal role

in housing development to ensure development is carried out in a sustainable manner and its process is operated effectively (Ball, 1983; Golland and Gillen, 2004). The land use planning’s role in relation to the aspect of housing supply is not only limited to fulfilling the goal of meeting housing needs but also to encourage and ensure efficiency in the system and operation of housing market (Greed, 1996c; Chan, 1997; von Einsiedel, 1997).

As mentioned in previous discussions, there are two main activities, other than implementation or promotion that adhered to the land use planning system, namely forward planning and development control (Bramley et al., 1995; Greed, 1996; Ratcliffe et al., 2004). For housing development, it also has to go through similar process, from conducting housing planning activities to controlling of new housing development applications. It ends with the development of the housing schemes, either by the government bodies or by private developers (Alias, 2006).

In relation to the role of land use planning in the housing supply process, Short et al. (1986) views it as a system of negotiation which results in a set of rules

57 governing access to land and to housing before it is surrendered to the market operation. According to Rydin (1993), the land use planning system should allocate sufficient land for future housing supply requirement and then responds accordingly to each housing planning applications.

In practice, the housing planning process begins with the forward planning activities through preparation of development plans. The development plans will formulate housing policies and determine future housing requirements. This is subsequently followed by the process of development and planning control which become an important stage in the overall housing production process. At this stage, housing development applications will be assessed by the planning authorities before development is permitted (Figure 2.9).

FORWARD PLANNING Preparation of Development Plans

HOUSING PRODUCTION PROCESS

Site Appraisal and Feasibility Study

Building Design and Approval

DEVELOPMENT CONTROL Formulate housing policies

Determine future housing requirement (land allocation, quantity and location)

Contract and Construction

Housing Market Operations by Developer

Housing Planning Control Process

Monitor, control and approve new housing supplies

HOUSING PLANNING PROCESS

Figure 2.9: The role of the planning system in housing supply process Sources: Adapted from Ractliffe et al. (2004) and Alias (2006) In broad, it becomes a key function of land use planning to allocate adequate land for new development according to planned assessment of the housing needs and to coordinate these land allocations with supporting infrastructure (Lambert, 1996; Carmona et al., 2003; Blake and Collins, 2004). With regard to this, within the

58 regulatory ambit of the land use planning system, there are two dominant discourses wrapped around the decisions regarding allocation of land for housing. The first is the amount or quantity of new-build required and the intensity to which land should be developed. The second concerns the marketability of the land supply released by local authorities in their housing land availability schedule (Hull, 1997).

The concern about marketability basically relates to where the housing lands should be allocated (Satsangi, 2000). This requires consideration as to where and how to allocate suitable locations for current and future housing development. Ball (1983) and Adams and Watkins (2002) perceive that the land use planning system can play a significant role in this aspect by determining potential areas and specific localities for future housing and considering the expected future market demands.

This argument is supported by Blake and Collins (2004) by stating that the professional planning decisions will help in shifting systematically the ‘floating’ demand for homes into a specific geographical spaces and marketable locations.

The matters of land allocation, quantity and location for housing has attracted Carmona et al. (2003) to debate further. According to Carmona et al. (2003), the philosophy of ‘predict and provide’ as previously adopted by the UK’s housing planning had forced local authorities to comply to the housing numbers predicted at the national and regional levels, to deliver their allocation in advance of demand.

This system arguably contributed to the provision of housing in the wrong type and quantity and caused the locational mismatches between the supply of and demand for housing. The introduction of the ‘plan, monitor and manage’ system in the UK was perceived as a responsive approach to planning for housing in the right type and quantity and in the right locations (Carmona et al., 2003). This new system has led LPAs to endeavour to meet the best housing requirement for local population (Adams and Watkins, 2002).

The fundamental of the system of ‘plan, monitor and manage’ was incorporated in the revised version of Planning Policy Guidance (PPG) No. 3 (Housing). The PPG outlines a range of clear objectives for the land use planning system to manage housing development, requiring LPAs to (DETR, 2000):

59 (i)

Plan to meet the housing requirements for the whole community, including those in need of affordable and special needs housing.

(ii)

Provide wider housing opportunity and choice and better mix in the size, type and location of housing.

(iii)

Provide sufficient housing land but give priority to reusing previously developed land within urban areas, bringing empty homes back into use and converting existing buildings, in preference to the development of greenfield sites.

(iv)

Make more efficient use of housing land by reviewing planning policies and standards.

The PPG was translated into practice by concentrating on housing

developments within urban areas, making more efficient use of land by maximizing the reuse of previously developed land, adopting a sequential approach in allocating land for new housing development, managing the release of housing land and reviewing existing allocations of housing land in development plans and planning permissions when they come up for renewal (Carmona et al., 2003).

An effort to allocate adequate land and quantity for housing in the right type and at the right place, other than to meet housing needs was also given attention in Malaysia. Various plans at the Federal level such as the Five-Year Malaysia Plan, National Housing Policy, National Urbanisation Policy and NPP are found to have touched these aspects. The SP and LP prepared at the State and local levels also addressed the aspects substantially through formulation of policies, strategies and measures to ensure land and quantity of housing supply is allocated adequately in the suitable locations (Asiah, 1999; Ibrahim, 2008).

2.6.3 Requirement to Fulfil Housing ‘Needs’ and ‘Demand’ in the Planning of Housing Supply In conducting the housing planning activities, either during the preparation of development plans or at the stage of planning control, it becomes a nature of land use

60 planning to fulfil the objective of meeting housing needs (Ratcliffe, 1981; Golland and Gillen, 2004; Ibrahim, 2008). Housing needs, according to Chander (1976), Ratcliffe (1981), Noraini (1993) and Golland and Gillen (2004) means the quantity of housing that is required to provide an adequate housing to the population without taking into consideration an individual household’s ability to pay.

Housing needs is associated with adopting ‘global’ housing provision, into a prediction of a number of households that will require housing in future. It is based upon population projection which are employed through specific population modelling method (Nicol 2002). According to Pearce (1992), the housing planning goal is considered achieved if the planning decision ensures an adequate and continuous supply of housing needs.

The nature of housing planning which focuses on meeting housing needs, however, had raised several arguments. Nicol (2002) argues that meeting housing needs alone is insufficient to achieve a more integrated and responsive housing supply. Nicol (2002) suggests the housing planning process to take into consideration as well the aspects of housing demand.

The term housing demand is usually

associated with the requirement of individual households over and above the basic or minimum level of provision or ‘needs’ (Golland and Gillen, 2004), supported by the household willingness to pay for housing (Noraini, 1993). By considering the ability to pay which is actually backed up by the purchasing power of each household, it reflects the situation of actual demand for housing which is technically defined as effective demand (Adams and Watkins, 2002; Golland and Gillen, 2004).

Determination of housing demand is also associated with the housing choice required by the households (Golland and Gillen, 2004). As explained by Golland and Gillen, demand for choice can be distinguished by housing tenure (e.g. social-rented sector or private-rented sector), type of housing (e.g. detached, semi-detached, terraced or flat), form of housing (e.g. material used and the way in which housing is constructed, whether in the traditional or in the pre-cast concrete way) and the method of development of new homes.

61 Choices for housing demand also takes account of market conditions reflected in terms of selection by price and location preferences (Ratcliffe, 1981; Thrall, 2002). Thus, income and ability to pay are the critical factors and it can easily be argued that those households with the highest incomes have the greatest housing ‘choice’ (Golland and Gillen, 2004). In this context, housing demand is ultimately an issue which tells us more about the choices which households make in moving house or in gaining access to a new dwelling.

In the light of the above and in order to ensure the local housing requirement is adequately met, the housing planning process should recognise that the housing requirements are not only driven by population trend but also by the affordability and choices of each household. With regard to this, Golland and Gillen (2004) suggest that in estimating the actual requirement for housing, it is necessary to take account of household’s income, their ability to pay, their preference in terms of price and location and their choice in terms of tenure, types, form and method of housing to be developed.

The suggestion is concurred by Nicol (2002) who suggests that the concept of housing requirement should be viewed at two separate levels. The first is in terms of overall housing requirements so called broad housing needs. The second level is the determination of the degree to which the households require certain house types, prices, locations and tenures.

The significance of those aspects has been recognised in the housing planning process in the UK and other European countries. Boelhouwer and van der Heijden (1992) and Golland and Oxley (2004) clarify that formulation of housing policy in European countries has been increasingly directed towards improving housing choice rather than quantity by trying to meet the aspirations of households wanting to own homes. In the UK, since early 1980s, the formulation of housing policies has changed from previously focussing on meeting broad housing needs to one which is focusing on and addressing the specific demands of households (Golland and Gillen, 2004).

62 2.6.4 The Importance of Market Demand in the Planning of Housing Supply Besides factors related to the effective demand and housing choice, the criteria of market demand should also be considered as a significant factor in the planning of housing supply. As discussed by Bramley et al. (1995), the housing market demand criteria consist of several elements, such as local housing market conditions and the expected house buyer preferences in terms of price, location and type of housing. The importance of these criteria has attracted support from Hull (1997) who argues that the process of forward planning and production of housing still suffers from lack of reliable information on the market indicators and current flow between the housing market and the levels of investment in the housing stock.

Hull (1997) also stresses that apart from playing a role in meeting housing needs and housing demand, the forward planning and development control process should also look at the importance of the market demand criteria, especially on the aspect of marketable location. This statement is in line with the view by Pearce (1992), who clarifies that although the planning goal in meeting adequate housing needs is considered as has been fulfilled, any planning decision in supplying new houses also has to respond to the situation of current market demand.

The importance of incorporating the market demand criteria in housing planning process is also addressed by Ball (1983) and Bramley (1995). Ball and Bramley suggest the land use planning system should have a greater degree of awareness of the housing market by incorporating policies and procedures in a way sensitive to the need of the market. Pearce (1992) and Nicol (2002) also highlight that it is a responsibility of the planning authorities to have an adequate understanding of housing market before making any decision in releasing new housing supply. Similar point is addressed by Golland and Gillen (2004) by clarifying that it is necessary for the housing planning process to understand the consumer’s ‘taste’ of the housing market. Stressing on the above arguments, Healey (1992) proposes three approaches in achieving the housing planning goals by the planning system consisting of following the market, managing the market and creating the market.

63 According to Adams (1994) and Lambert (1996), the market demand criteria need to be monitored right up to the start of housing planning process in the development plans. In relation to this, Moor (1983) suggests the need for planners, as the main actor in the development process, to be more aware of the market conditions and trends and put forward some changes in practice, especially in the preparation of development plans and planning control process. The preparation of LP and planning control, in particular need to be more sensitive to the nature and pressures of market demand by understanding the boundaries of local and neighbouring housing markets, the structure of sub-market as well as the trend of current and future markets (Adams and Watkins, 2002; O’Sullivan, 2003).

2.7

Conclusion The above discussion clarifies that the land use planning system, which acts

as a government intervention instrument in the process of urban development, plays an important role to plan and control housing development, especially in relation to the aspect of housing supply. The role of land use planning in this aspect is not limited to achieve the objective of meeting housing needs, but also to fulfil the household housing demands. With regard to this, it is important for the land use planning to understand and distinguish the concepts of housing needs and housing demand in planning housing supply. The need to differentiate between housing needs and demand is not only significant at the stage of formulation of housing policies but also important at the stage of determination of the volume of housing to be produced, the tenure of new housing development, locations and the types of housing to be built.

The market demand criteria, in addition to the aspects of housing demand are also important to be considered and incorporated in the planning of housing supply.

The local housing market conditions and the expected house buyer preferences in terms of price, location and type of housing are among the criteria that influence the effectiveness of land use planning system in managing housing supply. In other words, to achieve an effective planning for housing supply, it is vital for the land use

64 planning system to understand, be sensitive and responsive to the need of housing market.

Another important issue relates to the system of ‘plan, monitor and manage’.

This new system applied in the UK has led the LPAs to endeavour to meet the best housing requirement for local population. This system abolishes the philosophy of ‘predict and provide’ that require LPAs to deliver housing allocation in advance of demand. The introduction of the system was perceived as responsive approach to plan and control housing in the right type and quantity and in the right locations.

It can also been seen that the development plan and planning control as legislative mechanisms in the land use planning system have a specific role in the process of housing supply. The development plans play a role in formulating housing policies and determine future housing requirements, followed by the process of planning control to monitor and control the applications of new housing development before it is approved to be developed. In carrying out the activities, both mechanisms should recognised that the future housing requirement is not only driven by the population trend but also influenced by other factors, such as effective demand (household affordability and their willingness to pay for housing), household choices (in terms of tenure, dwelling type, form and method of new homes to be developed) and market demand criteria (conditions of local housing market and buyer preferences in terms of price, location and type of housing).

The subsequent chapter will elaborate the detailed process and procedure to plan and control the housing supply as exercised in the preparation of development plans and planning control in Malaysia.

65

CHAPTER 3

THE PROCESS OF PLANNING AND CONTROLLING OF HOUSING SUPPLY IN MALAYSIA

3.1

Introduction The preparation of development plan and implementation of planning control

in Malaysia have an equal role in the planning and controlling of housing supply. As discussed in section 1.2, the planning for housing supply begins at the national level through the preparation of NPP, followed by SP at the state level. The NPP emphasises on the formulation of general strategy and policies, while the SSP focuses on the formulation of detailed proposals and policies.

The process of

planning of housing supply continued at the local level through the preparation of LP and SAP. Both the plans involved a detailed study on housing supply in specific areas comprising the activities of forecasting of future housing requirement as well as determination of total quantity of land area and suitable locations for future housing development. The outcomes of the plans will be used as guidance by the LPAs to control and approve the applications of housing development.

This chapter will explain the processes in detail by examining the outcomes, activities, aspects and objectives of planning and controlling of housing supply. The process of housing development in Malaysia will first be summarised to provide a general background for the discussion. This chapter ends by conceptualising the framework of the process of planning and controlling of housing supply aimed to guide the research to design the methodology and model for the empirical study.

66 3.2

Housing Development Process in Malaysia Housing development in Malaysia is carried out by both the public and the

private sector through the concepts of `sell and build’ and `build then sell’. The public sector (through National Housing Department, Syarikat Perumahan Negara Berhad and other government agencies) concentrates mainly on low-cost and affordable housing while the private sector (private housing developers), apart from complying with the 30 percent low-cost housing provision, concentrates on mediumcost

and high-cost housing developments. The Malaysian government has also

formulated a housing policy which aims to strengthen the involvement of private sector in housing production and delivery (Asiah, 1999; Ibrahim, 2008).

The development of housing is given an emphasis in various plans at the federal, state and local levels. At the federal level, the current and future housing requirement are planned and targeted through the five-year Malaysia plans, NPP and NUP. Various housing policies have also been formulated in the plans to guide the process of housing development at the state and local levels. One of the prominent policies in the plans is to ensure all Malaysians have an access to adequate shelter and related housing facilities (Ahmad Zakki, 1997; Chan, 1997a; Goh, 1997b; Asiah, 1999). At the state and local levels, the development of housing is planned through the preparation of SP, LP and SAP. It is also guided by various housing policies and guidelines formulated by the State Authority and planning authorities (Alias, 2006).

The process of housing development in Malaysia is very complex and highly regulated (Chan, 1997b; Asiah, 1999). As shown in Figure 3.1, after acquiring the land, there are many stages of approvals regulated by various laws and rules of different agencies which need to be obtained by housing developers (Tan, 1996; KPKT, 2002; Alias (2006); Ibrahim, 2008). Among them are: (i)

The approval of land development applications (conversion, sub-division and amalgamation) by the State Authority or land administrators (enacted under the NLC, 1965).

(ii)

The approval of planning permission by LPA (under the Act 172).

(iii)

The approval of building plan by local authority (under the Street, Drainage and Building Act, 1974).

67 (iv)

The approvals of earthwork plan (under the Street, Drainage and Building Act, 1974) and landscape plan by local authority.

(v)

The approval of developer’s license by the MHLG (under the Housing Developers (Control and Licensing) Act, 1966).

(vi)

The approval of advertisement and sales permit by the MHLG (under the Housing Developers (Control and Licensing) Rules, 1989).

(vii)

The approval of certificate of fitness for occupation (CFO) by local authority (under the Street, Drainage and Building Act, 1974) or the issuance of certificate of completion and compliance (CCC) by qualified professionals.

Previously, all the approvals have to be applied separately (step-by-step), but

with the formation of one stop centre (OSC) at every local authority in Peninsular Malaysia beginning June 2007, the applications for the planning permission, building plan, earthwork plan and other plans can be submitted simultaneously through the centre (KPKT, 2007). This initiative formed by the government is aimed to speed up the process of getting an approval and to enhance the delivery system in housing development process (Tan, 2007).

The applications will involve the appointment of various consultants, such as land surveyor, town planner, architect, engineer and landscape architect to prepare a survey, layout, building, earthwork, drainage and sewerage and landscape plans. It is important to note that although the applications are submitted concurrently to the OSC, their approvals are still granted separately, except for small-scaled projects (particularly flatted housing projects) of which the lands have already been granted conversion and sub-division approvals. Before the decision is made to each application by the OSC Committee, various technical agencies will be referred for comments and advice to ensure the housing development proposals are in line and comply with the technical requirements of each agency.

After getting an approval of planning permission, the developer has to submit the application for conversion and sub-division (or surrender and re-alienation) to the State Land and Mines Office (through the District Land Office) for the consideration of the State Executive Council (EXCO).

68 Acquisition of Land

Feasibility Study

Application for Foreign Investment Committee (FIC) Approval

Appointment of Consultants

Land Surveyor (Survey Plan)

Town Planner (Layout Plan)

Architect (Building Plan)

Engineer (Earthwork Plan)

Simultaneous Submission to the One Stop Centre (Local Authority) Application of Planning Permission Application of Building Plan Application of Earthwork Plan Application of Drainage & Sewerage Plan Application of Landscape Plan Endorsement by the LA’s Full Council Meeting

Planning Permission Approval (OSC Committee)

District Land Office / State Land & Mines Office

Landscape Arch.

(Landscape Plan)

State TCPD Economic Planning Unit Dept. of Irrigation Health Dept.

Public Works Dept.

Waterworks Dept.

Telecom Malaysia Tenaga Nasional Berhad Water Supply Dept.

District Land Office Labour Dept.

Dept. of Environment Fire Brigade Dept.

Internal Divisions of LA

Application for Conversion and Sub-division (or Surrender and Re-alienation) Approval

State Executive Council (EXCO)

Conversion and Sub-division Approval

Land Surveyor (Detailed survey and Prepare Pre-com. Plan) District Land Office / State Land & Mines Office Approval of Pre-comp. Plan and Issuing of Qualified Titles (Q.T.)

Building and Earthwork Plans Approval (by OSC Committee) Application of Developers License (from MHLG) Application of Advertising and Sales Permit (from MHLG)

Sales and Construction

Project Planning

Contract Administration

Issuing of CFO or CCC

Finance and Control

Sales Administration

Delivery of Vacant Possession

Figure 3.1: Housing Development Process in Malaysia Sources: Adapted from Tan (1996), Chan (1997a), KPKT (2002; 2007) and Alias (2006)

69 The decision for building plan and earthwork plan applications will only be made by the OSC Committee after the application for conversion and sub-division is approved by the State EXCO. The approval of building plan will help the developer to apply the housing developer’s license and the advertising and sales permit from the MHLG. Simultaneously, the developer (through land surveyor) may conduct a detailed survey and prepare a pre-computation plan for the approval of the District Land Office or the State Land and Mines Office.

After all the approvals are granted, the next step is to start the sales and construction. The sales activity requires the developer to decide the selling price for all types of houses, make a continuous marketing and advertising to promote and to attract buyers, and administer matters related to finance (facilitating buyers to get end financing from financial institutions), sales agreement and transferring of land title from the developer to individual titles for each housing buyer.

The construction stage is the most crucial stage in the process of housing development. This stage requires the developer to manage the project planning (scheduling, budgeting and progress monitoring), contract administration (tender documentation, selection and contract) and finance control (bridging and end financing) systematically (Dani, 2009). Consultants and contractors involved in the housing project also need to be mobilised efficiently to ensure it is completed within the determined period. According to the Housing Developers (Control and Licensing) Rules 1989, the developer has to deliver the vacant possession of the landed housing within 24 months of the signing of the agreement. This means developers could not go beyond 2 years of the construction period. After the completion, all the housing units need to be handed over to the purchasers. However, no occupation of a dwelling is allowed until and unless a CFO or CCC is issued.

There are many issues in the process of housing development in Malaysia that can be explored. The problems of delay, bureaucracy and lack of co-ordination in the approval process are among the issues that are frequently related to the process. This research however, will not touch the issues in detail. The concern is more on the aspect of planning and controlling of housing supply, which is also one of the important components in the whole process of housing development.

70 3.3

The Planning of Housing Supply The development plan is an ‘umbrella’ expression that covers all statutory

planning policies produced by LPAs (Healey, 1983; Ratcliffe et al., 2004). As mentioned in the previous chapters, the development plan plays an important role in planning the development of urban land uses. In the planning of housing land use, there are five main purposes that should be performed by development plan (Prior, 2000): (i)

To coordinate the provision of major housing development with other land use activities.

(ii)

To provide a clear framework for development control decisions and guidance to those proposing development.

(iii)

To provide some certainty to those seeking planning permission.

(iv)

To act as promotional documents indicating locations of development opportunities.

(v)

To steer development onto land most suited for it.

These points will be discussed in this section by exploring the process and

activities carried out by the development plans in Malaysia in relation with housing supply planning. It covers the outcomes, strategy and policies as contained in the NPP, followed by the process and activities of housing planning in both structure and local plans. The role of SAP in this aspect is intentionally excluded considering its preparation process and procedure are similar to the preparation of LP.

3.3.1

The National Physical Plan: Outcomes, Strategy and Policies on Housing Supply Housing represents one of the main sectors in the preparation of NPP. In this

plan, the activities of housing sector include the following aspects (JPBD Semenanjung Malaysia, 2003b):

71 (i)

To identify the existing stocks and distribution of housing units by categories and states in Peninsular Malaysia.

(ii)

To identify the current issues and problems of housing development faced by the nation.

(iii)

To project the total national housing units and land requirement for housing development up to year 2020 by state.

(iv)

To recommend the necessary strategies, policies and implementation measures to be adopted to accommodate for the issues and problems identified.

In line with the above scope, the NPP’s housing study, similar to other

development plans, emphasises on analysing the existing housing conditions, examining committed housing developments, projecting future housing requirement and formulating strategy and policies to streamline and strengthen the housing development.

There are several strategies and policies that touched on matters

relating to the planning and controlling of housing supply.

3.3.1.1 The Outcomes on Housing Conditions, Committed Development and Projection The NPP reveals that, in 2000, all states in Peninsular Malaysia faced the issues of surplus of existing housing supply and high rate of committed development.

This can be seen in Table 3.1 where the total housing supply (existing and committed units) has amounted to 5,338,000 units compared to the total housing need in the same period which is only 3,941,200 units.

These figures indicate that around 1,396,800 units are actually an oversupply.

Similar situation existed in 2005 in which some 755,000 housing units are identified as oversupply in the Peninsular Malaysia. The State of Johor, Selangor, Perak and Negeri Sembilan are among the states experiencing high oversupply rate in both periods. For the State of Johor, the housing oversupply in 2000 was calculated at 373,500 units which is a surplus of 64.0 percent from the total housing need.

72 Table 3.1:

Comparison between the total housing supply and the total housing need in Peninsular Malaysia, 2000 – 2005 HOUSING SUPPLY

STATE / REGION

Existing Units (2000)

Committed Units (2000)

HOUSING NEED

Total Supply (2000)

2000

2005

Total Surplus (2000)

Total Surplus / Shortfall (2005)*

Perlis

44,900

4,700

49,600

43,500

47,400

6,100

2,200

Kedah

365,100

45,800

410,900

351,000

398,100

59,900

11,900

Pulau Pinang

334,300

21,700

355,900

279,500

322,700

76,400

33,200

Perak

520,700

136,200

656,900

436,400

484,900

220,500

172,000

1,265,000

208,400

1,473,300

1,110,400

1,253,100

362,900

219,300

Selangor

882,700

303,200

1,186,000

891,200

1,126,400

294,800

59,600

Kuala Lumpur

323,100

54,900

378,000

293,500

351,300

84,500

26,700

N. Sembilan

230,300

122,200

352,500

183,000

201,700

169,500

150,800

Melaka

164,700

26,900

191,700

135,300

151,300

56,400

40,400

1,600,000

507,200

2,108,200

1,503,000

1,830,700

605,200

277,500

Johor

652,600

304,000

956,600

583,100

671,000

373,500

285,600

Southern Region

652,600

304,000

956,600

583,100

671,000

373,500

285,600

Pahang

276,400

43,100

319,600

274,100

303,400

45,500

16,200

Terengganu

176,700

20,000

196,700

191,200

225,100

5,500

(28,400)

Kelantan

257,800

25,800

283,600

279,400

299,600

4,200

(16,000)

Eastern Region

710,900

88,900

799,900

744,700

828,100

55,200

(28,200)

4,229,300

1,108,500

5,338,000

3,941,200

4,583,000

1,396,800

755,000

Northern Region

Central Region

Peninsular Malaysia Note *:

The figure for total surplus/shortfall of housing supply for 2005 is based on comparison with the total supply in 2000 without considering of any new committed units from 2001 – 2005. The figures, which were presented in the NPP report, are intentionally highlighted to describe the scenario of housing oversupply faced in Peninsular Malaysia.

Source: Adapted from JPBD Semenanjung Malaysia (2003b) In addition, it is also highlighted in the NPP that the housing oversupply occurred due to over commitment of housing approval by LPAs. With regard to this, the NPP assumes the weakness of the present housing approval system together with the failure of property market operations as the main contributing factors to the issue.

Simultaneously, it is also addressed in the NPP that if the oversupply situation continue to exist, it will not only increase the rate of property overhang and

73 abandoned housing projects, but also contribute to the uneconomic use of public funds, inefficient use of existing network of infrastructure and utility services and ultimately may affect the performance of the national economic (Government of Malaysia, 2005).

In relation to the housing projection, the NPP study does not only project the total housing number needed but also the land area required for future housing development. The following assumptions were adopted in projecting future housing requirement for the Peninsular Malaysia (JPBD Semenanjung Malaysia, 2003b): (i)

Every single household needs a housing unit.

(ii)

Housing unit must be at the minimum standard that is on a par with the accepted low-cost housing quality.

(iii)

1 household constitutes 4.7 persons in 2000, 4.5 persons in 2005, 4.3 persons for 2010 and 2015 and 4.2 persons in 2020. These household numbers represent the total housing supply needed or the total housing needs.

Based on the above assumptions, the total housing projection for Peninsular

Malaysia was produced at a 5-year interval between 2000 and 2020. The way this housing projection is conducted indicates that NPP only focuses on projecting the future housing supply in the form of broad housing requirement without considering the aspect of household housing demands. In relation to the projection of future housing land requirement, it is stated in the NPP’s technical report that the projection for 2020 is only based on the broad estimation with a purpose to know the general magnitude of land space required for the whole Peninsular Malaysia. It is also mentioned that the projection is not intended to give an exact and accurate details, neither on location and housing types nor the distribution by region and state.

The NPP study has considered the issue of oversupply which occurred throughout Peninsular Malaysia as a threat to the development of housing sector. In the light of the issue, special recommendations to control and lessen the housing oversupply were underlined in the NPP. The cautious and effective preparation of SSP and LP as well as the tightening up of the approval of new housing applications by the planning authorities are among the recommendations proposed in the NPP (JPBD Semenanjung Malaysia, 2003b).

74 3.3.1.2 Formulation of Strategy and Policies on Housing Supply The formulation of the strategy to optimise the use of land in urban area and for housing development, that is the third strategy out of five NPP’s strategies, has implicitly touched the aspect of housing supply control. The strategy underlines that to assess the land required for urban purposes, two factors should be considered.

Firstly, the demand for land generated by the increase in urban population and secondly, an assessment of land that could be made available for urban uses without jeopardizing the integrity of other land uses, particularly agricultural production area and environmental sensitive areas (Government of Malaysia, 2005).

The strategy, after considering the 2000’s housing supply assessment, housing needs for 2000 and 2005 (Table 3.1) and projected housing needs up to 2020, also outlines that the future housing requirement for Peninsular Malaysia can be accommodated within the designated urban centres without the need for conversion of forest lands to housing or use of the environmentally sensitive lands.

In addition, the strategy also addressed the present mind-set which perceives all lands adjacent to urban areas are `ripe’ for housing development need to be changed. The NPP, through the strategy, has recognised that considerable waste of resource can (and has) occurred when housing land has been prepared either through conversion and layout plan approval without a thorough assessment of the demand.

In relation to the formulation of policy, only three policies, out of the 36 NPP policies (Government of Malaysia, 2005) are identified as applicable to plan and control the housing development in Peninsular Malaysia. (a)

NPP Policy No. 1 – “The NPP shall serve as the framework to achieve integrated and sustainable land use planning in the country”. This policy provides a general direction of physical development for the nation and becomes a basis for the preparation of the lower tier development plans. This means that the process of housing planning at the state and local levels as done through SP, LP and SAP also need to conform to the provisions of the NPP.

75 (b)

NPP Policy No. 9 – “The concentration of urban growth in the conurbations shall be anticipated and accommodated”. This policy, besides emphasizing on the need for urban development to follow the stipulated conurbation hierarchy, also addressed the management of change for urban human settlement (urban housing). This policy encourages the use of vacant land within the urban area for the development of housing. This policy suggests the property market operation and development approval process to consider the realistic population and housing projections and ensure the approval of housing land conversion is not at a rate faster than five years ahead of the projected needs.

(c)

NPP Policy No. 17 – “A designated central authority shall be charged with the responsibility to publish on regular basis information on land use development”.

This policy provides a measure which requires all

development plans to include a programme designating when land is `ripe’ for development and conversion to urban use. It is stated that the approval for the conversion of land from agriculture to urban use shall adhere to such programme and if the conversion is well ahead of development, there should be a moratorium to the conversion.

The above discussion signifies that the aspect of housing supply, particularly relating to the phenomenon of oversupply has become a concern of planning mechanism at the federal level. This outcome has led the NPP to plan the country’s housing supply not only to meet the population housing needs but also to ensure the demands of household and market are fulfilled. The formulation of the strategy and policies are expected to guide the planning of housing supply at the state and local level. However, as the NPP has only come into effect in 2005, whereas the SP and LP were already prepared since the 1980s, its provisions could not be translated in the lower tier plans, except for plans prepared after 2005.

76 3.3.2

Structure Plan: The Activities and Aspects Related to the Planning of Housing Supply Similar to the NPP, housing became the main sector in the preparation of SP

either in the old version SP or in the version of SSP (section 2.4.1.2). Both the SP manuals, Manual on Function, Form and Content of Development Plans 1981 (DP Manual 1981) and Manual of State Structure Plan 2001 (SSP Manual 2001) stipulated several activities, scope and aspects that need to be considered in carrying out the housing study (JPBD Semenanjung Malaysia, 1981; 2001).

The main

activities or stages of housing study are as follows: (i)

Survey of existing housing situation.

(ii)

Estimation of future housing requirement.

(iii)

Preparation of general proposals to overcome and improve the process of housing planning and development.

(iv)

Formulation of housing planning policies.

The written statement on housing planning policies together with the

implementation measures are documented in the SP final report, while the outcomes of the other activities are documented in the housing technical report as well as in the report of survey. The main activities of housing study in the preparation of SP will each be explained in the following sections.

3.3.2.1 The Survey of Existing Housing Condition The survey of existing housing condition covers various aspects. The DP Manual 1981 outlines four main aspects that need to be surveyed (JPBD Semenanjung Malaysia, 1981): (i)

Existing stock of housing supply in terms of quantity, type, size, condition, density and distribution.

(ii)

Current housing needs and housing demand.

(iii)

Recent trends for the building rates, private housing and public housing.

(iv)

Information about new housing approvals (committed housing) and lists of housing redevelopment and improvement.

77 The SSP Manual 2001 expands on several aspects as follows (JPBD Semenanjung Malaysia, 2001): (i)

Examination and analysis of the pattern, distribution, density and type of existing housing stock by district and settlement area.

(ii)

Analysis of the quality of housing areas in terms of provision of social and infrastructure facilities and security standard.

(iii)

Examination of the provision and requirement for low-cost housing.

(iv)

Analysis of the total housing supply and need for each district.

(v)

Analysis of the trend of housing market demand for each district.

(vi)

Collection of information on committed housing development by housing category for the whole state and each district.

All the above aspects basically involved a survey and examination on the

housing supply conditions, except for item two (ii) in the SSP Manual 2001 which relates to the quality of housing areas. Through the survey, the issues and problems in housing development will be identified. These matters are normally listed in detail in the housing technical report and summarised in the report of survey and in the SP final report. In relation to the issue of housing supply, it basically varies from one area to another. However, based on the examination of several SPs, i.e. Seremban SP, Melaka Bandaraya Bersejarah SP, Majlis Daerah Muar Selatan SP, Negeri Sembilan SSP and Melaka SSP, some common issues and problems related to the aspects of housing supply were found to have been addressed: (i)

Shortage of the supply of low-cost housing.

(ii)

Surplus of the supply of high-cost and medium-cost housings.

(iii)

High vacancy rate of existing housing stock.

(iv)

Mismatch between housing supply and housing demand in terms of quantity, house type and household affordability.

The above explanation indicates that there was already a guidance that

required the preparation of SP to assess the household housing demands as well as the trend of housing market demand, other than the existing housing stocks and housing needs.

78 3.3.2.2 Forecasting of Future Housing Requirement The forecasting of future housing requirement is one of the important activities in the process of preparing development plans aimed to identify the total number of houses needed by households in the future. It is also useful to know the types and preferences of houses to be in demand to satisfy different types of households in particular areas (Blake and Nicol, 2004).

According to Field and MacGregor (1987) and Nooraini (1988), there are five basic ingredients to forecast the future housing requirement, namely future population, future household number, existing housing stock, estimated deficit or surplus between household formation and housing stock and future housing land requirements. Mark (1995) and Blake and Nicol (2004), however stress that to achieve a perfect and an integrated forecast, socio-economic variables such as expected future household income and expected future housing preferences are required to be incorporated in the calculation of housing forecasts.

In the context of the SP’s housing forecast, both SP manuals only provide a simple guidance to estimate the future housing requirement. The manuals stipulate that the outcomes of future housing forecasts should be in two forms, which are in the form of total housing quantity (housing needs) and in the form of housing demands. For the forecast of future housing needs, both manuals have stipulated that it must be produced in two time-frames, which is by the overall planning period as well as a break-down by certain planning periods. Both manuals suggest that the estimation should be divided according to a 5-year interval. For future housing demand, both manuals suggest forecasts according to housing category and type (Table 3.2).

It should also be noted that both manuals did not specify clear guidance on the forecasting techniques and aspects that need to be applied and considered in conducting housing forecasts. The absence of the guidance has left the SPs applying independently different housing forecasting techniques, from an integrated technique to a common and simple one. The integrated version of forecasting technique, as based on the view by Mark (1995), requires the housing forecasts to incorporate the

79 figures of expected future household income (effective demand) and housing choices together with the figures of population growth, additional household, existing housing stock and housing deficit or surplus.

Table 3.2: The outcomes of future housing forecast stipulated by the DP Manual 1981 and SSP Manual 2001 DP Manual 1981

SSP Manual 2001

Future housing needs for overall SP planning period and break-down by certain periods for the LPA area.

Future housing needs for each district for overall SSP planning period and break-down of every 5year interval.

Future housing demand by house category and type for the LPA area.

Future housing demand by house category and type for each district.

Future housing requirement that need to be built by private developer and government agency (public housing).

-

Future household incomes for the LPA area.

-

Source: Adapted from JPBD Semenanjung Malaysia (1981:A6; 2001:36) The application of this technique could be considered as the most effective way to forecast future housing requirement for the planned areas (Blake and Nicol, 2004). Through this technique, the future housing forecast does not only produce a figure on the total housing needs (total quantity of future housing supply) required but also presents figures in the form of house categories, types and prices range preferred and afforded by the future households. In the context of development plans in Malaysia, only the first batch of SPs, namely Seremban SP, MBJB, Mukim Plentong and Pasir Gudang SP and Kuala Lumpur SP are identified to have attempted to apply the technique. Those SPs have considered the figures of expected future household income in the forecasting of future housing requirement for the areas.

The common version of housing forecasting technique is found frequently applied in the development plans in Malaysia, including in the preparation of SP. This version only considers the figures of future population growth, housing aspects, such as existing stock, backlog, vacancy and surplus, immediate and normal replacement and additional new household for certain forecast periods. Considering the view by Mark (1995) and Blake and Nicol (2004), the application of this

80 technique can be considered as less perfect compared to the previous technique. This is because it only indicates future housing requirement in the form of total quantity (total housing needs).

Further, it is also found that there are several SPs, particularly the old version SPs which only used a simple technique to estimate future housing requirement. This technique usually only considers the aspect of future household growth. Through this technique, the total future housing requirement for certain areas is treated as equal to the total future household numbers (existing plus additional new household). The application of this technique could be considered weak and incomplete because it disregards many important aspects and figures, such as housing backlog (current shortage), vacancy and surplus of existing stock as well as the data on immediate and normal housing replacement as outlined by Field and MacGregor (1987) and Nooraini (1988).

3.3.2.3 Preparation of the General Proposals to Improve the Process of Housing Planning and Development The written statement of the general proposals becomes one of the main contents of the SP. The proposals are underlined in the report of survey as guidance to the formulation of planning strategies and policies. For the housing study, both manuals do not specify the aspects that need to be emphasized in outlining the general proposals to overcome and streamline the process of housing development.

Nevertheless, it is understood that any general proposal that was or will be outlined is based on the issues and problems identified during the analysis of existing housing conditions. It means that each SP will outline different general proposals for housing development.

Based on the examination of several SPs, namely Seremban SP, Melaka Bandaraya Bersejarah SP, Majlis Daerah Muar Selatan SP, Negeri Sembilan SSP and Melaka SSP, a number of common proposals on housing supply can be identified: (i)

An emphasis should be given to the development of low-cost houses to ensure the supply fulfils the requirement for low income groups.

81 (ii)

The supply of high and medium costs housing needs to be monitored and controlled to avoid the occurrence of oversupply.

(iii)

The process of housing approval by LPA should consider the amount of vacant housing stocks before the releasing of new supply.

(iv)

The LPA should make an effort to ensure the house types planned and built by developers are in line with the actual demand and income affordability of the local population.

These statements indicate that there are efforts by these SPs to outline the

proposals for improving the process of planning of housing supply. The extent to which the proposals can be implemented, however depends on how and to what extent they are incorporated in the formulation of housing policies in those SPs.

3.3.2.4 Formulation of Housing Planning Policy The definition of SP as written statements of policies in respect of the development and use of land (section 2.4.1.2), has attracted both SP manuals to give an emphasis on the formulation of housing planning and development policies.

Detailed guidance in terms of the aspects that need to be considered in formulating housing policies were underlined in the DP Manual 1981 as follows: (i)

Requirement to formulate general policies to strengthen the role and the activity of housing development in urban and rural areas.

(ii)

Requirement to distribute future housing stocks by certain periods, by selected and potential settlement area (housing scheme and village settlement) and by housing category (low, medium and high costs).

(iii)

Requirement to consider the criteria for location suitability, accessibility and distance from employment centres in planning housing development.

(iv)

Requirement to decide the priority areas and development phases for new housing developments.

The SSP Manual 2001 proposes that the housing planning policy needs to be

divided into three categories, namely general policy, policy by subject and policy for specific area. Guidance for the aspects that need to be incorporated in formulating housing policies as in the DP Manual 1981, however are not mentioned in this

82 manual. SSP Manual 2001 only provides a simple statement which requires the SP’s housing study to formulate the spatial strategy and policies for housing development.

It is important to note that both manuals only provide a basic guidance to lead the process of formulating housing policies in the SPs. Formulation of the actual housing policy for each SP depends on the findings at the stage of survey of existing housing conditions and at the stage of estimation of future housing requirement. It is also guided by the general proposals related to the improvement of housing development process as documented in the report of survey.

With regard to the policy on housing supply, it is normally formulated in two ways. The first is concerned with a specific policy that explicitly outlines the aspects of planning and controlling of housing supply. Secondly, the aspect of housing supply is inserted or incorporated in other housing policies, such as the policy on affordable and low-cost housing, encouragement of sustainability in housing development and land use planning control for housing development. Table 3.3 lists some examples of the policy statement on the planning and controlling of housing supply formulated by several SPs in Peninsular Malaysia.

The explanation above clarifies that the SP has a significant role to play in planning housing supply. In the light of this, it is important for the preparation of SP to conduct the activities of housing planning comprehensively and accurately to guide other plans and facilitate the process of planning control. Thus, the objectives of housing planning and development for the planned areas can be attained exhaustively.

The next section will complement the discussion on the overall process of the planning of housing supply in Malaysia by examining the activities of housing planning carried out as well as the aspects considered in the preparation of LP.

83 Table 3.3: The examples of policy statement related to the planning of housing supply

a

2. New housing supply should be provided based on the actual demands of the local population.

a

a

3. New housing development should only be approved within the designated housing zone or boundary as determined in the LP Proposal Map.

a

a

4. Sufficient land area for future housing development should be properly planned by planning authorities.

a

a

5. Potential areas for future housing development should be identified by planning authorities.

a

Melaka SSP

a

Negeri Sembilan SSP

Melaka Bandaraya Bersejarah SP

1. Long-term planning for housing development should be drawn up by the planning authorities to ensure the total supply is in line with the future housing need.

Policy Statement*

Majlis Daerah Muar Selatan SP

Seremban SP

Structure Plan

a

a

a

a

a

a

a

a

a

a

a

a

a

Specific Policy on the Planning of Housing Supply

a

6. The development of new housing should consider and be in line with the current market demands.

Policy Related to Housing Supply that is Inserted in the Broad Policies of Housing Planning 1. The development of affordable housing needs to be enhanced from time to time to for cater low and middle income groups.

a

a

2. New housing development should concentrate on the in-fill development.

a

a

a

3. Housing projects should comply with the planning guidelines and standards as determined by the planning authorities.

a

4. The authorities should control the development of new housing schemes to ensure it do not encroach the agriculture and forest areas.

5. New housing development shall conform to all environment and physical requirements to ensure the betterment of the urban environment.

a

a

a

a

a

a

a

a

Sources:

Majlis Perbandaran Seremban (1989); Majlis Perbandaran Melaka Bandaraya Bersejarah (1993); Majlis Daerah Muar Selatan (1993); JPBD Negeri Sembilan (2007); JPBD Negeri Melaka (2006).

Note*:

The above policy statements were modified from the actual text in each SP. Care has been taken to avoid changes to the original meaning of the policies.

84 3.3.3

Local Plan: The Activities and Aspects Related to the Planning of Housing Supply Similar to the NPP and SP, housing is one of the main sectors in the

preparation of LP either for the urban based LP or district LP. The scope and aspects that need to be covered by the LP’s housing study were guided by the DP Manual 1981 and Manual of Local Plan Preparation 1993 (LP Manual 1993). The amended versions of the LP Manual 1993 as formulated in 1999 (LP Manual 1999), 2001 (LP Manual 2001) and 2002 (LP Manual 2002) also need to be referred in carrying out the LP’s housing study.

With regard to the activities or stages of housing study, the LP also has to carry out a survey on existing housing conditions and calculate the future housing requirements as done by the NPP and SP. Based on the figures on future housing requirement, the LP has to determine the total land area and locate suitable locations for future housing development for each LP area. The outcomes of these two activities must conform to the provisions of housing planning policies as formulated in the SP (JPBD Semenanjung Malaysia, 1981). Besides, it is also a duty of the LP to outline the planning guidelines and standards to control the planning and development of housing.

The outcomes involving the distribution of housing locations together with the guideline and standards for the planning of housing are documented in the final LP report. On the other hand, the outcomes of survey of existing housing conditions, future housing forecast and determination of future housing land area, are documented in detail in the housing sector technical report and summarised in the final LP report. The main activities of the housing study in the preparation of LP will each be explained in the following sections.

3.3.3.1 The Survey of Existing Housing Condition The aspects of existing housing conditions that need to be surveyed during the preparation of LP are outlined in detail in all LP manuals, except for the DP Manual 1981. The DP Manual 1981 only addressed a broad statement on the aspects,

85 problems and potentials that should be examined and analysed during the LP study (JPBD Semenanjung Malaysia, 1981). The statement basically applies to all sectors of the LP study, including the housing study. For the other LP manuals, the various aspects to be surveyed were underlined comprehensively (Table 3.4).

Table 3.4: The aspects of existing housing conditions that need to be surveyed

Sources:

LP Manual 2001

LP Manual 2002

1. Examination of the characteristics of existing housing stock such as total quantity, type, housing condition, density, physical distribution and existing supply by price category.

2. Analysis of supply and demand for current housing stock by category.

3. Collection of figures on new housing approvals (committed development) and applications under consideration by LPA and housing units under construction (covering the location, type, total unit, development size and density).

4. Analysis of the trend and direction of growth of housing development.

5. Identification of problems, limitations and potentials in housing development.

6. Analysis of current housing guidelines applied in the LP area.

7. Analysis of demographic figures, such as total population, household size and income levels that relate to the need and demand of housing.

8. Examination of the provision and requirement for low-cost housing.

9. Analysis of the trend and preferences in the current housing market.

10. Analysis of housing oversupply consisting the total unit and causal factors.

11. Analysis of National and State housing policies.

12. Analysis of squatters, polluted housing schemes, traditional housing and houses with historical values.

LP Manual 1999

The Aspects of Housing Study

LP Manual 1993

during the preparation of a local plan

a

a

a

a

a

a

a

a

a

a

a

a

a

a

a

a

a

a

a

a

a a

a a

a a

a a

a

a

a a

a a

a

a a

Adapted from JPBD Semenanjung Malaysia (1993:21-22; 1999:17; 2001: 3-11; 2002: L3-4-13)

The above table indicates that there are seven main aspects, item (1) to item (7), that need to be considered by the housing study in the preparation of LPs. Besides emphasizing on the examination of the characteristic of existing housing stock and collecting of data on committed development and proposed new housings,

86 the LP’s housing study also need to identify the total supply of and demand for housing, carry out analysis on demographic data relating to the identification of effective demand for housing and analyse the trend and direction of housing development for each LP area. Moreover, there are also additional aspects outlined in the LP Manual 2001 and LP Manual 2002 that require the LP’s housing study (in particular for district LP) to look in detail the trend and preferences in the current housing market and analyse the figures on housing oversupply together with the factors that caused the existence of the problems.

All these aspects therefore involve a survey and examination of housing supply, except for item (12) as outlined in the LP Manual 2001 and LP Manual 2002, which touches on squatter problems, polluted housing schemes, traditional housing and houses that have historical values in urban areas. Similar to the SP, the LP’s housing study also identify issues and problems that exist in housing development, including issues related to housing supply.

Based on the examination of several LPs, namely Bandar Maharani LP, Bandar Kota Tinggi LP, Pontian – Pekan Nenas LP, Bandar Kluang LP, Batu Pahat District LP and Muar District LP, several common issues and problems related to housing supply can be highlighted, such as the shortage of low cost and low-medium cost housings, oversupply of

high-cost

and medium-cost housings and

high

vacancy rate of existing housing stocks (Majlis Daerah Muar, 1998; Majlis Daerah Kota Tinggi, 2000; Majlis Daerah Pontian, 2000; Majlis Daerah Kluang, 2000; Majlis Perbandaran Batu Pahat, 2005 and Majlis Perbandaran Muar, 2005).

The above explanation indicates that there was already a comprehensive guidance to carry out housing study in the preparation of the LP. It is shown that the LP’s housing study has to cover various aspects from the examination of existing housing stocks, housing needs and committed housing up to the detailed assessment on households effective demand and housing preferences in the current market.

87 3.3.3.2 Forecasting of Future Housing Requirement The process of forecasting of future housing requirement in the LP is basically similar to the preparation of SP (section 3.3.2.2). All LP manuals have stipulated that the outcome of future housing forecasts should be produced in two forms, that is in the form of broad housing requirement (total housing needs) as well as in the form of housing demands. The manuals also specify that the forecast of housing needs must be produced in two time-frames, which is by the overall planning period and a break-down by certain planning periods. The DP Manual 1981 suggested that the forecast must be divided based on a 5-year interval. In relation to the forecast of future housing demands, requirement for the forecasting in the form of category, type and prices of housing expected to be demanded by the future households in the planned areas were suggested by the LP Manual 1993. These aspects however were silenced in other LP manuals.

With regard to the application of forecasting techniques and aspects that need to be considered in calculating the future housing requirement, similar to the DP Manual 1981 and SSP Manual 2001, the LP manuals have also not specified any guidance. This has caused each LP to independently apply different housing forecasting techniques. As in the SP, there are at least three techniques that could be applied by the LP, ranging from an integrated technique to a common and a simple one. However, based on the examination of several LPs in Malaysia, namely Bandar Maharani LP, Bandar Kota Tinggi LP, Pontian – Pekan Nenas LP, Bandar Kluang LP, Batu Pahat District LP and Muar District LP, only a common forecasting technique is applied by those LPs. The application of the common forecasting technique, which only considers the figures of existing stock, backlog, vacancy and surplus, immediate and normal replacement and additional new household, has caused the forecasting of future housing requirement in those LPs to produce results only in the form of total housing needs. This technique can be considered less effective compared to the integrated forecasting technique which is capable of forecasting the future housing demands in terms of house category, type and price ranges preferred and afforded by the future households (Mark, 1995; Blake and Nicol, 2004).

88 3.3.3.3 Determination of Land Requirement For Future Housing Development The determination of future housing land requirement is one of the important activities in the preparation of LP. This activity enables sufficient land area to be provided to accommodate the requirement of future housing developments in the planned areas. According to Bramley et al. (1995), the accuracy of future housing land area very much relies on the outcomes of the housing requirement forecast. As such, if the housing requirement forecast is inaccurately conducted, it will implicitly contribute to the inaccuracy of the figures for future housing land area.

The significance of the activity was addressed in the DP Manual 1981 as well as in the LP manuals. Nevertheless, there is no specific guidance in terms of timeframe and forms of outcome that should be produced by the activity outlined in those manuals. It is found that all manuals only specify in general that the housing study should identify the land requirements for future housing. The general guidance has caused each LP to conduct the activity differently. For example, the Bandar Maharani LP, Bandar Kota Tinggi LP, Pontian – Pekan Nenas LP and Bandar Kluang LP had only produced the figures for future housing land areas for the whole planning period, while the Batu Pahat District LP and Muar District LP produced the figures for the whole planning period as well as for the five years time-frame.

After the total land requirement for future housing is determined, the subsequent process is to translate it properly and accurately into the LP’s proposal map.

This process involves the identification and distribution of suitable areas for

the development of housing together with other land use sectors, such as commercial, industry and public facilities. The next section will discuss the aspects that need to be considered in conducting the activity.

3.3.3.4 Distribution of Suitable Locations For Future Housing Development It is identified that all manuals do not provide in detail the aspects or factors that need to be considered in distributing locations or zones for future housing development. DP Manual 1981 only highlights that the LP should determine and allocate precise zones for all land use categories covering all land lots (lot-based).

89 In addition, the LP Manual 1993 and LP Manual 1999 specify that the distribution of housing location should consider the trend and direction of existing and committed

housing

development,

development

pressure

and

physical

characteristics.

These aspects remain in both LP Manual 2001 and LP Manual 2002 to guide the process of distribution of locations for housing development, especially for the preparation of district LPs. In addition, these two manuals also suggest the preparation of district LPs to apply the technique of multi-criteria evaluation (MCE) to enhance the effectiveness of the distribution of various land use zones, including housing land uses, in the LP areas.

Similar to the activity of determination of housing land requirement, as discussed above, the absence of a clear guidance has resulted in each LP conducting the activity differently. Nevertheless, it is identified that there are several common aspects that are usually considered by the LPs in distributing suitable locations for future housing development. In the Bandar Maharani, Bandar Kota Tinggi, Pontian – Pekan Nenas and Bandar Kluang LPs, the following aspects were considered: (i)

Availability of land adjacent to the existing housing development.

(ii)

Good accessibility from main road.

(iii)

Adherence to the alignment of current and new development corridor.

(iv)

Avoiding from developing housing in restricted area, such as environmental sensitive areas, highland areas and at the areas near to industrial zones.

(v)

Adherence to the determination of new areas for housing development as set by the State Government and local authorities.

The Batu Pahat District LP and Muar District LP, in addition to the aspects,

also incorporate the expected future housing market demands as one of the aspects considered in distributing housing locations. The consideration of this aspect in the district LPs shows that there was a tendency in the process of housing planning and development in Malaysia to fulfil the principle of market responsiveness as suggested by Hague et al. (2006).

90 3.3.3.5 Outlining the Planning Guidelines and Standards to Control the Housing Development The role of LP as a main planning tool to the development control process (Asiah, 1999; Wan Muhammad Mukhtar, 2004), has led all LP manuals, including DP Manual 1981, to include the aspects of housing planning and development control in detail. The DP Manual 1981 has outlined that the LP should set out a specific guidance to control the capacity of total quantity and density of housing for the whole planned area and formulate a detailed planning guideline and standards comprising building set-back control, minimum land lot size and permissible floor space and height control. This manual also requires the LP to demarcate the order and priority areas for housing development by phasing it in every five years timeframe (5-year planning phases).

The aspects related to the control of planning and development of housing, as addressed in DP Manual 1981, are maintained in the later LP manuals.

Simultaneously, there are several additional aspects underlined by each manual to complement the above aspects as well as to suit with the LP preparation approaches which has changed from urban based to district LP. The additional aspects are listed in Table 3.5.

Other than the aspects specified in the LP manuals, there are also efforts by certain LPs to outline other guidelines to control the development of housing in the LP areas. For example, the Melaka Tengah District LP outlines the types of housing development permitted in certain areas that are either landed or high-rise development, while the Batu Pahat District and Muar District LPs try to control the housing development by differentiating the housing land use zone into two subzones, i.e. planned housing scheme and village housing settlement.

91 Table 3.5: Additional aspects related to the control of planning and development of

LP Manual 2001

LP Manual 2002

1. Produce a special plan on permissible housing density covering of low, medium and high density.

2. Determine the category (low, medium and high cost) and types of housing (terrace, bungalow, condominium, semi-detached, etc) allowed to be developed in certain areas.

3. Underline the local authority’s principles and criteria in approving housing applications.

4. Produce a specific use class order for housing development to enable the application of compatible mixed-use concept.

5. Produce a special subject plan to detail out the implementation programs of housing development.

6. Incorporate the approved latest guidelines and standards on housing as prepared by the Federal and State TCPD. 7. Promote the concept of sustainable development in planning, designing and controlling housing development.

8. Build and apply the planning information system (using GIS) covering information and data related to housing development.

LP Manual 1999

Additional Aspects Related to the Housing Planning and Development Control

LP Manual 1993

housing in the local plan manuals

a

a

a

a

a

a

a

a

a

a

a

a

a

a

a

a

a

a

a

a

a

a

a

a

a

Sources: Adapted from JPBD Semenanjung Malaysia (1993; 1999; 2001; 2002) The requirement to outline the various planning guidelines and standards for housing development control in the preparation of LP is seen to have complemented the overall process of planning of housing supply in Malaysia. The outcomes of this activity and other housing planning activities in the NPP, SP and LP, particularly those related to housing development strategy and policies, determination of future housing land requirement and distribution of locations or zones for future housing development will become a vital guide to the LPAs in Malaysia to control, monitor and approve the applications of housing development. The extent to which the outcomes are considered and how the LPAs control the housing supply will be clarified in the next section.

92 3.4

The Controlling of Housing Supply Healey (1983) and Groves (2000) describe planning control as the executive

arm and becomes the heart of the land use planning system. It has also been referred to as the `Cinderella’ (Ratcliffe et al., 2004) and as `conveyor belt’ (Hull, 1997) of the system that deals with the day-to-day administration of controlling, monitoring and making decision on planning applications. In relation to the housing land use, Farthing (1996) perceives that there are three distinct roles played by the planning control mechanism, namely to regulate the amount and location of land to be developed for housing, to regulate the layout, density and form of housing and to regulate the price at which land has been made available for housing. These aspects will be examined in this section by exploring the process and the aspects that are considered in controlling and approving the housing supply in Malaysia.

3.4.1

The Process and Procedure of Controlling Housing Supply The process of controlling housing supply in Malaysia is bound by the

provisions of planning control as enacted by Act 172. The preceding discussion indicates that in principle the specific procedure to control and approve housing supply does not exist. The control process is included in the general procedure of planning permission for housing applications which also applies to other development applications (Appendix C). Based on the procedure, the aspect of housing supply is controlled by the LPA together with other housing planning aspects, such as preservation of topography, coordination of layout plan and control of the provision of public facilities, in the approval process of housing developments.

The planning permission procedure requires LPAs not to grant the housing planning approval otherwise than in conformity with the proposals in the LP (S. 18(1), Act 172). The LPAs also have to take into consideration other matters, such as the provisions of the gazetted SP, direction given by the SPC and provisions that the LPA thinks are likely to be made in development plans under preparation (S. 22(2), Act 172) when dealing with housing development applications.

93 In addition, if the proposed new housing developments involve a population exceeding ten thousand or cover an area of more than one hundred hectares, the LPA (through the SPC) shall request an advice from the NPPC on the submitted application (S. 22A, Act 172). The rationale of this provision, according to the NEAC (Kerajaan Malaysia, 1999a; 1999b) and Ismail (2002) is to allow Federal Government to take part in the approval process of mega-scaled housing projects throughout the country aimed to avoid oversupply and overhang of housing property.

Similar to the preparation of development plans, there are various manuals on planning permission prepared by the Federal TCPD and every State TCPD aimed to lead LPAs to enforce the procedure accordingly. The manuals, other than detailing the process and procedure of submission and approval, also include the factors that need to be considered by LPA in controlling and approving development proposals, including housing applications.

3.4.2

Factors to be Considered in Controlling Housing Supply There are many factors and aspects that need to be considered in controlling

housing supply. The compliance to the SP and LP proposals, particularly land use zoning, stipulation of housing development priority areas, density control and planning guidelines become the basis or guidance to the LPA in considering the housing development applications (Asiah, 1999).

With regard to the compliance of land use zone, legally the LPA may only grant an approval if the housing application is situated in the housing zone.

Nevertheless, in practice there are many cases where approvals were still given although the sites are planned for other land use activities or located outside the permitted development area. The practice of non-compliance to the LP’s land use zoning occurred extensively in mid 1990s. This practice was argued to have contributed to the existence of housing oversupply and property overhang in Peninsular Malaysia (Kerajaan Malaysia, 1999a; 1999b; Mohamad Fadzil, 2005).

94 In relation to the requirement to comply with the stipulation of priority areas for housing development, less attention is given regarding the matter in the process of controlling and approving of housing supply. The failure of most LPs to mark clearly the boundary of housing development priority areas (housing development phases) has discouraged the LPAs to consider this factor. With regard to density control, housing development applications will need to follow the permitted maximum density as outlined in the LP. Basically, there are two methods of housing density control enforced by LPAs, namely a control by area and control by housing category particularly for flatted housing. The examples of the methods are as follows (JPBD Johor, 2002; Alias, 2006): (i)

Housing density control by area : 6-8 units per acre for village settlement area and 10-15 units per acre for urban area.

(ii)

Housing density control by flatted housing categories : 20 units per acre for condominium, 40 units per acre for apartment and 60 units per acre for lowcost housing.

The planning guidelines related to the ratio of housing category and types of

housing development have also become a significant factor in controlling housing supply. Most of the LPAs particularly in the Johor State stipulate a ratio of 40:40:20 (that is 40.0% for low-cost, 40.0% for medium-cost and 20.0% for high-cost) as a condition that need to be followed by housing developers (Alias, 2006). In relation to the type of housing development, there are LPAs that set the condition where only landed housing is permitted to be developed in certain areas.

Besides having to be in conformity with the LP, the housing development applications also have to fulfil the current housing policies formulated by each State.

The policy on low-cost housing allocation is one of the eminent policies that are directly related to the control of housing supply. This policy requires housing developers to construct at least 30 percent (40 percent for the Johor State) of the total housing units as low-cost housing (Chan, 1997; Ghani and Choong, 1997; Nor’Aini, 2001; KPKT, 2005; Alias, 2006). This policy was incorporated as one of the important policies in many SPs, such as Selangor SSP, Negeri Sembilan SSP, Melaka SSP as well as in the Johor SSP.

95 Both section 3.3 and section 3.4 signify that many activities, factors and aspects need to be considered in the planning and controlling of housing supply. The implementation of the activities effectively are important to ensure the objectives of housing planning as discussed in the next section, can be achieved exhaustively.

3.5

The Objectives of Planning and Controlling of Housing Supply There are various objectives that need to be achieved by the process of

planning and development of housing in Malaysia. In relation to the aspect and the process of planning and controlling of housing supply, it is found that the objective related to the process was not specifically or clearly underlined either in the development plan manuals or housing planning control guidelines. Nevertheless, based on the examination of the general objectives of housing study and outcomes related to housing supply in some SPs and LPs, the objectives were successfully elicited. It basically covers the objectives to provide adequate housing to the current and future population; ensure housing provisions are within the affordability of various income groups; coordinate and balance the supply and demand of housing; ensure new housing is developed in the areas planned for housing use; and ensure the activities of housing planning and control consider the market demand.

The requirement to achieve the above objectives along with the process of planning and controlling of housing supply is also mentioned by Ho (1994) and Asiah (1999). According to them, the process of housing planning and control should fulfil at least four objectives, namely to meet the population housing needs, fulfil household housing demands, consider current and future market demand and matching the number of housing supply with the number of housing demand.

The objective to meet the population housing needs becomes the main basis for the process of housing planning. Ratcliffe (1981) and Golland and Gillen (2004) perceive the objective as a fundamental nature of housing planning and development.

In Malaysian context, the achievement of the objectives is important to ensure the aim of the national housing development policy to provide adequate housing for all

96 Malaysians, as outlined by the five-year Malaysia plans since the Third Malaysia Plan (1976-1980) and up to the Ninth Malaysia Plan (2006-2010), is achievable (Mohd. Razali, 1997; Goh, 1997; Asiah, 1999). The significance of the objective was translated at all levels of development plan from the NPP, to SSP as well as LPs. Most of the housing policies and proposals formulated in the plans are found to have stressed the requirement to meet the population housing needs for the planned areas.

Achieving the objective to meet the population housing needs alone, however, was insufficient in order to achieve a more integrated and responsive housing planning. Hull (1997), Healey (1999), Nicol (2002), Golland and Gillen (2004) perceive that the process of housing planning also needs to fulfil and consider the aspects related to housing demand, particularly household effective demands (household affordability) and current and future market demands. In relation to the objective to balance the housing supply with housing demand, Ho (1994) generally perceives that the process of planning and controlling of housing supply has to achieve the objective to avoid mismatch between the housing supply and demand that may cause shortage or surplus to the housing supply.

3.6

The Framework of the Planning and Controlling of Housing Supply The exploration of the activities and objectives of planning and controlling of

housing supply in Malaysia, as discussed in section 3.3 through section 3.5, has led this research to develop the framework for its overall process. The framework as conceptualised in Figure 3.2 shows that the planning for housing supply is given an emphasis in all development plans. The NPP which is prepared at the federal level has examined the status of current housing supply and housing needs and forecasts the future housing needs and housing land requirement for Peninsular Malaysia. The NPP has also formulated the land use planning strategy and policies to be considered and implemented in the planning of housing supply at the state and local levels.

97 ACTIVITIES OF PLANNING AND CONTROLLING OF HOUSING SUPPLY

PLANNING MECHANISM

NATIONAL PHYSICAL PLAN (National Level)

Examining current housing conditions (total supply, total needs and surplus/shortage)

Forecasting future housing requirement (total housing needs and total land requirement)

Formulating development planning strategies and policies (1 strategy and 3 policies touched on the housing planning and development)

Examining current housing conditions (total supply, total needs, surplus/shortage, household demand, market demand and issues)

STRUCTURE PLAN (State Level)

Forecasting future housing requirement for the SP’s area (total housing needs, housing demands and land requirement in two time-frames, use certain techniques) Outline the general proposals (to overcome the issues and to improve the process of housing development)

Formulating housing planning and development policies (specific and general policies on housing supply planning)

Examining current housing conditions (total supply, total needs, surplus/shortage, household demand, market demand and preference, direction of current growth, problems, limitation and potentials)

OBJECTIVES TO BE ACHIEVED

Meeting housing Needs.

Fulfilling housing demands.

Considering market demand criteria.

Ensuring housing is developed in the areas planned for housing.

Balancing supply and demand of housing

Forecasting future housing requirement for the LP’s area (total housing needs, housing demands and land requirement in two time-frames, use certain techniques) LOCAL PLAN (District or LPA Level)

Determining future housing land requirement (total land area to accommodate future needs in two time-frames) Locating locations for future housing development (in the form of land use zone, consider physical potentials, trend and direction of current growth and future market demand, use the technique of multi-criteria evaluation) Preparing housing planning guidelines and standards (maximum capacity of total quantity, permissible density, suitable category in certain areas)

PLANNING CONTROL (By LPA)

Controlling and approving new housing supply (apply the planning permission procedure, compliance to land use zone, priority areas, density control, planning guideline, ratio and types of development, low-cost policy)

Figure 3.2: The framework of the process of planning and controlling of housing supply

98 The preparation of SP, which currently is prepared for the whole state, also requires the examination of the current housing conditions covering the data on housing supply, housing needs, household demands and market demands and forecast the future housing requirement for the whole state. In this plan, the future housing needs, housing demand and land requirement are required to be forecasted in two planning time-frames, namely for the whole planning period as well as a breakdown by certain planning periods. It is a duty of SP to formulate the planning policies related to the aspect of housing supply to be enforced throughout the state.

The preparation of LP, which covers the whole district or certain LPA areas, is seen to have a greater responsibility in the planning of housing supply in Malaysia.

This plan has to examine the current housing market preferences, the trend and direction of housing growth as well as the problems, limitations and potentials of housing development for the planned areas. This plan also has to forecast the future housing needs, housing demand and land requirement in two planning time-frames, similar to the SP’s housing forecast. The main duty of the LP is to decide on the total housing land area required for certain planning periods and locate the suitable locations for future housing development in the form of housing land use zones. It is also a duty of the LP to prepare the planning guidelines and standards to guide the development of housing in the planned areas.

The outcomes in the form of strategies, policies, determination of future housing land requirement, proposed future housing locations (housing land use zones) and guideline and standards produced by the above plans will be used as basis or guidance for the LPAs to control and approve housing supply. The new housing development applications will be assessed and controlled through the procedure of planning permission before an approval is granted. In exercising this procedure, there are many factors and aspects that will be considered by LPA, such as land use zoning, stipulation of housing development priority areas (housing development phases), density control and current housing policies.

In addition, the framework also clarifies that the implementation of planning and controlling of housing supply in Malaysia need to achieve the objectives of housing planning, namely to meet the population housing needs, to fulfil the

99 household housing demands, to consider the criteria of housing market demand, to ensure the housing is developed in the areas planned for housing and to balance the number of supply and demand of housing.

The process of housing planning in Malaysia is basically quite similar to the process and practice adopted in the UK. The UK, before introducing the Local Development Framework provided by the Planning and Compulsory Act 2004, applies the county level SPs and district level LPs (including Unitary Development Plans for Unitary authorities) to plan the development of housing (including the planning for housing supply). The activities of examination of housing conditions, forecasting of housing requirement, formulation of housing policies and allocation of future housing land requirement and locations are exercised at various levels of the development plans (Golland, 1996; Greed, 1996; Ratcliffe et al., 2004).

The UK, since the implementation of the 1947 Town and Country Planning Act until the 2004 Planning and Compulsory Act, also applies the system of development control through the procedure of planning permission to assess, control, monitor and approve the housing development applications (Mohd Anuar, 1991; Ratcliffe et al., 2004). Similar to the practice in Malaysia, provisions and proposals of the development plans are regarded as the basis in making a decision for housing planning applications.

Several advantages are found in the UK housing planning process. The provision of future targets for the allocation of housing needs and housing land in the UK’s development plans, particularly the district levels LP, is based on medium-term projections of housing needs and housing demands and latest housing market demands (Cooper and Lybrand, 1985; Bramley et al., 1995). The calculations are revised regularly to enable the allocation of housing needs and housing land to respond quickly to the changes in household effective demand and market conditions (Monk, 1996). This is different from the practice in Malaysia where future housing needs and land requirement for the planned areas are only determined based on the data (population, household and housing data) of the base year of preparing development plans.

100 Another advantage about the UK’s housing planning process is the requirement for the LPAs to have a close working relationship with the housing associations (housing developers), through joint housing studies, in formulating LP housing policies and proposals. This enables the LPAs to make available a five year supply of housing lands to meet forecast needs and to take into account the housing developers’ assessment of the availability and the marketability of sites (locations) for immediate and future housing development (Bramley et al., 1995; Lambert, 1996; Hull, 1997; Ratcliffe et al.; 2004). This practice does not officially exist in the process of housing planning in Malaysia. The LP’s housing proposals as well as the SP’s housing policies are solely based on the outcomes of the housing study in the plans’ preparation conducted by planning authorities.

The adoption of the system of ‘plan, monitor and manage’ in the UK, as discussed in section 2.6.2, has also differentiate its housing planning practice from the practice in Malaysia. The system enables housing supplies to be planned and produced in the right type and quantity and at the right locations, aimed to meet the best housing requirement for local population in the particular periods (Adams and Watkins, 2002; Carmona et al., 2003). Housing planning in Malaysia is seen still emphasising on the system of ‘predict and provide’ which aimed to meet sufficient housing needs for the population. This system has not only caused the LPAs to deliver the allocation of housing supply in advance of demand, but may also cause the provision of the wrong type, quantity and location of housing.

3.7

Conclusion This chapter has explained the complexity of the process of housing

development in Malaysia. The process is very highly regulated, and involves many stages of approval from various authorities before the housing project is permitted to be implemented. The process of planning and controlling of housing supply which adheres in the whole process of housing development is also very complex and go through a tight process. The activity of planning for housing supply was given a special attention in all hierarchies of development plan. The NPP has formulated a

101 general strategy and policies to guide the planning and controlling of housing supply in Peninsular Malaysia. In the preparation of SSP, the activity continues through the examination of the existing housing conditions, forecasting of future housing requirement and formulation of specific policies to be enforced throughout the state.

The preparation of LPs plays a greater role in planning housing supply. These plans have to examine in detail the existing housing conditions, forecast the future housing requirements accurately, determine the total housing land area required for certain periods and distribute the most suitable locations for future housing development. The activity of controlling of housing supply is exercised through the procedure of planning permission. This procedure requires LPAs to consider the outcomes of development plans before making a decision to approve a new housing supply.

Theoretically, by following the existing processes, from the stage of preparation of NPP to the planning control process, housing supply should be planned and controlled effectively and fulfil the objectives of housing planning. In practice, however, there are many loopholes and weaknesses which exist in the process of planning and controlling of housing supply in Malaysia. The factuality of the argument will be proved by the results of the empirical analyses as presented in the following chapters. The next chapter will explain the methodology of the research by discussing the purpose, process and approach of the research as well as the methods of data collection and data analysis. The model and the strategy to evaluate the effectiveness of the process of planning and controlling of housing supply will also be explained in the chapter.

102

CHAPTER 4

RESEARCH METHODOLOGY

4.1

Introduction Research methodology was defined as a process to link research questions

with the data (Denzin and Lincoln, 1994). An effective methodology is important because the validity of the research as well as its findings depends on the approach, design and how the data are collected and analysed. Basically there are four important elements that should be considered in designing research methodology, namely research framework and how the research is designed, the strategy, what actually to be studied, and what are the appropriate methods to collect and analyse the data (Punch, 1998). In brief, research methodology can be understood as an explanation about the research questions, the processes to go through, the strategies adopted and methods and techniques used in collecting and analysing the data.

These aspects will be elaborated in this chapter. It begins with the explanation on the purpose, framework, design and approach of the research, followed by the research model and strategies adopted. This chapter subsequently explains the methods of data collection and stages of data analysis. The aspects of reliability and validity, the problems encountered and limitations of the research will also be highlighted.

103 4.2

Purpose of the Research Determination of research purpose becomes a fundamental of conducting

empirical research (Syed Arabi, 1992; Yin, 1984; Sekaran, 2003; Neuman, 2006).

Neuman (2006) explains that the purpose of social research can be organised into three groups, namely exploratory, descriptive and explanatory.

Yin (1984) and

Sekaran (2004) add another purpose, namely case study analysis. According to Neuman (2006), researches may have multiple purposes (e.g. to explore or both to explore and to describe), but one purpose is usually dominant. In addition, Neuman also explains that the selection of the most suitable purpose, besides based on what the researcher is trying to accomplish, also depends on the characteristics of research purposes (Table 4.1).

Table 4.1: Characteristics of the research purposes Exploratory

Descriptive

Explanatory

Become familiar with the basic facts, setting, and concern.

Provide a detailed, highly accurate picture.

Test a theory’s predictions or principle.

Locate new data contradict past data.

Elaborate and enrich theory’s explanation.

Create a general mental picture of conditions.

that

a

Create a set of categories or classify types.

Extend a theory to new issues or topics.

Clarify a sequence of steps or stages.

Support or refute an explanation or prediction.

Generate new ideas, conjectures, or hypotheses.

Document a causal process or mechanism.

Link issues or topics with a general principle.

Determine the feasibility of conducting research.

Report on the background or context of a situation.

Determine which of several explanations is best.

Formulate questions research.

and for

focus future

Develop techniques for measuring and locating future data.

Source: Neuman (2006:34) This research is conducted to achieve both exploratory and descriptive research fundamentals. Its purposes are to highlight the issue of housing oversupply which exist throughout the country and to explore the issue in the context of the system and practice of land use planning. The main purpose of this research is to evaluate the effectiveness of land use planning mechanisms and identify the weaknesses, issues and problems in planning and controlling housing supply.

104 4.3

Research Framework and Design Research framework and design act as a model for conducting the actual

research which eventually becomes a guidance to the steps to be taken or stages undergone by the researcher (Ghani, 1991; Sharp and Howard, 1996; Foziah, 2006; Neuman, 2006). The research framework can be translated in the form of steps in the research process. The exact sequence and steps, however slightly vary depends on the type and approach of the research adopted. According to Neuman (2006), either quantitative or qualitative, research essentially involves seven major steps (Figure 4.1).

QUANTITATIVE RESEARCH

QUALITATIVE RESEARCH 1. Acknowledge Social Self

1. Select Topic 7. Inform Others

2. Focus Question THEORY

6. Interpret Data

3. Design Study

5. Analyse Data

4. Collect Data

7. Inform Others

2. Adopt Perspective THEORY

6. Interpret Data

3. Design Study

5. Analyse Data

4. Collect Data

Figure 4.1: Steps in the quantitative and qualitative researches Source: Neuman (2006:15) Neuman (2006) clarifies that the process of conducting a quantitative research begins with a researcher selecting a topic or general area to be studied (step 1), followed by narrowing it down to, or focussing on, a specific research question that can be addressed in the study (step 2). Qualitative researchers, on the other hand, begin with a self-assessment and reflections about themselves as situated in a sociohistorical context (step 1). Qualitative researches do not narrowly focus on a specific question, but ponder the theoretical-philosophical paradigm in an inquisitive, open ended settling in process as they adopt a perspective (step 2).

105 According to Neuman (2006), both quantitative and qualitative researches share the same process from step 3 to step 6 by designing a study, collecting, analysing and interpreting the data. For the last step, to inform others (step 7), although it is similar for both approaches, the report styles to present results vary by approach. The process for both research approaches is not strictly linear. It may flow in several directions before reaching an end. Neuman (2006) explains that the research does not end abruptly at step 7 (inform others). It is an ongoing process, and the end of one study often stimulates new thinking and fresh research questions.

The formation of research framework can also be examined in the perspective of hypothetico-deductive research method. According to Sekaran (2003), the hypothetico-deductive

research

method

starts

with

establishing

theoretical

framework, formulating hypotheses and logically deducing the results of the study.

This research method will go through the process of initially observing phenomena, identifying the problem, constructing a theory as to what might be happening, developing hypotheses, determining aspects of the research design, collecting data, analysing the data and interpreting the results (Figure 4.2).

Observation

Identification of problem area

Theoretical framework or Network of associations

Refinement of theory

Hypotheses Interpretation of data Constructs concepts operational definitions

Analysis of data Data collection

Research design

Figure 4.2: The framework for the hypothetico-deductive research method Source: Adapted from Sekaran (2003:28)

106 The fundamentals of the formation of research framework were adapted in this research. Its process was divided into five main stages, namely preliminary study, literature study, data collection, data analysis and presenting the research findings (Figure 4.3). This research begins with identifying several issues that exist in the housing development process in Malaysia. Among the issues identified are the abandoned housing (Ho, 1992; Thillainathan, 1997), inefficient of housing delivery system, especially related to the delay and bureaucracy in housing development approval (Chan, 1997a; Alias, 2006), high housing vacancy rate (JPBD Semenanjung Malaysia, 2003a), surplus of housing approval (JPBD Semenanjung Malaysia, 2003a; 2003b) and high housing overhang and unsold rates (Valuation and Property Services Department, 2001; 2002; 2003; 2004; 2005; 2006; 2007).

The researcher perceives that the most relevant issue that can be further explored within the context of land use planning system and operation is the housing oversupply. The existence of this issue is supported by the information and data on surplus of housing approval and high rate of unoccupied, overhang and unsold housing units. During the stage of determination of research problems, this research found that there are many factors contributing to the issue, such as failure of the housing market system, speculation activity by housing developer, economic recession and weakness of the housing planning and approval process. The existence of arguments from many parties that postulate the weakness of the planning and approval process as a major contributing factor to housing oversupply had prompted this research to explore the extent that the land use planning system plays its role in planning and controlling housing supply.

Guided by the statements of research problem, the research questions, aim, objectives as well as the scope of the research were determined and underlined. This research process was subsequently followed by reviewing relevant literatures to understand the relationship between the role of land use planning system and the process of housing supply. Discussion at the literature stage is divided into two parts.

The first part, as presented in chapter 2, discusses the legislation, mechanism and the implementation of land use planning system and its role in development process and housing supply process. The second part, as elaborated in chapter 3, emphasises on the process of planning and controlling of housing supply in Malaysia.

Identifying housing planning and development issues Significant issue : Housing oversupply

Contributing factors to oversupply Relationship and influence of the planning system in the process of housing supply

DETERMINATION OF RESEARCH FIELD AND PROBLEMS

Formation of Research Questions and Establishment of Research Aim, Objectives, Scope and Methodology

PRELIMINARY STUDY

107

LAND USE PLANNING SYSTEM AND HOUSING DEVELOPMENT PROCESS • Background of land use planning system • Legislation, mechanism and implementation of land use planning • Significance of planning in development process • Land use planning system and housing supply process

PROCESS OF PLANNING AND CONTROLLING OF HOUSING SUPPLY • Housing development process • The planning of housing supply • The controlling of housing supply • The objectives of housing planning • Framework of the process of planning and controlling of housing supply

LITERATURE STUDY

LITERATURE REVIEWS

Formation of Research Model

Designing the Actual Research

Content Analysis of planning documents (structure plan, local plan and application files)

Questionnaire Survey on town planners

In-depth interview with experienced town planners

DATA COLLECTION

DATA COLLECTION

Effectiveness of the process of planning and controlling of housing supply

Town planners’ perception on the practice and effectiveness of housing supply planning

Town planners’ views on the issues and problems in planning and controlling housing supply

DATA ANALYSIS

DATA ANALYSIS

SYNTHESISING AND REPORTING FINDINGS Implication to the theoretical fundamentals and practice of urban planning.

Outline the framework to improve and strengthen the planning and controlling of housing supply

Figure 4.3: The research process

Identify suitable areas for further research

RESEARCH FINDINGS

Interpretation of the Results

108 This research then proceeds to design the actual research for the case study.

Yin (1994:19) defines research design as “an action plan for getting ‘here’ to ‘there’, where `here’ may be defined as the initial set of questions to be answered, and ‘there’ is some set of conclusions (answer) about these questions. Between ‘here’ and `there’ may be found a number of major steps, including the collection and analysis of relevant data”. Research design acts as a ‘blueprint’ of research that deals with what questions to study, what data are relevant, what data to collect and how to analyse the result (Yin, 1994; Denzin and Lincoln, 1994).

Yin (1994), who discusses the element of research design in the perspective of case study analysis, clarifies that there are five important components that need to be considered in designing the research, namely a study questions, its propositions, its unit(s) of analysis, the logic linking the data to the propositions and the criteria for interpreting the findings. Sekaran (2003), on the other hand, presents the detailed flow of the research design, encompassing the purpose of study, the types of investigation, the extent of researcher interference, the study setting, the unit of analysis, the time horizon, measurement and measures, data collection methods, sampling design and data analysis (Figure 4.4).

MEASUREMENT

PROBLEM STATEMENT

DETAILS OF STUDY

Purpose of the study

Types of investigation

Extent of researcher interference

Study setting

Measurement and measures

Exploration Description Hypothesistesting

Establishing: - Causal relationships - Correlations - Group differences, ranks, etc

- Minimal: Studying events as they normally occur - Manipulation and/ or control and/ or simulation

- Contrived - Noncontrived

- Operational definition - Items (measure) - Scaling - Categorizing - Coding

DATA ANALYSIS

1. Feel for data

2. Goodness of data Unit of analysis (Population to be studied) Individuals Dyads Groups Organisations Machines, etc

Sampling design Probability/ nonprobability

Time horizon

Data collection

One-shot (crosssectional) Longitudinal

Observation Interview Questionnaire Physicalmeasurement Unobtrusive

Sample size (n)

Figure 4.4: The flow of research design Source: Sekaran (2003:118)

3. Hypothesis testing

109 Syed Arabi (1992) highlights that by carefully designing the research, it enables the researcher to make an early decision on the types of data to be collected, where and how to collect the data, where the study will be conducted, what types of analysis will be applied, how to analyse the data and what are the expected results from the study conducted. Based on the above explanation, research design can be briefly understood as a logical sequence that connects the empirical data to study’s initial research question and ultimately, to its conclusions.

This research shares some of the important elements of research design as posed by Yin (1994), Denzin and Lincoln (1994) and Sekaran (2003). It begins with the selection of the case study area, namely Johor Bahru Conurbation (JBC) area, determination of an appropriate unit(s) of analysis, followed by the planning for gathering primary data and analysing the data.

The determination of unit of analysis basically refers to the level of aggregation of the data collected during the subsequent data analysis stage or in brief, the population to be studied (Sekaran, 2004). It can be an individual, dyads, groups, institutions, organizations, system as well as machines (Johari, 1983; Syed Arabi, 1992; Sekaran 2003). For this research, the unit of analysis is determined based on the methods used in collecting the data, which are content analysis, questionnaire survey and in-depth interview. The planning documents, namely SP, LP and housing development applications were determined as the unit of analysis for the method of content analysis, while the town planners in the study area were selected as the unit of analysis and become a key informant for the questionnaire survey and in-depth interview.

The third research stage is data collection. As mentioned above, triangulation method was applied in eliciting relevant data through the methods of content analysis, questionnaire survey and in-depth interview. At the fourth stage, the data and information collected were analysed in two forms, namely quantitative and qualitative, depending on the types of data. The final stage, after the results are interpreted, is to report the findings. The findings of the research will then be interplayed with the research questions and objectives as underlined during the preliminary study.

110 4.4

Research Approach There are two basic methodological traditions in the social science research,

namely positivism and post-positivism. Finch (1986:7) describes positivism as ‘an approach to the creation of knowledge through research which emphasizes on the model of natural science. The scientist adopts the position of objective researcher, who collected facts about the social world and then builds up an explanation of social life by arranging such facts in a chain of causality’.

In contrast, post-positivism is about a reality which is socially constructed rather than objectively determined. According to Easterby-Smith et al. (1991), the task of social scientist should not be to gather facts and measure how often certain patterns occur, but to appreciate the different constructions and meanings that people place upon their experience. Post-positivism which deals with understanding the subjectivity of social phenomena requires a qualitative research approach. On the other hand, positivism, which is based on the natural science model of dealing with facts is more closely associated with quantitative approach (Khairul Baharein, 2001).

Quantitative research approach, according to Neuman (2006), is concerned with measurement issues. Quantitative researchers treat measurement as a distinct step in the research process that occurs prior to the data collection, and they developed special terminology and techniques for it. They adopt a deductive approach, and begin with a concept, then create empirical measures that precisely capture it in a form that can be expressed in numbers. They also condense data in order to see the big picture (Ragin, 1994).

Qualitative research approach, in contrast, approaches measurement very differently. Qualitative researchers develop ways to capture and express concepts using various alternatives to numbers. They often take an inductive approach and create new concepts as part of measuring (Neuman, 2006). According to Denzin and Lincoln (1994), the qualitative research emphasizes on the process and meanings that are not rigorously examined and measured in terms of quantity, amount, intensity or frequency. The qualitative method is best understood as data enhancers that enable the researcher to see key aspects of cases more clearly (Ragin, 1994).

111 Although the two approaches, as listed in Table 4.2, differ in significant ways, they still share basic principles of science. Each approach has its strengths and limitations and uses several specific research techniques, such as survey, interview and historical analysis, yet there is much overlap between the type of data and the approach to research. Most qualitative researchers generally accept the basic principles of the quantitative research and examine quantitative data (Judith, 1993; Neuman, 2006).

Table 4.2: Differences between quantitative and qualitative research approaches Quantitative Approach Measure objective facts

Qualitative Approach Construct social reality, cultural meaning

Focus on variables

Focus on interactive processes, events

Reliability is key

Authenticity is key

Value Free

Values are present and explicit

Theory and data are separated

Theory and data are fused

Independent of context

Situationally constrained

Many cases, subjects

Few cases, subjects

Researcher is detached

Researcher is involved

Source: Neuman (2006:13) The application of either quantitative or qualitative researches frequently becomes a debatable item among the social science researchers. Neuman (2006) clarifies that there are a lot of ill wills between the followers of each research approach. Some find it difficult to understand or appreciate the other approach.

Denzin and Lincoln (2003), for instance, argue that qualitative research expanded greatly and is rapidly displacing outdated quantitative research. Levine (1993), on the other hand, stresses that though the quantitative social science faced opposition, but it ‘won the battle’.

In the reality of social sciences, there are instances where researchers are interested to discover and interpret certain matters, issues or phenomena in depth through qualitative approach. Simultaneously, there are also researchers who focussed on the hypotheses testing. Thus, the quantitative approach is more applicable to them, not qualitative approach (Merriam, 1988). Based on this understanding, it may be assumed that the choice of which approach or method of

112 analysis to be employed is dependent upon the nature of the research problems (Khairul Baharein, 2001) or the nature of social phenomena to be explored (Morgan and Smircich, 1980) as well as the nature of the inquiry and the type of information required (Judith, 1993). It is also of course depends on the aim, objectives and the purposes of every research.

For this research, it deals with the evaluation about the housing oversupply issue, what are the contributing factors and the extent of it is contributed by the operation of land use planning system.

Considering the nature of evaluation

research, thus the qualitative method of analysis was deemed appropriate in gathering and analysing the data. This approach is seen as the most suitable approach to evaluate the effectiveness of the process, activity and outcomes of development plan and planning control mechanisms in planning housing supply.

The adoption of qualitative approach for this research is also in line with the view by Cassell and Symon (1994:5), who argue that ‘only qualitative method is sensitive enough to allow the detailed analysis on investigation and evaluation’. By applying the approach, the research emphasis is given to understand the processes and meanings, which do not require a high level of statistical analysis or detailed measurement in terms of quantity and intensity. This is because the main concern of this research is to seek insights rather than statistical analysis. This approach is greatly used in urban planning researches. It was applied by Johari (1983), Rydin (1985), Mohd Anuar (1991), Mahbob (1992), Asiah (1999), Kamariah (2002), Foziah (2002) and Hairul Nizam (2005).

It should be noted that although this research is conducted in qualitative manner, but in clarifying certain information, some of the data were analysed quantitatively in the form of descriptive statistics. It means that this research also employs a quantitative approach to support and complement the qualitative method of analysis as the leading approach. The application of these approaches, were translated for the purposes of measurement, data collection and data analysis in this research. The next sections will explain these aspects in detail.

113 4.5

The Research Model Research model is a concept that explains the logical relationship of theories

with several constructs identified important to evaluate certain phenomena, events or problems (Putt and Springer, 1989; Sekaran, 2003; Adi Irfan et al., 2006). A rationalised and effective model is an essential prerequisite to the success of every research (Johari, 1983). According to Naoum (1998), the model for a research can be developed in three ways, namely through a self developed framework (based on literature reviews, observation, experience, informal interviews, etc), applying an established previous research models or through a modification of existing models.

This research applies a self-developed model that is derived from the framework of the process of planning and controlling of housing in Malaysia, discussion with the actors that have an insight knowledge in planning and housing fields as well as based on the researcher’s working experience in the area. In this research, the concept of effectiveness of land use planning system is measured in two perspectives, first, the comprehensiveness of the activities housing planning and control and second, the achievement of the objectives of housing planning (Figure 4.5).

The first perspective measures in detail the activities conducted throughout the process of planning and controlling of housing supply which comprises future housing forecast, formulation of housing policy, determination of housing land area, distribution of housing location and control of housing development. The comprehensiveness of the activities are assessed based on several measurement criteria, such as accuracy, adequacy, compliance, decision and outcomes of each activity as further explained in section 4.9.

The performance of planning mechanisms (SP, LP and planning control) in achieving the housing planning objectives are assessed using each of the housing objectives, i.e. meeting housing needs, fulfilling housing demand, considering market demand and balancing supply with the demand of housing as measurement criteria.

114 MEASUREMENT DIMENSION PLANNING MECHANISM

SUB-MEASUREMENT DIMENSION – ACTIVITY OF PLANNING AND CONTROLLING OF HOUSING SUPPLY

MEASUREMENT 1: COMPREHENSIVENESS OF THE ACTIVITY Measurement Criteria

MEASUREMENT 2: ACHIEVEMENT OF PLANNING MECHANISM TOWARDS THE OBJECTIVE OF HOUSING PLANNING

Accuracy Future housing forecasting Outcome

STRUCTURE PLAN

Outcome Formulation of housing policy

Future housing forecasting

Adequacy

Measurement Criteria

Accuracy

Meeting housing Needs

Outcome

Fulfilling housing demands

Accuracy

Considering market demand criteria

Outcome

Balancing supply and demand

Determination of housing land area

LOCAL PLAN

Distribution of housing location

Consideration Outcome Compliance

PLANNING CONTROL

Controlling of housing development

Consideration Outcome

Figure 4.5: The research model for assessing the effectiveness of the process of planning and controlling of housing supply

4.6

Research Strategy Triangulation of approach, measure and method are adopted as a strategy for

this research. Denzin (1970), Putt and Springer (1989) and Neuman (2006) view triangulation as a comprehensive research strategy that incorporates the use of whether multiple measures, data sources, investigators, theory or multiple methods of data collection. In simple term, triangulation can be described as a process of

115 looking at something from several angles rather than looking it in one way (Neuman, 2006).

In line with the strategy adopted, the effectiveness of land use planning system in planning and controlling housing supply was assessed in sequence using three methods of measurement as follows: (i)

Evaluating the effectiveness based on the actual facts (written statements) and figures related to the planning and controlling of housing supply. The data for this measurement are elicited using the method of content analysis. It is analysed both qualitatively and quantitatively;

(ii)

Evaluating the effectiveness based on the perception of respondents (town planner) towards the practice and process of planning and controlling of housing supply. The data for this measurement were collected through questionnaire survey and analysed quantitatively in the form of descriptive statistics; and

(iii)

Investigating in depth the issues and problems of the process of planning and controlling of housing supply. The information are collected through an indepth interview with selected respondents (experienced town planners) and analysed qualitatively.

A similar research strategy was applied by Asiah (1999) who studied about

the perception of developers on the effect of planning system to the housing development. Asiah (1999) begins with a quantitative study, through a survey on housing developers in the case study areas, followed by an in-depth study on selected developers. The data from questionnaire survey were analysed quantitatively by employing several statistical techniques. The quantitative results then were used as a basis for the qualitative study. For this research, the analyses of documents, survey and in-depth interview will ensure the effectiveness of the land use planning system in planning and controlling housing supply is measured and evaluated thoroughly.

116 4.7

Method of Data Collection As mentioned above, this research applies triangulation approach in gathering

the data through content analysis of planning documents, questionnaire surveys and in-depth interviews.

4.7.1

Content Analysis of Planning Documents Content analysis becomes the primary data collection method for this

research. The content analysis is defined as a technique for gathering and analysing the data from text by utilizing a set of procedures to make valid inferences of data in describing the actual context (Berelson, 1952; Stone et al., 1966; Krippendorf, 1980; Weber, 1985; 1990; Neuman, 1991). This method is originally used in the communication research through a systematic, objective and quantitative analysis of message characteristics (Berelson, 1952; Syed Arabi, 1992; Neuendorf, 2002).

According to Sharp and Howard (1996), the aim of content analysis is to put qualitative data into a more quantitative framework. Even, Wilkinson (1997) argues that the best content analysis studies should utilize both qualitative and quantitative data and operation to produce a systematic and comprehensive analysis on text.

Through content analysis, the antithetical modes of analysis between quantitative and qualitative data that are usually arguable could be combined (Weber, 1985).

This method, although widely used in communication research, was also applied in many areas, such as analysing official texts for political purposes (Sharp and Howard, 1996), interpretation of

legal documents for certain subjects

(Krippendorff, 1980), assessment of the efficiency of local authority property management division (Shardy, 2007) and evaluation of practices and effectiveness of the planning policy, strategy and actions (Rydin, 1985; Bramley et al., 1995; Bruff and Wood, 2000; Berke and Conroy, 2000; Foziah, 2002; Kamariah, 2002).

In urban planning research, this method is mostly applied in evaluating the content of development plans and information on development applications. Bruff

117 and Wood (2002) use this method to evaluate the incorporation of policy directions of sustainable development in unitary development plans in United Kingdom, while Foziah (2002) and Kamariah (2002) use it to analyse the content of LPs related to the consideration of environmental aspects and sustainable development principles. In the context of housing planning, Rydin (1985) and Bramley et al. (1995) apply the method to examine the contents of planning documents aimed to evaluate the effects and constraints of the planning system to housing development.

In this research, the method of content analysis is applied to elicit and evaluate the data in the form of facts (written statements) and figures from SP, LP and housing development applications which had been prepared and approved in the study area from 1985 until the end of 2006.

Considering that each planning

mechanism has different roles in the context of housing planning process as clarified in chapter 3, different questionnaire or pro-forma needs to be designed to gather data from each document. For this purpose, three (3) predetermined pro-formas were developed. Pro-forma 1 is designed to gather the data from the document of SP, followed by pro-forma 2 for the document of LP and pro-forma 3 for housing development applications.

4.7.1.1 Documents of Structure Plan The content analysis of SP was conducted to gather and evaluate the facts and figures related to the activities of forecasting future housing requirement and formulation of housing policies as contained in seven (n=7) SPs, out of eight, in the study area (section 5.5.1). The MBJB (Second Alteration) SP was intentionally excluded as a sample for this research since its focus is on commercial planning sector in the Johor Bahru central planning area. In gathering the data, three main reports for each SP, that is the inception report, report of survey (RoS) and final report (draft of SP) which amounted to 21 reports were evaluated.

As mentioned above, the data was gathered using predetermined semistructured pro-forma (Pro-forma 1) which is divided into five sections (Appendix D).

Section A focuses on the profile of SP, followed by Section B which is concentrated

118 on identifying specific issues related to housing supply, objectives and general proposals on the planning of housing supply as underlined in each SP. The data related to the activities of housing forecasts and formulation of housing policies were respectively structured in Section C and Section D. Section C collects the data related to the method or technique of forecasting, aspects considered, time-frame and outcomes of forecasting, while Section D concentrates on written statements of housing planning policy. This pro-forma ends with Section E which explores other matters related to the consideration of effective demand and market demand.

In finalizing the pro-forma, a pilot survey was conducted by examining four SPs, namely Kota Tinggi District Council SP, Muar Municipal Council SP, Pontian District Council SP and Kulai District Council SP. The pilot survey is important to ensure all the information required is fully covered in the pro-forma. The pro-forma 1’s pilot survey as well as pilot surveys for pro-forma 2 (local plan) and pro-forma 3 (housing development applications) were conducted by researcher assisted by one of the principals of a planning consultant and another researcher who is also carrying out a research in the planning field. The pro-formas were also referred to the practitioners, particularly government and private town planners, who are involved in the preparation of development plans and planning control process. The weakness and incompleteness of the contents (questions, terms and criteria) identified during the pilot survey and comments gathered from practitioners are useful in completing the pro-formas, thus making the task of data gathering easier and efficient.

The actual survey of content analysis of the study area’s SPs were personally conducted by researcher to ensure consistency in examining and capturing of statements and facts from the varied reports. Thus, the process of translating the data into the predetermined pro-forma becomes more accurate. In terms of the period of conducting the content analysis for each SP, it took an average time of around 4 hours. For some of the SPs, particularly MBJB, Mukim Plentong and Pasir Gudang SP and Johor SSP, as much as up to 6 hours each are needed. This survey was conducted from 27th December 2006 to 14th January 2007.

119 4.7.1.2 Documents of Local Plan The content analysis of LP was conducted to gather and evaluate the facts and figures related to the activities of forecasting of future housing requirement, determination of housing land area and distribution of locations for future housing supply as contained in seven (n=7) LPs in the study area (section 5.5.1). It involved three main reports for each LP, namely the inception report, technical report and final LP report. By right, a total of 21 reports should be evaluated. However, as some reports, particularly the Tampoi, Larkin and Kempas LP which were prepared in 1986 could not be completely collected, only 19 reports were examined.

Similar to the SP, the statements and data in the LPs were gathered using predetermined semi-structured pro-forma (Pro-forma 2) which was divided into six sections (Appendix E). Section A focuses on the background of each LP which was arranged similar to the SP profile. Section B was designed to explore housing supply issues as well as proposals and strategies to overcome the issues as contained in each LP. The main data that need to be elicited in exercising the content analysis of LP were arranged separately in Sections C, D and E. For Section C, which is on housing forecasting, it gathers similar data as captured for the SP content analysis, i.e. the method or technique of forecasting, aspects considered in forecasting, time-frame and outcomes of forecasting. Section D concentrates on gathering the data on housing land area and quantity as determined in each LP. The data collected consists of figures on future total housing land area, the extent to which the figure tallies with the housing forecasting as calculated in each LP, time-frame and outcomes of distribution of housing land area.

Section E concentrates on gathering data related to method, time-frame, breakdown and the extent of the elements of expected future market demand which are considered in distributing locations for future housing development. This proforma ends with the examination of other matters related to the planning of housing supply as structured in Section F. It covers data related to consideration of effective demand and market demand.

120 The pro-forma was also finalised by conducting a pilot survey as done for completing the SP’s pro-forma.

During pilot survey, four LPs, namely Bandar

Maharani LP, Bandar Kota Tinggi LP, Batu Pahat District LP and Johor Bahru District LP were examined. The actual content analysis for the study area’s LP documents were conducted by researcher to ensure consistency and accuracy in capturing and examining the statements and facts in the various reports. It was conducted from 2nd to 8th January 2007.

An average time of around 3 hours was

spent for each LP, except for the Johor Bahru District LP which took 6 hours.

4.7.1.3 Housing Development Application Files The content analysis of housing development application files are carried out to evaluate the extent of effectiveness of planning control process in controlling and approving housing supply. An examination on the application files is important because all information from the stage of submission until the stage of planning approval is recorded in the application files. Thus, the status of housing development approval, the extent of its compliance to the provisions of SP and LP and what are the conditions imposed for each application can be recorded.

In the context of planning research, similar method was applied by Foziah (2002) and Rydin (1985). Foziah (2002) uses this method to investigate the extent to which the environmental aspects are considered during approving the planning application. In the research, 100 planning application files collected from 24 LPAs in Peninsular Malaysia were selected as samples. In selecting those samples, purposive sampling technique was utilised by asking the planning officers to identify appropriate applications having environmental issues. Rydin (1985) applies this method to investigate the effects of planning system, process and outcome to the housing development by examining housing applications in the two case study in south east of England, namely Epping Forest District Council and Colchester Borough Council. In the research, 60 housing application files which were drawn equally from the district councils were selected as samples for the content analysis.

In the context of this research, ideally, all housing applications which were approved in the study area should be evaluated. Nevertheless, the absence of proper

121 record for planning control database in all local authorities in the study area, especially for old and small housing applications, has create difficulty in determining the actual number and the reliable list of housing applications. This problem is identified based on the discussion with the officer’s in-charge and by personally examining the application records and observing the arrangement of application files in each local authority’s file storage. The housing application files were recorded and stored together with other planning applications. The existence of this problem was also addressed by Foziah (2002) who stated that in the context of Malaysian local authorities, the development control data are quite difficult to obtain.

In this situation, an appropriate research strategy in gathering the data of housing application is needed. The purposive sampling technique as used by Foziah (2002) was applied, that is by only selecting the mega scaled housing schemes. This strategy is basically in line with the statement by Kerajaan Malaysia (1999a) that argues the issue of high rate of overhang, unsold and over-approval of housing in Malaysia is fundamentally contributed by the mega scaled housing projects.

Another problem faced in gathering the data for housing applications is in determining the appropriate size for defining mega scaled projects. This is due to the unavailability of a specific standard that can be used to determine the size of mega scaled projects. This problem, however, was overcome by referring to the provision of Section 22(2A) of Act 172. Against the provision, housing schemes which have a total area of more than 100 hectares or population of more than 10,000 were defined as the applications to be surveyed. To synchronize with the data gathering for SP and LP, only the applications approved within the period of 1985 to 2006 were selected as samples. A total of eighty-two (n=82) housing applications in the study area were traced to have fallen under the category. The number of applications differs for each local authority, that is 29 applications in MBJB area, 37 applications in MBJBT, 11 applications in MPKu and 5 applications in the area of PBT Pasir Gudang.

The technique of eliciting the data is similar to that of the structure and local plans’ content analyses, where all the statements and figures in the application files were captured using a predetermined semi-structured pro-forma (Pro-forma 3) which is divided into three sections (Appendix F). Section A focuses on the profile of

122 housing applications, such as lot number, name of scheme, name of developer, size of application, total housing units and date of approval. Section B elicits the data related to the locality of each housing application in the context of SP and LP, while Section C focuses mainly on the status of housing development approval which involved the data, such as conformity to the development plans, consideration to the aspects of effective demand and market demand and stipulation of conditions related to development phase, density control and types of housing allowed.

To ensure all information related to the control and approval of housing supply in the application files are fully captured, this pro-forma was also finalised by conducting a pilot survey. Eight housing application files, that is two files for each local authority in the study area were examined. The actual survey for this content analysis was conducted by researcher in the office of each local authority. A timeframe of more than one month, that is from 21st December 2006 until 31 January 2007 was spent to complete all the pro-formas. In terms of the period of conducting content analysis, generally, an average time of around 1 hour was needed for each application, except for several applications which required up to 2 hours.

4.7.2

Questionnaire Survey The questionnaire survey has become a common method of gathering

information (Sharp and Howard, 1996). According to Silverman (2005), the application of the method is useful to gain a general as well as insight opinions from certain people or actors or stakeholders on certain subjects or phenomena. This method was frequently used in urban planning researches to obtain views from certain groups of people, such as local residents, planners, administrators, investors, tourists and developers. Noraini (1993) and Ho (1994) apply this method to seek perceptions from residents and households on housing preferences and sustainable housing delivery system, while Foziah (2002) and Kamariah (2002) apply it to obtain views related to the consideration of environmental aspects and sustainable development principles in local planning from town planners and actors involved in the preparation of LP.

123 In this research, the survey is conducted to seek perceptions on the practice and effectiveness of each activity of housing planning. For this purpose, sixty-one (N=61) town planners in the study area comprises both government and private planners were selected as respondents. The town planner was selected in line with the significant role played by them in the process of planning and development of housing. In an empirical urban planning research, the town planner was frequently selected either as a main or partial respondent. This was identified in the researches conducted by Rydin (1985), Mohd. Anuar (1991), Abdul Munit (1996), Foziah (2002), Kamariah (2002), Hairul (2005) and Dani (2009).

The survey was conducted using a set of structured questionnaire which is divided into eight sections (Appendix G). Section A seeks to gather information on the profile of respondents, followed by Section B which focuses on obtaining general perceptions on housing development issues. Sections C, D and E were designed to explore the respondent’s perceptions on the practice of the planning and controlling of housing supply. As the purpose of this research is to explore in depth the extent to which the phenomenon of housing oversupply was contributed by the process and practice of housing planning, thus questions were arranged in an investigation style.

It means that the first question in each section interrelates with the second and subsequent questions.

Section C focuses on the practice of conducting the housing forecasts and formulation of housing policies in the SP, while section D concentrates on the practice of housing forecasts, determination of housing land area and distribution of housing location as conducted during the preparation of LP. Section E emphasises on the practice of controlling housing supply by the planning authorities.

The variables or questions for all the three sections were measured using ordinal scale. This measurement scale was translated for gathering the data by adopting the Likert scale which is widely used in survey research (Neuman, 2006).

This scale basically becomes a common rating scale applied in designing of the questionnaire especially to gain perceptions from respondents (Putt and Springer 1989; Sekaran, 2003). The usual 5-point scale were used, that is, 1 as ‘strongly agree’, 2 ‘agree’, 3 ‘unsure’, 4 ‘disagree’ and 5 ‘strongly disagree’.

124 Next, Section F focuses on gaining the respondents’ perceptions on the level of effectiveness of each housing planning activity. In this section, variables were also measured using the ordinal scale, where the attitudinal responses which were expected to be answered by respondents were arranged by applying the itemized rating scale. The 5-point scale was itemized according to the unbalanced rating, as defined by Sekaran (2003), without neutral point. Choices of answer were arranged from 1 representing ‘not effective’, 2 ‘less effective’, 3 ‘quite effective’, 4 ‘effective’ and 5 ‘very effective’. The application of itemized rating scale enables the researcher to apply the statistical analysis, particularly the analysis of central tendency to summarize the characteristics of data sets, other than analysis of frequency distribution (Putt and Springer, 1989).

The questionnaire continued through section G which focuses on the perception about the fulfillment of objective of meeting housing needs and section H which tries to obtain general opinion on how to strengthen the process of housing planning. To streamline the questionnaire form, a pilot survey was conducted from 15th to 21st November 2006 by approaching twelve practitioners who were directly involved in the housing planning process in the study area. The pilot survey is useful not only to identify the weakness and incompleteness of the contents of questionnaire and the arrangement of questions, but also important to ensure all information related to the research problems and questions are fully covered.

Immediately after finalizing the questionnaire form, the actual survey was conducted by the researcher in almost 1 month period from 23rd November 2006 until 21st December 2006. In ensuring consistency and clarity in questioning the respondents as well as to avoid misinterpretation among the respondents, the survey was done through face-to-face interview with each respondent. By applying this technique, high response rate is ensured where all of the 61 town planners in the study area were successfully interviewed. However, as highlighted by Putt and Springer (1989), Sekaran (2003) and Neuman (2006), this technique also have several disadvantages, such as poor in avoiding interviewer’s bias, incurred expensive administrative costs and also slow in terms of period of collecting data, as compared to the telephone interviews, mail questionnaires or web surveys.

125 4.7.3

In-Depth Interview An in-depth interview was defined as a neutral means of extracting

information (Holstein and Gubrium, 1997). According to Weiss (1994), conducting an in-depth interview does not only give the researchers an access to the observation of others, but also learn about what people perceived and how they interpreted their views.

Most social scientists see an in-depth interview as providing higher quality information that is freer from bias than many other methods. Even, according to Sharp and Howard (1996), in a new field, a programme of interviews may be the only way of obtaining a realistic picture of the way people view it. This method, as suggested by Miller and Glassner (1997), can be done through ‘pure’ interview or by unstructured and open-ended interviewing which can elicit ‘authentic accounts of subjective experience’.

For this research, an in-depth interview was conducted to validate and seek an insight views on the specific or significant matters, issues and problems related to the housing planning process as revealed by the results of content analysis and questionnaire survey. The purposive sampling technique was applied to select appropriate respondents by choosing senior town planners who have an experience of more than 10 years and directly involved in all the three planning mechanisms in the study area.

A total of sixteen (n=16) respondents, comprises seven (n=7) government town planners and nine (n=9) private town planners were interviewed from 4th May to 13th June 2007. These respondents were identified after analyzing the data of respondents’ profile collected during questionnaire survey. To simplify the transcribing process, respondents were coded as GP for government town planner, that is from GP1 to GP7, and PP for private town planner, that is from PP1 to PP9.

The process of gathering data from an in-depth interview involved several activities as shown in Figure 4.6.

126

Identifying key findings from content analysis of SP (n=7) and LP (N=7) and housing development applications (n=82)

Identifying key findings from questionnaire survey (N=61)

Prepare an in-depth interview agenda (open-ended questions)

Selection of respondent (n=16 town planners who have a working experience of more than 10 years and involved in all the three planning mechanisms in the study area)

The respondents signed the interview form

Conducting interview (validation was done immediately after the end of interview’s session)

Selected respondents are identified through purposive sampling technique using data from questionnaire survey (respondents profile)

Ask the questions and write sentence and key points (without using tape recorder) for certain reasons

Transcribing text (answers) for each respondent (original text is in mixed Malay and English)

Figure 4.6: The process of gathering data from an in-depth interview In line with the purpose to obtain detailed information which could not be elicited from the content analysis and questionnaire survey, open-ended questions have been formed in a set of interview agenda. The interview agenda was designed similar to what has been arranged in the questionnaire form to ensure uniformity in terms of the arrangement of questions. It comprises eight questions which basically try to gain an insight views on the issues and problems as well as to dig the reasons behind the current practices of housing planning in the study area (Appendix H).

4.8

Reliability and Validity Reliability and validity are two essential characteristics that need to be

exercised to assess the appropriateness and usefulness of measurement instruments of the research (Asiah, 1999; Neuman, 2006). Reliability can be comprehended as the extent of consistency and accuracy of the measurement procedures in measuring certain concepts under study, while validity in general term refers to the extent to

127 which the instruments measure what it is designed to measure (Wiersma, 1986; Putt and Springer, 1989; Syed Arabi, 1992; Sekaran, 2003; Neuman, 2006).

Technically, reliability was defined from various angles. Putt and Springer (1989) and Syed Arabi (1992) refer reliability to the precision and accuracy of measurement procedures used in generating data, while Carmines and Zeller (1979) and Neuendorf (2002) define reliability as the extent to which the experiment, test or a measuring procedure yield the same results on repeated trials. Kirk and Miller (1986), on the other hand, define reliability as the degree to which the finding is independent of accidental circumstances of the research.

The concept of reliability can be explored in three perspectives. Firstly, to what extent will the same set of measurement if measured over and over again, give the same results. Secondly, concerning the true measuring instrument, that is to what extent have the accurate measures been applied. The third is related to the element of error of measurement, where if there is an error of measurement in the measuring instrument, the instrument can be argued as less or unreliable.

Reliability is a necessary but not sufficient condition of the value of research results and their interpretation (Kerlinger, 1973). According to Putt and Springer (1989), high reliability is not only guaranteed by the data quality because there is a possibility that the wrong concept is being measured with great precision or perhaps due to error in other sources of measurement. In quantitative research, reliability becomes a key to the perfection of the research. Quantitative researchers normally treat measurement of reliability as a distinct step in the research process (Neuman, 2006). According to Syed Arabi (1992) and Sekaran (2003), the reliability of the research can be measured in terms of stability and consistency.

Qualitative research, on the other hand, although accepts the basic principles of the quantitative research’s reliability, applies the principles differently. According to Neuman (2006), qualitative researchers normally develop ways to capture and express the concepts using various alternatives or multiple methods of measurement, such as interviews, participation and document studies to record their observations consistently. They often take an inductive approach, creating new concepts as part of

128 measuring. Qualitative researchers want to be consistent in how, over time, they make observations, similar to the idea of stability reliability.

This research applies the concept and principles of reliability in qualitative research. High reliability of measuring instrument is assumed achieved by applying the multiple methods of data gathering, that is through content analysis of planning documents, as a first step which revealed the facts and figures related to the effectiveness of each housing planning activities, followed by obtaining general perceptions (second step) and insight views (third step) from the respondents (town planners) involved in the housing planning process.

The in-depth interviews with experienced town planners (third step) had not only succeeded in clarifying a detailed or insight description on the effectiveness of housing planning process, but also revealed other issues, such as why some of the planning activities had failed to plan the housing supply and what are the factors contributing to the ineffectiveness of housing planning process. In addition, to ensure the reliability of measurement quality, a number of research strategies as suggested by Neuman (2006) and Putt and Springer (1989) were used in this research by standardising the research procedures, increasing the level of measurement, using multiple indicators and scales and conducting a pilot study for every measuring instrument.

Further to reliability, high validity of measurement is also important in an empirical research. Putt and Springer (1989) and Syed Arabi (1992) define validity as a determination of whether an indicator truly measures the concept it is intended to measure, while Sekaran (2003) refers validity as truthfulness, that is how well an idea ‘fits’ with actual reality. According to Neuman (2006), the concern of validity is on two aspects. The first is that the measuring instrument only measures the concept that becomes a concern of the research under study, and not any other concepts, while the second is that the concept is measured accurately. Similar to reliability, quantitative and qualitative researchers see validity in the research process differently.

129 In quantitative research, measurement validity can be tested by exercising three types of validity, that is content validity, criterion validity and construct validity (Putt and Springer, 1989; Syed Arabi, 1992. These tests are important in quantitative research to demonstrate a fixed correspondence between a carefully defined abstract concept and a precisely calibrated measure of its empirical appearance (Neuman, 2006). These tests, however, are not required to measure the validity of the qualitative research. In qualitative research, the researchers are more interested in authenticity than in the idea of a single version of truth. According to Neuman (2006), authenticity means giving a fair, honest and balanced account of social life from the viewpoint of someone who lives or practices it every day.

Qualitative researchers are less concerned with matching an abstract construct to empirical data, but more concerned with giving a candid portrayal of social life that is true to the experience of people being studied. Most qualitative researchers concentrate on capturing an insight view and providing a detailed account of how those being studied understand the events (Neuman, 2006).

The use of the

instruments in qualitative research, such as an interview, had not only brought the researcher nearer to the subject of the research, but also enabled him to reveal an insight and detailed information.

The principles of validity in qualitative research were applied in this research by conducting an in-depth interview as one of the instruments to explore the concept of effectiveness of the planning system in planning and controlling housing supply.

Similar concept was also measured through conducting the content analysis of planning documents and perception survey. To ascertain that the concept is truly measured, each measuring instrument was designed to evaluate similar dimensions of the concept of effectiveness as stipulated in the research model (section 4.5).

As complimentary concepts, reliability and validity are interrelated.

Reliability is necessary for validity (Neuman, 2006). In other words, adequate reliability is a precondition to validity. Triangulation in gathering the data as applied in this research can be considered as one of the strategies to reduce errors of reliability and validity which will simultaneously improve the measurement quality, adding to clarity and usefulness of information.

130 4.9

Data Analysis The process of analysing the data, either quantitative or qualitative, is one of

the important steps that need to be carefully carried out in conducting the empirical research (Shardy, 2007). Its purpose is to obtain an answer for each research question (Syed Arabi, 1992). In this research, both quantitative and qualitative data have been collected through various methods and instruments. Thus, different methods of data analysis have to be applied. For quantitative data as collected either through proforma or questionnaire, they were analysed quantitatively in the form of descriptive statistics using the Statistical Package for Social Science (SPSS) Version 11.5.

For qualitative data collected through content analysis and in-depth interview, they were analysed qualitatively. Prior to analysing the data for each instrument, appropriate steps were taken to edit and check the raw data, handle a balance responses, construct new code or recode of responses especially for semi-structured questions, format and label all variables in the SPSS Data Editor and enter the data.

A special format or check-list to analyse the data for each instrument, particularly for the quantitative data was also prepared as a guidance to simplify the process of entering and analysing the data.

4.9.1

Data Analysis from Pro-Forma All the three pro-forma of content analysis are designed to collect both

quantitative and qualitative data. Quantitative data refers to the data which can be quantified as generated from the predetermined or fixed answers in the structured questions and from the answers that involved the process of recoding which are produced by the semi-structured questions. For qualitative data that is derived from the open-ended questions, it comprises original statements and figures from the documents of SP, LP and housing application files. Due to the differences in terms of the purpose of data gathering and contents of question, data collected from those proformas have to be analysed separately.

131 The data analysis for pro-forma 1 (content analysis of SP) and pro-forma 2 (content analysis of LP) were arranged in a similar way. It began with analysing the issues related to housing supply and objectives related to the planning of housing supply as contained in each SP and LP. This was then followed by analysing the data to evaluate the comprehensiveness of each housing planning activity, from the stage of housing forecasts to the stage of distribution of housing location.

The comprehensiveness of each housing planning activity is analysed based on the measurement criteria and score values which were determined before content analysis is conducted. The selection of measurement criteria are derived from the framework of the process of planning and controlling of housing supply (section 3.6) as well as guided by the research model adopted (section 4.5). For SP, the comprehensiveness of the activities of housing forecasting and formulation of housing policy are analysed based on the measurement criteria as listed in Table 4.3.

Table 4.3: Measurement criteria for the analysis of comprehensiveness of housing planning activity in the structure plan Housing Planning Activity Forecasting of future housing requirement (for SP areas)

Measurement Criteria Accuracy of conducting housing forecast.

Basis of forecasting (housing needs or housing demand) Forecasting period (overall planning period or by certain planning periods).

Forecasting outcome (by quantity, category or types of housing).

Formulation of housing planning policies

Formulating a policy to fulfil population housing needs and household housing demand.

Formulating a policy to plan and control housing supply according to the suitability of physical requirements.

Formulating a specific policy to ensure the actual housing market demand is considered in planning control process.

For LP, its comprehensiveness in forecasting future housing requirement, determining future housing land area and distributing locations for future housing development was analysed based on the measurement criteria listed in Table 4.4.

Similar measurement criteria were used to analyse the comprehensiveness of forecasting activity in the LP as applied while analysing the SP’s housing forecast.

132 Table 4.4: Measurement criteria for the analysis of comprehensiveness of housing planning activity in the local plan Housing Planning Activity Forecasting of future housing requirement (for local plan areas)

Measurement Criteria Accuracy of conducting housing forecast.

Basis of forecasting (housing needs or housing demand) Forecasting period (overall planning period or by certain planning periods).

Forecasting outcome (by quantity, category or types of housing).

Determination of future housing land area

Clearly specify figures on housing land area.

Accuracy of conducting the activity.

Compliance to the forecasting’s figures.

Determination period (overall planning period or by certain planning periods).

Determination outcome (by total land area, housing amount (quantity), category or types of housing).

Accuracy of translating the total housing land area into the Local Plan Proposal Map.

Distribution of location for future housing development

Considering factors (planning physical factors).

Consideration to the future market demands.

Distribution period (overall planning period or by certain planning periods).

Distribution outcome (by land use zone, housing category or types of housing development allowed).

For the data analysis of pro-forma 3 (content analysis of housing development application), it began with analysing the status of housing applications in the context of development plan, followed by the analysis of comprehensiveness of housing planning control process. The comprehensiveness of planning control process in controlling and approving housing supply was analysed based on the measurement criteria listed in Table 4.5.

Table 4.5: Measurement criteria for the analysis of comprehensiveness of planning control process in controlling and approving housing supply Housing Control Activity Controlling and approval of housing supply

Measurement Criteria Compliance to proposed land use zone (that is for housing).

Consideration to aspects of effective demand, market demand and to balance supply and demand.

Imposition of conditions on development phases, density control and types of housing development allowed.

133 The data analysis for all the three pro-formas ends with analysing the achievement of planning mechanisms in planning and controlling housing supply. As mentioned in the research model (section 4.5), the main objectives of housing planning, namely meeting population housing needs, fulfilling household effective demand, considering market demands and balancing the supply and the demand of housing are used as a measurement criteria. The achievement of SP and LP are analysed by giving a score value of 1 for the SP or LP which gives an emphasis to a particular objective, and score value of 0 for the SP or LP which does not consider particular objective. While the achievement of planning control mechanism is analysed based on the results from the analysis of the comprehensiveness of housing planning control process.

Most of the data generated by the pro-formas were analysed quantitatively in the form of descriptive statistics. This analysis helps to reduce or summarise the original data in the form of fact (written statement) to numerical data which eventually simplified the understanding and interpretation of the data. For single variable or univariate analysis, the results are presented in the form of frequency distribution and percentage, while for two variables or bivariate analysis, the results are presented in the form of cross-tabulation. There are also some data which analysed qualitatively by quoting and listing the original statements to support the results of quantitative analysis. The results of data analysis for all the three proformas are presented in chapter 6.

4.9.2

Data Analysis from Questionnaire For questionnaire survey, although the data were produced in quantitative

form, no high level statistical analysis or inferential statistics was attempted.

Basically, only descriptive statistics particularly the frequency analysis was applied to all responses in the questionnaire form (from section A to section H).

Nevertheless, for some responses or data sets, especially as collected in section F (perception on the level of effectiveness of housing planning activities), mean analysis was applied to present the average score for each data.

134 The mean analysis which is also defined as arithmetic mean is the most widely used to measure the central tendency, other than mode and median (Neuman, 2006). In simple term, it can be understood as the sum of all scores divided by the total number of scores (Putt and Springer, 1989; Sekaran, 2003). The use of mean analysis in this research enables the respondent perceptions ranged from ‘not effective’ (score value 1) to ‘very effective’ (score value 5) to be reported in the form of average response. This will enhance the richness of each data set other than relying on frequency analysis.

For the data analysis of sections C, D and E (perceptions on the practice of the planning and controlling of housing supply), although the results are in the form of frequency distribution, they will be presented differently, that is through a narrative way. Application of the narrative approach in reporting the results for those sections is in line with the design and content of question which were arranged in an investigation style.

In the above analysis, the results in the form of 5-point scale or response were summarised into a smaller response category (three categories), namely agree, unsure and disagree to avoid monotonous in reporting the results. Those categories were derived from the following categorization: Strongly agree (1) + agree (2)

= categorized as agree

Unsure (3)

= remained as unsure response

Disagree (4) + strongly disagree (5) = categorized as disagree The approach of summarising the original data sets into a smaller category is common and was widely used in reporting the research outcomes. It was applied by Asiah (1999), Kamariah (2002) and Shardy (2007) in analysing quantitative data sets which are also related to the analysis of respondent perception. Application of the approach in the context of above sections enables the narration of the respondent’s perception on the practice of planning and controlling of housing supply to be reported effectively. The detailed description of the results for the above data analysis will be discussed in chapter 7.

135 4.9.3

Data Analysis from In-Depth Interview Silverman (2001) highlights that one of the dilemmas faced by the interview

researchers are concerning what to make of their data. This is because there is no single coherent set of qualitative methods applicable to analyse data or statements related to the talk and texts (Silverman, 2006).

In the past, few qualitative

researchers explained how they analysed the data. In fact, a common criticism by qualitative researchers was that data analysis was not made explicit or open to inspection. Presently, it can be argued that the qualitative data analysis has moved to a more explicit and systematic step-by-step approach (Neuman, 2006).

In the context of planning research, previous researchers have analysed interview texts in various ways. Asiah (1999) and Hairul Nizam (2005), for instance, analyse it by presenting the actual statements or views as posed by respondents. The statements then are quoted and reported in a narrative way according to certain questions or subject matters. A different way of analysis of text is identified applied

by Kamariah (2002), where before presenting the actual views of respondent, each statement was firstly categorized into two types of answer, that is positive and negative answers.

Besides the above approaches, there is also an effort to quantify the data collected from an in-depth interview using certain methods, particularly content analysis. This was identified applied by Norazam (2007) and Shardy (2007).

Norazam (2007) applies this method to analyse the respondent’s views about the influence of contractual procedures on construction professional’s working practices, while, Shardy (2007) uses it to analyse the respondent’s views related to the establishment of framework for local authority property management division.

For this research, in line with the purpose of the in-depth interview as a tertiary data collection method, to validate and support the results of content analysis and perception survey, thus an approach used by Kamariah (2002) is deemed more appropriate. By adopting and adapting the Kamariah’s approach, the data from indepth interview was analysed qualitatively by transcribing, assessing and categorizing relevant transcript.

136 In detail, it involved the activities of transcribing all responses for each respondent (n=16), followed by listing and synthesizing of all transcripts according to the sequence of questions as listed in the interview agenda. The respondents’ responses were then categorized into three forms of views, that is positive, negative and other views. Positive views refer to the responses which are in line with the researcher’s assumption and the results of content analysis and perception survey.

Conversely, negative views refer to the responses which are not. Considering there are respondents who viewed certain matters differently, thus their responses were grouped as other views. For certain responses which do not properly answer the question, they were marked as out of scope and ignored from the analysis (Figure 4.7).

Transcribing all responses (answers) for each respondent (n=16)

Listing and synthesising all transcripts according to the sequence of questions as listed in the interview agenda

Analysing transcript (respondent views) for each question by categorising it into three types of view. = in-line with the researcher’s assumption and results of content analysis and perception survey.

- view = Not in-line with the researcher’s assumption and results of content analysis and perception survey.

Other view = Respondents have a different or other views + view

Presenting the results of data analysis by quoting the respondent’s actual responses

Figure 4.7: The process of analysing data from an in-depth interview The detailed description of the results of the qualitative data analysis in the form of actual statements of view will be discussed together with the results of questionnaire survey in chapter 7.

137 4.10

Problems and Limitations of the Study In conducting this research, a number of problems and limitations were

encountered that certainly have an effect on the results and findings of the research.

The main problem faced is in selecting the suitable criteria to measure the effectiveness of the planning system. This arises due to the lack of literature and empirical researches which evaluates the effectiveness of the operation of planning system in the context of housing development. This problem was solved by applying multiple criteria as a basis for measurement. The use of specific criteria (accuracy, adequacy, compliance and outcome) and general criteria (main housing planning objectives) has enabled this research to evaluate the effectiveness of the planning system in planning and controlling housing supply broadly as well as in detail.

The second problem occured at the stage of designing the questions for all the three content analysis’ pro-formas. Considering each pro-forma has to elicit specific data from different planning documents, the design of questions need to be coordinated with the typology of data in the documents which is only available and collected in certain forms. This problem was overcome by thoroughly examining the housing planning aspects considered during the preparation of SP and LP and at the stage of planning control process. It should be noted that the pilot studies as well as the researcher’s practical experience in this field have assisted a lot in streamlining the pro-forma.

There was also a problem in collecting and analysing the qualitative data from the in-depth interview as well as in identifying the best method to present its results. During conducting an interview, although the questions were properly posed by researcher as an interviewer, there was a tendency among the respondents not to properly answer the questions but instead elaborating on certain aspects which were out of the scope of the questions. There were several cases where the researcher had to guide respondents and propose several answers. This action had not only caused an element of bias in terms of responses’ accuracy, but also difficulty in transcribing and selecting relevant facts and in analysing the data. These problems were facilitated by categorising and presenting responses in three types of views, namely positive, negative and others. Unnecessary responses were neglected from analysis.

138 Simultaneously, several limitations were also found in the research methodology, particularly at the stage of selection of the case study area and determination of the sample for housing development applications. With regard to the case study, this research is only confined to the Johor Bahru Conurbation area as the analysis has been based on the data collected from the area. Although this research may be applicable to other areas of similar conditions, it is not a purpose of the research to do so. The difficulty in collecting complete planning documents has restricted this research to acquire others area as a case study.

The second limitation is concerned with selecting samples of housing planning applications for the purpose of content analysis. Ideally, all housing applications in the study area should be evaluated. This however, could not be done due to the absence of proper record for development control database in the local authorities’ offices. This problem had also raised difficulty in determining the total amount (population) of housing applications. This limitation, although was solved through applying the purposive sampling technique by selecting the mega scaled housing applications, the solution certainly could not represent the small scaled housing applications.

Notwithstanding the above problems and limitations, the study was finally completed. The next chapter will clarify the background of the case study area before presenting the results of analysis in the subsequent chapters.

139

CHAPTER 5

BACKGROUND OF THE CASE STUDY AREA

5.1

Introduction This chapter outlines the characteristics and the mechanisms of housing

planning and development for the Johor Bahru Conurbation (JBC) area as a case study. It commences with the background information of the area in terms of location, population, urbanisation rate, urban settlement and land use composition, followed by clarification of the housing development profiles which comprised existing stock, total supply, current and future housing requirement and housing market and demand. This chapter will highlight the housing development issues faced by the area, particularly in relation to oversupply.

5.2

General Background of the Study Area The JBC area which generally covers the whole district of Johor Bahru

(inclusive of Kulaijaya District area), has a total land area of 181,776 hectares or 1,818 sq. km. It represents 9.58 percent of the total land area of Johor State (Department of Statistics Malaysia, 2001). The area is located at the southern part of the Johor State, neighbour to Singapore. It is divided into nine sub-districts (mukim), namely Sungai Tiram, Pulai, Jelutong, Sedenak, Tanjong Kupang, Senai-Kulai, Tebrau, Plentong and Bandar.

140 The JBC area falls under the jurisdiction of four local authorities, namely Johor Bahru City Council (MBJB), Central Johor Bahru Municipal Council (MPJBT), Kulai Municipal Council (MPKu) and Local Authority of Pasir Gudang (PBTPG)(currently known as Pasir Gudang Municipal Council) (Figure 5.1). Based on the figure in 2000, only 77,821 hectares or 42.81 percent of the total land area of JBC is covered by the administration of the local authority. The remaining 103,955 hectares or 57.19 percent is situated outside the local authority administration area (Table 5.1).

LEGEND

MBJB MPJBT MPKu PBTPG Outside LA area

Figure 5.1: Map of the case study area Source: Adapted from JPBD Semenanjung Malaysia (2000) Note:

1. Commencing 1st August 2007, a part of the area of Johor Bahru District was surrendered to a new district administration, called District of Kulaijaya (covers an area of approximately 75,345 hectares).

2. Beginning 1st July 2008, the name of PBT Pasir Gudang was changed (upgraded) to Pasir Gudang Municipal Council.

141 Table 5.1: Size of study area by local authority Local Authority Johor Bahru City Council (MBJB)

Land Area Hectare

%

20,642.0

11.36

Central Johor Bahru Municipal Council (MPJBT)

30,348.0

16.70

Kulai Municipal Council (MPKu)

13,699.0

7.54

Local Authority of Pasir Gudang (PBTPG)

13,132.0

7.22

*Areas outside the local authority administration

103,955.0

57.19

Total

181,776.0

100.0

Source: Department of Statistics Malaysia (2001) The JBC total population was recorded at 274,400 in 1970 and had increased to 415,200 in 1980, 704,471 in 1991 and 1,159,079 in 2000. Its average annual growth rate is accounted at 4.23 percent per annum between 1970 – 1980, 4.92 percent (1980 – 1991) and 5.69 percent (1991 – 2000) (JPBD Semenanjung Malaysia, 1984; Department of Statistics Malaysia, 1992; 2001). In 2000, the JBC population represented 42.29 percent of the Johor State population of 2,740,625.

Most of the JBC population is in the MBJB area, comprising 433,624 people or 37.41 percent, followed by the MPJBT area with 390,889 (33.72%) and the other local authorities. According to the population figures produced by the Johor Bahru District LP study, the population of JBC in 2003 is approximately 1,259,670 and had increased to 1,398,121 in 2005. It was projected to increase to 1,698,712 in 2010, 1,973,833 in 2015 and 2,219,429 in 2020. The population is expected to grow at the constant average annual rate of 3.39 percent per annum from 2003 to 2020 (Table 5.2) (JPBD Semenanjung Malaysia, 2004b).

With regard to the household size, the JBC area has 246,627 households in 2000, increasing from 150,938 households in 1991. The average household size is 4.7 persons per household in 2000, a slight increase from 4.67 persons per household in 1991 (Department of Statistics, Malaysia, 2001). As recorded in the Johor Bahru District LP and Pasir Gudang LP, the JBC household amounted to 298,809 in 2003 and was forecasted to increase to 403,123 households in 2010, 468,419 in 2015 and 526,151 in 2020.

142 Table 5.2: Previous and projected JBC population by local authority Previous and Projected Population (people) Local Authority MBJB % MPJBT % MPKu %

2000

2003

2005

2010

2015

2020

433,624

444,165

473,111

541,945

607,348

669,910

37.4

35.3

33.8

31.9

30.8

30.2

390,889

401,042

456,260

591,966

724,953

855,159

33.7

31.8

32.6

34.8

36.7

38.5

121,235

124,097

132,786

153,637

173,519

192,545

10.5

PBTPG

46,245

%

4.0

Outside LA

9.9 120,031 9.5

9.5

9.0

8.8

207,314

240,916

252,130

11.1

12.2

12.2

11.4

167,085

170,336

180,090

203,850

227,097

249,685

%

14.4

13.5

12.9

12.0

11.5

11.2

Study Area

1,159,079

1,259,670

1,398,121

1,973,833

2.45 4.55 2.62

8.7

155,874

1,698,712

Annual Average Growth Rate

2,219,429

4.46 2.28 3.39

Source: JPBD Semenanjung Malaysia (2004b:3-31) The average household size is expected to decrease to 4.2 persons per household in 2010 until 2020, compared to 4.7 persons per household in 2000 (Table 5.3) (JPBD Semenanjung Malaysia, 2004b; PBT Pasir Gudang, 2002). In terms of income level, the average household income for the study area in 1998 was RM2,163 per month (JPBD Semenanjung Malaysia, 2000).

Table 5.3: Previous and projected household number and size for the study area Number and Size of Household 2000

2003

2005

2010

2015

2020

Population

1,159,079

1,259,670

1,398,121

1,698,712

1,973,833

2,219,429

Household Number

246,627

298,809

331,340

403,123

468,419

526,151

Average of Household Size

4.7

4.2

4.2

4.2

4.2

4.2

Sources: Adapted from JPBD Semenanjung Malaysia (2004b) and PBT Pasir Gudang (2002) As for the urbanisation rate, statistics in 2000 show that 1,056,777 people or 91.17 percent of the JBC population resided in the urban areas, while 102,302 or 8.83 percent lived in the sub-urban or rural areas. The JBC’s urbanisation rate is high compared to 65.28 percent for the Johor State and 65.4 percent at the national

143 level for the same period (JPBD Semenanjung Malaysia, 2004b; 2005; JPBD Negeri Johor, 2004 and Department of Statistics Malaysia, 2001). The JBC area has also identified as the most highly populated area in the Johor State. In 2000, its population density was recorded at 638 people per sq. km, an increase from 387 people per sq. km. in 1991. The population density for the whole state is only 144 people per sq. km in 2000, which increased from 109 people per sq. km in 1991 (Department of Statistics Malaysia, 2001; JPBD Negeri Johor, 2004).

5.3

Urban Settlement and Land Use Composition The NPP and NUP have identified the JBC area as the principal economic

conurbation for the southern Peninsular Malaysia. The JBC was planned to play a role as one of the second tier conurbations along with the Penang and Kuantan conurbations in the overall hierarchy of urban centre, after the Kuala Lumpur conurbation. These conurbations are to be the prime centre for international and local investments (Khazanah Nasional, 2006). Besides the city of Johor Bahru, JBC is also formed by other urban settlements, such as Bandar Nusajaya, Kulai, Pasir Gudang, Gelang Patah, Skudai, Senai, Masai, Ulu Tiram and other minor settlement centres.

In relation to the land use composition, agriculture land constitutes the main land use in JBC covering an area of 112,866.70 hectares or 62.09 percent in 2003.

Vacant land/shrubs account for the second largest land area of 17,975.83 hectares or 9.89 percent. As for developed land use, it covers an area of 18,822.66 hectares (10.35%) of which housing usage covers 7,984.79 hectares (4.39%), followed by institution and community facilities covering 3,666.81 hectares (2.02%) and industrial usage with an area of 3,578.19 hectares (1.97%). Commercial usage covers only 893.80 hectares (0.49%) of the total JBC land area (Figure 5.2) (JPBD Semenanjung Malaysia, 2004b).

144

70

62.09

Percentage (%)

60 50 40 30 20 9.89

10

4.39

0.49

1.97

2.02

5.76 1.48

5.05

4.07

0.78

2.01

r V ac an ev tl .u an nd d er co ns tu ct

/R iv e

re st Fo

D

Po nd

Re sid en

tia l Co m m er ci al In du str y A m en i ti es O pe n sp ac e Ro ad /R ail U til iti es A gr icu l tu re

0

Figure 5.2: Percentage of land use composition of the study area, 2003 Source: JPBD Semenanjung Malaysia (2004b)

5.4

Housing Development Profiles This section discusses the housing development profiles in the study area by

presenting figures related to the existing stocks, total housing supply, current and future housing requirement and housing market and demand.

5.4.1

Existing Housing Stock In 2003, the study area has 398,911 units of existing housing stock,

increasing from 304,829 as recorded in 2000 (JPBD Semenanjung Malaysia, 2004b).

From the figure, around 161,529 units or 40.49 percent is located in the MBJB area, followed by 141,990 units in MPJBT area, 50,551 units in MPKu area and 31,441 units in PBTPG area. While an amount of 13,400 units were developed outside the local authorities’ administration area. These housing stocks cover an area of approximately 8,068 hectares (Table 5.4).

145 Table 5.4: Distribution of housing stocks by local authority in 2003 Local Authority

Housing Stock

(%)

Land Area (Ha)

(%)

MBJB

161,529

40.49

3,099

38.41

MPJBT

141,990

35.59

2,621

32.49

MDKu

50,551

12.67

820

10.16

PBTPG*

31,441

7.88

578

7.16

Outside LA Area

13,400

3.36

950

11.77

Total

398,911

100.00

8,068

100.00

Source: Adapted from JPBD Semenanjung Malaysia (2004b) The category of housing stock is divided into three, namely planned housing units, village housing and shop-houses. The planned housing covers around 364,815 units, representing 91.5 percent of the total housing stocks in the study area. The amount of village housing was recorded at 27,758 units (6.9%), while shop-houses at 6,338 units (1.6%) (Table 5.5).

Table 5.5: Housing development categories by local authority, 2003 Local Authority

Planned Housing

Village Housing

Shop-house

Total

MBJB

145,621

12,598

3,310

161,529

MPJBT

134,312

5,330

2,348

141,990

MPKu

46,880

2,998

673

50,551

PBTPG*

30,118

1,323

-

31,441

7,884

5,509

7

13,400

364,815

27,758

6,338

398,911

91.5

6.9

1.6

100.0

Outside LA Area Total Percentage (%)

Source: Adapted from JPBD Semenanjung Malaysia (2004b) In relation to the type of development, around 317,932 units or 79.7 percent of the housing stocks were developed as landed housing, comprises of terrace, semidetached and detached houses, while 80,979 units or 20.3 percent were developed in the form of strata or flats, such as low-cost flats, apartment, condominiums and townhouses (JPBD Semenanjung Malaysia, 2004b).

In terms of housing composition and price category for planned housing stocks (excluding village housing and shop-house units), figures show that the focus of housing development in the study area is on the high-cost (price > RM250,000)

146 and medium-cost (price >RM80,000–RM250,000) houses. These housing categories represent 56.0 percent (204,348 units) of the total planned housing stocks (364,815 units). The development of low-cost housing (price RM25,000) could be considered as still low, where only 29,359 units or 8.1 percent are developed under this category (Table 5.6).

Housing composition and price category for planned housing stocks by

Table 5.6:

local authority, 2003 High Cost (>RM250k)

Medium Cost (>RM80kRM250k)

LowMedium Cost (>RM50kRM80k)

LowMedium Cost (>RM25kRM50k)

Low Cost (RM25k)

Total

MBJB

43,686

36,405

41,133

19,237

5,159

145,621

MPJBT

40,294

39,101

26,031

13,108

15,778

134,312

MPKu

14,064

12,106

9,932

7,594

3,184

46,880

PBTPG

9,035

4,362

7,695

4,012

5,014

30,118

Outside LA

2,365

2,930

1,577

788

224

7,884

Study Area

109,444

94,904

86,368

44,739

29,359

364,815

30.0

26.0

23.7

12.2

8.1

100.0

Local Authority

Percentage (%)

Source: Adapted from JPBD Semenanjung Malaysia (2004b)

5.4.2

Total Housing Supply The term housing supply can be translated as the total housing that is supplied

in certain areas within certain periods which comprises the existing housing stocks and new housing units approved by the authorities. In planning context, new housing units are normally termed as a committed development or committed supply. It represents housing development applications which had already been granted the planning permission by the LPA, but not yet developed by applicant or developer.

In the study area, there were approximately 748,703 new housing units approved by the LPAs until 2003 (JPBD Semenanjung Malaysia, 2004b; PBT Pasir Gudang, 2002). From this figure, around 374,306 units or 50.0 percent were approved by the MPJBT, followed by 83,872 units or 11.20% by MBJB, 59,986

147 units or 8.01% by MPKu, and 83,897 units or 11.21% by PBTPG. There is also a quite big number of committed housing approved outside of the local authorities’ area, which numbers 146,642 units or 19.58 percent. The total committed housing involves a total land area of 12,108 hectares (Table 5.7).

Table 5.7: Distribution of committed housing units by local authority until 2003 Local Authority

Amount

MBJB MPJBT MPKu PBTPG* Outside LA Area Study Area

83,872 374,306 59,986 83,897 146,642 748,703

Percentage (%) 11.20 50.00 8.01 11.21 19.58 100.00

Land Area (Ha) 1,093 6,003 1,511 1,344 2,157 12,108

Percentage (%) 9.02 49.58 12.48 11.10 17.82 100.00

Sources: Adapted from JPBD Semenanjung Malaysia (2004b) and PBT Pasir Gudang (2002) The huge number of committed housing in the study area were generated by several mega scaled housing projects, such as Kota Sri Johor (1,609 hectares / 50,041 units) in MBJB area, Bandar Indahpura (3,407 hectares / 46,774 units) and Bandar Putra (2,293 hectares / 49,369 units) in MPKu area and Bandar Baru Nusajaya (2,800 hectares / 41,780 units) in MPJBT area (JPBD Semenanjung Malaysia, 2004b).

Based on the figures on committed supply and existing housing stocks (refer to section 5.4.1), the housing supply in the study area until 2003 had amounted to 1,147,614 units. Out of the figure, 45.0 percent or 516,296 units were developed and approved in the MPJBT area, followed by 245,401 units or 21.4% in MBJB area, 110,537 units or 9.7% in MPKu area and 115,338 units or 10.0% in PBTPG area. A total number of 160,042 housing units or 13.9 percent were developed and approved outside of the local authorities’ area (Table 5.8). The spatial distribution of the study area’s housing supply (inclusive of existing stocks and committed development) is depicted in Figure 5.3.

148 Table 5.8: Total housing supply by local authority until 2003 Local Authorities MBJB MPJBT MPKu PBTPG* Outside LA Area Total

Existing Housing Stocks 161,529 141,990 50,551 31,441 13,400 398,911

Committed Housing Units 83,872 374,306 59,986 83,897 146,642 748,703

Total Housing Supply 245,401 516,296 110,537 115,338 160,042 1,147,614

(%) 21.4 45.0 9.7 10.0 13.9 100.0

Source: Adapted from JPBD Semenanjung Malaysia (2004b) Besides data produced by the planning authorities, the total housing supply for the study area can also be traced from figures published by the National Property Information Centre (NAPIC). The 2007 Residential Property Stock Report estimates that the study area has a total number of 543,655 housing supply in 2006, comprising various categories. The existing housing stock represents 64.46 percent of the total housing supply accounted for in the study area in 2006 (Table 5.9).

Table 5.9: Housing supply by category, 2006 Category of Housing Supply Existing stock

Total

Percentage (%)

350,438

64.46

Completion

3,033

0.55

Incoming Supply

46,685

8.59

Under Construction

43,441

7.99

Starts

3,244

0.60

Planned Supply

91,710

16.87

New Planned Supply Total

5,104

0.94

543,655

100.0

Source: National Property Information Centre (2007b) The above figures show that the study area was developed and planned with a huge number of housing supplies. Both the total housing supply figures in 2003 (produced by planning authorities) and in 2006 (produced by NAPIC) clearly indicate that the total housing supply has far exceeded the total household size of the study area in 2003, and even in 2020 where the number respectively amounted only to 298,809 and 526,151 (section 5.2). The figures show that the aspect of household size was not taken into consideration accordingly in the process of housing development in the study area.

149

150 5.4.3

Current and Future Housing Requirement The broad housing requirement, also termed as ‘housing needs’ (section

2.6.3), is normally calculated either based on the total households number by applying the basis of 1 house for 1 household or based on the occupancy rate of existing housing stocks in certain areas within certain periods. For the study area, as recorded in the Johor Bahru District LP and Pasir Gudang LP, its current housing requirement was calculated based on the total occupancy of existing housing stocks.

Based on the basis, the amount of housing needs for the whole study area in 2003 was calculated at 339,043 units. This figure indicates that only 84.9 percent of the 398,911 housing stocks in the study area are required to fulfil the actual housing requirement of the study area. The figure also depicts that approximately 59,868 units or 15.1 percent of the existing housing stocks in the study area is actually an oversupply.

In terms of future housing requirement, the study area was forecasted to need around 595,511 units to fulfil the population and household growths until year 2020.

From this figure, the MPJBT area was forecasted to require 262,269 units, followed

by MBJB area 200,274 units, MPKu area 57,781 units and PBTPG area 55,732 units.

The areas outside of the local authorities were also forecasted to need around 19,455 housing units until year 2020 (Table 5.10).

Table 5.10: Future housing requirement by local authority until 2020 2003

2005

2010

2015

2020

MBJB

136,096

141,440

162,018

181,571

200,274

MPJBT

125,344

139,930

181,550

222,336

262,269

MPKu

38,025

39,848

46,105

52,071

57,781

Local Authority

PBTPG

26,298

34,455

45,825

52,808

55,732

Outside LA Area

13,280

14,033

15,884

17,695

19,455

339,043

369,706

451,382

526,481

595,511

Total

Source: Adapted from JPBD Semenanjung Malaysia (2004b) Based on the above figures, it can be calculated that only 256,468 new housing units are required in the study area for the period of 2003 until 2020.

151 Further, by considering the unoccupied existing housing stocks in 2003 which amounted to 59,868 units, the actual new housing supply required for the period of 2003 until 2020 is only 196,600 units.

In relation to the size of land area, around 8,872 hectares are required to cater for the study area’s housing requirement until year 2020, which amounted to 595,511 units. Considering there are already 8,068 hectares of land for existing housing stock, thus only 804 hectares of new housing land is essentially required in the study area.

In fact, the study area does not require any more housing land to be approved as its committed housing which covers 12,108 hectares of land area are more than enough to fulfil the actual need for housing land area up to year 2020 (Figure 5.4).

Actual Housing Land Area Required Until 2020

8,872 ha.

Total Land Area for the Whole Housing Supply (2003)

20,176 ha.

Land Area for Committed Housing (2003)

12,108 ha.

Land Area for Existing Housing Stock (2003)

8,068 ha.

0

5,000

10,000

15,000

20,000

25,000

Land Area (in hectare)

Figure 5.4: Future housing land requirement for the study area until 2020 Source: Adapted from JPBD Semenanjung Malaysia (2004b) Further to the clarification of the supply and requirement of housing and housing land, the study area’s housing profile can be described in a more clear perspective by examining its housing market and demand. The next section will touch on these aspects by explaining the market performance and demands of housing.

152 5.4.4

Housing Market and Demand The housing market performance can be generally traced by examining

figures related to the sales rate of new launches, number of transaction of existing stocks and also number and percentage of overhang and unsold units.

In the

Malaysian context, the housing market performance, as up to year-end 2007, is seen as still unstable in the aftermath of the 1997 economic crisis (Valuation and Property Services Department, 2008). The activity of speculative demand and supply by developers and weaknesses in the planning process where properties were built without taking into consideration the real demands were argued to have influenced the unstable performance of housing market (Abdul Ghani, 2004).

In the context of the study area, the unstable housing market performance is evidenced by the low sales rate which was recorded below 50 percent in 2004, 2005 and 2006 (National Property Information Centre, 2005; 2006; 2007). In 2006, the housing sales performance in the study area was accounted only at 30.3 percent, decreasing from 44.2 percent in 2004 and 37.7 percent in 2005. Although the study area’s sales performance is considered better than the figures recorded for the Johor State, it is still low compared to the performance at the national level which was at 48.0 percent in 2004, 46.2 percent in 2005 and 40.6 percent in 2006 (Figure 5.5).

Sales Performance (%)

60 50 40

48.0% 46.2%

44.2%

40.6%

37.7%

42.0%

30.2%

35.2%

30

30.3%

20

Study Area Johor State Malaysia

10 0 2004

2005

2006

Year

Figure 5.5: Comparison of housing sales performance between the study area, Johor State and Malaysia in 2004, 2005 and 2006 Sources: National Property Information Centre (2005a; 2006a; 2007a).

153 The detailed housing market performance for the study area can be clarified through the figures of sales performance by price range for newly housing launches.

As shown in Table 5.11, the sales performance for all price range in 2005 and 2006 were accounted lower than 50.0 percent, except for the houses priced at RM50,000 and below, which in 2005 was recorded at 57.1 percent. Sales performance for houses with price range RM100,001-RM150,000, RM150,001-RM200,000 and RM200,001-RM250,000 either in 2005 or in 2006 was basically proportionate and recorded at 33.6 percent to 42.1 percent.

Table 5.11: Sales performance by price range for newly housing launches in the study area in 2005 and 2006 Price Range (RM) 50,000 or Less

2005 Unit Launched 35

Sold Units

2006 Sales Performance

Unit Launched

Sold Units

Sales Performance

20

57.1

784

135

17.2

50,001100,000

2,274

1,093

48.1

1,260

268

21.3

100,001150,000

2,491

1,024

41.1

2,280

765

33.6

150,001200,000

2,782

1,023

36.8

1,572

547

34.8

200,001250,000

2,016

694

34.4

1,217

489

40.2

More than 250,000

1,667

394

23.6

908

218

24.0

11,265

4,248

37.7

8,021

2,422

30.3

Total

Sources: Adapted from National Property Information Centre (2006a; 2007a).

The above figures show that the study area experienced unstable and low housing market performance. This low performance is not only faced by the highcost houses that are being priced more than RM250,000, but also by other housing categories including houses with prices ranging from RM50,000 and below.

Although the study area faced unstable and low housing market, new housing supply, as discussed in section 5.4.2, has still been constantly developed and planned. This indicates that the speculation activity by housing developers and inefficiency of the housing production process exist in the study area.

154 In terms of market demand, the figures in 2006 show that the single storey and two to three-storey terraced houses were the most popular housing type in the study area compared to other house types. These housing types respectively represent 28.2 percent and 36.2 percent of the total housing property transactions in the study area in 2006. This is followed by low-cost houses, low-cost flats and condominiums/apartments, of which transactions are respectively recorded at 11.7 percent, 7.4 percent and 5.1 percent. While other house types, such as single and two to three storey semi-detached, detached, cluster, town house and flat, are seen less popular in the study area. The transactions of these housing types are recorded below 5.0 percent (Figure 5.6).

Low-cost House 11.7% 2.2%

Low-cost Flat 7.4% 1 Storey Terraced 28.2%

0.4%

1 Storey Terraced 2-3 Storey Terraced 1 Storey Semi-D 2-3 Storey Semi-D

0.2%

Detached

5.1%

Condo/Apartment

4.2%

Cluster Town House

2.8%

Flat

1.6%

Low-Cost House

2-3 Storey Terrace 36.2%

Low-Cost Flat

Figure 5.6: Percentage of housing property transactions according to type, 2006 Source: National Property Information Centre (2007c).

The above figures regarding housing sales performance and property transactions indicate that the actual housing demand in the study area is basically focussed on certain house categories, types and prices. The medium-cost (single storey terraced and 2-3 storey terraced) and low-cost (landed and flat) houses with prices ranged from RM200,000 and below are seen as more in demand by the study area’s residents.

155 5.5

The Mechanism of Planning and Controlling of Housing Development The process of housing planning in Malaysia, as discussed in chapter 3, is

divided into two main stages, beginning with the conducting of housing planning activities in the development plans, and followed by controlling and approving of housing applications. A similar process is found being applied to housing planning in the study area. It was implemented through the preparation of the SP and LP, and controlled through the process of planning control by each local authority. This section will briefly explain the background of the development plans’ preparation and the process and procedures of housing development control in the study area.

5.5.1

Preparation of Development Plan The study area has eight SPs and seven LPs covering various physical, urban

settlement and LPA administrative boundaries (JPBD Semenanjung Malaysia, 2005).

Similar to other areas in Peninsular Malaysia, the SPs and LPs in the study area were prepared according to the provisions of Act 172, and following the development plan preparation manuals prepared by Federal TCPD (Hassan Basery, 1997).

The study area’s SPs were prepared to cover either the entire LPAs boundary or combination of several LPAs boundaries (Hassan Basery, 2004). It began with the MPJB, Mukim Plentong and Pasir Gudang SP in 1981, followed by the MDJBT SP (now known as MPJBT), MDK SP (now known as MPKu) and the LPA of Johor Bahru District SP which were simultaneously prepared in 1987. Due to the rapid urban development throughout the study area and the existing SPs’ failure to incorporate the changes, the plans were reviewed and altered from time to time.

For the MBJB area, the MPJB, Mukim Plentong and Pasir Gudang SP which were prepared in 1985 were altered two times, that is in 1992 and 1995. As for the MPJBT, MPKu and LPA of Johor Bahru areas, the SPs were replaced by the preparation of Johor Bahru District (Alteration) SP in 1998. Due to the amendment of Act 172 in 2001, the Johor SSP has been prepared to cover the whole of Johor

156 state, including the district of Johor Bahru (study area). The background of each SP in the study area is shown in Table 5.12.

Table 5.12: Preparation of structure plan in the study area Name of Structure Plan MPJB, Mukim Plentong and Pasir Gudang MDJBT MD Kulai LPA of Johor Bahru District MPJB (First Alteration) MBJB (Second Alteration) Johor Bahru District (Alteration) Johor State

Coverage Area MBJB and PBT Pasir Gudang MPJBT

Date of Preparation 1981

MPKu

1987

Outside local authority areas MBJB

1987 1992

MBJB

1995

MPJBT, MPKu, PBTPG and LPA of Johor Bahru District Entire of Johor State (including JBC area)

1998

1987

2001

Planning Period 1982 – 2000 (18 years) 1991 – 2010 (19 years) 1991 – 2010 (19 years) 1991 – 2010 (19 years) 1992 – 2010 (18 years) 1997 – 2010 (13 years) 1998 – 2020 (22 years) 2001 – 2020 (19 years)

Date of Gazette 12.03.1987 19.08.1993 19.08.1993 19.08.1993 22.12.1994 17.08.2000 Not gazetted

03.01.2008

Source: JPBD Semenanjung Malaysia (2005b) The preparation of LP in the study area began with the Tampoi, Larkin and Kempas LP in 1986 under the administration of MBJB. In 1992, the Kulai–Senai LP was prepared, covering the towns of Kulai and Senai in MPKu area. In 1993, two LPs have been prepared concurrently in the MPJBT area, namely the Skudai LP and Masai–Plentong LP. In 1995, the Ulu Tiram LP was also prepared by the MPJBT covering the area of Ulu Tiram town and its surrounding areas.

For Pasir Gudang area, the LP which covered the whole area under the administration of PBT Pasir Gudang was only prepared in 2001, that is 14 years after the MPJB, Mukim Plentong and Pasir Gudang SP was gazetted. Immediately after the adoption of the amendment of Act 172 in 2001, a new LP approach was introduced in the State of Johor. In the study area, the new LP called Johor Bahru District LP was prepared in 2002, covering four LPA areas, namely MBJB, MPJBT, MPKu and LPA of Johor Bahru District (Table 5.13).

157 Table 5.13 : Preparation of local plan in the study area Name of Local Plan Tampoi, Larkin and Kempas Kulai - Senai

Local Planning Authority MBJB

Year of Preparation 1986

MPKu

1992

Skudai

MPJBT

1993

Masai - Plentong

MPJBT

1993

Ulu Tiram

MPJBT

1995

Pasir Gudang

PBTPG

2001

MBJB, MPJBT, MPKu and LPA of Johor Bahru District

2002

Johor Bahru District

Planning Period 1986 – 2000 (14 years) 1993 – 2010 (17 years) 1993 – 2010 (17 years) 1993 – 2010 (17 years) 1995 – 2010 (15 years) 2001-2020 (19 years) 2002-2020 (18 years)

Date of Gazette 26.09.1991 20.11.1997 01.07.2004 01.07.2004 05.11.1998 03.01.2008 03.01.2008

Source: JPBD Semenanjung Malaysia (2005b) As mentioned above, both plans, SP and LP, play a significant role in housing development planning in the study area. A specific sector or study on housing planning which covers various aspects, including the aspects related to housing supply are found contained in the study area’s development plans.

5.5.2

The Process and Procedure of Housing Development Control The Johor State land development system applies the approach of surrender

and re-alienation (SBKS) in processing and approving development applications, including the application for housing, commercial, industry, mixed development and tourism (Hassan Basery, 1996, Setiausaha Kerajaan Johor, 1999; Miskun, 2001; Alias, 2004). The application of the approach is in accordance with the provision of Section 204, National Land Code, 1965 (Act 56). The approach enables land development applications such as sub-division, amalgamation, partition and land conversion to be submitted simultaneously as one application (Md. Zahari, 2004; Miskun, 2001). To speed up the approval process, the approach is implemented into two stages, namely the stage of principle approval called as the First Stage SBKS and

158 the stage of planning permission approval called as the Second Stage SBKS (Setiausaha Kerajaan Johor, 1999).

The First Stage SBKS requires an applicant to submit their land application to the State Authority to get a principle approval. At this stage, the State Land and Mines Department plays a role as a secretariat, before the application is forwarded to and considered by the State Executive Council (EXCO). According to the State of Johor General Circular 1999 (Setiausaha Kerajaan Johor, 1999), the requirement to go through the First Stage SBKS is only applicable for the proposed development of more than 4 hectares (10 acres). This stage only involves the comments from three technical departments, namely the local authority, District Land Office and State TCPD (Figure 5.7).

APPLICANT

Submission of application Technical Department STATE LAND AND MINES DEPARTMENT

Circulated to:

Local Authority (LA) District Land Office (PTD) State Town and Country Planning Dep. (TCPD)

Submitting report to:

Secretary Office to the State Committees

LAND MINES COMMITTEE

STATE EXECUTIVE COUNCIL MEETING Consideration / Decision

Delivery of decision STATE LAND AND MINES DEPARTMENT

Notification APPLICANT

Figure 5.7: The process of development approval at the First Stage SBKS Sources: Adapted from Hassan Basery Hamzah (1996) and Alias (2004)

159 After getting principle approval from the State Authority, the applicant has to submit the application to the particular local authorities to obtain planning permission approval. This Second Stage SBKS involves a detailed assessment of the layout plan by technical departments. The detailed assessment is required to ensure legislative provisions, planning standards and guidelines, and conditions by technical departments are fulfilled before an approval is granted by the LPA. The approved application will then be forwarded to the State Authority for the final land development or surrender and re-alienation approval (Figure 5.8).

Technical Department District Land Office (PTD) State TCPD (JPBD) PWD (JKR) DID (JPS) DoE (JAS) District Office Fire Brigade Department Health Department Labour Department Survey Department Sewerage Department (JPP) TNB SAJ STM

APPLICANT

Application for planning permission LOCAL PLANNING AUTHORITY

Circulated to:

(Section 5, Act 172)

Consideration by the Town Planning Committee at Local Authority Absolute approval or conditional approval or reject Full Council Meeting (Local Authority)

Applicant

Layout Amendments Endorsement of layout plan

State TCPD

FINAL LAND APPLICATION OR SBKS APPROVAL PTG / PTD

Secretary Office to the State Committees

LAND MINES COMMITTEE

STATE EXCO MEETING

Notification

LOCAL AUTHORITY / TECHNICAL DEPARTMENTS

APPLICANT

Figure 5.8: The process of development approval at the Second Stage SBKS Sources: Adapted from Hassan Basery Hamzah (1996) and Alias (2004)

160 The application of housing development in the study area also needs to go through the stages. As mentioned above, the detailed assessment on the proposed housing development will be done at the Second Stage SBKS. At this stage, the planning authorities responsible for the planning matters will ensure the housing applications submitted by applicants have fully complied with the planning requirement and conditions before granting the approval for planning permission.

The basic conditions for housing approval as discussed in section 3.4.2, such as compliance to the SP and LP proposals, particularly housing policy, land use zoning and density control, are also adopted by the study area’s LPAs to control the development of housing.

Other than planning conditions, the housing applications in the study area are also bound to comply with the policies of low-cost housing stipulated by the Johor State Government. The latest low-cost housing policy in 1998, which is still applicable today stipulates that the housing developments involving more than 2 hectares (5 acres) have to allocate 40 percent for low-cost houses, while for the development between 1.2 hectares (3 acres) to 2 hectares (5 acres), 20 percent lowcost houses has to be provided (Setiausaha Kerajaan Johor, 1998). The policy also stipulates that the development of low-cost housing in the study area needs to be allocated according to certain categories, price controls and compositions as listed in Table 5.14.

Table 5.14 : Low-cost housing composition and price control in the State of Johor Composition (%) Category of Low-Cost Housing

Price Control (RM)

Low-cost Low medium-Cost Low medium-Cost Low medium-Cost Shop*

MBJB Area

Other Local Authority

25,000

50 %

30 %

< 50,000

20 %

30 %

< 80,000

20 %

30 %

< 150,000

10 %

10 %

Source: Setiausaha Kerajaan Johor (1998) Note * : Low medium-cost shop priced below RM150,000 is also considered as a part of low-cost housing provision.

161 The explanation above shows that a clear planning control mechanism exists to control the development of housing in the study area. The existence of the two stages of approval, general approval (First Stage SBKS) by State Authority, and planning permission approval (Second Stage SBKS) by LPAs and the requirement to comply with proposals in the development plans, low-cost housing policy and other planning conditions indicate that in principle housing development in the study area are strictly controlled. The effectiveness of the process and procedures in practice, however, is still arguable. The existence of various issues of housing development in the study area as detailed out in the next section indicates that there are still some shortcomings in the process and procedure of housing development control in the study area.

5.6

Housing Development Issues Previous researches have revealed that the housing development in the study

area faced with various issues. Studies by Pejabat Tanah dan Galian Negeri Johor (1990) and Ho (1994) highlighted the shortage of low-cost and affordable housing, squatters problem, over approval of medium and high-cost housing and abandoned projects, while Asiah (1999) who conducted her study in the MBJB area addressed the issues of insufficiency of land for housing use, inefficiency and delay in the approval process, continuous increase of house prices as well as the issues of low maintenance of infrastructure and public utilities in the housing schemes.

The issue of housing oversupply, which becomes a concern of the research also exists in the study area. The existence of the issue is proven through several housing supply and market figures, such as the high rate of vacancy, huge number of committed supply and high rate of overhang and unsold property.

162 5.6.1

High Rate of Housing Vacancy Figure for 2003 shows that the study area faced a high rate of housing

vacancy, where from the total 398,911 housing stocks, around 59,868 units or 15.1 percent were identified as unoccupied or vacant. The highest vacancy rate was recorded in the MBJB area which amounted to 25,433 units (42.5%), followed by MPJBT area (16,646 units or 27.8%), MPKu area (12,526 units or 20.9%) and PBTPG area (5,143 units or 8.6%). The housing vacancy rate for the areas outside the local authoritiesâ&#x20AC;&#x2122; area can be considered low where only 120 units (0.2%) were accounted as vacant (JPBD Semenanjung Malaysia, 2004b).

The issue of housing vacancy does not only exist in the study area, but is also faced by other areas. In the context of Johor State, high vacancy rate is identified in the district of Batu Pahat (15.8%), district of Muar (14.4%) and district of Kluang (17.6%) in year 2000 (JPBD Negeri Johor, 2004). Even the figures for the whole Johor State and Malaysia in the same period recorded a higher vacancy rate of 17.0 percent and 15.6 percent compared to the study area. The high housing vacancy rate in the study area indicates that the total housing stock developed has exceeded the actual population housing needs for the area. It also portrays the existence of housing oversupply in the study area.

5.6.2

Surplus of Committed Housing Supply Besides experiencing high vacancy rate for the existing stock, the housing

development in the study area also faced the issue of surplus of committed supply.

As shown in Figure 5.9, there are around 748,703 new committed units approved in the study area until 2003. This figure, together with the total existing stock (398,911 units) makes the total housing supply in the study area amounting to 1,147,571 units in 2003.

163

1,400,000 1,147,614

1,200,000

Housing Units

1,000,000 748,703

800,000 600,000 398,911 400,000

339,043

369,706

Housing Needs (2003)

Housing Needs (2005)

451,382

526,481

595,511

200,000 0 Existing Stock (2003)

Committed Supply (2003)

T otal Supply (2003)

Housing Needs (2010)

Housing Needs (2015)

Housing Needs (2020)

Figure 5.9: Comparison between the committed housing supply and the total housing supply with the housing needs in the study area Source: Adapted from JPBD Semenanjung Malaysia (2004b) The total housing supply in the study area does not only exceeds the current housing needs in 2003 which amounted to 339,043 units, but has also exceeded the housing needs for subsequent years up to 2020. Even, a calculation by JPBD Semenanjung Malaysia (2004b) indicates that the total housing supply in 2003 can cater for the study areaâ&#x20AC;&#x2122;s housing needs up to year 2040. To fulfil the housing needs for the year 2020, it was accounted that only 196,600 units or 26.3 percent from the 2003 total committed supply need to be constructed. This leaves 552,103 committed supply units in 2003 as oversupply up to the year 2020.

The surplus of committed housing supply is not a new issue in the study area.

Previous study by Pejabat Tanah dan Galian Negeri Johor in 1990 has reported that there were around 9,630 housing units in the period of 1981-1990 and 111,304 units in the period of 1991-1995 that were accounted as a surplus in the study area. This issue is also traced to have existed in other areas. The NPP study in 2003 have officially tabled the figures on surplus of committed supply for the whole Peninsular Malaysia for the year 2000 and 2005 (refer Table 3.1, Section 3.2.1.1). The study reported that the surplus of committed supply occurred in all states in the year 2000, and in 10 states except Terengganu and Kelantan in 2005. In 2000, the highest

164 surplus was recorded in the State of Johor (373,500 units), followed by Selangor (294,800 units), Perak (220,500 units) and Negeri Sembilan (169,500 units).

The existence of surplus of committed supply in the study area had explained that the number of housing supply being planned and approved exceeded the actual population housing needs for the area, hence contributed significantly to the housing oversuppy.

5.6.3

High Rate of Overhang and Unsold Housing Units Figures published by the NAPIC from year 2004 to 2006 show that the

housing market in the study area faced a high rate of overhang and unsold housing property. A total of 3,060 completed housing units were identified as overhang in 2004 and had continually increased to 4,905 units in 2005 and 6,366 units in 2006. In 2006, the amount of overhang housing units in the study area represents 77.5 percent of the total of 8,215 overhang housing units in the Johor State. The statistics on the total unsold housing units, which comprises under construction and un-constructed units, also indicates a disturbing situation. A total of 13,080 housing units in the study area were identified as unsold in 2006, an increase from 12,465 units in 2004 and 12,661 units in 2005.

The issue of high rate of overhang and unsold housing, similar to other issues, does not solely occur in the study area, but also exist in other areas. Even, this issue is viewed as a general phenomenon faced by the housing property market in Malaysia since 2000 (refer section 1.3). For the study area, the existence of a huge number of housing supply is seen as one of the factors that contribute to the issue.

165 5.7

Conclusion This chapter explained the general background of the JBC area in terms of

size and location, local authority administration, population and household growth, land use composition, the profiles of housing development and the issues of housing development faced by the area. This chapter has also outlined the mechanisms of planning and controlling that are carried out and practised in the study area.

As a population focused area in the Johor State, the JBC has experienced rapid housing development growth. Housing stocks and new housing supply were developed and planned extensively to cater the housing needs of current and future population. The huge quantity of existing housing stock and committed housing supply, however, had caused the area to face an oversupply. The figures of high housing vacancy rate, surplus of committed supply and housing land area, low sales performance and high rate of overhang and unsold housing as tabled in this chapter clearly describe the existence of the problems in the JBC area.

There are many factors that could be related to the problems of housing oversupply. In the context of JBC area, the problems should not have occurred because housing development in the area will have to go through the various stages of housing planning and control through the mechanisms of SP, LP and development control. The oversupply indicates that there are weaknesses and shortcomings in the process and operation of housing planning in the area. The existence of housing oversupply in the JBC provides the justification of its selection as the case study area. This enables the research to analyse empirically the extent of effectiveness of the process of planning and controlling of housing supply in the area.

166

CHAPTER 6

EVALUATION OF THE EFFECTIVENESS OF THE PROCESS OF PLANNING AND CONTROLLING OF HOUSING SUPPLY

6.1

Introduction This chapter presents results of the analyses of the effectiveness of SP, LP

and planning control process in planning and controlling housing supply. The results of the analyses are based on the data collected through the content analysis of the relevant documents for the study area. The results will be presented in three main sections beginning with the analysis on the effectiveness of SP, followed by the analyses of effectiveness of LP and planning control process.

6.2

Analysis of the Effectiveness of Structure Plan in Planning Housing Supply This section presents the results of content analysis on seven (n=7) SPs in the

study area. An emphasis is given to the analysis of the comprehensiveness of housing forecasting and housing planning policiesâ&#x20AC;&#x2122; formulation as well as analysis of the achievement of those plans towards realising the objectives of housing planning.

Before presenting the results, a brief explanation on the housing supply issues, objectives of housing planning and general proposals to overcome the issues as outlined in the SPs will be given.

167 6.2.1 The Housing Supply Issues It becomes a part of the process of the SP preparation, as well as LP, to identify the issues related to housing supply faced by the planned areas. Similar action was taken by the study areaâ&#x20AC;&#x2122;s SPs. The result of the content analysis, as presented in Appendix I (the actual statements of housing supply issues outlined by each SP) and diagrammatically shown in Figure 6.1, shows that there are two fundamental issues of housing supply faced by the study area, namely the issue of shortage and surplus. This result indicates that the problem of mismatch between housing supply and housing need exists in the study area.

Shortage of Housing Supply

STRUCTURE PLAN

Surplus of Housing Supply

MBJB, Mukim Plentong and Pasir Gudang (1985)

Shortage of low-cost housing

Shortage of medium-cost housing

MDJBT (1993)

Surplus of committed housing

MD Kulai (1993)

Oversupply of medium and high-cost houses

LPA of Johor Bahru District (1993)

Oversupply of low-cost flats

MBJB (1st Alteration) (1994)

High rate of unoccupied housing

District of Johor Bahru (Alteration) (1998)

High rate of property overhang

Johor State (2001)

Figure 6.1: Housing supply issues discussed in each structure plan Source: Content analysis of structure plan (2006) The issue of shortage of supply involves two categories of housing, namely the low-cost and medium-cost. The shortage of low-cost housing was highlighted in all SPs, while the shortage of medium-cost housing was only highlighted in the

168 LPA of Johor Bahru District SP. The existence of housing supply surplus in the study area is backed by six specific issues, namely surplus of committed housing, oversupply of medium-cost and high-cost housings, oversupply of low-cost housing, high rate of unoccupied housing and high rate of housing overhang.

The issue of committed housing surplus exists in the MBJB area. Both SPs, the MPJB, Mukim Plentong and Pasir Gudang and the MPJB (First Alteration) highlighted this issue in depth. The central issue of the surplus of housing supply in the study is focused on the medium-cost and high-cost housings. It was addressed in detail in six SPs, especially in the MDJBT and MD Kulai SPs. These plans revealed that the number of existing housing stock (in 1987) exceeds the number of household. As outlined in Appendix I, the MDJBT area has 3,786 households, with 21,091 units of housing stock, while the MD Kulai area has 12,336 households but its housing stock is recorded at 21,101 units. These figures show that there is an oversupply of 17,305 units in the MPJBT area and 8,765 units in the MD Kulai area.

The issue of housing oversupply is not only limited to the medium-cost and high-cost housings but also involves low-cost housing, particularly flatted low-cost houses. This issue was addressed in the MPJB (First Alteration) SP and District of Johor Bahru (Alteration) SP. Another issue is on the vacancy of the existing housing stock. This issue has existed in the study area since 1981 as stated in the MPJB, Mukim Plentong and Pasir Gudang SP. It also occurred during the period of 19982001 as highlighted in the District of Johor Bahru (Alteration) SP and the Johor SSP. The Johor SSP states that there is a high rate of vacancy in existing housing stock throughout the state, i.e. of 16.98 percent. The Johor Bahru district was identified as having the highest number of vacant units compared to other districts. As for the issue of overhang of housing property, it existed in the study area around year 2001 as addressed by the Johor SSP. The above discussion proves that the issue of housing oversupply is significant in the study area. The issue arguably was contributed by many factors, including those related to the current planning practices. It will be explored further in section 6.3.1 based on the results of the content analysis of LPs.

169 6.2.2 Objectives of the Planning of Housing Supply The content analysis carried out indicates that there are several objectives related to the planning and controlling of housing supply outlined by the study area’s SPs. As shown in Table 6.1, an emphasis is given to two main objectives, namely to provide adequate housing to meet the population housing needs and to ensure all levels of population, especially the low-income groups, have access to own houses.

All SPs in the study area have outlined these two objectives.

Table 6.1:

Statements of objectives related to the planning and controlling of housing supply in the study area’s structure plans

Structure Plan

Statements of the Objective To provide adequate houses to meet the population housing needs.

MPJB, Mukim Plentong and Pasir Gudang, 1985

To ensure provision of houses are within the affordability of various income groups, especially lower income population.

To coordinate and to balance housing supply with the actual demand by considering the aspects of household income, housing price and housing preference.

MDJBT, 1993

To provide adequate houses to meet the population housing needs.

MD Kulai, 1993

To ensure all levels of population, especially the low-income groups have an opportunity to own houses.

LPA of Johor Bahru District, 1993 MPJB (1st Alteration), 1994

To provide adequate houses to meet the population housing needs.

District of Johor Bahru (Alteration), 1998

To provide adequate houses to meet the population housing needs.

Johor State, 2001

To provide adequate houses to meet the population housing needs.

To ensure the low income groups are given priority to own houses.

To ensure the housing supply can cater the need of various groups of population.

To ensure all groups of population, especially the low-income groups have access to housing.

Source: Content analysis of structure plan (2006) The content analysis also shows that only one plan, namely the MPJB, Mukim Plentong and Pasir Gudang SP has an objective which requires the process of planning and controlling of housing supply to consider the aspects of housing demand. This plan has also included an objective aiming to balance the demand and supply of housing. A specific objective that requires the process of housing planning to coordinate and balance housing supply with the actual demand by considering the

170 aspects of household income, housing price and housing preference was formulated in the plan.

This finding clarifies that the process of planning of housing supply in the study area still emphasises on meeting the housing needs. While the consideration of the aspect of effective demand is given less emphasis. Apparently, the objective to balance the supply and demand of housing which was previously formulated in the first SP (MPJB, Mukim Plentong and Pasir Gudang SP), was omitted in the subsequent SPs albeit their areas faced the mismatch of supply and demand of housing. This matter will be analysed further in section 6.2.6 by examining the extent to which the activities of housing planning in the preparation of SP endeavour to achieve the objectives of housing planning.

6.2.3 General Proposals on the Planning of Housing Supply The content analysis undertaken shows that there are many general proposals related to the planning and controlling of housing supply outlined in each SP. The proposals aimed to solve the issues of housing supply that existed in the SP areas and to achieve the objectives that were formed. The proposals can be grouped into ten categories as listed in Table 6.2.

The objectives to provide adequate housing to meet the needs as well as to ensure low-income groups have access to houses (section 6.2.2) have led the study areaâ&#x20AC;&#x2122;s SPs to outline the general proposals to attain the objectives. The first (housing planning should fulfil the current and future housing needs) and the second proposal (housing development should focus on affordable housing for low and middleincome groups) are seen to have touched specifically on the matters. These proposals were outlined in all SPs in the study area. The proposal which requires the process of housing approval to give attention to the factors of location suitability and coordination with surrounding land uses (the third proposal) is also identified outlined by all SPs in the study area. The outline of this proposal describes that the

171 preparation of SPs in the study area had placed serious attention to the aspect of physical (site) suitability in planning housing supply.

Table 6.2: Statements of general proposals to overcome the issues of housing supply

MD Kulai, 1993

LPA of Johor Bahru District, 1993

MBJB (1st Alteration) 1994

District of Johor Bahru (Alteration) 1998

Johor State, 2001

1. Housing planning should fulfil the current and future housing needs.

●

●

●

●

●

●

●

100.0

2. Housing development should focus on affordable housing for low and middle income groups.

●

●

●

●

●

●

●

100.0

3. The process of housing approval should give an attention to the factors of location suitability and coordination with surrounding land uses.

●

●

●

●

●

●

●

100.0

4. Housing should only be permitted in the area which zoned for housing use.

●

●

●

5. The effective housing demand (affordability and levels of income) should be given due attention in the housing planning process.

6. Housing planning should focus to balance the demand and supply of housing.

Statements of General Proposal

% of Frequency

MDJBT, 1993

MPJB, M. Plentong and Pasir Gudang, 1985

Structure Plan

●

57.1

●

●

28.5

●

●

28.5

7. Approval of large housing development applications needs to be restricted to avoid the activities of speculation.

●

14.3

8. New housing applications be approved only when existing schemes are fully developed.

●

14.3

9. Housing applications should be approved according to certain priority areas.

10. Future housing requirement should be provided in accordance with the population and housing projection to avoid oversupply.

●

14.3 ●

14.3

Source: Content analysis of structure plan (2006) The content analysis also shows that there are proposals related to the planning of housing supply which are addressed only by certain SPs. The proposal which requires the development of housing be permitted only in the housing zone area (fourth proposal) is outlined by four SPs (57.1%), namely MPJB, Mukim

172 Plentong and Pasir Gudang SP, MDJBT SP, MD Kulai SP and District of Johor Bahru (Alteration) SP. As for the proposals that require LPAs to give due attention to the aspects of effective demand (e.g. affordability and levels of income) (fifth proposal) and to balance the demand and supply of housing (sixth proposal), only two SPs (28.5%), namely MPJB, Mukim Plentong and Pasir Gudang SP and District of Johor Bahru (Alteration) SP have outlined the proposals. The negligence of the other SPs to outline the proposals (fifth and sixth) indicates that the aspect of housing demand either in the context of effective demand or to balance housing supply against actual demand is given less attention in the planning of housing supply in the study area.

The MPJB (First Alteration) SP contains a proposal to restrict the approval of large housing applications and prohibit the approval of new housing applications until the existing schemes are fully developed. These two proposals could be considered quite strict. It is proposed in the plan due to the existence of surplus of committed supply and existing housing stock in the MBJB area in the period of 1992 to 1994 (section 6.2.1).

The subsequent proposal relates to the control of housing approval. The Johor Bahru District (Alteration) SP proposes that housing development should be approved based on the stipulation of priority areas (planning phases). This proposal aimed to reduce and prevent speculation activities by housing developers. The last proposal as addressed in the Johor SSP touched on the aspect of housing requirement. The plan proposes future housing requirement should be provided in accordance with the population and housing projections. This proposal aimed to avoid housing oversupply in the future especially in the district of Johor Bahru.

The formulation of these proposals indicate that there is an effort by the study areaâ&#x20AC;&#x2122;s SPs to overcome the issue of housing oversupply as well as to attain an effective process of housing planning. The extent to which the proposals could be implemented however depend on how and to what extent the LPAs could translate them in the housing planning policies. Before this is discussed in detail, it is important to analyse the comprehensiveness of the housing forecasting activity which becomes one of the concerns of this research.

173 6.2.4 The Comprehensiveness of the Housing Forecasting Activity The comprehensiveness of the SP’s housing forecasts, and other plans as well, very much depends on the type of forecasting technique applied, elements that are considered, time-frame and the final outcomes (Field and MacGregor, 1987).

These factors, as discussed earlier in section 3.3.2.2 and section 4.9.1, are used as criteria to measure the comprehensiveness of housing forecasts for the study area’s SPs.

6.2.4.1 The Application of Housing Forecasting Technique As mentioned in section 3.3.2.2, there are three techniques, from an integrated to a common and simple one, that can be applied to forecast future housing requirement. The analysis done shows that all three techniques are variously applied in the study area’s SPs. Out of seven SPs, five applied the common forecasting technique, while one, i.e. the MPJB (First Alteration) SP applied a simple forecasting technique. Only the MPJB, Mukim Plentong and Pasir Gudang SP used an integrated technique to forecast future housing requirement for its area (Table 6.3).

Table 6.3: Application of forecasting techniques in the study area’s structure plans Structure Plan MPJB, Mukim Plentong and Pasir Gudang MDJBT MD Kulai LPA of Johor Bahru MPJB (1st Alteration) Johor Bahru District (Alteration) Johor State

Integrated Forecasting Technique ●

Common Forecasting Technique

Simple Forecasting Technique

● ● ● ● ● ●

Source: Content analysis of structure plan (2006)

6.2.4.2 The Aspects Considered in Forecasting Future Housing Requirement In line with the techniques used, only the MPJB, Mukim Plentong and Pasir Gudang SP incorporates all figures, such as the housing aspects, future household

174 growth and prediction of future housing demands in forecasting future housing requirement. The other SPs, excluding MPJB (First Alteration) SP, have only considered the housing aspects and household growth. As for MPJB (First Alteration) SP, its future housing forecast could be considered less accurate because it had totally neglected other aspects such as the housing aspects and prediction of future housing demands. The forecast of future housing requirement in this plan is solely based on the total number of future household (Table 6.4). This finding indicates that the practice of housing forecasting in the study area’s SPs, except the MPJB, Mukim Plentong and Pasir Gudang SP, has failed to achieve an integrated forecast as stressed by Mark (1995) and Blake and Nicol (2004).

Table 6.4:

The aspects considered in forecasting future housing requirement in the study area’s structure plans Housing aspects, future household growth and prediction of future housing demands

Structure Plan MPJB, Mukim Plentong and Pasir Gudang MDJBT MD Kulai LPA of Johor Bahru MPJB (1st Alteration) Johor Bahru District (Alteration) Johor State

Housing aspects and future household growth

Only future household growth

● ● ● ● ● ● ●

Source: Content analysis of structure plan (2006)

6.2.4.3 Time-frame of the Housing Forecast In terms of the forecast’s time-frame, the content analysis shows that all SPs produced their housing forecasts in two time-frames, that is by the overall planning period as well as a break-down of certain periods especially a five-year interval. This result indicates that the study area’s SPs have exhaustively followed the suggestion of the SP manuals (JPBD Semenanjung Malaysia, 1981; 2001).

175 6.2.4.4 Outcome of the Housing Forecast Analysis shows that majority of the SPs in the study area, that is six or 85.7 percent, produce the outcome of housing forecasts in the form of total housing units.

The SPs have ignored to produce the future housing requirement in the form of housing demands, such as the housing category or housing types. In this respect, only one SP, i.e. MPJB, Mukim Plentong and Pasir Gudang SP can be considered as comprehensive. This SP, other than producing the total housing amount, divides its forecasting outcome into certain housing categories, namely high-cost, medium-cost and low-cost. The way this plan carries out the housing forecast basically fulfilled the aim to know the types and preferences of houses to be in demand in the future as outlined by Blake and Nicol (2004).

The analysis also reveals that the housing forecast in the MPJB, Mukim Plentong and Pasir Gudang SP is carried out in two stages. The first stage generates the figure of total housing required in the future, while the second stage which incorporates the figures of household effective demand (expected future household incomes), generates the demand (in the form of housing category) for future housing.

It should be noted that in carrying out the forecasting activity, the MPJB, Mukim Plentong and Pasir Gudang SP had utilised fully information related to the expected future household incomes produced by the demographic sector (study) in the plan.

6.2.4.5 The Level of Comprehensiveness of Housing Forecast The above results enable the level of comprehensiveness of each SP in conducting the activity of housing forecast be determined. For each measurement criteria (section 4.9.1), its comprehensiveness level is measured according to the score values given, that is 0 (for incomprehensive) and 1 (for comprehensive). (i)

The score value 1 (comprehensive) is given if a particular SP applies either an integrated or a common technique, considers housing aspects, future household growth and prediction of future housing demands, generates housing forecasts for both overall and certain planning periods and produces an outcome in other forms, such as housing category or housing types.

176 (ii)

The score value 0 (incomprehensive) is given if a particular SP applies a simple technique, only considers future household growth, generates housing forecasts only for the overall planning period and produces an outcome only in the form of total housing requirement.

The result of the analysis indicates that the MPJB, Mukim Plentong and Pasir

Gudang SP can be ranked as the most comprehensive SP in carrying out the housing forecasting activity. This SP obtains a total score of 4 points. The MPJB (First Alteration) SP can be ranked as the least comprehensive plan due to its total score of only 1 point. As for the others, namely MDJBT SP, MD Kulai SP, LPA of Johor Bahru SP, Johor Bahru District SP and Johor SSP, their level of comprehensiveness in carrying out this activity can be assumed as moderate. These SPs only obtained the total score of 3 points. The main weakness of these plans is that its forecasting outcomes were only produced in the form of total future housing requirement (total housing needs) without categorising it in detail in the form of future housing demands (housing types or housing categories) (Table 6.5).

Table 6.5: Level of comprehensiveness of the study area’s structure plans in forecasting future housing requirement

Johor State, 2001

District of Johor Bahru (Alteration) 1998

MBJB (1st Alteration) 1994

LPA of Johor Bahru District, 1993

MD Kulai, 1993

MDJBT, 1993

Measurement Criteria

MPJB, M. Plentong and Pasir Gudang, 1985

Comprehensiveness Level (Score Value)

1. Application of forecasting technique

1

1

1

1

0

1

1

2. Aspects that considered in the forecast

1

1

1

1

0

1

1

3. Time-frame of forecast

1

1

1

1

1

1

1

4. Outcome of forecast

1

0

0

0

0

0

0

Total Score

4

3

3

3

1

3

3

Score value:

0 – Incomprehensive

1 – Comprehensive

The next section will analyse the comprehensiveness in formulating planning policies which represents one of the main functions of the SP.

177 6.2.5

The Comprehensiveness of Housing Planning Policy’s Formulation The effectiveness of the process of planning and controlling of housing

supply very much depends on the comprehensiveness of the housing planning policies formulated by a SP. In this respect, the SP should formulate policies on housing supply completely, not only the broad policy to meet the housing needs but also specific policies to ensure the activities of planning and controlling of housing supply are conducted effectively by LPAs. This section discusses the results of analysis on the level of comprehensiveness of formulation of policies on housing supply for the study area’s SPs. Prior to that, all policies related to housing supply formulated by the SPs will be examined.

6.2.5.1 Formulation of Policy Related to the Planning and Controlling of Housing Supply The content analysis shows that the study area’s SPs have given an emphasis to the formulation of housing policies. The policies formulated vary and touch all aspects of housing development, from the policy to handle the squatter settlements to the policy to create conducive housing environment. Out of the various policies formulated, several policies are directly related to the aspects of planning and controlling of housing supply.

The results of the content analysis as shown in Table 6.6 and presented in Appendix J (the actual statements of policies related to the planning and controlling of housing supply), clarify that there are eight categories of policy on housing supply formulated in the study area’s SPs. Out of the eight, three policies are common to all SPs, i.e. the policy to meet the population housing needs, policy to increase the development of affordable housing and policy to control the approval of housing applications. The policy that requires LPAs to provide housing supply according to the actual number of housing demand was observed in three SPs, namely MPJB, Mukim Plentong and Pasir Gudang SP, MDJBT SP and MD Kulai SP.

178 Table 6.6: Policies related to the planning and controlling of housing supply in the study area’s structure plans

MD Kulai, 1993

LPA of J. Bahru, 1993

MBJB (1st Alteration), 1994

District of Johor Bahru (Alteration), 1998

Johor State, 2001

% of Frequency

1. Meeting population housing needs 2. Increase the development of affordable housing 3. Housing only permitted in the prescribed areas as determined in the local plan 4. Provide the number of housing supply according to the actual number of housing demand 5. New housing development should concentrate to the in-fill development 6. No further permission will be given to large housing applications.

7. Future housing approval should consider overhang and committed housing.

8. Density of housing development in certain areas need to be controlled

MDJBT , 1993

Statement of the Policy

MPJB, M. Plentong and Pasir Gudang, 1985

Structure Plan

● ● ●

● ● ●

● ● ●

● ● ●

● ● ●

● ● ●

● ● ●

100.0 100.0 100.0

●

●

●

42.8 ●

●

●

14.2 ●

●

28.5

14.2 14.2

Source: Content analysis of structure plan (2006) The MBJB (First Alteration) SP and Johor SSP outlined a policy to ensure that new housing developments concentrate on in-fill development. The analysis also shows that there are several policies formulated only in particular SPs. For example, the MPJB (First Alteration) SP has a policy to restrict the approval of large housing applications, while the Johor SSP formulates a policy to ensure the process of housing approval by the LPAs considers the figures of overhang and committed housing. While the policy that requires LPA to control the density of housing development in certain areas, is formulated only in the MPJB, Mukim Plentong and Pasir Gudang SP.

6.2.5.2 Level of Comprehensiveness of the Housing Planning Policy Formulation The categorisation of housing policy has enabled an analysis of the levels of comprehensiveness of the SPs in formulating policies related to the planning and

179 controlling of housing supply. The analysis is based on the availability of the policy statements which covered the following aspects: (i)

Fulfil population housing requirement (housing needs), that is the needs of high, medium and low-income groups;

(ii)

Plan, control and approve housing supply according to the suitability of physical requirements and compliance to the stipulation of land use zone (housing zone) as proposed by either LP or SP;

(iii)

Incorporate the householdsâ&#x20AC;&#x2122; effective demand in the process of planning and controlling of housing supply;

(iv)

Consider the market demands in the process of planning and controlling of housing supply; and

(v)

Balancing the supply and demand of housing in the process of planning and controlling of housing supply.

For this analysis, a score value of 0 (incomprehensive) is given to the SP

which does not mention a policy on the above aspects, while a score value of 1 (comprehensive) is given to the SP which specifically mentioned policies on the aspects.

The analysis indicates that the MPJB, Mukim Plentong and Pasir Gudang SP is the most comprehensive in formulating policies related to the planning and controlling of housing supply with a total score of 5 points. It is followed by three SPs, namely MPJB (First Alteration), District of Johor Bahru (Alteration) and Johor SSP which obtained a total score of 3 points. The MPJBT, MD Kulai and LPA of Johor Bahru District SPs had only collected 2 points each. These SPs have failed to incorporate the aspects of householdsâ&#x20AC;&#x2122; effective demand, market demands and balance the supply and demand of housing as a policy for the planning and controlling of housing supply (Table 6.7). The failure of the LPs to formulate policies on housing demands is seen derived from the absence of clear guidance in the SP manuals. Both SP manuals (DP Manual 1981 and SSP Manual 2001), as discussed in section 3.3.2.4, have failed to stipulate the preparation of SPs to formulate policy on householdsâ&#x20AC;&#x2122; effective demand, market demands and on balancing the supply and demand.

180 Table 6.7: Level of comprehensiveness of the study area’s structure plans in formulating policies on the planning and controlling of housing supply

1. Fulfil the population housing requirement (housing needs) for high, medium and low income groups.

2. Plan, control and approve housing supply according to the suitability of physical requirements and complied the stipulation of proposed zone and development boundary for housing.

3. Incorporate the households effective demand in the housing planning process.

4. Consider the current market demands in the housing planning process.

5. Balancing the supply and demand of housing.

Total Score

Score value:

0 – Incomprehensive

Johor State, 2001

District of Johor Bahru (Alteration) 1998

MBJB (1st Alteration) 1994

LPA of Johor Bahru District, 1993

MD Kulai, 1993

Measurement Criteria

MDJBT, 1993

MPJB, M. Plentong and Pasir Gudang, 1985

Comprehensiveness Level (score value)

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

0

0

0

1

0

0

1

0

0

0

0

1

1

1 5

0 2

0 2

0 2

0 3

0 3

0 3

1 – Comprehensive

The next section will analyse the achievement of the study area’s SPs towards the objectives of housing planning. The analysis acted as a second method of measurement to evaluate the effectiveness of SP in planning housing supply.

6.2.6 Achievement of the Structure Plans Towards Realising the Objectives of Housing Planning As explained in the research model (section 4.5), this analysis is important to explore the extent of the achievement of each SP towards realising the main objectives of housing planning. i.e. to meet the population housing needs, to fulfil the households housing demand, to consider the housing market demands and to balance the demand and supply of housing. In this respect, their achievements were measured based on the extent to which the statements of the objectives of housing planning

181 study (section 6.2.2) and general proposals (section 6.2.3) and the outcomes of the housing forecasting (section 6.2.4) and formulation of policy (section 6.2.5) ) in each SP take into consideration the objectives. A score value of 1 is given to the SP which gives an emphasis to a particular objective, while a score value of 0 is given to the SP which does not consider the particular objective.

The analysis indicates that out of seven SPs in the study area, only one SP, i.e. MPJB, Mukim Plentong and Pasir Gudang SP can be considered to have fully achieved the objectives of housing planning. The outcomes of this plan from the statements of objectives and general proposals, up to the outcomes of housing forecast and formulation of housing policies were found to give attention towards achieving all the four objectives. As for the other SPs, the outcomes are perceived to have been still focussing on achieving the objective of meeting the housing needs (Table 6.8).

Table 6.8:

Achievement of each structure plan towards realising the objectives of housing planning

Structure Plan

MPJB, Mukim Plentong and Pasir Gudang MDJBT MD Kulai LPA of Johor Bahru MPJB (1st Alteration) Johor Bahru District (Alteration) Johor State

Legend:

□ ■ ○ ●

Criteria to Measure the Achievement of Structure Plan Statements of Statements of Housing Formulation of general proposal objective forecast housing policy

□

■

○

●

□

■

○

●

□

■

○

●

□

■

○

●

1

1

1

1

1

1

1

1

1

1

x

x

1

1

1

1

1 1 1 1 1

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

1 1 1 1 1

0 0 0 0 1

1 1 0 0 0

0 0 0 0 1

1 1 1 1 1

0 0 0 0 0

x x x x x

x x x x x

1 1 1 1 1

0 0 0 1 0

0 0 0 0 0

0 0 0 0 0

1

0

0

0

1

0

0

0

1

0

x

x

1

0

1

0

To meet the population housing needs To fulfil the household housing demands To consider the housing market demands To balance the supply and the demand of housing

Score Value: 1 – Give an emphasis to a particular objective 0 – Not considering the particular objective Note:

x – Not relevant for housing forecast (the objectives to consider the housing market demand and to balance the supply and demand of housing are not commonly touched in carrying out the activity).

182 The MDJBT and MD Kulai SPs did attempted to consider the housing market demands by outlining the aspect in the statements of general proposal. The Johor SSP has also addressed a similar effort where it outlined the aspect in the form of housing policy. Concerning the objective of fulfilling household housing demand (effective demand), two SPs namely MPJB (First Alteration) SP and Johor Bahru District (Alteration) SP were found to have made an effort to achieve the objective.

The MPJB (First Alteration) SP translated the aspect as one of the housing policies, while the Johor Bahru District (Alteration) SP incorporated it in the statement of general proposal.

This shows that only the objective to meet housing needs is achieved by the SPs, except for the MPJB, Mukim Plentong and Pasir Gudang SP which achieved all the four objectives. The other objectives, i.e. to fulfil household housing demand (effective demand), to consider the housing market demand and to balance the supply and demand of housing are still weak and were not achieved. An over-emphasis by the SPs to achieve the objective of meeting housing needs, by neglecting the other objectives, is perceived to have contributed to the existence of surplus of housing supply in the study area.

6.3

Analysis of the Effectiveness of Local Plan in Planning Housing Supply This section presents the results of the content analysis on seven (N=7) LPs in

the study area. The activities of housing forecast, determination of future housing land area and distribution of location for future housing development as well as the achievement of those plans towards fulfilling the main objectives of housing planning will be analysed. Before presenting these analyses, a brief explanation will be given on the housing supply issues, objectives of the planning of housing supply and proposals to overcome the issues as outlined in the LPs.

183 6.3.1 The Housing Supply Issues The result of the content analysis indicates that out of the many housing issues discussed in the study areaâ&#x20AC;&#x2122;s LPs, there are four issues that focused on the problems of housing supply either in the context of shortage or surplus. Both issues were addressed by the LPs as presented in Appendix K (the actual statements of housing supply issues outlined by each LP) and diagrammatically shown in Figure 6.2.

Shortage of Housing Supply

LOCAL PLAN

Surplus of Housing Supply

Tampoi, Larkin and Kempas (1986)

Shortage of low-cost house

Kulai-Senai (1992)

Oversupply of medium and high-cost houses

Skudai (1993)

Surplus of committed housing

Masai-Plentong (1993)

Vacancy of existing housing stock

Ulu Tiram (1995)

Pasir Gudang (2001)

Johor Bahru District (2002)

Figure 6.2: Housing supply issues discussed in each local plan Source: Content analysis of local plan (2006)

The content analysis shows that the issues of housing supply in the LP areas, similar to the SP areas (section 6.2.1), are more focused on the surplus rather than shortage of supply. There are three categories of issue, namely oversupply of medium-cost and high-cost houses, surplus of committed supply and high vacancy

184 of existing housing stock. The main issue is the oversupply of medium-cost and high-cost housings. This issue was raised by six LPs, except for Tampoi, Larkin and Kempas LP which focused more on the shortage of the low-cost housing. The existence of the oversupply issue was first identified in the Kulai-Senai LP which was prepared in 1992. It is found to remain exist in the study area until 2002 as stated by the Johor Bahru District LP. The second issue relates to the surplus of committed supply. This issue was mentioned in three LPs, namely Ulu Tiram LP, Pasir Gudang LP and Johor Bahru District LP. The Johor Bahru District LP has mentioned this issue in detail by raising that the Johor Bahru area faced a very high rate of committed housing in 2003, that is around 664,806 units. It is also mentioned in the LP that only 29.65 percent of the figure is required to cater the housing need for Johor Bahru district until 2020. The Masai-Plentong, Pasir Gudang and Johor Bahru District LPs also mentioned the issue of high vacancy rate for existing housing stock. These LPs clarified that the increase of vacant houses in the areas is due to the supply of existing housing stocks which do not meet the household affordability and demands.

The results from this analysis together with the result of analysis in section 6.2.1 confirm that the problems of surplus of housing supply is eminent in the study area. The next section will explore the statements of the objectives related to the planning and controlling of housing supply aimed to analyse the extent to which the preparation of LPs in the study area give an attention to the issue of housing oversupply.

6.3.2 Objectives of the Planning of Housing Supply The content analysis carried out shows that the preparation of LPs, similar to the preparation of SP (section 6.2.2), has outlined several objectives related to the planning and controlling of housing supply as a basis to plan and control the housing supply in the planned areas. Table 6.9 indicates that all LPs emphasised on two

185 objectives, namely to provide adequate housing to meet the population housing needs and to ensure all levels of population, especially the low-income groups have an access to own houses.

Table 6.9:

Statements of the objectives related to the planning and controlling of housing supply in the study area’s local plans

Local Plan Tampoi, Larkin and Kempas (1986) Kulai – Senai (1992)

Statements of the Objective To provide sufficient housing supply according to the current housing needs.

Skudai (1993)

To provide sufficient housing supply in line with the population growth.

To ensure the supply for all types of housing in line with demands of household.

Masai – Plentong (1993) Ulu Tiram (1995) Pasir Gudang (2001) Johor Bahru District (2002)

To ensure all levels of population, especially low-income groups have an opportunity to own house.

To provide sufficient housing supply according to the current housing needs.

To provide sufficient housing according to the need and the demands of population.

To balance the number of housing supply with the number of demand.

To ensure housing production suits with the needs and demand of households.

To ensure the total supply of housing balanced with the number of demand.

To ensure the supply of housing land is in line with the actual requirement for certain periods.

Source: Content analysis of local plan (2006)

The content analysis also shows that there are other objectives outlined by certain LPs. The objective to ensure the process of housing control considers the aspects of household demand was included in three LPs, namely the Masai-Plentong, Pasir Gudang and Johor Bahru District LP. In relation to the objective that requires LPAs to balance the supply and the demand of housing, this was addressed in the Pasir Gudang LP and Johor Bahru District LP. The formation of this objective in both the LPs are perceived to have been originated from the existence of oversupply of housing stocks, over-approval of committed housing and high rate of vacant housing in those areas. As for the objective to ensure the supply of housing land for certain periods in line with the actual requirement, the content analysis shows that it is only addressed in the Johor Bahru District LP.

186 The above discussions have proved that the process of planning of housing supply in the preparation of LP had emphasised on the objective to meet the population housing needs. The aspects of effective demand as well as to balance the supply and demand of housing were not entirely incorporated as an objective for the planning of housing supply in the study areaâ&#x20AC;&#x2122;s LPs. In fact, the objective to consider the market demands was totally ignored in all LPs although the aspect serves as one of the important factors in achieving an effective planning of housing supply. This matter will be analysed further in section 6.3.7 by examining the extent to which the activities of planning of housing supply in the preparation of LP has achieved the main objectives of housing planning.

6.3.3 Proposals Related to the Planning of Housing Supply The analysis shows that there are seven proposals related to the planning and controlling of housing supply outlined in the study areaâ&#x20AC;&#x2122;s LP. The proposals aimed to overcome the issues of housing supply that existed in the LP areas as well as to achieve the objectives that were formed. In line with the objectives to provide adequate house to meet the housing needs and to ensure low-income groups have access to own houses (section 6.3.2), the LPs have outlined several proposals to attain the said objectives.

The first and second proposals as listed in Table 6.10 apparently touched these matters. All LPs have outlined the proposals that require the process of housing planning meet the household housing needs and focus on affordable housing for the low and middle-income groups. All LPs have emphasised on compliance to the proposed land use zone by stipulating that housing development applications should only be permitted in the area zoned for housing.

187 Table 6.10: Proposals related to the planning of housing supply

Masai – Plentong 1993)

Ulu Tiram (1995)

Pasir Gudang (2001)

Johor Bahru District (2002)

●

●

●

●

●

●

●

100.0

●

●

●

●

●

●

●

100.0

●

●

●

●

●

●

●

100.0

●

●

●

●

57.1

●

●

% of Frequency

Skudai (1993)

1. Housing planning should meet the household housing needs.

2. Planned housing schemes should focus on affordable housing for low and middle income groups.

3. Housing should only be permitted in the area which zoned for housing use.

4. Focus should be given to balance the supply and demand of housing.

5. Housing supply should be produced according to the current housing market demands.

6. The planning authorities should consider the number of unoccupied housing in the process of planning approval.

7. Approval for large housing development applications need to be restricted.

Tampoi, Larkin and Kempas (1986)

Statements of the Proposal

Kulai – Senai (1992)

Local Plan

28.6

●

14.3

●

14.3

Source: Content analysis of local plan (2006) The analysis also shows that there are other proposals (items 4 to 7) which are addressed only in certain LPs. The proposals are important to overcome the issues of housing supply and to improve the process of planning and controlling of housing supply in the planned areas.

The proposal to balance the supply and

demand of housing was addressed in four LPs (57.1%), namely Skudai LP, MasaiPlentong LP, Pasir Gudang LP and Johor Bahru District LP. For example, both Skudai and Masai-Plentong LPs (MDJBT, 2001a:5-1; 2001b:4-1) addressed that “to avoid continuity of oversupply as well as to balance the number of supply with the demand, the housing approval need to be temporarily freezed, except for low- and medium-costs”.

Both the Skudai and Masai-Plentong LPs also proposed that the housing supply should be produced according to the current housing market demands. The outline of this proposal in those LPs describes that there is an awareness among the

188 LPAs to consider and be responsive to the market demands in controlling and approving new housing supplies. Unfortunately, the proposal was not incorporated in other LPs which were prepared after the Skudai and Masai-Plentong LPs. There are two proposals which are addressed only in the Johor Bahru District LP. This LP proposed that the planning authorities should consider the number of unoccupied housing in the process of planning approval. It also proposed that approvals for large housing development applications need to be restricted. These proposals could be considered as a serious and strict proposal to overcome the surplus of committed approval and the high rate of vacant housing in the study area.

The results above indicate that there is an effort by the study area’s LPs to overcome the issue of surplus of housing supply as well as to ensure the process of housing planning is carried out in an effective way.

The extent to which the

proposals could be implemented, however, depends on how and to what extent the LPAs are able to translate them during the activity of distribution of locations for future housing development. Section 6.3.6 will discuss this matter in detail. It is important however to examine firstly the comprehensiveness of the activities of housing forecasting and determination of future housing land area which also become a duty of the LP.

6.3.4 The Comprehensiveness of the Housing Forecasting Activity The comprehensiveness of LP’s housing forecast, similar to the SP’s housing forecast, very much depends on the type of forecasting technique applied, aspects that are considered, time-frame and the final outcomes. These factors are also used as criteria to measure the comprehensiveness of the housing forecasts by the study area’s LPs.

189 6.3.4.1 The Application of Housing Forecasting Technique The analysis shows that the study area’s LPs had only applied two forecasting techniques to forecast future housing requirement, which are the common and the simple technique. In detail, only two LPs, namely Pasir Gudang LP and Johor Bahru District LP applied the common technique. As for the others, a simple forecasting technique was applied (Table 6.11).

Table 6.11: Application of forecasting techniques in the study area’s local plans Local Plan Tampoi Larkin and Kempas (1986) Kulai – Senai (1992) Skudai (1993) Masai-Plentong (1993) Ulu Tiram (1995) Pasir Gudang (2001) Johor Bahru District (2002)

Common Forecasting Technique

Simple Forecasting Technique ● ● ● ● ●

● ●

Source: Content analysis of local plan (2006)

6.3.4.2 The Aspects Considered in Forecasting Future Housing Requirement In line with the application of the common forecasting technique, both the Pasir Gudang and Johor Bahru District LPs only incorporated the figures of housing aspects and future household growth in forecasting future housing requirement. For the other LPs which applied a simple forecasting technique, the aspects considered are found divided into two. The Kulai-Senai LP and Ulu Tiram LP only considered the figures of future household growth, while the Tampoi, Larkin and Kempas LP, Skudai LP and Masai-Plentong LP only considered the figures of total committed housing and total housing unit submitted for approval (not yet approved by the LPAs) as factors to forecast the future housing requirement of their areas (Table 6.12).

190 Table 6.12: The aspects considered in forecasting future housing requirement in the study area’s local plans Housing aspects and future household growth

Local Plan

Tampoi Larkin and Kempas (1986) Kulai – Senai (1992) Skudai (1993) Masai-Plentong (1993) Ulu Tiram (1995) Pasir Gudang (2001) Johor Bahru District (2002)

future household growth

Total committed housing and housing units in the process of approval ●

● ● ● ● ● ●

Source: Content analysis of local plan (2006) For both the Kulai-Senai and Ulu Tiram LPs, the future housing forecast could be considered less accurate because it failed to consider the main factors of housing forecast, i.e. existing stock, backlog, vacant and surplus, as well as immediate and normal replacement (housing aspects). While for the Tampoi, Larkin and Kempas LP, Skudai LP and Masai-Plentong LP, their housing forecast could be rated as inaccurate as they only incorporate the total committed housing and total housing unit which were not yet approved by the LPAs, while totally neglecting other important factors for housing forecast. Consideration of the figures is principally wrong and contradicted with the concept and common practice of housing forecast as outlined by Field and MacGregor (1987) and Noraini (1988).

6.3.4.3 Time-frame of the Housing Forecast In terms of the projection time-frame, only two LPs, namely Pasir Gudang LP and Johor Bahru District LP produced their housing forecast in two time-frames, that is the overall planning period and a break-down by five-years interval. Other LPs, namely Tampoi, Larkin and Kempas, Kulai-Senai, Skudai, Masai-Plentong and Ulu Tiram only produced housing forecast for the overall planning period. This indicates that some of the LPs in the study area, in respect of the activity of housing forecast, had failed to follow exhaustively the suggestion of the LP manuals.

191 6.3.4.4 Outcome of the Housing Forecast The analysis shows that majority of the LPs in the study area, that is six or 85.7 percent, produce the outcome of housing forecasts in the form of total housing number. Similar to the outcome of the SPâ&#x20AC;&#x2122;s housing forecast (section 6.2.4.4), the LPs have not painstakingly attempted to generate the future housing requirement in other forms, such as housing category or housing types. In this respect, only one LP, i.e. the Johor Bahru District LP can be considered as comprehensive. This LP, similar to the MPJB, Mukim Plentong and Pasir Gudang SP, other than producing the total housing amount, had divided its forecasting outcome into certain housing categories, namely high-cost, medium-cost and low-cost.

6.3.4.5 The Level of Comprehensiveness of Housing Forecast The above results enable this research to analyse the level of comprehensiveness of housing forecast for the study areaâ&#x20AC;&#x2122;s LPs. Similar to the evaluation of SPâ&#x20AC;&#x2122;s housing forecast (section 6.2.4.5), each measurement criteria is assessed according to the score values given. The score value 1 (comprehensive) is given if a particular LP applies either an integrated or common technique; considers housing aspects, future household growth and prediction of future housing demands; generates housing forecasts in both overall and certain planning periods; and produces an outcome in other forms, such as housing category or housing types.

While the score value 0 (incomprehensive) is given if a particular LP applies a simple technique; only considers future household growth;

generates housing

forecasts only in an overall planning period; and produces an outcome only in the form of total housing requirement.

The result of the analysis indicates that the Johor Bahru District LP could be ranked as the most comprehensive LP in carrying out the housing forecasting activity. This LP obtains a total score of 4 points. It is followed by the Pasir Gudang LP which collected 3 points. The housing forecasting activity in the other LPs, namely Tampoi, Larkin and Kempas, Kulai-Senai, Skudai, Masai-Plentong and Ulu Tiram can be assumed as incomprehensive as these LPs had failed to apply an acceptable forecasting technique, neglect many important aspects as well as failure

192 to produce the detail outcome of the housing forecast, in the form of future housing demands (housing types or housing categories) and in certain planning time-frames (Table 6.13).

Table 6.13: Level of comprehensiveness of the study area’s local plans in forecasting future housing requirement

Masai-Plentong (1993)

Ulu Tiram (1995)

Pasir Gudang (2001)

0

0

0

0

0

1

1

2. Aspects that considered in the forecast

0

0

0

0

0

1

1

3. Time-frame of forecast

0

0

0

0

0

1

1

4. Outcome of forecast

0

0

0

0

0

0

1

Total Score

0

0

0

0

0

3

4

Score value:

0 – Incomprehensive

Johor Bahru District (2002)

Skudai (1993)

1. Application of forecasting technique

Measurement Criteria

Tampoi Larkin and Kempas (1986)

Kulai – Senai (1992)

Comprehensiveness Level (Score Value)

1 – Comprehensive

The above findings show that the practice of housing forecasting in the study area’s LPs, except the Johor Bahru District LP are worse than the SP’s housing forecasts. It also indicates the LP’s housing forecasts failed to achieve an integrated forecast as stressed by Mark (1995) and Blake and Nicol (2004). This certainly affects the accuracy of future housing land requirement, where its determination (calculation) depends on the figures of LP’s housing forecast.

6.3.5 Comprehensiveness of the Determination of Future Housing Land Area The effectiveness of the process of planning and controlling of housing supply very much depends on the accuracy of the figures of future housing land area determined by the LP. In relation to this, the LP, without fail, should carry out the activity accurately. This section will present the results on the current practices and the level of comprehensiveness of the determination of future housing land area.

193 6.3.5.1 The Practice of Determination of Future Housing Land Area The result of the content analysis shows that out of seven LPs in the study area, only four LPs (57.1%), namely Ulu Tiram, Kulai-Senai, Pasir Gudang and Johor Bahru District determined the total housing land area required for those LP areas. Another three LPs (42.9%), namely Tampoi, Larkin and Kempas, Skudai and Masai-Plentong did not mention it in any part of the documents (Table 6.14).

Table 6.14: Status of determination of future housing land area in the study area’s local plans Local Plan

Determined

Tampoi Larkin and Kempas (1986) Kulai – Senai (1992) Skudai (1993) Masai – Plentong 1993) Ulu Tiram (1995) Pasir Gudang (2001) Johor Bahru District (2002) Frequency Percentage (%)

Not determined ●

● ● ● ● ● ● 4 57.1

3 42.9

Source: Content analysis of local plan (2006) The analysis also shows that all the four LPs which determined the requirement for future housing land area have adapted the outcomes of housing forecast accordingly. As such, the total housing land area determined in those LPs were tallied with the figures of future housing requirement as forecasted. In relation to the time-frame, the result shows that only Pasir Gudang LP had determined the future housing land area in both forms, that is the overall planning period as well as a breakdown by certain planning periods. The breakdown by 5-year period is in line with the breakdown of housing forecast produced by the LP. However, the Ulu Tiram LP, Kulai-Senai LP and Johor Bahru District LP had only determined the future housing land area for the overall planning period.

With regard to the outcome, the analysis reveals that all the four LPs above had determined the future housing land area only in a broad form (total land area for housing use) without an allocation by the actual requirements for certain housing

194 categories, such as for low-cost, medium-cost as well as high-cost housings. The content analysis also reveals significant point about the extent of accuracy of translating future housing land area into the LPâ&#x20AC;&#x2122;s proposal map. The result shows that the figures of future housing land area were not translated accordingly into each LP proposal map. This indicates that the total housing land was zoned exceeding the actual land area required for future housing supply in the Ulu Tiram, Kulai-Senai, Pasir Gudang and Johor Bahru District LPs.

6.3.5.2 The Level of Comprehensiveness of the Determination of Future Housing Land Area The level of comprehensiveness of LPs in determining future housing land area is measured based on five measurement criteria as follows: (i)

Determination of figure on future housing land area.

(ii)

The extent to which the figure on total housing land area tallies with the forecasting figure.

(iii)

Time-frame of determination.

(iv)

Outcome of determination.

(iii)

The extent to which the housing land area is accurately translated in the LPâ&#x20AC;&#x2122;s proposal map.

Similar to the previous analyses, each measurement criteria is assessed

according to the score values given. If a particular LP fails to determine the future housing land area, the figures on total land area do not tally with the housing forecast, the future housing land area was stipulated only in the form of overall planning period, the outcome is presented only in a broad form and fails to accurately translated the figures into the LP proposal, then it is assumed as incomprehensive and given the score value 0. Conversely, if a particular LP determines the future housing land area, the figures tally with the housing forecast, the future housing land area was stipulated in both periods, the outcome was produced in both forms and the figures were translated into the LP proposal accurately, they are considered as comprehensive and given the score value 1.

195 This analysis resulted in the Pasir Gudang LP ranked as the most comprehensive in carrying out this activity. This LP obtains a total score of 3 points.

This is followed by Kulai-Senai, Ulu Tiram and Johor Bahru District LPs which collected 2 points each. As for other LPs, namely Tampoi, Larkin and Kempas, Skudai and Masai-Plentong, they can be concluded as totally incomprehensive due to the failure to carry out the activity of determination of future housing land area during the preparation of those plans (Table 6.15).

Table 6.15: Level of comprehensiveness of the study area’s local plans in determining future housing land area

Masai-Plentong (1993)

Ulu Tiram (1995)

Pasir Gudang (2001)

Measurement Criteria

1. Determination of figure on housing land area 2. The extent of the figure on total housing land area tallies with the forecasting figure 3. Time-frame of determination 4. Outcome of determination 5. The extent of housing land area is accurately translated in the local plan’s proposal map Total Score

1 1

0 (0)

0 (0)

1 1

1 1

1 1

(0) (0) (0)

0 0 0

(0) (0) (0)

(0) (0) (0)

0 0 0

1 0 0

0 0 0

0

2

0

0

2

3

2

Johor Bahru District (2002)

Skudai (1993)

0 (0)

Tampoi Larkin and Kempas (1986)

Kulai – Senai (1992)

Comprehensiveness Level (Score Value)

Score value:

0 – Incomprehensive

1 – Comprehensive

Note:

For local plans which do not determine the land requirement for future housing, the assessment for other criteria (2 to 5) are automatically considered as incomprehensive and given a score value of (0).

The above findings show that the preparation of LPs in the study area failed to determine and allocate the land requirements for future housing development accurately. This gives a negative implication to the role of land use planning system in housing development, which is supposed to allocate land for new development according to the planned assessment of the housing needs (Lambert, 1996; Carmona et al., 2003; Blake and Collins, 2004).

196 6.3.6 Comprehensiveness of the Distribution of Future Housing Location The distribution of locations (land use zones) for future housing development becomes the most important activity in the preparation of LP. This activity needs to be conducted completely and accurately to ensure the housing locations and zones proposed are located in suitable areas. This study explores the activity in depth by examining the factors considered, outcomes and levels of comprehensiveness.

6.3.6.1 The Factors Considered in Distributing Location for Future Housing The analysis shows that there are five factors considered by the study area’s LPs in distributing suitable locations for future housing development. Out of the five, two factors, i.e. availability of land adjacent to current housing development and accessibility from the main road can be assumed as the main factors. Both factors are considered by all LPs (100.0%) in distributing housing locations for their areas (Table 6.16).

Table 6.16: Considering factors in the distribution of locations for future housing development in each local plan

Skudai (1993)

Masai – Plentong (1993)

Ulu Tiram (1995)

Pasir Gudang (2001)

Johor Bahru District (2002)

% of Frequency

1. Availability of land adjacent to current housing development 2. Accessibility from main road 3. Follow the alignment of development corridor 4. Avoid from developing housing in the restricted area 5. Expected future housing market demands

Kulai – Senai (1992)

Considering Factors

Tampoi, Larkin and Kempas (1986)

Local Plan

●

●

●

●

●

●

●

100.0

● ● ●

● ● ●

● ●

● ●

● ●

● ●

● ● ●

100.0 85.7 57.1

●

●

28.5

Source: Content analysis of local plan (2006) The third factor is to follow the alignment of the development corridor. This factor was considered in all LPs (85.7%), except for the Pasir Gudang LP. The

197 factor of avoiding the development of housing in restricted areas is considered by four LPs (57.1%), namely Tampoi, Larkin and Kempas, Kulai-Senai, Pasir Gudang and Johor Bahru District. The fifth factor is to distribute the future housing locations based on the expected future market demands. This was made an effort by two LPs (28.5%), namely Pasir Gudang LP and Johor Bahru District LP.

6.3.6.2 Outcomes of the Distribution of Future Housing Location It is a common practice for the preparation of LP to demarcate the future housing location in the form of housing land use zones. Other than this, as discussed in section 3.3.3.5, there are two guidelines on the outcomes of distribution of future housing location proposed by the LP manuals, i.e. to determine the time-frame (phase) for the future housing developments and to stipulate the types of housing development (landed or flatted) allowed for certain areas.

The analysis shows that all the LPs in the study area had distributed the location or zone for future housing only in the form of overall planning period, and not in certain planning phases (or development phases) as produced by the outcomes of the LPâ&#x20AC;&#x2122;s housing forecast (section 6.3.4.3). In relation to the stipulation of the types of housing development allowed, that is either landed development or high-rise development, the result indicates that only the Skudai LP had touched on this aspect.

The LP has outlined a specific guidance to control the types of housing development by stipulating that only certain areas be permitted for the development of flatted housing.

6.3.6.3 Level of Comprehensiveness of the Distribution of Future Housing Location The level of comprehensiveness of LPs in distributing future housing location is measured based on the following measurement criteria: (i)

Consideration for the factor of accessibility from main road (factor 2).

(ii)

Consideration for the factor of following the alignment of development corridor (factor 3).

198 (iii)

Consideration for the factor of avoiding from developing housing in the restricted area (factor 4).

(iv)

Consideration for the factor of expected future housing market demands (factor 5).

(v)

Determination of time-frame (phase) for future housing development (rather than using the overall planning period).

(vi)

Stipulation of the types of housing development allowed.

A score value of 1 (comprehensive) is given if a particular LP had considered

factor 2 to factor 5, determine the time-frames (phases) for future housing development and stipulate the types of housing development. For the LPs which failed to consider factor 2 to factor 5, determined the future housing development only in the form of overall planning period and do not stipulate the types of housing development, then they are given a score value of 0 (incomprehensive).

It should be noted that the first factor, i.e. availability of land adjacent to current housing development (section 6.3.6.1) is intentionally dropped from the measurement criteria to avoid biasness to the analysis. Consideration of the factor, in respect of distribution of future housing location, can be judged rather as a positive or even a negative practice. For example, if the factor is the only one considered, while neglecting the other factors, or if the LPA simply assumed that all lands adjacent to current housing developments are suitable to be developed as housing, thus it can be considered as a negative practice. On the other hand, if the LPA considers the factor as one of the factors for the distribution of future housing location, then it could be assumed as a positive practice.

This analysis resulted in the Johor Bahru District LP ranked as the most comprehensive LP in carrying out this activity. This LP obtains a total score of 4 points. It is followed by Tampoi, Larkin and Kempas LP, Kulai-Senai LP, Skudai LP and Pasir Gudang LP which collected 3 points each. For both Masai-Plentong and Ulu Tiram LPs, their capability in distributing the locations for future housing development could be assumed less comprehensive since these LPs only obtained the total score of 2 points (Table 6.17).

199 Table 6.17:

Level of comprehensiveness of the study area’s local plans in distributing future housing locations

Masai-Plentong (1993)

Ulu Tiram (1995)

Pasir Gudang (2001)

1 1

1 1

1 1

1 1

1 0

1 1

1

1

0

0

0

1

1

0

0

0

0

0

1

1

0

0

0

0

0

0

0

0

0

1

0

0

0

0

3

3

3

2

2

3

4

Johor Bahru District (2002)

Skudai (1993)

1. Consider the accessibility from main road 2. Consider to follow the alignment of development corridor 3. Consider to avoid from developing housing in the restricted area 4. Consider the expected future housing market demands 5. Distribute future housing in both time-frames (overall and certain planning periods) 6. Stipulate the types of housing development allowed (landed or flatted).

Total Score

0 – Incomprehensive

1 1

Tampoi Larkin and Kempas (1986)

Measurement Criteria

Score value:

Kulai – Senai (1992)

Comprehensiveness Level (Score Value)

1 – Comprehensive

6.3.7 Achievement of the Local Plan Towards Realising the Objectives of Housing Planning The achievement of the LPs towards realising the objectives of housing planning was analysed in similar manner as the analysis of the achievement of SP (section 6.2.6). Their achievements are measured based on the extent to which the statements of objectives of the housing planning study (section 6.3.2), housing planning proposals (section 6.3.3), housing forecasting (section 6.3.4), determination of housing land area (section 6.3.5) and distribution of housing location (section 6.3.6) in each LP take into consideration the objectives of housing planning. A score value of 1 is given to the LP which gives an emphasis to a particular objective, while a score value of 0 is given to the LP which does not consider any particular objective.

The analysis indicates that out of the seven LPs, none of the LP can be considered to have fully attained the objectives of housing planning. All LPs

200 emphasised only on achieving the objective of meeting housing needs. This is proven by the existence of the statements to meet the population housing needs in the objectives and proposals of housing study as well as in the processes and outcomes of housing forecast, determination of housing land area and distribution of future housing location (Table 6.18).

Table 6.18: Achievement of each local plan towards realising the objectives of housing planning

□ 1

■ 0

○ 0

● 0

Criteria to Measure the Achievement of Local Plan Process and Process and Process and Statements of outcome of outcome of outcome of proposals on distribution of determination housing housing supply housing location of housing land forecast area □ ■ ○ ● □ ■ ○ ● □ ■ ○ ● □ ■ ○ ● 1 1 0 0 1 0 x x 1 0 0 0 1 0 0 0

1

0

0

0

1

1

0

0

1

0

x

x

1

0

0

0

1

0

0

0

1 1

1 1

0 0

0 0

1 1

1 1

1 1

1 1

1 1

0 0

x x

x x

1 1

0 0

0 0

0 0

1 1

0 0

0 0

0 0

1 1

0 1

0 0

0 1

1 1

1 0

0 0

0 1

1 1

0 0

x x

x x

1 1

0 0

0 0

0 0

1 1

0 0

0 1

0 0

1

1

0

1

1

0

0

1

1

0

x

x

1

0

0

0

1

0

1

0

Statements of objectives of housing planning study

Local Plan

Tampoi Larkin and Kempas (1986) Kulai – Senai (1992) Skudai (1993) Masai – Plentong 1993) Ulu Tiram (1995) Pasir Gudang (2001) Johor Bahru District (2002)

Legend:

□ ■ ○ ●

To meet the population housing needs To fulfil the household housing demands To consider the housing market demands To balance the supply and the demand of housing

Score Value: 1 – Give an emphasis to a particular objective 0 – Not considered particular objective Note:

x – Not relevant for housing forecast (the objectives to consider the housing market demand and to balance the supply and demand of housing are not commonly touched in carrying out the activity).

The analysis also shows that there is an effort by certain LPs to achieve the other objectives, i.e. to fulfil the household housing demands, to consider the housing market demands and to balance the supply and the demand of housing, but these were outlined inconsistently. For example, the Tampoi, Larkin and Kempas, KulaiSenai and Ulu Tiram LPs try to achieve the objective to fulfil the household housing

201 demand but it was outlined only at the stage of proposal formulation, and was not considered in the other housing planning activities in these LPs. It is similar for the Skudai and Masai-Plentong LPs, where there is an effort to achieve the other objectives, but likewise it is only given attention at the stage of proposal formulation.

This shows that only the objective to meet housing needs is achieved by the study areaâ&#x20AC;&#x2122;s LPs. The achievement of the other objectives such as to fulfil household housing demand (effective demand), to consider the housing market demand and to balance the supply and demand of housing are still weak and have not been achieved.

An over-emphasis of the LPs to achieve the objective of meeting housing needs is perceived to have contributed to the existence of the surplus of housing supply in the study area.

6.4

Analysis of the Effectiveness of the Planning Control Process in Controlling Housing Supply This section presents the results of the content analysis on the samples of

housing development applications in the study area. An emphasis is given to the analyses of comprehensiveness of housing planning control process and achievement of the process towards realising the objectives of housing planning.

Before

presenting the results, a brief explanation will be given on the profile of the study samples and the background of housing development applications.

6.4.1

Profile of the Study Samples The content analysis for housing development applications involves eighty-

two (n=82) samples encompassing all housing applications under the category of either land area of more than 100 hectares or total housing units of more than 2,500 and approved by LPAs from the year 1985 to 2006. The number of the samples represents 15.3 percent of the total housing development applications approved in the

202 study area until 2006 which amounted to 535. Out of the 82 applications, 37 of them (45.4%) are applied in the MPJBT area, followed by 29 applications in MBJB area (35.4%), 11 applications in PBT Pasir Gudang area (13.4%) and 5 applications in MP Kulai area (6.1%) (Table 6.19).

Table 6.19: The number of samples by local planning authority Local Planning Authority

Number of Sample 1

Percentage (%)

Housing Application 2

Percentage (%)

MBJB

29

35.4

168

31.4

MPJBT

37

45.1

186

34.7

MP Kulai

5

6.1

165

30.8

PBT PG

11

13.4

16

3.1

Total

82

100.0

535

100.0

Note: 1 All housing applications under the category of either land area more than 100 hectares or total units more than 2,500 which were approved in the study area from 1985 to 2006 (purposive sampling technique).

2 Total housing applications approved in the study area from year 1985 to 2006 in various sizes.

6.4.2 Background of Housing Development Application The background of the housing development application is examined in terms of the date of planning approval, size, composition and types of housing development.

6.4.2.1 Date of Planning Approval The analysis shows that the majority of housing development applications in the study area were approved in the period of 1995-1999 (27 applications) and 20002004 (23 applications). The planning approval in these two periods represents more than half (60.9%) of the total housing development applications sampled. The other applications were approved in the period of 1990-1994 (13 applications), 1985-1989 (12 applications) and in the year 2005 and 2006 (7 applications) (Table 6.20).

203 Table 6.20: Date of planning approval Period of approval 1985-1989 1990-1994 1995-1999 2000-2004 2005-2006 Total

Local Planning Authority MBJB 3 7 5 12 2 29

MPJBT 5 3 15 9 5 37

MP Kulai 2 0 2 1 0 5

PBT PG 2 3 5 1 0 11

Housing Application

%

12 13 27 23 7 82

14.6 15.9 32.9 28.0 8.5 100.0

Source: Content analysis of housing development application (2006)

6.4.2.2 Size of Housing Development The size of housing development applied is examined in terms of land area and housing quantity. In relation to the size of land area, most of the housing schemes are developed on areas ranging between 101-500 hectares (69.5%), followed by 501-1000 hectares (12.2%), below 100 hectares (11.0%), 1001-1500 hectares (2.4%), 1501-2000 hectares (2.4%) and more than 2000 hectares (2.4%).

For the housing schemes between 101â&#x20AC;&#x201C;500 hectares (57 applications), majority of them are developed in the MPJBT area (29 applications), followed by MBJB area (19 applications), PBT Pasir Gudang area (7 applications) and MP Kulai (2 applications). With regard to the two housing applications which cover an area of more than 2,000 hectares, both of the mega-scaled projects, i.e. Bandar Indahpura (3,407 hectares) and Bandar Putra (2,293 hectares), are developed in the MP Kulai area (Table 6.21).

Table 6.21: Size of the land area in housing applications by local planning authority Local Planning Authority Size of Housing Application (hectare) 100 ha. downwards 101-500 ha.

501-1000 ha.

1001-1500 ha.

1501-2000 ha.

More than 2,000 ha.

Total

MBJB 4 19 5 0 1 0 29

MPJBT 2 29 4 1 1 0 37

MP Kulai 1 2 0 0 0 2 5

PBT PG 2 7 1 1 0 0 11

Total

%

9 57 10 2 2 2 82

11.0 69.5 12.2 2.4 2.4 2.4 100.0

Source: Content analysis of housing development application (2006)

204

In terms of the total housing quantity (unit), it can be divided into several ranges. Housing applications with total housing units of 1000 and below represents 8.5 percent of the total housing applications, followed by 1001-2500 units (4.9%), 2501-5000 units (35.4%), 5001-10000 units (26.8%), 10001-15000 units (11.0%), 15001-20000 units (2.4%), 20001-25000 units (3.7%) and more than 25,000 units (7.3%). The housing applications which have the total units of 2,500 to 10,000 represent 62.2 percent of the total housing application (Table 6.22).

Table 6.22: Range of total housing unit by local planning authority Local Planning Authority Total Housing Unit 1000 units downwards

MBJB

MPJBT

MP Kulai

PBT PG

3

3

0

1

Total

%

7

8.5

1001-2500 units

3

0

0

1

4

4.9

2501-5000 units

10

15

1

3

29

35.4

5001-10000 units

7

12

1

2

22

26.8

10001-15000 units

2

4

1

2

9

11.0

15001-20000 units

1

1

0

0

2

2.4

20001-25000 units

0

2

0

1

3

3.7

More than 25000 units

3

0

2

1

6

7.3

29

37

5

11

82

100.0

Total

Source: Content analysis of housing development application (2006)

6.4.2.3 Category of Housing Development Although there is a clear policy on the provision of low-cost housing (section 5.5.2), the approval of housing development in the study area however has not fully enforced the policy. The content analysis shows that there are 22 applications (26.8%) which did not comply with the policy. In fact, there are 12 applications which failed to provide low-cost housing. On the other hand, the majority of housing developments (64.6%) have provided for the medium-cost housing in the range of 40.0 to 59.0 percent, while for the high-cost, 57.3 percent of housing developments have provided them at the rate of 1.0 to 19.0 percent (Table 6.23).

205

Table 6.23: Range of percentage of the category of housing development Range of percentage 0.0 percent 1.0-19.0 percent 20.0-39.0 percent 40.0-59.0 percent 60.0-79.0 percent 80.0-99.0 percent 100.0 percent Total Mean (Îź)

Low-cost Frequency % 12 14.6 1 1.2 9 11.0 55 67.1 2 2.4 1 1.2 2 2.4 82 100.0 20.0 -39.0 percent

Medium-cost Frequency % 6 7.3 4 4.9 10 12.2 53 64.6 5 6.1 3 3.7 1 1.2 82 100.0 20.0-39.0 percent

High-cost Frequency % 18 22.0 47 57.3 8 9.8 4 4.9 1 1.2 0 0.0 4 4.9 82 100.0 1.0-19.0 percent

Source: Content analysis of housing development applications (2006) The mean analysis shows that the housing developments in the study area have only provided 20.0-39.0 percent for the low-cost, 20.0-39.0 for medium-cost and 1.0-19.0 percent for high-cost housing. This result indicates that the condition of the 40:40:20 housing development ratio (40.0% for low-cost, 40.0% for medium-cost and 20.0% for high-cost), as discussed in section 3.4.2, has failed to be enforced effectively in the study area.

6.4.2.4 Types of Housing Development In average, 40.0 to 59.0 percent of the total housing units in the study area is developed as landed housing, while 20.0 to 39.0 percent is developed as flatted housing. For the landed housing type, there are 30.5% of the housing schemes which provide it in the ratio of 40.0-59.0 percent, followed by 24.4% in the ratio of 60.079.0 percent and 12.2% in the ratio of 20.0-39.0 percent. Whereas the remainder represent the other ratios, i.e. 1.0-19.0 percent (8.5%), 80.0-99.0 percent (8.5 %), 0.0 percent or no landed housing (4.9%) and 100.0 percent or all landed housing (11.0%) (Table 6.24).

For the development of flatted housing, it is contrary to the landed housing where 31.7% of the total housing schemes provide them at a range of 40.0-59.0 percent, followed by 23.2% at a range of 20.0-39.0 percent and 12.2% at a range of 60.0-79.0 percent. The remaining types include the other ranges, i.e. 1.0-19.0 percent

206 (8.5%), 80.0-99.0 percent (8.5%), 0.0 percent or no flatted housing (11.0%) and 100.0 percent or all flatted housing (4.9%).

Table 6.24: Range of percentage of the type of housing development Range of Percentage 0.0 percent 1.0-19.0 percent 20.0-39.0 percent 40.0-59.0 percent 60.0-79.0 percent 80.0-99.0 percent 100.0 percent Total Mean (Îź)

Landed Housing Frequency % 4 4.9 7 8.5 10 12.2 25 30.5 20 24.4 7 8.5 9 11.0 82 100.0 (40.0 â&#x20AC;&#x201C; 59.0 percent)

Flatted Housing Frequency % 9 11.0 7 8.5 19 23.2 26 31.7 10 12.2 7 8.5 4 4.9 82 100.0 (20.0 â&#x20AC;&#x201C; 39.0 percent)

Source: Content analysis of housing development application (2006)

6.4.3

Comprehensiveness of the Process of Housing Planning Control The comprehensiveness of the planning control process in controlling housing

supply is examined based on the extent to which the housing approvals by the LPAs comply with the proposals of development plan (particularly to the proposed land use zone), consider the aspects of housing demand (effective demand, market demand and balancing the number of housing supply and demand) and impose the conditions on development phase, density, category and type of housing development.

6.4.3.1 Compliance to the Proposed Land Use Zone The content analysis shows that from the 82 housing applications approved in the study area, only 44 applications (53.7%) are situated in the area zoned for housing. The remainder are located in the areas planned for other uses, i.e. agriculture (15 applications or 18.3%), open space and green area (15 applications or 18.3%), industrial (2 application or 2.4%), institution (1 application or 1.2%) and other land uses (5 applications or 6.1%) (Table 6.25).

207 Table 6.25: The compliance of housing approval to the proposed land use zone Land Use Zone

Frequency

Percent (%)

Housing

44

53.7

Agriculture

15

18.3

Open space and green area

15

18.3

Industrial

2

2.4

Institution

1

1.2

Others land use

5

6.1

Total

82

100.0

Source: Content analysis of housing development application (2006) The analysis indicates that the practice of non-compliance to the proposals of development plans exist in the process of housing approval in the study area. Almost half (46.3 % or 38 applications) of the approvals contradicted with the proposed land use zone in the development plans. Out of the figure, 18 applications were approved

by MBJB, followed by 11 applications by MPJBT, 3 applications by MP Kulai and 6 applications by PBT Pasir Gudang.

6.4.3.2 Consideration on the Aspects of Effective Demand, Market Demand and Balancing the Supply and Demand of Housing The content analysis performed indicates that consideration for the aspects of effective demand, market demand and balancing the number of supply with the number of demand in the process of housing approval are very poor. Regarding effective demand, only 1 housing approval (1.2%), that is by the PBT of Pasir Gudang has tried to consider this aspect. As for the aspect of market demand, the analysis shows that only 4 (4.9%) have considered this aspect before an approval is granted. From the figure, 3 applications were approved by the PBT of Pasir Gudang and 1 by MPJBT. The analysis also reveals that none of the LPAs in the study area has considered the aspect of balancing the supply to the demand in the process of housing planning control.

208 6.4.3.3 Imposition of Conditions for Development Phase, Density, Category and Type of Housing Development An examination on the imposition of conditions for the development phase, density control and the control of category and type of housing development has enabled this research to analyse the extent to which the LPAs in the study area have considered the aspects in the process of housing approval. This is in line with the discussion in section 3.4.2 which categorised the aspects as an important factor to be considered in controlling housing supply.

The analysis shows that no single approval imposes the conditions for development phase. It is found that the process of housing planning control in the study area still applied the basis of granting the approval based on the total land area and total housing units submitted by the applicant. For example, if one housing application proposed an area of 1000 hectares consisting of 5000 units, the approval will be given according to the entire land area or total housing units without considering the requirement of housing quantity and housing land for certain periods.

This practice was applied in the approval process of mega scaled housing projects around the study area, such as Kota Seri Johor (1,609 ha./ 50,041 units) in MBJB area, Taman Impian Mas (1,298 ha./ 24,898 units) in MPJBT area as well as Bandar Putra (2,293 ha./49,369 units) and Bandar Indahpura (3,407 ha./46,774 units) in MP Kulai area.

In relation to the conditions regarding the density and housing category control, the analysis indicates that these two aspects were given a substantial consideration in the process of housing approval in the study area. The condition for density control was outlined in 73 housing approvals (89.0%). It is normally addressed in the form of density standard either for each type of housing development (e.g. 60 units per acre for the development of low-cost flat) or for certain areas (e.g. 6 units per acre for the development of housing in sub-urban areas). For the housing category control, the analysis shows that 78.0 percent of the housing approvals (64 applications) underlined the conditions to control the composition of housing development, particularly for low-cost and low medium-cost houses (Table 6.26).

209 Table 6.26: Imposition of conditions for density, category and types of housing development Conditions

Stated in the Approval Frequency

%

Density control

73

Control of housing category Control of housing development type (landed or flatted)

Not stated in the Approval

89.0

Frequency 9

% 11.0

64

78.0

18

22.0

9

11.0

73

89.0

Source: Content analysis of housing development application (2006) For the control of types of housing development, the analysis indicates that the LPAs in the study area have failed to consider this aspect seriously in the process of housing approval. Out of the 82 applications, only 11.0 percent (9 applications) imposed the condition for the types of housing development (either landed or flatted housing) allowed for the applications.

6.4.3.4 Level of Comprehensiveness of the Process of Housing Planning Control The above results enable this research to analyse in detail the levels of comprehensiveness of the process of housing planning control. For this analysis, eight measurement criteria were applied. The first criterion refers to the extent to which the housing approvals comply with the proposed land use zone as determined by development plans. The second, third and fourth criteria respectively refers to the extent to which the process of housing planning control considers the aspects of effective demand, current market demand and balancing the number of housing supply to housing demand.

The subsequent criteria refer to the imposition of conditions for development phases (fifth criterion), density control, that is either for each type of housing development or for certain areas (sixth criterion), the control of housing category, that is for low-cost, medium-cost and high-cost (seventh criterion) and the control of types of housing development, that is either landed or flatted development (eighth criterion).

210 Similar to the other analysis of the level of comprehensiveness (housing planning activities in the SP and LP), each measurement criterion is assessed according to the score values, that is 1 for comprehensive and 0 for incomprehensive.

The process of housing planning control is considered comprehensive if at least 75 percent of housing approvals complied with the proposed land use zone (first criterion), considered the aspects of demand (second to fourth criteria) and stipulated the conditions for development phase, density, category and type of housing development (fifth to eighth criteria). The process is considered incomprehensive if the percentage of housing approvals which comply with the proposed land use zone, considered the aspects of demand and stipulated the conditions on development phase, density, category and type of housing development is less than 75.0% (only at the rate of 0.0 to 74.9 percent) (Table 6.27).

Table 6.27: Level of comprehensiveness of the process of housing planning control Measurement Criterion

1. Compliance to the development planâ&#x20AC;&#x2122;s land use zone (for housing use) 2. Consideration to the aspect of effective demand 3. Consideration to the aspect of market demand 4. Consideration to balance the number of supply with the number of demand of housing 5. Stipulation of conditions on development phases 6. Stipulation of conditions on density control (for each development type or by area) 7. Stipulation of conditions on housing category (low-cost, medium-cost and high-cost) 8. Stipulation of conditions on housing development types allowed (landed or flatted development)

Score value:

Result of content analysis Not Complied / Complied / Not Considered Considered / / Not Stipulated Stipulated

Comprehensiveness Level (Score Value)

53.7%

46.3%

0

1.2%

98.8%

0

4.9%

95.1%

0

0.0%

100.0%

0

0.0%

100.0%

0

89.0%

11.0%

1

78.0%

22.0%

1

11.0%

89.0%

0

0 â&#x20AC;&#x201C; Incomprehensive (if the percentage of housing approvals complied or considered or stipulated the above criteria at 0.0 to 74.9%) 1 â&#x20AC;&#x201C; Comprehensive (if at least 75.0% of housing approvals complied or considered or stipulated the above criteria).

211 The analysis indicates that out of the eight aspects that need to be considered in the process of housing planning control, only two aspects, i.e. density control and the control of housing development category were comprehensively given emphasis by the LPAs in the study area. The conditions for density control and control of housing development category were respectively stipulated in 89.0 percent and 78.0 percent of the housing approvals. The compliance to the proposed land use zone, consideration to the aspects of housing demand and imposition of conditions for development phase and types of housing development can be considered poor and incomprehensive. This shows that the process of housing planning control in the study area is still ineffective in controlling the approval of housing development applications.

6.4.4 Achievement of the Planning Control Process Towards Realising the Objectives of Housing Planning This analysis aimed to explore the extent to which the process of planning control has achieved the objectives of housing planning, i.e. to meet the population housing needs, to fulfil the household housing demands, to consider the housing market demands and to balance the demand and supply of housing.

In the objective of meeting housing needs, although there is no specific statement written in the approval documents, unlike in the structure and local plans, the objective can be argued as successfully achieved. The large number of committed housing approved in the study area (section 5.6.2), the existence of housing approvals in the areas not planned for housing, that is 38 applications out of 82 (section 6.4.3.1) and the negligence of the LPAs in the study area to phase out the housing approvals according to certain development phases (section 6.4.3.3) indicate that the objective of meeting housing needs is achieved.

With regard to fulfilling the household housing demands, to consider the housing market demands and to balance the demand and supply of housing, the achievements were measured based on the results in section 6.4.3.2. The facts which

212 reveal that only one approval considered the aspect of effective demand, four approvals considered the aspect of market demand and no single approval considered the aspect of balancing the number of supply with the number of demand out of the 82 housing approvals, rationalised this research to sum up that the planning control process in the study area has failed to achieve all the three objectives.

The above results indicate that the process of planning control in the study area, similar to the preparation of structure and local plans, only emphasised on the achievement of the objective of meeting housing needs. An over-emphasis on the objective, while neglecting the other objectives, is also perceived to have contributed to the existence of housing oversupply in the study area.

6.5

Conclusion The results of the empirical study clearly show that the process of planning

and controlling of housing supply in the study area was conducted ineffectively.

There are many weaknesses and shortcomings traced in the activities of housing planning in both the structure and local plans, from the stages of forecasting of future housing requirement, formulation of housing planning policies, determination of future housing land area, up to the stage of distribution of future housing locations.

The process of housing planning control was observed to face various weaknesses and shortcomings.

The activity of housing forecasting in both plans (SP and LP) was conducted incomprehensively. Most of the plans only focus on the calculation of future housing requirement in general (total housing needs), while neglecting the estimation of household effective demands and future housing demands. The application of forecasting techniques and the aspects considered in forecasting future housing requirement are also incomprehensive. Half of the plans (5 SP and 2 LP) used a common forecasting technique. In fact, there are six plans (1 SP and 5 LP) which only apply a simple forecasting technique. The application of the simple forecasting technique which only considered the data of future household growth and total

213 committed housing could be argued as totally incomprehensive. Factually, from fourteen development plans (7 SPs and 7 LPs) examined, only one plan, i.e. MPJB, Mukim Plentong and Pasir Gudang SP can be considered as having conducted the activity comprehensively.

Incomprehensiveness has also been observed to have existed in the process of formulating housing planning policy. The study reveals that all SPs in the study area only focussed to the formulation of policies to fulfil the population housing requirement and to control the housing development according to the determined land use zone. The other policies, such as to incorporate the households effective demand, to consider the market demands and to balance the supply and demand of housing have failed to be formulated in the study areaâ&#x20AC;&#x2122;s SP, except in the MPJB, Mukim

Plentong and Pasir Gudang SP. This SP could be considered to have

conducted the activity comprehensively.

The study indicates that the activity of determining future housing land area is very weak and incomprehensive. Out of the seven LPs in the study area, only four are found to have calculated and determined the future housing land area for their areas. However, the implementation of the activity in these four LPs is also traced as incomprehensive in terms of the time-frame, outcomes and the conversion of the future housing land area figures into the proposal map. All the four LPs have zoned the total land area for future housing far exceeding the actual housing land area required by those LP areas.

With regard to the activity of distribution of housing locations, the study shows that the study areaâ&#x20AC;&#x2122;s LPs only emphasised on the aspects of physical suitability, i.e. accessibility from the main road, adherence to the alignment of development corridor and avoiding from developing housing in the restricted areas.

Consideration to the aspect of expected future housing market demands was given less attention except in the Pasir Gudang LP and in the Johor Bahru District LP. The outcomes of the activities are also arguably incomprehensive. All the LPs have failed to demarcate the order and priority areas for future housing development in the form of development phases and to stipulate the types of housing development (landed or flatted housing) allowed in the planned areas.

214 In the area of housing planning control in the study area, similar weaknesses have existed and this has further exacerbated the ineffectiveness of the whole process of housing planning. The weakness and incomprehensiveness were traced to exist in many parts of the activity. The process of housing approval by the LPAs has failed to control the applications of housing development. The study shows that there are 38 applications (46.3%), out of 82, where approvals were given although the site proposed in the applications are not planned (zoned) for the purpose of housing development. This clearly shows that the practice of non-compliance to the proposal of LP (especially to proposed land use zone) exists in the process of housing approval in the study area. The activity is also traced to have failed to consider the aspects of housing demand (household effective demand, current and future market demands and the actual number of housing demand) and to impose the conditions for development phases and types of housing development (landed or flatted housing) allowed in the process of housing approval.

The study also reveals the achievement of the planning mechanisms (SP, LP and planning control process) towards realizing the objectives of housing planning.

Out of the four objectives that should be achieved by the implementation of the planning mechanisms, only the objective to meet the population housing needs can be declared as successful. The objectives to fulfil the household housing demand, to consider the housing market demands and to balance the supply and demand of housing basically failed to be achieved.

The analysis in this chapter has answered several research questions as underlined in section 1.5 as well as achieved the objectives of the research as outlined in section 1.6. The next chapter will complement the overall analysis of the effectiveness of the process of planning and controlling of housing supply by exploring the perceptions of town planners regarding the practice, level of effectiveness and the issues faced in the implementation of the process.

215

CHAPTER 7

TOWN PLANNERSâ&#x20AC;&#x2122; PERCEPTIONS TOWARDS THE PROCESS OF PLANNING AND CONTROLLING OF HOUSING SUPPLY

7.1

Introduction This chapter presents the results of the questionnaire survey and in-depth

interview conducted on town planners in the study area. The main concern of this chapter is to explore the perceptions of respondents on the level of effectiveness of planning mechanisms (SP, LP and planning control) in planning and controlling housing supply and to highlight the issues and problems faced in the process of housing planning. Before presenting the analyses, a brief explanation will be given on the background of the respondents involved in both questionnaire survey and indepth interview and their perceptions towards the current practices of housing planning in the preparation of SP and LP and housing planning control process. The results of the questionnaire survey are presented in section 7.3 to section 7.8, followed by the results of in-depth interview, which focus on the issues in the process of planning and controlling of housing supply, in section 7.9.

7.2

Background of Respondents The questionnaire survey involves sixty-one (N=61) respondents, consisting

of 28 government town planners (45.9%) and 33 private town planners (54.1%).

216 From the 28 government town planners, 14 of them are attached to the Federal Department of Town and Country Planning, Peninsular Malaysia (Federal TCPD), 7 with the Johor State Town and Country Planning Department (Johor TCPD) and another 7 serve at the local authorities in the study area. The private town planners are attached to planning consultant firms, either as principals or as employees (Table 7.1).

Table 7.1: Category of respondents and their working organisation Government Town Planner

Category of Respondents

Private Town Planner

Respondentâ&#x20AC;&#x2122;s Working Organisation

Federal TCPD

Johor TCPD

Local Authority

Town Planning Consultant

Number of Respondents

14

7

7

33

Total Respondents Percentage (%)

28

33

45.9

54.1

Source: Questionnaire survey (2006) Out of the 61 respondents, 40 of them (65.5%) have working experience in the urban planning field of 1 to 10 years. In detail, 34.4 percent (21 respondents) have less than 5 years of experience, 31.1 percent (19 respondents) between 5-10 years, 9.8 percent (6 respondents) between 11-15 years and 24.6 percent (15 respondents) more than 15 years. In terms of involvement in conducting activities of housing planning and control in the study area, 62.3 percent of the respondents (38 respondents) are involved in both development plans and planning control process, 29.5 percent (18 respondents) are only involved in the preparation of development plans, while 8.2 percent (5 respondents) are only involved in the process of planning control.

For the in-depth interview, it involves sixteen (n=16) respondents consisting of government and private town planners who have experience in the study areaâ&#x20AC;&#x2122;s housing planning and control process of more than 10 years.

These respondents

were selected based on the data from the questionnaire survey. Out of the 16 respondents, 4 of them hold the position of the state or divisional directors, 1 as a deputy director and 2 as project managers. The remaining 9 respondents are private

217 town planners holding the position of principals of town planning consultant firms.

The detailed profile of each respondent is shown in Appendix L. It should be noted that the selection of experienced town planners from both the government and private sectors for the in-depth interview is considered appropriate and could eliminate the element of bias, as all of them have a wide and long-term experience in the process of housing planning in the study area. For the government town planners, they are involved and responsible in planning, controlling and approving the housing supply. The private town planners are involved as planning consultants during the preparation of development plans and submission of housing development applications.

7.3

Perceptions Towards the Practice of Housing Planning in Structure Plans This section presents the respondentsâ&#x20AC;&#x2122; perceptions towards the practice of

housing forecasting activities and formulation of housing planning policies as conducted in the study areaâ&#x20AC;&#x2122;s SPs. In general, all respondents are aware and agreed that both the activities play a significant role in the process of planning and controlling of housing supply.

7.3.1

The Practice of Forecasting of Future Housing Requirement This analysis aimed to explore the perceptions of respondents on the extent to

which the fundamental nature of housing planning influenced the practice of housing forecasting, the significance of considering the aspects of housing demands and the implication of the incomprehensiveness of SPâ&#x20AC;&#x2122;s housing forecast on the other housing planning activity. The respondents were also asked on the extent to which the inaccuracy of housing forecast contributes to the existence of housing oversupply in the study area.

218 The analysis shows the majority of respondents (98.4%) agreed that the fundamental nature of housing planning which focuses on meeting housing needs has caused the process of housing forecast in the SPs to emphasise on the calculation of total housing needs. With regard to the survey question that states the housing forecasts in the SP should consider the aspect of household effective demand other than the total housing needs, 96.7 percent of the respondents agreed with the suggestion. Only a few respondents (3.3%) disagreed.

Subsequently, 98.4 percent of the respondents agreed with the statement that argues any weakness in the SP’s housing forecast will affect and contribute to the failure of other housing planning activities, such as the formulation of housing policies, determination of future housing land area and housing planning control process. As for the argument that states the existence of housing oversupply in the study area was contributed by the incomprehensiveness and inaccuracy of the housing forecasts in previous SPs, the result shows 11.5 percent and 62.3 percent of the respondents answered `strongly agree’ and `agree’ respectively. Only 9.8 percent disagreed with the argument, while 16.4 percent were unsure (Figure 7.1).

70.0

62.3

Percentage (%)

60.0 50.0 40.0 30.0 20.0

16.4 11.5

9.8

10.0

0.0

0.0 Strongly agree

Agree

Disagree

Strongly disagree

Unsure

Respondent's Perception

Figure 7.1: Respondents’ perceptions about the implication of inaccuracy of the structure plan’s housing forecast to the existence of housing oversupply Source: Questionnaire survey (2006)

219 The results of the analysis indicate that the current practice of housing forecasting in the study areaâ&#x20AC;&#x2122;s SPs is still weak and incomprehensive. The town planners in the study area perceived that the calculation of total housing needs in housing forecast is insufficient and viewed that it is important to incorporate the aspects of housing demands in the calculation. This is in line with the views by Nicol (2002) who argues that meeting housing needs alone is insufficient, and Blake and Nicol (2004) who stress that to achieve a perfect forecast, expected future household income and expected future housing preferences are required to be incorporated in the calculation of housing forecasts. The analysis also shows that the town planners were worried about the inaccuracy of SPâ&#x20AC;&#x2122;s housing forecasts as it may affect the implementation of other housing planning activities and contribute to the surplus of housing supply.

7.3.2 The Practice of Formulating Housing Planning Policies The analysis explores respondentsâ&#x20AC;&#x2122; perceptions on several key aspects related to the practice of formulation of housing policy in the preparation of SPs, i.e. the sufficiency of the

policy for planning and controlling of housing supply,

the

appropriateness to formulate a specific policy relating to housing demand, and the extent to which the absence of the policy that requires LPA to consider the aspects of housing demand in previous SPs has contributed to the existence of housing oversupply in the study area.

The analysis shows the majority of respondents (83.6%) agreed that focussing on conventional policies, such as to meet housing needs, to develop adequate lowcost housing and to control housing according to the proposed land use zone, is insufficient to achieve an effective planning for housing supply. In relation to this, almost all respondents (96.8%) agreed that besides conventional policies, the SP should formulate a specific policy to ensure the aspects of housing demand is considered during the process of housing planning control. Only a small percentage of respondents (3.2%) disagreed with the need for this kind of policy.

220 With regard to the argument that states the housing oversupply in the study area occurred due to the absence of a policy that requires LPAs to consider the aspects of housing demand in the process of planning control, 18.0 percent of the respondents answered `strongly agree’, while 59.0 percent answered `agree’.

Nevertheless, 8.2 percent of the respondents disagreed, while 14.8 percent were unsure (Figure 7.2).

70.0 59.0

Percentage (%)

60.0 50.0 40.0 30.0 20.0

18.0

14.8 8.2

10.0

0.0

0.0 Strongly Agree

Agree

Disagree

Strongly Disagree

Unsure

Respondent's Perception

Figure 7.2: Respondents’ perceptions about the implication of the absence of policy to consider the market demand to the existence of housing oversupply Source: Questionnaire survey (2006) The analysis indicates that the housing planning policies formulated by the study area’s SPs are still insufficient and incomprehensive. This is in line with the result of the content analysis presented in section 6.2.5.1 which revealed that only conventional policies, i.e. policy to meet the population housing needs, policy to increase the development of affordable housing and policy to control the approval of housing applications are given attention by the study area’s SPs. The analysis also shows that the formulation of specific policy to ensure the aspect of housing demand is considered during the process of housing planning control is crucial. Its absence has contributed to the surplus of housing supply in the study area.

221 7.4

Perceptions Towards the Practice of Housing Planning in Local Plans Besides the SP, the preparation of LP also plays a substantial role in the

planning of housing supply, especially through the activities of housing forecast, determination of housing land area and distribution of housing locations. This section presents the perceptions of respondents towards the practice of these activities in the study area’s LPs. In general, all respondents are aware and agreed to the existence and the importance of the activities. The respondents surveyed also understand that it is a legal requirement of the preparation of LP to translate planning policies, general proposals and strategies related to the planning and controlling of housing supply proposed by the SP.

7.4.1

The Practice of Forecasting of Future Housing Requirement This analysis is arranged quite similar to the analysis of SP’s housing forecast

(section 7.3.1). It examines the perceptions on the extent to which the fundamental nature of housing planning influences the practice of LP’s housing forecast, the sufficiency of the aspects considered, the significance of considering the housing demands, the implication of the incomprehensiveness of housing forecast and the extent to which the inaccuracy of LP’s housing forecast contributes to the existence of housing oversupply in the study area.

The analysis shows that the respondents basically have equal perceptions on the practice of LP’s housing forecast and that of SP’s housing forecast. The majority of respondents (98.4%) agreed that in line with the fundamental nature of housing planning and to achieve the objective of meeting housing needs, the practice of housing forecasting in the LPs also emphasises on the calculation of total housing needs by neglecting the aspects of housing demand (households effective demand and future housing demands).

222 With regard to the sufficiency of the aspects considered in the LP’s housing forecast, majority of respondents (91.7%) agreed that the aspects (the data) currently considered, i.e. existing housing stock, housing backlog, normal and immediate replacement and additional new household growth are insufficient to estimate the future housing requirements in terms of households effective demand and housing demand. Only 1.6 percent of respondents disagreed with the statement, while 6.6 percent responded unsure. As for the suggestion that the LP’s housing forecast should incorporate other data in forecasting future housing demand, 95.1 percent of the respondents agreed.

In relation to the argument that states the weakness in the LP’s housing forecast will affect and contribute to miscalculation while determining future housing land area, distributing housing locations as well as in controlling and approving housing development applications, 95.1 percent of the respondents agreed. As for the statement that indicates the existence of housing oversupply in the study area was contributed by the incomprehensiveness and inaccuracy of the housing forecast in the previous LPs, the survey result shows 14.8 percent and 62.3 percent of the respondents answered `strongly agree’ and `agree’ respectively. Only 8.1 percent responded `disagree’, while 14.8 percent were unsure about the matter (Figure 7.3).

70.0

62.3

Percentage (%)

60.0 50.0 40.0 30.0 20.0

14.8

14.8 8.1

10.0

0.0

0.0 Strongly agree

Agree

Disagree

Strongly disagree

Unsure

Respondent's Perception

Figure 7.3: Respondents’ perception about the implication of inaccuracy of local plan’s housing forecast to the existence of housing oversupply Source: Questionnaire survey (2006)

223 The analysis indicates that the current practice of housing forecasting in the study areaâ&#x20AC;&#x2122;s LPs is still weak and incomprehensive. This is in line with the results of the content analysis as presented in section 6.3.4.4, which revealed that the majority of LPs in the study area have only produced the outcome of housing forecast in the form of total housing units. The town planners in the study area perceived that the aspects considered in forecasting future housing requirement are insufficient and they viewed that it is important to incorporate the aspects of housing demands. The analysis also shows that the town planners were concerned with the inaccuracy of LPâ&#x20AC;&#x2122;s housing forecasts as it may affect the implementation of other housing planning activities in the preparation of LP and contributes to the surplus of housing supply in the study area.

7.4.2 The Practice of Determining Future Housing Land Area This analysis explores the respondentsâ&#x20AC;&#x2122; perceptions on the compliance and current practice as well as the strengthening of the process of determination of future housing land area. The respondents were also asked on the extent to which the weakness and inaccuracy of determining future housing land area contributes to the existence of housing oversupply in the study area.

The analysis shows that all respondents in the survey were aware and agreed that the process of determination of future housing land area should comply with the amount of future housing requirement as forecasted by the LP. In relation to the question that states the total housing land area in certain LPs was determined to have exceeded what has been forecasted, 86.9 percent of the respondents agreed with the argument. On the other hand, 13.1 percent of the respondents were unsure of the practice.

Regarding the argument that the current practice of determining future housing land area in the form of the whole planning period (without a breakdown by certain planning phases) is ineffective to guide the process of housing planning control, majority of respondents (90.1 %) agreed with the statement. Only 3.3

224 percent respondents answered ‘disagree’, while 6.6 percent were unsure. In relation to this, majority of respondents (95.1 %) agreed that in order to strengthen the process of housing planning and to facilitate the process of housing planning control, the preparation of LP needs to distribute the total housing land area for the whole planning period into certain planning phases.

In relation to the argument that states the existence of housing oversupply in the study area was contributed by the weakness and inaccuracy of the procedure of determination of future housing land area in the previous LPs, 16.4 percent of respondents answered ‘strongly agree’, while 68.9 percent answered ‘agree’. On the other hand, 3.3 percent of respondents disagreed with the argument, while the remaining 11.4 percent responded ‘unsure’ (Figure 7.4).

80.0 68.9

70.0 Percentage (%)

60.0 50.0 40.0 30.0 20.0

16.4 11.4

10.0

3.3

0.0

0.0 Strongly agree

Agree

Disagree

Strongly disagree

Unsure

Respondent's Perception

Figure 7.4: Respondents’ perception about the implication of inaccuracy of determining housing land area to the existence of housing oversupply Source: Questionnaire survey (2006) The analysis indicates that the current practice of determining future housing land area in the study area’s LPs is weak and incomprehensive. This is in line with the results of the content analysis presented in section 6.3.5.1 which revealed that only four out of the seven LPs prepared in the study area had determined the total housing land area required for those LP areas. The town planners perceived that the LP needs to distribute the total housing land area into a certain planning phases

225 rather than to determine it in the form of the whole planning period as currently practised. The inaccuracy of this activity has really concerned the town planners as it contributes to the surplus of housing supply in the study area.

7.4.3

The Practice of Distributing Housing Locations This analysis examines the perceptions on the current practice, the

significance of considering the expected housing market demands and the extent to which the weakness of the approach of distribution of future housing location contributes to the existence of housing oversupply in the study area. The analysis shows that the majority of respondents agreed to the argument that the current practice of distributing future housing locations in the preparation of LP had only considered several factors, such as availability of land adjacent to the existing housing development, accessibility from main roads and avoiding development of housing in restricted areas. In relation to this, most of the respondents (68.9 %) agreed that the practice is not effective in determining the most suitable locations for future housing development. However, there are also respondents (9.8 %) who disagreed with the argument, while 21.3 percent responded unsure.

For the argument that future housing locations will be better distributed if the expected future market demands are considered, all respondents (100.0%) agreed to the argument.

In relation to the argument that states the existence of housing

oversupply in the study area was contributed by the weakness of the approach of distribution of future housing location in the previous LPs, 11.5 percent of respondents answered `strongly agreeâ&#x20AC;&#x2122;, while 65.5 percent responded `agreeâ&#x20AC;&#x2122;. There are also respondents (6.6%) who disagreed with the argument, while 16.4 percent responded `unsureâ&#x20AC;&#x2122; (Figure 7.5).

226

65.5

70.0

Percentage (%)

60.0 50.0 40.0 30.0 20.0

16.4 11.5 6.6

10.0

0.0

0.0 Strongly agree

Agree

Disagree

Strongly disagree

Unsure

Respondent's Perception

Figure 7.5: Respondentsâ&#x20AC;&#x2122; perception about the implication of the weakness of the distribution of housing location to the existence of housing oversupply Source: Questionnaire survey (2006) The analysis indicates that the practice and approach of distributing locations for future housing development in the study areaâ&#x20AC;&#x2122;s LPs is still weak and ineffective.

This is in line with the result of the content analysis as presented in section 6.3.6.3.

The weakness of this activity has contributed to the surplus of housing supply in the study area. The town planners perceive that the preparation of LP needs to incorporate the expected future market demands as one of the considering factors in distributing locations for future housing development.

7.5

Perceptions Towards the Practice of Housing Planning Control Act 172 provides that LPAs should take into consideration the provisions of

the development plans and conformity to the LP before granting any planning permission, including for housing development (section 3.4.1). This matter will be explored further in this section by presenting the perceptions of respondents regarding the compliance and basis of housing approvals as well as the extent to

227 which the weakness of the practice of housing planning control contributes to the existence of housing oversupply in the study area.

The analysis shows that all respondents are aware and understand the requirement of Act 172. Indeed, almost all respondents (95.1%) agreed that LPAs should ensure the conformity to the LP’s land use zone as the basis for housing approval. The majority of respondents (80.3%), however, agreed that the practice of planning control does not fully comply with the requirement in approving housing applications. Only 13.1 percent respondents disagreed with the argument, while 6.6 percent responded ‘unsure’.

In relation to the argument that states the existence of housing oversupply in the study area is contributed by the weakness of the process of planning control, 13.1 percent of the respondents responded ‘strongly agree’ and 68.9 percent answered ‘agree’. There are also respondents who disagreed (6.6%) with the argument, while 11.4 percent responded ‘unsure’ (Figure 7.6).

80.0 68.9

70.0 Percentage (%)

60.0 50.0 40.0 30.0 20.0

13.1

11.4

6.6

10.0

0.0

0.0 Strongly agree

Agree

Disagree

Strongly disagree

Unsure

Respondent's Perception

Figure 7.6: Respondents’ perceptions about the implication of the weakness of planning control process to the existence of housing oversupply Source: Questionnaire survey (2006)

228 The analysis indicates that the current practice of the housing planning control process in the study area is weak and incomprehensive. The non-compliance to the requirement of Act 172 while approving housing applications, as previously revealed by the results of the content analysis (section 6.4.3.1), has became a concern among the town planners. They perceived that the weakness of the process contributes to the surplus of housing supply in the study area.

7.6

Perceptions Towards the Effectiveness of Planning Mechanisms in Planning and Controlling Housing Supply

This section presents the perceptions of respondents towards the level of effectiveness of the planning mechanisms (SP, LP and planning control) in planning and controlling housing supply. As mentioned in section 4.7.2, the levels of effectiveness of each planning mechanism were rated according to a five-point unbalanced rating scale (Sekaran, 2003) ranging from ‘not effective’ to ‘very effective’. The answer of ‘not effective’ was given a score value of 1, followed by ‘less effective’ (score value = 2), ‘quite effective’ (score value = 3), ‘effective’ (score value = 4) and `very effective’ (score value = 5). The data collected were analysed using descriptive statistics by emphasising on the analysis of frequency distribution and the analysis of mean (section 4.9.2).

7.6.1 The Effectiveness of the Structure Plans in Forecasting Future Housing Requirement The perceptions about the level of effectiveness of the SP in forecasting housing requirement are measured based on the extent of the forecasts of future housing needs and forecasts of the future housing demand. The analysis shows that most of the respondents assumed the study area’s SPs are effective in forecasting future housing needs. Around 45.9 percent of the respondents rated it as ‘very

229 effective’, 36.1 percent as ‘effective’ and 18.0 percent as ‘quite effective’. No respondent answered ‘less effective’ or ‘not effective’. The mean score of the level of effectiveness of SP in forecasting future housing needs is at 4.28, that is between ‘effective’ and ‘very effective’ (Table 7.2).

Table 7.2: Respondents’ perceptions towards the level of effectiveness of the structure plan in forecasting future housing requirement Levels of Effectiveness (Score Value) Effectiveness of Structure Plan

Mean (μ)

Not effective

Less effective

Quite effective

Effective

Very effective

(1)

(2)

(3)

(4)

(5)

In forecasting future housing needs.

-

-

11 (18.0%)

22 (36.1%)

28 (45.9%)

4.28

In forecasting future housing demand (household effective demand).

27 (44.3%)

30 (49.2%)

4 (6.6%)

-

-

1.62

Source: Questionnaire survey (2006)

In relation to the level of effectiveness of the SPs in forecasting future housing demand, the analysis shows that 49.2 percent and 44.3 percent of the respondents viewed them as ‘less effective’ and ‘not effective’ respectively. Only 6.6 percent of the respondents perceived them as ‘quite effective’, while there is no respondent who rate it as ‘very effective’ or ‘effective’. The mean score of the level of effectiveness of SP in forecasting future housing demand is at 1.62, that is between ‘not effective’ and ‘less effective’.

The above analysis is in line with the result of the content analysis where out of seven the SPs examined, only one SP, i.e. MPJB, Mukim Plentong and Pasir Gudang has effectively forecasted both housing needs and housing demand. The other SPs (6 SPs) only emphasised on forecasting the housing needs (section 6.2.4.4). These results rationalised this research to conclude that the SP’s housing forecast was only successful in forecasting the future housing needs and has failed to forecast the future housing demands.

230 7.6.2 The Effectiveness of the Structure Plans in Formulating Housing Planning Policies The perceptions on the level of effectiveness of the SPs in formulating housing planning policies are measured in terms of the extent to which the SP formulates a housing policy to achieve the objective of meeting housing needs and policy to ensure the aspects of housing market demand be considered in the process of

planning control.

In this respect, the analysis shows that the majority of

respondents (93.5%) viewed the study area’s SPs as effective in formulating housing policy to achieve the objective of meeting housing needs. However, there are also respondents who viewed them as ‘less effective’ (4.9 %) and ‘not effective’ (1.6 %).

The mean score of the level of effectiveness of SP in formulating the housing policy to achieve the objective of meeting housing needs is at 4.07, that is between ‘effective’ and ‘very effective’ (Table 7.3).

Table 7.3: Respondents’ perception towards the level of effectiveness of structure plan in formulating housing policy Levels of Effectiveness (Score Value) Effectiveness of Structure Plan

Mean (μ)

Not effective

Less effective

Quite effective

effective

Very effective

(1)

(2)

(3)

(4)

(5)

In formulating policy to achieve the objective of meeting housing needs.

1 (1.6%)

3 (4.9%)

9 (14.8%)

26 (42.6%)

22 (36.1%)

4.07

In formulating policy to ensure the aspects of housing market demand be considered in the process of planning control.

31 (50.8%)

24 (39.3%)

4 (6.6%)

2 (3.3%)

-

1.62

Source: Questionnaire survey (2006) In relation to the level of effectiveness of SP in formulating policy to ensure the aspects of housing market demand be considered in the process of planning control, the analysis indicates that more than half of the respondents (50.8%) viewed it as ‘not effective’, while 39.3 percent viewed it as ‘less effective’. Only a small number of respondents viewed it as ‘quite effective’ (6.6%) and ‘effective’ (3.3%).

The mean score of the level of effectiveness of SP in formulating policy to ensure the

231 aspects of housing market demands are considered in the process of planning control is at 1.62, that is between ‘not effective’ and ‘less effective’.

The above analysis is in line with the result of the content analysis which revealed that all the SPs have formulated policies to fulfil the population housing needs. While only three SPs, i.e. MPJB, Mukim Plentong and Pasir Gudang SP, District of Johor Bahru (Alteration) SP and Johor SSP have tried to formulate the policy to ensure the process of planning control considered the current housing market demands (section 6.2.5.1 and section 6.2.5.2). This indicates that the housing planning policies formulated by the study area’s SPs are still insufficient. The failure of many SPs to formulate policies related to housing market demand may have contributed to the ineffectiveness of the other two planning mechanisms (LP and planning control) in planning and controlling the housing supply in the study area.

7.6.3 The Effectiveness of the Local Plans in Forecasting Future Housing Requirement The analysis of respondents’ perceptions on the level of effectiveness of the LPs in forecasting housing requirement is organised similar to the analysis of the level of effectiveness of the SPs (section 7.6.1). The level of effectiveness is measured based on the extent of the forecasts of future housing needs and forecasts of future housing demand. The analysis shows that most of the respondents assumed the study area’s LPs are effective in forecasting future housing needs. Around 47.5 percent of the respondents rated them as ‘very effective’, 37.7 percent ‘effective’ and 14.8 percent ‘quite effective’. No respondent answers ‘less effective’ or not effective.

The mean score of the level of effectiveness of the LPs in forecasting future housing needs is at 4.33, that is between ‘effective’ and ‘very effective’ (Table 7.4).

In relation to the level of effectiveness of the LPs in forecasting future housing demand, the analysis shows that 47.2 percent and 49.2 percent of respondents viewed them as ‘not effective’ and ‘less effective’ respectively. Only 3.3 percent of the respondents rated them as `quite effective’. The mean score of the

232 level of effectiveness of the LPs in forecasting future household housing demand is at 1.56, that is between ‘not effective’ and ‘less effective’.

Table 7.4: Respondents’ perceptions towards the level of effectiveness of local plans in forecasting future housing requirement Levels of Effectiveness (Score Value) Effectiveness of Local Plan

Not effective

Less effective

Quite effective

Effective

Very effective

Mean (μ)

(1)

(2)

(3)

(4)

(5)

In forecasting future housing needs.

-

-

9 (14.8)

23 (37.7)

29 (47.5)

4.33

In forecasting future housing demands (household effective demand).

29 (47.2)

30 (49.2)

2 (3.3)

-

-

1.56

Source: Questionnaire survey (2006) The above result is in line with the result of the content analysis where out of the seven LPs examined, only one LP, i.e. Johor Bahru District has effectively forecasted both housing needs and housing demand. Whereas the other LPs (6 LPs) only emphasised on forecasting the housing needs (section 6.3.4.4). This indicates that the preparation of LPs in the study area has only succeeded in forecasting the future housing needs but failed to forecast the future housing demands.

7.6.4 The Effectiveness of the Local Plans in Determining Future Housing Land Area The perceptions about the level of effectiveness of LP in determining future housing land area are measured based on the extent to which the amount of housing land area tallies with the figures of LP’s housing forecast and the practice of determining housing land area in the form of the whole planning period. In respect of the extent to which the amount of future housing land area tallies with the figures of LP’s housing forecast, the analysis shows that the respondents have different perceptions. As shown in Table 7.5, 3.3 percent of respondents answered ‘very effective’, 23.0 percent answered ‘effective’ and 45.9 percent responded ‘quite

233 effective’. There are also respondents who answered ‘less effective’ (23.0%) and ‘not effective’ (4.8%).

In the situation of different responses, the mean analysis

conducted helps present a clear picture about the effectiveness of LP in conducting this activity. This analysis resulted in the mean score of 2.97, that is between ‘less effective’ and ‘quite effective’.

Table 7.5: Respondents’ perceptions towards the level of effectiveness of local plan in determining future housing land area Levels of Effectiveness (Score Value) Effectiveness of Local Plan

Mean (μ)

Not effective

Less effective

Quite effective

Effective

Very effective

(1)

(2)

(3)

(4)

(5)

In determining future housing land area tallies with the LP’s housing forecasts.

3 (4.8)

14 (23.0)

28 (45.9)

14 (23.0)

2 (3.3)

2.97

In determining future housing land area in the form of whole planning period.

27 (44.3)

23 (37.7)

11 (18.0)

-

-

1.74

Source: Questionnaire survey (2006) Concerning the effectiveness of determining housing land area in the form of the whole planning period, the analysis shows that the respondents basically viewed this practice as ineffective. Around 44.3 percent of respondents answered `not effective’ and 37.7 percent answered `less effective’. Only 18.0 percent of respondents viewed the practice as ‘quite effective’. The mean score of the level of effectiveness of LP in determining future housing land area by the whole planning period is at 1.74, that is between ‘not effective’ and ‘less effective’.

The perceptions of respondents regarding the extent to which the determined amount of future housing land area tallies with the figures of LP’s housing forecast however contradicted with the result of the content analysis which revealed that all the four LPs which determined the requirement of future housing land area have adapted the outcomes of housing forecast accordingly (section 6.3.5.1). The actual problems of this activity are focused on the ineffectiveness of the outcomes of the determination of future housing land area and the failure to accurately translate the figures of future housing land area into the LP proposal maps.

234 7.6.5 The Effectiveness of the Local Plans in Distributing Future Housing Locations The perceptions on the level of effectiveness of LP in distributing housing location is measured in terms of the current practice and procedure of distribution and the outcome of distribution in the form of housing land use zones. In relation to the current practice and procedure, the analysis shows that the respondents have different perceptions, where 1.6 percent of respondents answered ‘not effective’, 24.6 percent answered ‘less effective’ and 42.6 percent responded ‘quite effective’.

The other respondents, that is 27.9 percent answered ‘effective’ while 3.3 percent answered ‘very effective’. The mean score of the level of effectiveness of current practice and procedure of the distribution of future housing locations is 3.07, which is between ‘quite effective’ and ‘effective’ (Table 7.6).

Table 7.6: Respondents’ perceptions towards the level of effectiveness of the local plan in distributing locations for future housing development Levels of Effectiveness (Score Value) Effectiveness of Local Plan

Mean (μ)

Not effective

Less effective

Quite effective

Effective

Very effective

(1)

(2)

(3)

(4)

(5)

In distributing future housing locations in terms of its current practice and procedure.

1 (1.6%)

15 (24.6%)

26 (42.6%)

17 (27.9%)

2 (3.3%)

3.07

In distributing future housing locations in the form of housing land use zones.

1 (1.6%)

8 (13.1%)

10 (16.4%)

39 (63.9%)

3 (4.9%)

3.57

Source: Questionnaire survey (2006) With regard to the perceptions towards the effectiveness of distribution in the form of housing land use zones, the analysis shows that the respondents also have different perceptions. Only 4.9 percent of respondents viewed the outcome of distribution as ‘very effective’, while 63.9 percent and 16.4 percent viewed it as ‘effective’ and ‘quite effective’. There are also respondents which viewed the outcome of distribution in the form of housing land use zones as ‘less effective’ (13.1%) and ‘not effective’ (1.6%). However, the mean score of the respondents’ perceptions is shown as 3.57, that is between ‘quite effective’ and ‘effective’.

235 The above result indicates that the town planners have doubts towards the effectiveness of the practice and procedure of distribution of housing location. This concurs with the result of the content analysis which revealed that only the factors of physical suitability, such as availability of land adjacent to current housing development, accessibility from the main road and following the alignment of development corridor were considered by most of the LPs in the study area (section 6.3.6.1). The above analysis also shows that the town planners still recognised the outcome of location distribution in the form of housing land use zones. This means the practice of land use zoning is still relevant in the planning of housing development, particularly in the context of the study area.

7.6.6 The Effectiveness of the Process of Planning Control in Controlling and Approving Housing Supply The perception about the level of effectiveness of the process of housing planning control is measured based on the extent to which the process meets the population housing needs, fulfils the households effective demand, considers the housing market demands and complies with the planning requirements.

In relation to the extent to which the process of planning control meets the population housing needs, the analysis shows that the respondents generally viewed it as ‘effective’.

In detail, 50.8 percent of the respondents viewed it as ‘very

effective’, followed by 39.3 percent ‘effective’ and 6.6 percent ‘quite effective’.

Only a small number of respondents (3.3%) viewed it as ‘less effective’. In terms of the mean score of the level of effectiveness of the process in meeting the population housing needs, it is at the rate of 4.38, that is between ‘effective’ and ‘very effective’ (Table 7.7).

236 Table 7.7:

Respondents’ perceptions towards the level of effectiveness of the housing planning control process Levels of Effectiveness (Score Value)

Effectiveness of Planning Control Process

Mean (μ)

Not effective

Less effective

Quite effective

Effective

Very effective

(1)

(2)

(3)

(4)

(5)

In meeting population housing needs.

-

2 (3.3%)

4 (6.6%)

24 (39.3%)

31 (50.8%)

4.38

In fulfilling households effective demand.

24 (39.4%)

31 (50.8%)

6 (9.8%)

-

-

1.70

In considering housing market demands.

31 (50.8%)

26 (42.6%)

4 (6.6%)

-

-

1.56

In complying technical requirements for housing planning.

-

3 (4.9%)

12 (19.7%)

26 (42.6%)

20 (32.8%)

4.03

Source: Questionnaire survey (2006) The analysis of the effectiveness of planning control process in fulfilling the households effective demand shows that the respondents had viewed it as ineffective.

Around 50.8 percent and 39.4 percent of respondents viewed it as ‘less effective’ and ‘not effective’ respectively. While only a few respondents (9.8%) viewed it as ‘quite effective’. The mean score for the level of effectiveness is at the rate of 1.70, which is between ‘not effective’ and ‘less effective’. The respondents expressed quite similar perceptions pertaining to the consideration for housing market demands. The majority of respondents (50.8%) viewed the planning control process is ineffective in considering housing market demands, while 42.6 percent viewed it as `less effective’. Only 6.6 percent of the respondents viewed it as ‘quite effective’. The mean score for the level of effectiveness of the process which considers the actual housing market demands is at the rate of 1.56, that is between ‘not effective’ and ‘less effective’.

In relation to the extent to which the technical requirements of housing planning are complied through the process of planning control, the respondents basically viewed it as effective. The majority of respondents expressed it as ‘effective’, while 32.8 percent and 19.7 percent viewed it as ‘very effective’ and ‘quite effective’ respectively. Only a few respondents (4.9%) viewed it as ‘less effective’. Its mean score is at the rate of 4.03, which is between ‘effective’ and ‘very effective’.

237 The above analysis indicates that the process of housing planning control in the study area is effective to meet the population housing needs, but still unsuccessful towards fulfilling the households housing demand and to consider the current and future housing market demands. This in line with the results of the content analysis which revealed that only one housing approval, out of 82, tried to consider the aspect of household housing demand, while only 4 housing approvals have considered the aspect of market demand (section 6.4.3.2).

The above analysis also clarifies that the town planners still assumed that the basic requirements of planning are complied during the process of housing approval.

This however, is not in line with the results of the content analysis where only the conditions for density control and housing category control are emphasised in the process of housing approval in the study area. The degree of compliance to the proposed land use and the stipulation of conditions on development phase and types of housing development (landed or flatted) allowed are still low and ineffective (section 6.4.3.3).

7.7

Perceptions Towards the Fulfilment of the Objective of Meeting Housing Needs The question relating to the objective of meeting housing needs is purposely

raised in the survey aimed to seek the opinions of respondents on the extent to which the fulfilment of the objective has influenced the process of planning and controlling of housing supply. This is in line with the results of the content analysis which revealed that the operation of land use planning mechanisms, beginning from the preparation of SP and LP to the planning control process merely focus on meeting housing needs.

In this respect, three questions were raised. The first question touched on the extent to which the fulfilment of meeting housing needs has affected the effectiveness of the process of housing planning. For this question, the analysis shows that majority of the respondents (96.7%) agreed that the weakness and

238 ineffectiveness of the housing planning process had originated from the fundamental nature of housing planning which focuses too much on the fulfilment of meeting housing needs, while neglecting the aspect of housing demand.

The second question argues that focusing on meeting housing needs alone is insufficient in order to achieve an effective process of housing planning. This question is raised based on the argument by Nicol (2002) who states that meeting housing needs alone is insufficient to achieve a more integrated and responsive housing planning (section 2.6.3). The analysis shows that majority of the respondents (90.2%) agreed with the argument. Only a few respondents (3.3%) disagreed, while 6.6 percent were unsure about the matter.

The third question raises that the existence of housing oversupply and property overhang can be prevented or minimised if the operation of the planning mechanisms (SP, LP and planning control) are implemented in an effective and responsive way. In relation to this, the majority of respondents (91.8%) agreed with the argument. Only 1.6 percent of respondents stated disagree, while 6.6 percent responded unsure.

The analysis clarifies that over-emphasis towards the fulfilment of the objective of meeting housing needs may contribute to the ineffectiveness of planning and controlling of housing supply and consequently caused an oversupply. This certainly requires a change in the approach, process and practice of housing planning. The next section will discuss this point by examining the opinions of respondents on the strengthening of the housing planning process.

7.8

Opinions on the Strengthening of the Planning of Housing Supply The survey has raised two general questions regarding the strengthening of

the housing planning process. The first question touches on the requirement to change the approach and practice of housing planning from only emphasising on meeting the broad housing needs to one which also focus on the aspects of housing

239 demand. The analysis shows that all respondents unanimously agreed that the current approach and practice of housing planning requires a change.

The second question tries to gauge an opinion on the planning mechanisms most suitable to be incorporated the aspects of housing demand. It was found that the majority of respondents (63.9%) viewed that the aspects need to be incorporated in all three mechanisms (SP, LP and planning control process). However, 36.1 percent of the respondents viewed that the aspects are only suitable to be incorporated in the preparation of LP and at the stage of planning control. There are also opinions that viewed the aspects are only suitable to be incorporated in certain mechanisms, i.e. only in the LP (1.6%), only at the stage of planning control (1.6%) and only in both structure and local plans (1.6%) (Table 7.8).

Table 7.8: Respondentsâ&#x20AC;&#x2122; opinions on the most suitable planning mechanism to be incorporated the aspects of housing demand Planning Mechanism

Frequency

Percentage (%)

Only in the preparation of structure plan

0

0.0

Only in the preparation of local plan

1

1.6

Only at the stage of planning control

1

1.6

In both structure and local plans

1

1.6

In the local plan and at the stage of planning control

19

36.1

In all the three planning mechanisms

39

63.9

Total Respondent

61

100.0

Source: Questionnaire survey (2006) In light of the above opinions and findings from the content analysis (chapter 6), it is justifiable to conclude that the housing planning approach in the study area needs an immediate change. The process of planning and controlling of housing supply in the SP, LP and planning control should consider and fulfil the specific demands of households and markets besides emphasising on meeting the broad housing needs of the population.

240 7.9

Issues in the Process of Planning and Controlling of Housing Supply This section presents the results of the qualitative analysis from the in-depth

interview which focuses on the issues and the causes of the ineffectiveness of the process of planning and controlling of housing supply in the study area. The analysis is an extension of the quantitative and qualitative works and outcomes from both the content analysis and questionnaire survey. Generally, there are many issues relating to the process from the stage of housing forecast to the stage of housing planning control that can be further explored in the in-depth interview. However, in line with the objectives and scope of research, an emphasis is only given to the selected issues as follows: (i)

The suitability to incorporate the aspects of effective demand and market demand in housing forecast and which development plans (either SP or LP) are more appropriate to consider and produce the aspects;

(ii)

The appropriateness of formulating policy that enables LPAs to consider the housing market demands in the planning control process;

(iii)

What are the causes of the failure of the distribution of future housing land area;

(iv)

The appropriateness of considering the expected market demand in distributing location for future housing development; and

(v)

What are the causes of the existence of the non-compliance practice in the process of housing approval.

7.9.1

The Suitability of Forecasting Housing Demands One of the issues which emerged from the analysis on the effectiveness of

housing forecasts for both plans (SP and LP) is regarding the forecast outcomes.

Questions arise whether it is sufficient to calculate the future housing requirement in the form of broad housing needs as done by the 6 SPs and 6 LPs in the study area, or is it also essential to produce it in the form of housing demands as carried out by the MPJB, Mukim Plentong and Pasir Gudang SP and Johor Bahru District LP (section 6.2.4.4. and section 6.3.4.4). This issue will be discussed in this section by exploring

241 the views of respondents (experienced town planners) about the extent of the requirement and suitability to forecast the housing demands and which development plans are more appropriate in producing the aspect.

In relation to the outcome of housing forecast, the majority of respondents generally perceived that both housing needs and housing demands are necessary to be forecasted during the preparation of development plans. Only two respondents are found to have different views about this. Respondent GP4 stressed that it was very important to consider the levels of household income in carrying out the activity of housing forecast. This respondent noted that: “We already have the information on households income, but unfortunately we did not fully utilise it in the process of housing forecast” (Respondent GP4).

The same point was addressed by respondents PP1 and PP9. Respondent PP9 argues that different areas have different housing demand, while respondent PP1 highlighted about household preferences in the housing market.

“Future housing requirement should be forecasted according to the demand and households affordability, because different areas have different demand. For example, in Johor Bahru, the current housing demand is more on high- and medium-cost. For the areas outside of Johor Bahru, their housing demands are different. We must supply houses based on the affordability of the households in the areas” (Respondent PP9).

“In the housing market, there is a ‘taste’, which is quite difficult to capture. But, for me, we need to try to capture it. The current forecasting approach must be changed as it has been used for the last 30 years” (Respondent PP1).

Respondent GP3 also made similar comment that the housing forecast should incorporate the aspects of housing demand. This respondent suggested:

242 “Housing forecast should be done in two stages. The first stage forecasts the total housing needs and this must be followed by the second stage which forecasts the household housing demand. This is not uncommon because the older version SP has done it” (Respondent GP3).

Respondent PP8 shared his experience on the approach of conducting housing forecast in two stages: “I have an experience as the project manager for the MPJB Structure Plan in 1985. We did the housing forecast in two stages. First, we forecast housing in general to calculate the future housing needs.

Subsequently, we conducted another forecast to calculate the future housing demand in the form of housing categories. We used existing data that is available during the socio-economic survey. That’s what we have done, but now we just used a very simple forecasting method which is I think is less accurate” (Respondent PP8).

Another aspect that needs to be considered in the housing forecast was mentioned by respondents GP6 and PP5. Respondent GP6 suggested the housing planning activity should capture the data on socio-economy and trends of population lifestyle. According to him, consideration of the aspects must begin at the stage of housing forecast. Respondent PP5 touched the aspect of housing sub-markets by stating that: “It is better if housing forecast can consider the requirements for submarket, rather than only producing the total housing needs. This will guide the planning for housing supply in the future” (Respondent PP5).

Respondent GP1 made a broad comment regarding the consideration of the aspects of socio-economy and housing sub-demands. This respondent basically fully agreed to consider the aspects in the housing forecast, however noted that:

243 “It is quite difficult to incorporate the aspects of socio-economy and housing sub-demands because we don’t have a proper data bank for those aspects. Our local authority does not give priority to this, and even the data on total housing supply, current housing needs and total housing approvals that are supposed to be monitored by them are still not properly collected. The problem is the unavailability of reliable data” (Respondent GP1).

The problem of data unavailability has also attracted respondent GP7 to make a comment by relating it to the forecast of housing category demanded by the future households. This respondent voiced out that: “If we want to forecast housing by certain categories, we must have the data on the patterns of household income. The problem is, our development plans do not collect the data on the pattern of income.

What we have is only the general data on range of income. I’m not sure to what extent this data can help in supporting the forecast of household housing demands” (Respondent GP7).

Furthermore, there are several respondents who perceived the problems in housing forecast exist due to the lack of capability among town planners to consider the various aspects of housing demand accordingly. Respondents GP2 and PP6 made the following comments: “This issue reflects the inability of professionals, especially town planners, to consider various aspects in the housing forecast.

Nowadays, we just forecast future housing in a plain way, typical planning, so the housing forecast also becomes typical. For me, housing forecast needs to consider the household demands, because every people need different types of houses. The problem is that we are not ready, which relates to our (planners) capability” (Respondent GP2).

244 “For me, town planners still lack the exposure to do the housing forecast. This has caused the housing forecast to be done only in the usual way, by just following the way housing forecasts were done in previous planning reports. We don’t have a specialized officer to do housing forecast” (Respondent PP6).

Besides the positive statements which basically supported that the aspects of housing demand are necessary and suitable to be forecasted, there are also respondents who stated that they are unnecessary and unsuitable. Respondent GP5 stressed that it is sufficient for development plan to only forecast the total housing needs because the calculation of future housing requirement very much depends on the population and household growth. This point was supported by respondent PP4 who argued that: “The demands for future housing will be determined by the market operation, not by the planning activities” (Respondent PP4).

In respect of the type of development plan that is more appropriate to consider the housing demands, the analysis indicates that there are 11 respondents, out of the 16, who viewed that it is more appropriate to consider and calculate the aspects of housing demand in the preparation of LP. The respondents have given various reasons and rationales to justify their views. In contrast, there are 3 respondents who argued that the aspects are only suitable to be forecasted by the SP. Meanwhile, there are 2 respondents who stated that it should be produced by both the structure and local plans.

The above views indicate that the aspects of housing demand consisting of household effective demand (affordability and willingness to pay for housing) and household housing demands (housing preferences in terms of category, type, price and etc.) are essential to be incorporated in the development plan’s housing forecast, especially in the preparation of LP. As such, the preparation of the SP which covers the whole state, only requires to focus on forecasting the broad housing needs, while the preparation of LP should forecast both the housing needs (total housing quantity) and housing demands required by the future households in the planned areas.

245 7.9.2

The Appropriateness of Formulating Policy to Consider Market Demands in the Planning Control Process Both the content analysis and questionnaire survey outcomes (section 6.2.5.1

and section 7.3.2) indicate that the policy statements related to the planning and controlling of housing supply are very much focused on the conventional policies, such as to meet housing needs and to ensure housing developments are only developed in the area zoned for housing. The analyses done revealed that there is no specific policy in ensuring the process of housing approval considers other aspects, such as local housing market demands and the actual housing requirement for different areas.

The issue was further explored in the in-depth interview by focusing on the extent of appropriateness of formulating policy which enables the LPAs to consider the future market demand during the process of housing approval. In this respect, the experienced town planners generally viewed that the current housing planning policies are still insufficient for achieving an effective planning of housing supply.

Some of them even suggested that it is timely for the SP preparation to formulate a specific policy on the matter.

Respondent PP3 agreed with the above statement by noting that it is good to consider the actual market demand in the process of housing approval to avoid speculative supply and oversupply. This respondent suggested the requirement to consider the market demand become a strict policy that need to be formulated by the SP. Respondent GP6 also shared this point of view by arguing that the consideration of market demand will make the housing planning becomes ideal and avoid speculation activity by the developer. This point was supported by respondent GP3 who noted: â&#x20AC;&#x153;We should stress on the demand factors in formulating the housing policies, because sometimes our forecasting is not accurate. At the same time, in the housing planning process, we must relate with the economic factors, because there are other elements that will influence the actual demand for housingâ&#x20AC;? (Respondent GP3).

246 Respondent GP5 extended the view about the point by explaining that: “Consideration of the aspects of market demand can be translated into the planning policy in two situations. First, if the housing applications are outside of the housing zone area, they should not be directly rejected by the planning authority. Similar to the situation where the housing applications submitted are within the housing zone area, they should not be automatically approved. We should look at the suitability of the areas proposed as well as the availability of market demand” (Respondent GP5).

Respondent GP7 viewed the formulation of this policy will help housing developers to do market and feasibility studies and also assist LPAs to control the housing approvals based on the actual housing required in the market. The absence of a specific policy to consider the market demand has attracted respondent PP9 to make the following comment: “The current housing policies have created a lot of property overhang. We (planners or housing planning process) should produce new housing based on the per capita income. We should look at the household incomes and also their housing choices. To make sure these aspects are considered, a specific housing policy should address this” (Respondent PP9).

For respondent PP5, although viewed that in the actual situation, the housing demand is determined by the market operation, but admitted that there is nothing wrong for the LPAs to consider the aspect at the planning stage. This respondent, however argued about the availability of data relating to housing demands to be used in the approval process. Besides views which agree to the formulation of policy to consider the market demand in the approval process, there are also several respondents who disagreed. Respondents GP4, PP4 and PP7 totally disagreed with the formulation of the policy. They made the following comments:

247 “We should not formulate this kind of policy because we can’t control the housing construction. What happens if the housing applications were approved but are not developed or if the projects are abandoned? So how are we going to cater for the demands for immediate housing? For me, this is not appropriate in our context” (Respondent GP4).

“The policy is not suitable. It will disturb the operation of housing market. For me the planning activities don’t have a capacity to determine exactly the current and future housing markets” (Respondent PP4).

“The housing policy in a broad form is enough. I think this is not suitable to be a policy for the private housing development” (Respondent PP7).

Respondents GP2 and PP2 argued that if that kind of policy is formulated, it will create unfairness to the housing developers.

“The government should give approval when the area is already zoned for housing. It is unfair to the land owner, if there is a policy like that” (Respondent GP2).

“If there is a policy to consider the actual demands, it will create another problem and it is unfair to the developer. For me the current policy is sufficient enough” (Respondent PP2).

In general, the experienced town planners, although there are some respondents who disagreed (inappropriate), basically agreed and supported that the aspects of market demand are important in the process of housing approval.

Therefore, it is appropriate to incorporate the aspect as one of the SP’s housing planning policies in the future.

248 7.9.3 The Causes of the Failure of Distribution of Future Housing Land Area The practice of determination and distribution of future housing land area in the study area, as discovered by the content analysis and questionnaire survey (section 6.3.5.1 and section 7.6.4), shows that the distribution of the total land requirement for future housing development has exceeded what has been determined.

This section will explore the issue in depth by discussing the causes and the rationales behind the practice.

In this respect, respondent PP4 clarified that there are two schools of thoughts among planners regarding the distribution of the total housing land area for future development: “First, during the preparation of LP, some planners said just follow what has been forecasted and second, some said that we have to raise the amount of land area to cater for contingency of future housing need. Everybody has their own rationales” (Respondent PP4).

Respondent PP1, in response to the question regarding the failure of the distribution of future housing land area, made the following comment: “The definition of ‘exceed’ can be looked at from many angles. First, forecasting must be correct to guide the other housing planning activities. The second thought is, we need housing investment to encourage the economic growth. We should not confine ourselves to the zoning matter only when dealing with the housing developments.

However, I accept that the housing supply should not be approved in a huge number. If this is practised, planning is not required any more, just surrender it totally to the market” (Respondent PP1).

Respondents GP3, PP6 and GP7 revealed some of the factors that had caused the oversupply of housing lands:

249 “The oversupply of land for housing originated from the absence of reference to the structure and local plan. It is also caused by the inaccuracy of housing forecast, influences of politicians at the local level and the failure of the study team in the preparation of LP to consider the determined future housing land area when they do the land use proposal map” (Respondent GP3).

“There are many factors. First, when we exhibit the plan (SP or LP), there are objections. In our practice, we have always accommodated them. So, the housing zones will be larger. Second, it is due to the influence of the political factors. Third, we have to accommodate the directions of district and local authorities. Fourth, we have an appeal procedure, especially through SPC (State Planning Committee).

When the committee gives an approval, this will add extra land area for housing. That’s what actually happened” (Respondent PP6).

“It occurs due to the failure of the process of determination of future land area to carefully assess the figures of existing committed development. By right, we should conform it to the forecasted figure and consider the committed development” (Respondent GP7).

Respondents PP3 and PP7 explained about the pressure faced by the private town planners to produce more housing land in the preparation of LP. “During the preparation of Kota Tinggi LP, we faced this dilemma.

We know about the housing figure and population projection, but we were forced to produce more housing in the LP. So, to avoid unnecessary quarrel, we just follow the LP technical committee, although we do not agree with their decision” (Respondent PP3).

“The study (structure or local plans) for me is okay. The problem is the decisions by the LP committee that we have to follow” (Respondent PP7).

250 In relation to this, respondent GP2 gave the reasons why the total housing land area is distributed more than what has been determined. This respondent explained that: “The problem is we are not sure which housing schemes will be firstly developed. We cannot identify this during the preparation of LP. So, what we do is to enlarge the area for housing land use zone which a little bit exceeds what has been determined. The rationale is to be fair to the market. We know that what we have zoned are more than what is actually required, but we also have to consider the situation where there are lands which were zoned for housing but the land owners do not develop them” (Respondent GP2).

The above view is supported by respondent GP4 who noted about the difficulty to predict which landowner will apply and develop the housing scheme in the planned areas. Respondents PP5 also touched the issue by noting that: “There must be an element of flexibility and not too rigid in the housing development process. This element is required because we are unsure whether certain areas which were zoned for housing will be developed or not. If the areas are not developed, it will create a problem of housing shortage” (Respondent PP5).

Respondent GP5, in response to the issue of housing land distribution, made the following comment: “Housing planning has to follow the current development trend. In the planning stage, we should not only be tied to the forecasting figures, because the market activities move very fast. For example, in Johor, we cannot just let the lands remain as agriculture, because through zoning, including for housing, this will increase the value of the lands” (Respondent GP5).

251 The above views indicate that there are many factors which caused the failure of distribution of future housing land area. Among the general factors are the lack of reference to the development plans, intervention and influence by politicians and LP technical committee and lack of consideration to the figures of committed housings already approved by LPA. The experienced town planners also revealed some rationales why the total housing land area has been allocated more than what has been determined. The main rationale is the planners have to consider the implications when certain areas zoned for housing, are not developed by the landowners. The practice of allocating additional land area for housing will function as a precaution to avoid the insufficiency of housing lands in the planned areas.

7.9.4 The Appropriateness of Considering the Expected Market Demand in Distributing Housing Location The result of the content analysis shows that the factor of expected future market demand was neglected in the distribution of future housing locations in the study areaâ&#x20AC;&#x2122;s LPs (section 6.3.6.1). This shortcoming has prompted all respondents in the questionnaire survey to agree that the future housing locations will be effectively distributed if the factor of expected future market demand is considered (section 7.4.3).

In the light of the results, additional views were gained from experienced town planners aimed to explore the extent of the appropriateness of considering the factor in distributing locations for future housing development. In this issue, the respondents generally have different views, where some of them (8 respondents) considered the expected market demand as appropriate to be one of the factors, while several respondents did not favour it fully and assumed the factor as unnecessary.

Respondents GP3, GP5, PP4 and PP6 have stated full support to consider the expected market demand. These respondents viewed that by considering the factor, the locations for future housing development will be distributed effectively.

252 Respondents GP2 and GP1 also supported that the expected market demand should be considered by noting that: “When delineating the development boundary and zone for housing, we need to consider the future market demands. We should develop housing in the areas which are expected to be a development focus in the future. Housing should not only be concentrated along the main road” (Respondent GP2).

“The approach of allowing housing development along the main road is no more practical. We should focus on certain sub-centre or nodes which need to be planned and determined earlier in the development plans” (Respondent GP1).

Respondent PP1, in response to the issue, suggested two approaches that need to be applied by the planning process in distributing locations for future housing: “First, follow the market trends. The market will indicate the housing requirements based on the current and future market demands.

Second, we (planning) should create and identify new markets for current and future housings” (Respondent PP1).

However, as mentioned above, not all respondents favoured the idea to consider the expected market demand in distributing locations for future housing.

Respondents PP2 and GP6 opposed the idea by giving the following rationales: “We have already tried to consider the market factors, but I think we (planners) are not an expert in this field and it is quite difficult to consider the future economic trends, we don’t have an accurate data on this” (Respondent PP2).

“It is quite difficult to consider the market demand due to the development strategies set by the State which are subject to change.

For example, to develop a new Johor state administrative centre, the

253 first site is proposed in Ulu Tiram, then shifted to Johor Perdana (District of Kota Tinggi) and now in Nusajaya” (Respondent GP6).

Respondent GP7 also opposed the idea by giving the following example: “Look at what happens to Nusajaya, although its master plan, which had already incorporated the indications of future housing market demand, was approved in the last 17 years, but until now it’s still unsuccessful. Vice versa, other areas which are not planned to be a prime housing area, are more developed than Nusajaya. Residents still prefer to buy houses near to their work place, compared to the new housing development areas” (Respondent GP7).

The above views indicate that the majority of the experienced town planners generally agreed and support that the factor of expected market demand is appropriate to be considered as one of the factors in distributing locations for future housing development. However, there are several respondents who opposed to consider the aspect. Their views, if read between the lines, are basically influenced by the experiences they faced. The issues of inaccuracy of data on expected market demands, frequent changes of development strategies and the problems in Bandar Nusajaya as highlighted by them can basically be overcome if all housing planning activities are conducted comprehensively and effectively.

7.9.5 The Causes of the Non-Compliance in the Process of Housing Approval The existence of non-compliance to the proposals of development plan in approving housing applications has been proven by the results of the content analysis and questionnaire survey. The content analysis revealed that out of 82 housing approvals in the study area, there are 38 (46.3%) which did not comply with the proposed land use zone (section 6.4.3.1). The result is in line with the perceptions of respondents in the questionnaire survey, in which the majority (80.3%) of them agreed that the practice of housing planning control in the study area did not fully

254 follow the proposals of development plan (section 7.5). The existence of such practice has prompted the research to explore it in more detail by analysing the causes and the rationales behind the practice.

Generally, there are many causes and rationales stated by the experienced town planners. Respondents PP8 and GP3 highlighted about the influence and interference of politicians, including by members of the local authority’s full council, in the development approval process, while respondent GP7 raised about the influence of the decisions of the State Authority: “The non-compliance exists due to the influence by State Authority in the approval process. This happened especially at the state’s general approval stage, particularly at Stage 1 SBKS and the privatisation projects. Sometimes, the SPC also regularly approved the applications for change of land use zone. For me, this is a part of the causes that contribute to the non-compliance practice” (Respondent GP7).

Respondent PP6, on the other hand, viewed the lack of coordination between the local authorities and the State TCPD as one of the factors contributing to the noncompliance: “It happens due to lack of coordination between the local authority and the state planning department. The local authorities operated independently and there is possibility that they do not comply with the planning and legal requirements approved by the State. For me, the State TCPD needs to play a more effective role in coordinating the applications of housing development” (Respondent PP6).

There is also a view that stated the weakness of LP as a causing factor to the practice. It is addressed by respondent GP1 as follows:

255 “LP was not fully followed due to the failure and weakness of our LPs. We cannot assume the LP is fully precise. There are a lot of shortfalls in the LP. These contribute to the failure of the development control process” (Respondent GP1).

In addition to the above comment, this respondent raised a significant point by highlighting that there are many housing applications approved in the area which are still not ready for immediate development. According to this respondent, this situation happens because the LP has already zoned the areas as housing and the LPA, in line with the provision of Act 172 (section 18(1)), has to grant approval to such applications. Again, this respondent blamed the weakness of the approach and outcomes of the LPs as a factor that contributes to the problems in the housing approval process. This respondent has given the following suggestions to overcome the problems: “LP should divide the housing zones into certain planning phases, not only for the whole period of 20 years (whole planning period) and specifies clearly the conditions regarding the basic infrastructures required, accessibility, development priority according to zoning phases, etc., to guide the approval process” (Respondent GP1).

Besides the above causes, there are respondents who perceived the lack of capability and knowledge among planners as a factor that contributes to this issue.

This has been touched by respondents GP2 and GP3: “We have a problem with the officer who handles the planning approval process. There is no exposure to the professionals (including planners) to plan and control the housing in an effective way” (Respondent GP2).

“This happens due to the lack of knowledge among planners. By right, they should control and approve housing based on what has been planned” (Respondent GP3).

256 Respondent GP6 made similar comment regarding the lack of knowledge by arguing that most of the officers at the State and local levels involved in the planning approval process do not have a full understanding of the contents and proposals of a LP. This has affected the decisions for new housing development where according to this respondent, there are many planning decisions which are not in line with the proposals of LP, especially on the proposed land use zone.

The above views indicate that there are many factors that have caused the existence of non-compliance in the process of housing approval. Some factors, such as political influence and decisions of the State Authority (approvals of SBKS 1, privatisation projects and change of land use zone) are beyond the control of LPAs. However, there are many factors, such as lack of coordination between local authorities and the State TCPD, weaknesses of LP and lack of capability and knowledge among planners which are basically under the jurisdiction of the planning field and LPAs. These factors need to be addressed to ensure the development of housing is in line with what has been planned in the development plans.

Besides the factors above, attention is also required on the point raised by respondent GP1 who highlighted that since the proposed land use zone for housing is only done for the whole planning period without planning phases, it has caused many housing applications to be approved although some areas are still not ready for immediate development. This situation should be seen as one of the factors that causes a mismatch between supply and housing need in the study area.

7.10

Conclusion This chapter has presented the perceptions of town planners on the practice

and level of effectiveness of the planning mechanisms (SP, LP and planning control) as well as the issues faced in planning and controlling housing supply. In general, the town planners viewed the current practices of housing planning in the study area as weak and ineffective. The majority of them believe in the postulation that the existence of housing oversupply in the study area occurred due to the weakness and

257 ineffectiveness of the housing planning processes, starting from the stage of housing forecast to the stage of planning control.

The effectiveness of the SPs in forecasting future housing requirement and formulating housing planning policies was argued by town planners. They perceived the study area’s SPs are only effective in forecasting future housing needs and formulating policies to achieve the objective of meeting housing needs. The study area’s SPs were rated as not effective in forecasting future housing demands and formulating policies related to the consideration of the aspects of housing demands in the process of planning control.

The town planners also argued about the effectiveness of the LP in forecasting future housing requirement, determining housing land area and distributing housing locations. For the activity of housing forecast, they perceived its level of effectiveness is similar to the SP’s housing forecast in which only the forecasting of housing needs was considered effective. In relation to the determination of future housing land area, they perceived the study area’s LPs are not effective and have failed to ensure that the future housing land area tallies with the LP’s housing forecast. They also judged the practice of determining future housing land area in the form of the whole planning period, without phasing it into certain planning periods, as ineffective. Regarding the distribution of housing locations, they rated the current practice and procedure applied by the study area’s LPs as quite effective. This indicates that the practice of land use zoning is still relevant in the context of housing planning for the study area.

The effectiveness of the housing planning control process in the study area is also arguable. The town planners admitted that the process is only effective in meeting the population housing needs and complying with the technical requirement of housing planning. However, the process was judged as failed or less effective in fulfilling households housing demand and considering housing market demands.

The questionnaire survey has discovered a significant point relating to the root cause of the ineffectiveness of housing planning process in the study area.

Almost all the town planners (96.7%) agreed that over-emphasis in the fulfilment of

258 the objective of meeting housing needs, by neglecting the aspects of housing demand, has contributed to the ineffectiveness of planning and controlling of housing supply and the existence of the housing supply surplus. This has drawn them to agree that the approach and practice of housing planning in all the three planning mechanisms (SP, LP and planning control) require a change from only focussing on meeting broad housing needs to one which focuses on and addresses the aspects of housing demand.

The results of the qualitative analysis presented in this chapter have complemented the research to explore in depth the issues of planning and controlling of housing supply faced by the study area. The analysis has successfully helped to conclude the extent of the suitability and the most appropriate development plans to forecast the housing demands, the appropriateness of formulating policy to consider the housing demands and the appropriateness of considering the expected market demand in distributing location for future housing development. The analysis has also succeeded to identify the factors and the rationales behind the failure of the distribution of future housing land area and the existence of non-compliance in the process of housing approval.

The analysis indicates that the aspects of household effective demand are important to be considered and calculated in the housing forecast to portray the actual requirements of future housing for certain areas, other than the total quantity of housing needs. The stage of preparing the LP is more appropriate to consider and calculate the aspects, compared to the SPâ&#x20AC;&#x2122;s housing forecast. The analysis also indicates that the formulation of specific policy that enable the LPAs to consider the actual market demands in the process of housing approval and the consideration of expected market demands in distributing location for future housing development is very appropriate and rational to be enforced.

Regarding the causes of the failure of distribution of housing land area, the analysis indicates that there are many causing factors and rationales. The main causes are the influence and interference by politicians and LP technical committee, and lack of consideration to the housing forecast and committed development. The analysis also found that there is a valid rationale as to why the planners have to

259 provide additional land area as a precaution to avoid insufficiency of housing land requirement in the future. In relation to the existence of non-compliance, particularly to the proposed land use zone in the process of housing approval, the analysis also discloses many causing factors. Amongst the causes are political influence, initial decisions of the State Authority that need to be followed by LPAs, lack of coordination between local authorities and State TCPD, weaknesses of the LP and lack of competence among planners.

The quantitative and qualitative analyses in this chapter have succeeded in further answering the research questions underlined in section 1.5. The analyses have also helped to achieve the objectives of the research as outlined in section 1.6. The last chapter will synthesize the results of all the analyses and discuss the implications of research findings, contributions of the research and possible areas for further research. It will also discuss the recommendations to improve the housing planning process.

260

CHAPTER 8

CONCLUSION

8.1

Introduction This chapter synthesises and summarises the findings of the analyses of

content of planning documents, questionnaire survey and in-depth interview. It focuses on the main findings on the effectiveness of housing planning activities, the achievement of planning mechanisms towards realising the objectives of housing planning and the issues in the process of planning and controlling of housing supply.

The chapter also examines the implications of the research findings and presents a framework to improve the process of housing planning. It ends by clarifying the contributions of the research and highlighting the possible areas for further research.

8.2

Research Findings The results of the empirical studies clearly show that the process of planning

and controlling of housing supply in the study area is weak and ineffective. The weakness and ineffectiveness occurred in several stages beginning with the activities of housing forecast and formulation of housing policies in the SPs, followed by the determination of housing land area and distribution of locations for future housing development in the LPs. The situation was further exacerbated by the ineffectiveness of the LPAs in controlling and approving new housing applications. The empirical

261 studies conducted also discover that the process of housing planning in the existing mechanisms emphasized mostly on the achievement of the objective of meeting housing needs. These findings will be summarized in this section by presenting the main weaknesses of each housing planning activity and the achievement of the planning mechanisms toward realising the objectives of housing planning.

8.2.1

The Forecasting of Future Housing Requirement The implementation of the housing forecasting activity in both structure and

local plans in the study area is basically incomprehensive and ineffective. The results of the content analysis carried out shows that out of the 7 SPs and 7 LPs prepared in the study area, only two plans, i.e. MPJB, Mukim Plentong and Pasir Gudang SP and Johor Bahru District LP can be said to have conducted the activity comprehensively.

In these plans, the future housing requirement was not only calculated in the form of broad housing needs (total housing quantity) but also in the form of category and price range of future housing demands. The plans have utilised fully the data of households’ effective demand resulting from the demographic study in the plans’ preparation.

The failure to apply an ‘integrated’ or at least ‘common’ forecasting technique and incorporate all figures of the housing aspects, household growth and household effective demand are the main causes of the incomprehensiveness of housing forecasts. The incomprehensiveness of the activity is also contributed by the failure to produce the forecast in both time-frames, namely for the whole planning period and by phases. There are 5 LPs which produce the housing forecast only in the form of the whole planning period without breaking it down into certain timeframes.

The above findings are in line with the perceptions of the town planners (in the questionnaire survey), where the majority of them agreed that both the structure and local plans in the study area are effective only in forecasting future housing needs but failed (ineffective) to forecast future housing demands. The ineffectiveness

262 to forecast the housing demands is considered as the main issue of the activity of housing forecast. This has led the research to explore further by means of the indepth interview by raising questions on the extent of the suitability to forecast the housing demands and which of development plans are more appropriate in producing the outcome. In this respect, most of the experienced town planners viewed that the aspects of housing demand are essential to be incorporated in the development plan’s housing forecast, especially in the preparation of the LP. This means that the SP’s preparation needs to only forecast the future housing needs (total housing quantity), while the LP’s preparation should forecast both the future housing needs and housing demands.

8.2.2

Formulation of Housing Planning Policy The formulation of housing planning policies can also be considered in the

incomprehensive state. The policies on housing control and approval are found still vague and insufficient. The result of the content analysis shows that the study area’s SPs have emphasised on the formulation of general policies related to meeting the housing needs, providing sufficient affordable housing and compliance to the proposed land use zoning. The formulation of policy that touched the aspects of housing demand was given less attention, where only a limited number of SPs incorporate the aspects as a housing policy.

The policy on the fulfilment of household effective demand was formulated in only 2 SPs (MPJB, Mukim Plentong and Pasir Gudang SP and MBJB (First Alteration) SP). For the policy on the consideration of housing market demands, only 3 SPs, i.e. MPJB, Mukim Plentong and Pasir Gudang SP, District of Johor Bahru (Alteration) SP and Johor State SP are found to have formulated this policy. In relation to the policy on the balancing of housing supply and demand, only the MPJB, Mukim Plentong and Pasir Gudang SP had formulated the policy. In general, out of the 7 SPs, only the MPJB, Mukim Plentong and Pasir Gudang SP can be considered has conducted the activity of formulation of housing planning policy comprehensively.

263 The incomprehensiveness of the formulation of housing planning policy revealed by the content analysis was clarified by the respondents in the survey and in-depth interview. The majority of the town planners (in the questionnaire survey) agreed that the shortage of policies which cover the aspects of housing demand has contributed to the ineffectiveness of the process of planning and controlling of housing supply in the study area. The experienced town planners interviewed have similar views on this issue. The majority of them recognised the significance of incorporating the aspects through the formulation of housing planning policies to enable the LPAs to consider the market demands in the process of housing approval.

8.2.3

Determination of Future Housing Land Requirement This research has found that the activity of determination of housing land

requirement was not conducted exhaustively in the study areaâ&#x20AC;&#x2122;s LPs, where out of the 7 LPs prepared, only 4 have determined the total housing land area required in the future. In those 4 LPs, although the future housing land area figures tallied with the housing forecast, they are found to have failed to translate the figures accordingly into the LP proposal maps. The content analysis revealed that the total housing land zoned has exceeded the actual land area required for future housing supply in the Ulu Tiram, Kulai-Senai, Pasir Gudang and Johor Bahru District LPs. The findings of the content analysis are in line with the perceptions of the town planners, where most agreed that the practice of determining future housing land requirement in the study areaâ&#x20AC;&#x2122;s LPs is weak and ineffective. Majority also agreed that the determined area has failed to be translated accurately into the LP proposal map. The practice of distributing future housing land area exceeding the actual requirement has led the research to find the causes and the rationales behind it.

The in-depth interviews conducted have revealed many causing factors.

Among them are the lack of reference to the development plans, influences by politicians and certain committee and carelessness in assessing housing committed development. There are also logical rationales offered by the experienced town

264 planners pertaining to the practice of distributing additional land area for housing.

The main rationale is that the planners have considered the implications where certain areas which have been zoned for housing, are not developed by the landowners. The experienced town planners viewed the practice as a precaution to avoid insufficient housing lands in the future.

8.2.4

Distribution of Future Housing Location The activity of distribution of future housing location is also in the

incomprehensive and ineffective state. This research reveals that most of the LPs in the study area had only considered the physical factors, i.e. the availability of land adjacent to current housing development, accessibility from the main road and the need to follow the alignment of development corridors, as the main considering factors in distributing locations for future housing development. Consideration to the factor of expected future market demand was given less attention, where only 2 LPs, namely Pasir Gudang LP and Johor Bahru District LP had incorporated the factor in distributing housing locations for their areas.

The incomprehensiveness of distribution of future housing location revealed by the content analysis was clarified by respondents in the questionnaire survey and in-depth interview. The majority of the town planners perceived that by only focusing on the physical factors, it is insufficient to distribute the most suitable locations for the future housing development. Most argued that the locations for future housing would be better distributed if the expected future market demands are considered together with physical factors. The experienced town planners also shared a similar view. The majority of them viewed that the factor is significant and very appropriate to be considered in ensuring the effectiveness of distribution of future housing locations.

265 8.2.5

The Process of Housing Planning Control The effectiveness of the process of planning control in controlling and

approving housing supply is also arguable. The research, through content analysis, found that only 53.7 percent (44 applications out of 82) of the housing applications assessed comply or are in line with the proposed land use zone determined by the development plans. This shows that the practice of non-compliance to the proposals of development plans exists in the study areaâ&#x20AC;&#x2122;s housing planning control process. The research also reveals that the consideration for the aspects of household effective demand, market demands and balancing the supply and demand were given less attention by the study areaâ&#x20AC;&#x2122;s LPAs. It is found that only a limited number of housing approvals had considered the aspects.

The findings of the content analysis are in line with the perceptions of town planners. The majority of them agreed that the process of planning control in the study area does not exhaustively comply with the proposals of development plans.

Most of them even argued that the practice of non-compliance to the proposed land use zone had contributed to the existence of housing oversupply in the study area.

The issue of non-compliance has led the research to find out the causes behind the practice. The in-depth interviews conducted have revealed several causing factors as follows: (i)

The need to conform to the decisions of the State Authority, especially for the approvals of First Stage SBKS and privatisation projects;

(ii)

The need to conform to the decisions of SPC, especially for the approvals of application for change of land use zone;

(iii)

Political influence and interference, including by the members of local authorityâ&#x20AC;&#x2122;s full council;

(iv)

Lack of coordination between the LPAs and Johor TCPD, especially in terms of data sharing (existing stocks, committed supply, future demand) and stipulation of planning conditions (density, housing category, development phase, etc.);

(v)

Failure of the LP to properly guide the process of housing planning control, especially in terms of the figures of housing forecast, total housing land area and quantity and distribution of suitable locations;

266 (vi)

The absence of a special condition on housing development phase;

(vii)

Lack of capability and knowledge among planners about the process and activity of planning and controlling of housing supply; and

(viii) Lack of understanding among the local authorities and technical departmentsâ&#x20AC;&#x2122; officers involved in the planning approval process regarding the contents and proposals of a LP. The research also found that the compliance to the proposed housing land use zone alone, without considering other bases, has also contributed to the ineffectiveness of the housing approval process. For instance, there are situations where although certain lands (sites) have been zoned for housing, it is later discovered that such lands are still not â&#x20AC;&#x2DC;ripeâ&#x20AC;&#x2122; or ready for immediate housing development. The situation has caused a difficulty for the LPAs to make a decision, where if the housing development proposals applied in the areas already zoned for housing use are rejected, it may be considered as not complying with the provisions of the Act of 172. Simultaneously, if those applications are approved, it may contribute to the oversupply of housing.

8.2.6

Achievement of the Objectives of Housing Planning The research found that there are four main objectives, i.e. to meet the

population housing needs, to fulfil the households housing demand, to consider the housing market demands and to balance the demand and supply of housing which should be achieved by the planning mechanisms in planning and controlling housing supply. The results of the content analysis however indicate that out of the 7 SPs and 7 LPs prepared in the study area, only one plan, i.e. the MPJB, Mukim Plentong and Pasir Gudang SP can be considered as has fully achieved all the objectives. For the other plans, their focus were basically only to achieve the objective to meet the population housing needs.

The process of planning control is also found to have emphasised on the achievement of the objective to meet the population housing needs. The huge number

267 of housing approvals, the negligence to divide the total number approved into certain development phases and the failure of the process to consider the aspects of household effective demand, market demand and balancing the housing supply and demand, have rationalised the research to conclude that only the objective to meet the housing needs is given priority to be achieved by the process.

The research also found that the over-emphasis on the fulfilment of the objective of meeting housing needs may have contributed to the ineffectiveness of planning and controlling of housing supply and consequently caused an oversupply.

This is agreed by the majority of the town planners in the questionnaire survey and in-depth interview. They viewed that to achieve a more integrated and responsive housing planning, its processes need to focus on specific demands of households and markets rather than only focussing on meeting broad housing needs.

8.3

Policy Implications The findings of the research have various implications towards the role and

responsibility of land use planning in housing development. The ineffectiveness of the process of planning and controlling of housing supply does not only describe the weakness of the implementation of planning mechanisms but also casts doubts and questions about the capability of the land use planning system.

Although this

system, as a government intervention instrument (Ibrahim, 1998; Greed, 1996c), is recognized to play a pivotal role to achieve housing development goals (Self, 1998; Pearce, 1992; Ratcliffe et al., 2004) and to encourage the efficiency of housing market (Rydin, 1993; Greed, 1996c; von Einsiedel, 1997; Chan, 1997), the outcomes of its implementation indicate vice versa. The existence of many weaknesses in the activities of housing planning and the failure to achieve the main objectives of housing planning shows that the land use planning system is still incapable to exercise its role effectively in the process of housing development.

268 Moreover, the system can also be argued as incapable to encourage the efficiency of housing market. The practice of allocating housing zones exceeding the actual requirement and the excessive approval of committed supply makes the housing market inefficient. This conforms with the view of Bramley et al. (1995) who have noted that the failures in housing market are affected by the unresponsiveness of the activities in the planning system. The failure of the system to operate effectively has caused the approach of ‘plan-led’ as suggested by Adam (1994) and Self (1998) not able to be applied fully in the housing land use development. It is seen that in the situation of failure of bothsystems, planning and market, the approach of ‘plan-market mix’, or ‘government-market mix’ as termed

by Golland and Gillen (2004), is more suitable to be applied.

The failure of the SP and LP to plan housing supply effectively implicitly shows that the adoption of procedural planning approach, which emphasises on rational procedures and methods for decision making (Ibrahim, 1998), in the preparation of development plans is still unsuccessful. The failure also indicates that the role of development plan as an `umbrella’ in planning the development of urban land uses (Healey, 1983; Ratcliffe et al., 2004) has failed to be achieved in the planning of housing supply.

The outcomes of housing approvals have also given a negative implication toward the role of the land use planning. The failure to comply with the proposals of development plans as a base for housing approval indicates that the practice of planning control by LPAs has failed to follow the provisions of planning law (Act 172) which in Section 18(1) clearly states that “no person shall use or be permitted to use any land or building otherwise than in conformity with the local plan”. It also shows what has been approved (approvals of housing development) is not according to what has been planned. The failure describes that the role of planning control as the executive arm (Healey, 1983), heart (Groves, 2000), ‘Cinderella’ (Ratcliffe et al., 2004) and ‘conveyor belt’ (Hull, 1997) of the land use planning system has failed to be fulfilled in exercising the activity of controlling housing supply.

269 The finding which revealed that the ineffectiveness of the process of planning and controlling of housing supply is derived from the over-emphasis to fulfil the objective of meeting housing needs is in line with the view of Nicol (2002) who argues that meeting housing needs alone is insufficient to achieve a more integrated and effective housing development.

This finding gives an implication that the

process of housing planning requires a change from only focusing on meeting housing needs, to one which also focuses on the specific demands of households and markets. In other words, to achieve an effective planning for housing supply, it is vital for the process of housing planning to understand, be sensitive and responsive to the effective demands of households and the needs of housing market.

8.4

Framework to Improve the Process of Housing Planning The identification of weaknesses and ineffectiveness of the process of

planning and controlling of housing supply in the study area has brought the research to propose some ideas to improve and strengthen the process. In general, as shown in Figure 8.1, the improvement of the process needs to be done comprehensively covering all housing planning activities in the preparation of SP and LP as well as the activities of housing planning control. As such, to achieve an effective process of housing planning, the improvement is needed right from the stage of housing forecast through the stage of controlling of housing development.

The activities of housing forecasting in both structure and local plans are suggested to be reviewed and refined. For the SP’s housing forecast, considering that the preparation of SP covers the whole state, thus the forecasting in the form of total housing needs is considered sufficient.

In order to reach this outcome, only a

‘common’ forecasting technique, which considers the housing aspects and future household growth, is required to be applied by the SP’s housing forecast. The outcome of total housing needs however need to be disaggregated into district or subdistrict (mukim), other than for the whole state.

270 Future housing forecasting

SP

General proposals

Use a common forecasting technique

Consider the housing aspects and future household growth.

Produce the total quantity of future housing needs for the whole state and a breakdown by district.

Forecast time-frame - whole planning period and a breakdown by certain planning periods.

Policy to meet the population housing needs.

Formulation of housing policy

Policies to ensure the housing development complies the basic requirements of planning (development boundary, land use zoning, development phases, planning conditions, t ) Broad policies related to the fulfillment of household effective demands, consideration of market demands and balancing housing supply and need.

Specific policy that enables the LPAs to consider the factor of actual housing demand in the process of housing approval.

Future housing forecasting

Use an ‘integrated’ forecasting technique

Stage 1 - Produce the total quantity of future housing needs.

Stage 2 - Produce the future housing demands (by category or types of housing).

Consider the housing aspects, future household growth, household effective demand and expected future housing demands

Time-frame - whole planning period (e.g. 20 years) and a breakdown by certain planning periods (5-years interval).

Outcome - for the whole district and a breakdown by LPAs and certain areas (town).

Tally with the figures of housing forecast

LP

Determination of housing land area

Calculate the requirement of future housing land area

Translate accurately into the LP Proposal Map (in the form of housing land use zones)

Time-frame – whole planning period and a breakdown by certain planning periods (similar to the time-frames of housing forecast).

Outcome – in broad form (total land area for housing uses) and by the actual land requirements for certain housing categories)

Consider the physical factors (availability of land adjacent to current housing development, follow the development corridor, accessibility, availability of infrastructure, avoid from developing housing in the restricted areas, etc.).

Distribution of housing location

Consider the expected future housing market demands.

Distribute future housing location in both time-frames (overall and certain planning periods) and stipulate the types of housing development allowed.

Comply with the proposals of development plans (policy, proposed land use zone, planning guidelines and standards).

PC*

Controlling of housing development

* Planning Control

Consider the aspects of effective demand and market demand and balancing supply and demand.

Stipulate the conditions on development phase, density, category and types of housing development.

Figure 8.1: Framework for the improvement of the process of planning and controlling of housing supply

271 For the LP’s housing forecast, a more detailed forecasting process is needed.

The LP’s forecast is suggested to be done in two stages. The first stage focuses on the calculation of the total quantity of future housing needs, while the second stage focuses on the calculation of future housing demands in the form of category (lowcost, medium-cost and high-cost) or types (bungalow, semi-detached, apartment, single-storey terrace, etc.) of housing. To reach this outcome, an ‘integrated’ forecasting technique, which integrates the data of housing aspects and future household growth with the data of household effective demand and expected future housing demands, is required to be used by the LP’s housing forecast. The experience of MPJB, Mukim Plentong and Pasir Gudang SP in carrying out the housing forecast in two stages could be used as guidance for the future LP’s housing forecasts (section 6.2.4.4).

It is also suggested that the outcomes of the LP’s housing forecast (total housing needs and housing demands) should be divided into LPA areas and main towns, other than for the whole district. In terms of time-frame, both the SP and LP are required to forecast future housing requirement in both time-frames, namely for the whole planning period and a breakdown by certain planning periods, preferably in 5-years interval. The forecasting in 5-years interval is important to guide the processes of determination of housing land requirement and distribution of future housing locations.

The housing planning policies in the SP, particularly policies related to the planning and controlling of housing supply, also need to be strengthened. The formulation of general policy that requires the LPAs to provide sufficient housing requirement (housing needs) for the planned areas needs to be maintained. This is in line with the arguments of previous researchers (section 2.6.3) who viewed meeting of the housing needs as the fundamental nature of housing planning that has to be achieved. Besides policy to meet the housing needs, formulation of policies to ensure the development of housing complies with the basic requirements of planning, such as permitted development boundary, determined land use zone for housing, demarcation of development phases and other planning conditions also need to be maintained and streamlined.

272 Another policy that needs to be given an emphasis is the consideration for the aspects of housing demands. The SP needs to formulate policies to ensure the activities of housing planning and control in the preparation of LP and planning control fulfil the household effective demands, consider the market demands and balance the housing supply and demand. It is also suggested that a specific policy that enables the LPAs to consider the factor of actual housing demand in the process of housing approval is formulated. This policy will guide the LPAs to control and monitor the production of new housing supply based on the actual requirement of housing demand in certain areas. It also enables the LPAs to reject the applications for housing development if there is no urgent demand in certain areas or if the sites proposed are still not â&#x20AC;&#x2DC;ripeâ&#x20AC;&#x2122; for immediate housing development.

The activity of determination of housing land requirement also needs a continual improvement. The preparation of LP needs to calculate the requirements for future housing land area and it must be tallied with the figures of housing forecast. The failure of several LPs in the study area, i.e. Tampoi, Larkin and Kempas, Skudai and Masai-Plentong to exercise the activity should be avoided in the future LPs. In relation to the outcome of future housing land requirement, other than producing it in a broad form (total land area for housing use), the actual land requirements for certain housing categories also need to be determined. It is also suggested that the time-frame should be broken down into phases (similar to the time-frames of housing forecast) besides the determination for the whole planning period. The most important thing that needs to be given due consideration by the LPAs is the requirement to translate accurately the determined housing land area into the LP proposal map. The accurate translation is very important to guide the process of housing planning control.

An improvement and further attention are also required for the process of distribution of housing locations in the LP. Other than focussing on the physical factors, such as availability of land adjacent to current housing development, in line with the development corridor, accessibility from main road, availability of infrastructure and avoiding from developing housing in the restricted areas, the process also needs to consider the factor of expected future market demands.

Consideration for this factor will not only enable the LPAs to locate the future

273 housings in the marketable locations, but also promote the development of housing in the new growth areas (new development nodes) systematically. In terms of the timeframe of distribution, similar to the other activities, the future housing locations need to be distributed in both overall and certain planning periods (planning phases). In addition, it is also suggested that the process stipulates the types of housing development allowed, that is either landed or flatted, when distributing locations for future housing development.

The process of housing planning control also requires a revision and improvement. The LPAs have to make sure that the applications for housing development comply with the proposals of development plans, such as the housing planning policies (in the SP), proposed land use zone, and planning guidelines and standards (in the LP). The practice of granting approvals to the housing applications that contradict the proposed land use zoning needs to be strictly avoided in the future.

Other than complying with the planning aspects, the LPAs also need to give due consideration to the aspects of household effective demand, market demand and balancing the supply and demand before making decision to approve the applications for housing development. Consideration of the aspects of market demand and balancing the supply and demand will enable the LPAs to reject the applications for housing development if it is proven that there is no immediate demand required in certain areas or if the number of housing supply (existing or committed) has already exceeded the demand. In addition, it is also suggested that the process stipulates the condition on development phase in every housing approval to enable the LPA to monitor the information on housing development (e.g. number of existing housing, committed housing, future housing needs, etc.) in its area efficiently and accurately.

The above recommendations are expected to help improve and make the process of planning and controlling of housing supply more effective. It is also expected that by incorporating the aspects of housing demand in all activities of housing planning starting from the housing forecast through controlling of housing development, the process will achieve all the objectives of housing planning, not only the objective to meet the population housing needs, but also the objectives to fulfil the household housing demands, to consider the criteria of housing market

274 demand and to balance the number of housing supply and demand. This will bring the process of housing planning in Malaysia to be gradually directed towards improving housing demands and responsive to the housing markets rather than a quantity (housing needs), as practised in the UK and other European countries.

8.5

Contributions of the Research In general, this research has contributed towards enriching and widening

researches in the area of housing planning process which is still lacking. Previously, only several researchers, i.e. Rydin (1985), Ho (1994) and Asiah (1999) are found to have tried to explore the process of housing planning in varying research scope.

Through this research, a clear understanding of the relationship between the implementation of land use planning system and the process of housing supply is provided. The research has been successful in identifying the specific roles of the land use planning mechanisms (NPP, SP, LP and planning control) in planning and controlling housing supply. The findings from the literature reviews and empirical analyses are useful to guide the future researchers to explore the processes and the activities of housing planning in more detail.

Specifically, this research contributes to extend the body of knowledge on the process of housing planning by conceptualising the requirement to change the mentality and approach of housing planning and control in the planning mechanisms, from focussing only on the compliance to the physical aspects (such as land use zone and planningâ&#x20AC;&#x2122;s technical conditions) and meeting broad housing needs, to one which focuses on considering and fulfilling the specific demands of households and markets.

The research has brought the idea that the operation of the land use

planning system needs to be more sensitive and responsive to the aspects of household effective demands and market demands in planning and controlling housing supply.

This research also makes a direct practical contribution to improve and streamline the policy and process of housing planning in the case study area in

275 particular and in Malaysian context, in general. The research has revealed that the current housing planning policies formulated by the SPs are insufficient. The research stresses that to achieve an effective housing planning, specific policies which enable the LPAs to consider the actual demands of market in the process of housing approval are very crucial to be formulated by the SPs. In relation to the process of housing planning, the research has identified and revealed several weaknesses which frequently occur in carrying out the activities of housing planning in the SP and LP as well as at the stage of planning control. The weaknesses identified, together with the recommendations to improve the process of housing planning could serve as a reminder and used as guide for town planners, LPAs as well as state authorities to properly plan, control and approve the housing supply in the future.

Moreover, this research also contributes significantly in terms of the adoption of research methodology.

In this research, the effectiveness of the process of

planning and controlling of housing supply was evaluated using the triangulation of measures by analysing the facts and figures as contained in the planning documents, obtaining perception from town planners and exploring in depth the major issues of the planning and controlling of housing supply. The triangulation approach was also applied in eliciting the empirical data using the methods of content analysis, questionnaire survey and in-depth interview. The use of the triangulation method in collecting the data and measuring the effectiveness of land use planning system could be used as reference by other researchers, not only in the area of housing planning but also in other urban planning areas.

In addition, it is important to note that in line with researches in the urban planning field involving information in the forms of facts and figures, thus it is meaningful to utilise the method of content analysis. This research as well as previous empirical researches by Rydin (1985), Bruff and Wood (2000), Berke and Conroy (2000), Foziah (2002) and Kamariah (2002) which applied the method may be referred as guidance for future urban planning researches.

276 8.6

Areas For Further Research There are many areas related to the process of housing planning that can be

explored further. The research may be conducted to strengthen the theoretical framework, the methodology as well as the analysis of the effectiveness of the planning system in planning and controlling housing supply. It may also cover new scopes that have a connection with the process and outcomes of housing planning.

One of the possible and important areas is to study in depth the extent of responsiveness of the planning processes and outcomes to the household demands and market demands. The aspects such as preferred house types (terrace, semidetached, detached, cluster, condominium, etc.), household affordability to pay for certain categories of house price (low-cost, low-medium cost, medium-cost and highcost), preferred types of housing development (landed or flatted housing), preferred house choices (lot size, shape, design, etc.) and other market demand characteristics (security, neighbourhood, environment, etc.) can be employed as the criteria to measure the responsiveness of the planning processes and outcomes. Previous studies

by Healey (1992), Bramley et al. (1995), Hull (1997), Pearce (1992), Golland and Gillen (2004) may be used as a guide. The Vancouver Declaration (declared at the 2006 World Planning Congress) which introduces ten principles of new urban planning, one of them about market responsiveness, is also a valuable material to be referred for the research.

The second area is regarding the perception of housing developers, as the main player in the process of housing development, toward the proposal to incorporate the market demand criteria in the process of planning and controlling of housing. The research may examine the level of acceptance of developers as well as the effects and implications of the proposal on the operation of housing market.

An insight research can also be done on the problems of oversupply of housing by identifying factors contributing to the issue. The research may focus to identify and rank the significant factors, explain the relationship between the issues and the contributing factors or cover both of them. The property players, not limited to the town planners as in this research, such as housing developers, property

277 analysts, local authority officers, local councillors, development consultants as well as house buyers may be approached to gain the information about the contributing factors. Research in this scope may apply the quantitative approach and utilised fully an appropriate statistical analyses.

Other than exploring new scopes, the evaluation of the effectiveness of planning and controlling housing supply may also be expanded and streamlined in many ways. The first is by concentrating on one planning mechanism, rather than three as in this research, whether SP, LP or planning control. Thus, a detailed evaluation on the planning of housing supply for each mechanism can be done thoroughly. Second is by concentrating on the case study area. Besides JBC area which has already been explored in this research, other towns in Malaysia such as Kuala Lumpur, Penang, Seremban, Ipoh and Melaka can also be selected as a case study. The further research can select two or more case studies or conduct a population survey. However, the availability of data and relevant documents must be first taken into consideration before selecting an area to be studied.

The third is by concentrating on the research methodology. As mentioned in chapter 4, this research has employed triangulation of measures and methods. The evaluation of the effectiveness of the planning system in managing housing supply is measured based on the actual facts and figures in the planning documents, plannersâ&#x20AC;&#x2122; perceptions and investigating major issues in the process of planning and controlling of housing supply. The methods of content analysis, questionnaire survey and indepth interview were employed to elicit relevant data. Other measures and methods may also be adopted to enhance and strengthen the research methodology. It should also be noted that further researches on the planning and controlling of housing supply should not only be limited to the suggestions above. It can be carried out in other perspectives depending on the research problems that the researcher is interested to explore.

278 8.7

Conclusion Findings from the empirical research clearly shows that the implementation

of the land use planning system in the study area is ineffective in planning and controlling housing supply. There are many weaknesses and shortcomings that existed in all the three planning mechanisms. The preparations of the SPs have failed to properly forecast future housing requirement, hence, affecting the formulation of housing planning policies. Similar situation exists during the preparations of the LPs, in which the lands allocated for future housing have exceeded the requirements of the plans. Such LPs have also failed to properly allocate suitable areas for future housing development. The ineffectiveness of the implementation of the land use planning system was further exacerbated by inefficiency of the planning control mechanism in monitoring and approving housing development applications.

The problems of ineffectiveness of the system in planning and controlling housing supply is not only concentrated on the technical issues as above, but also involves the fundamental principles of the planning system. It is perceived that the â&#x20AC;&#x2DC;mentalityâ&#x20AC;&#x2122;, the approach and the practice of housing planning are still emphasising on the physical suitability factors and the achievement of broad housing needs. The significance of the aspects of demand, such as households effective demands and the market demands have been neglected in the process of housing planning.

In consideration of a close interaction between the land use planning system and the market system in the process of housing supply, thus any effort to strengthen the housing planning process should give due attention to the market mechanisms.

The future development plans and planning control process should recognise that the effectiveness of housing planning is not only determined by the attainment of the objective of meeting housing needs, but also that of fulfilling the housing demands.

By incorporating the demand (household effective demands and market demands) mechanisms, complemented by a stronger nature of housing planning and development policy, it will not only improve and streamline the process of housing planning, but will also strengthen the role of land use planning system in providing sufficient housing, encouraging sustainable housing development and ensuring

279 efficiency in the housing delivery system. Therefore, it is timely to change the approach and the practice of housing planning.

Finally, it is hoped that the empirical research, which has gone through several stages from the literature reviews and understanding previous researchers standpoints, conceptualising the approach of measuring the effectiveness of planning system, triangulating the measures and data collecting method as well as establishing the most appropriate approach and scientific data analysis, will be used as useful reference by the urban planners and local authorities in planning and controlling housing supply in a more effective manner. It is also hoped that the research may contribute towards

actions to reduce and eventually solve the problems of

oversupply of housing in Malaysia generally and in the study in particular in the future.

280

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301

APPENDIX A THE PROCESS OF STRUCTURE PLAN PREPARATION Formulation of Goal and Objectives of Study

Survey for the Whole State (Data Collection and Analysis) [Sec. 8(1), (2) & (3)]

Preparation of Report of Survey [Sec. 8(1) & (2)]

Publicity and Public Participation [Sec. 9(1)(a)]

Preparation of Publicity and Public Participation Report [Sec. 9(1)&(b)]

Preparation the Draft of Structure Plan [Sec. 8(1)&(3b)]

Submission to the State Planning Committee [Sec. 9(4)(a)&(b)]

SPC Consideration to the Draft of Structure Plan [Sec. 10(1)&(2)]

Reject the Draft of Structure Plan

In the situation the SPC fail to approve or reject a SP within 6 months, the State Director should refer to the NPPC for its decision [Sec. 10(5)]

Aprrove it in whole or in part, with or without modification

Assent by the State Authority [Sec.19(6)]

Publication of Fact of Assent of State Authority in State Gazette and Local Newspapers [Sec.10(7)]

Source: Adapted from JPBD Semenanjung Malaysia (2001b)

302 APPENDIX B THE PROCESS OF LOCAL PLAN PREPARATION STATE STRUCTURE PLAN Policy statements and general proposals related to development and use of land Preparation of TOR

PRELIMINARY PUBLICITY FOR PREPARATION OF THE LOCAL PLAN LPA should announce and make the public aware and have an opportunity of making representations to the LPA related to the objectives, purposes and matters that LPA proposes to include in the plan (S. 12A).

Preparation of Inception and Sectoral Report

PREPARATION OF DRAFT LOCAL PLAN Consist of a map and a written statement (S. 12(3)) which translate the policies and general proposals as stated in the SSP. LP must conforms to the SSP (S.12(8)).

PUBLICITY Publicity to the Draft of LP for public inspection and objection (S.13).

LOCAL ENQUIRY Any objection and representations by the public will be considered by LPA through the formation of local inquiry or other hearing to be held by a committee appointed by the SPC (S.14).

APPROVAL OF DRAFT OF LOCAL PLAN After considering the objections or representations, the LPA should submits the draft of local plan or new draft of local plan which some modification so as to take account of the objections or representations to the SPC for its approval (S.15(1). The SPC shall approve it in whole or in part or reject it (S.15(1A)).

ASSENT BY THE STATE AUTHORITY After approved it, the SPC should submit to the State Authority for their assent (S.15(1C)).

GAZETTMENT The LPA should cause the assent of the State Authority to a draft of LP to be published in the State Gazette and Newspapers (S.15(4)).

Source: Adapted from JPBD Semenanjung Malaysia (2002a)

303 APPENDIX C THE PROCESS AND PROCEDURE OF PLANNING CONTROL

APPLICANT Application for planning permission (S.21(1)/Rule 2(1)PCGR).

LPA Circulated to: Technical Departments

In such form and shall contain such particulars and be accompanied by such documents, plans and fees as prescribed’ (S.21 (1)) If applicant is not the owner of the land, the written consent from the owner shall be obtained (S. 21 (2)).

Submission of Development Proposal Report (S.21A (1)) Layout plans as in Section 21B (1) need to be prepared by qualified person (S. 21C).

Written directions to the applicant if the proposed development involves the erection of a building (S.21 (3)).

Served a written notice to neighbouring land owners if the proposed development is located in an area of no LP prepared (S.21(6) / Form A Rule 7 PCGR).

Treatment of Applications

Consideration and Granting of Planning Permission (S. 22(3))

Absolute

Condition

Refuse

LPA should take into consideration such matters,such as provision of development plans (LP or SP), directions by the SPC, development plan under preparation, provision of Sewerage Services Act (Act 508), DPR and objections (under S.21).

Request an advice from NPPC for certain applications underSection 22(2A).

Contravene any provision of the development plan.

Contravene with directions of the SPC. Applicant fails to pay development charge.

Appeal against the decision of LPA (S.23(1))

APPEAL BOARD

Notice of the Grant (S.22(6))

NEIGHBOURING LAND OWNERS

(Section 22 (5) Conditions about period of planning permission granted.

Development should in accordance to approved layout plans.

Prohibiting damage to land, physical environment, natutal topography and landscape.

Prohibiting the felling of trees.

Planting or replanting of trees.

Providing open space in accordance with approved layout plans.

New building need to be erected compatible with the surrounding architecture, character or appearance.

Retained the facade and other external character of the building for the development involves with special architecture or historical interest (Section 22 (5A) Complied to the Tree Preservation Order.

Person who made objection under Section 21(6)

Sources: Adapted from Mohd. Azam (2004; 2006)

304 APPENDIX D PRO-FORMA (1) CONTENT ANALYSIS OF STRUCTURE PLAN SECTION A : STRUCTURE PLAN PROFILE

A1. Name of Structure Plan

: _________________________________________________

A2. Local Planning Authority : _________________________________________________ A3. Date of preparation

: _________________________________________________

A4. Planning period

: _________________________________________________

A5. Date of gazettement

: _________________________________________________

SECTION B : STRUCTURE PLAN AND HOUSING DEVELOPMENT

B1. Issues related to housing supply (shortage, oversupply, unoccupied, surplus, etc.) discussed in this structure plan.

B2. Statement of objectives of housing planning in this structure plan.

B3. General proposals to overcome the housing supply issues stated structure plan.

in this

SECTION C : FORECASTING OF FUTURE HOUSING REQUIREMENT

C1. Method or technique used in forecasting future housing requirement.

1. Compound interest (according to population or housing growth rate).

2. Normal housing forecasting method (backlog, replacement, etc).

3. Integrated forecasting approach (e.g. consider in or out migration, etc).

4. Other methods, i.e. : _____________________________________________________

C2. Aspects considered in forecasting future housing requirement.

1. Only future population and household growth.

2. Future household growth and housing aspects such as existing housing stock, backlog, normal and immediate replacement and additional new household.

3. Future household growth, housing aspects such as existing housing stock, backlog, normal and immediate replacement, additional new household and the market criterions, such as household effective demand (incomeâ&#x20AC;&#x2122;s level), housing choice and prediction of future housing market.

4. Other elements, i.e. : ______________________________________________________

305 C3. Time-frame for the forecasting of future housing requirement.

1. Only for overall planning period until the end.

2. For overall planning period and distribution by certain planning phases.

3. No specific data related to time-frame of future housing requirement.

C4. Outcomes of the forecasting of future housing requirement.

1. Only by housing amount (quantity).

2. By housing amount and housing category (e.g. planned housing scheme and village housing).

3. By housing amount and types of housing (low cost and other housing costs).

4. By housing amount and all types of housing (low, medium and high costs).

5. By housing amount (quantity), category and type of housing.

SECTION D : FORMULATION OF HOUSING PLANNING POLICIES

D1. General housing policies formulated in this structure plan.

1. Fulfilling future housing requirement (housing needs).

2. Concentration of future housing requirement according to local planâ&#x20AC;&#x2122;s land use map.

3. Increase of affordable housing development (low- and medium-cost).

4. Creating condusive housing environment.

5. Providing sufficient development.

public

facilities

and

infrastructure

in

housing

D2. Specific policies related to the housing supply planning formulated in this structure plan.

SECTION E : OTHER MATTERS RELATED TO THE PLANNING OF HOUSING SUPPLY

E1. Any statement related to the consideration of household effective demand (e.g. level of income) and household housing choice.

1. Yes, as follows (what type of statement / in which report) : ________________ 2. No

E2. Any statement and analysis of housing demand and supply and the market conditions.

1. Yes, as follows (what type of statement / in which report): _________________ 2. No

306 APPENDIX E PRO-FORMA (2) CONTENT ANALYSIS OF LOCAL PLAN SECTION A : LOCAL PLAN PROFILE

A1. Name of Local Plan

: _________________________________________________

A2. Local Planning Authority : _________________________________________________ A3. Date of preparation

: _________________________________________________

A4. Planning period

: _________________________________________________

A5. Date of gazettement

: _________________________________________________

SECTION B : LOCAL PLAN AND HOUSING DEVELOPMENT

B1. Issues related to housing supply planning (shortage, oversupply, unoccupied, surplus of housing approval, etc.) discussed in this local plan.

B2. Statement of housing planning objectives in this local plan.

B3. Proposals to overcome the housing supply issues stated in this local plan.

SECTION C : FORECASTING OF FUTURE HOUSING REQUIREMENT

C1. Method or technique used in forecasting future housing requirement.

1. Compound interest (according to population or housing growth rate).

2. Normal housing forecasting method (backlog, replacement, etc).

3. Integrated forecasting approach (e.g. consider in or out migration, etc).

4. Other methods, i.e. : _____________________________________________________

C2. Aspects considered in forecasting future housing requirement.

1. Only future population and household growth.

2. Future household growth and housing aspects such as existing housing stock, backlog, normal and immediate replacement and additional new household.

3. Future household growth, housing aspects such as existing housing stock, backlog, normal and immediate replacement, additional new household and the market criterions, such as household effective demand (incomeâ&#x20AC;&#x2122;s level), housing choice and prediction of future housing market.

4. Other elements, as follows : _______________________________________________

307 C3. Time-frame for the forecasting of future housing requirement.

1. Only for overall planning period until the end.

2. For overall planning period and distribution by certain planning phases 3. No specific data related to time-frame of future housing requirement.

C4. Outcomes of the forecasting of future housing requirement.

1. Only by housing amount (quantity).

2. By housing amount and housing category (e.g. planned housing scheme and village housing).

3. By housing amount and types of housing (low cost and other housing costs).

4. By housing amount and all types of housing (low, medium and high cost).

5. By housing amount (quantity), category and all types of housing.

SECTION D : DETERMINATION OF FUTURE HOUSING LAND AREA

D1. Any figures related to determination of housing land area identified in this local plan?

1. Yes, the amount is ______________ hectares for the whole planning period.

2. No

D2. Related to Question D1 (if the answer is Yes), is it this figure tally (or comply) with the figure of housing forecast as in this local plan?

1. Yes, can be accepted and basically tally with earlier local plan forecasting.

2. No, it is shortage of __________ housing unit @ ____________ hectares of land 3. No, it is exceed of _________ housing unit @ ____________ hectares of land.

D3. Related to Question D1 (if the answer is Yes), what is the time-frame for determination of housing land area?

1. Only for overall planning period until the end.

2. For overall planning period and distribution by certain planning phases.

D4. Related to Question D1 (if the answer is Yes), how the determined housing land area is allocated?

1. By land acreage and housing amount (quantity) only.

2. By land acreage and housing amount and also by housing category (e.g. planned housing scheme and village housing).

3. By land acreage and housing amount and also by types of housing (low cost and other housing costs).

308 4. By land acreage and housing amount and also by all types of housing (low, medium and high cost).

5. By land acreage and housing amount, category and all types of housing.

D5. Related to Question D1 (if the answer is Yes), does the determined housing land area was accurately translated into the Local Plan Proposal Map? 1. Yes, basically tally with the amount of determined housing land area.

2. No, there is a shortage of __________ hectares.

3. No, there is an exceed of _________ hectares.

SECTION E : DISTRIBUTION OF FUTURE HOUSING LOCATION

E1. Consideration factors in distributing locations for future housing development in this local plan.

1. Availability of land adjacent to current housing development.

2. Assessibility from main road.

3. Follow the alignment of development corridor 4. Avoid from develop housing in restricted areas 5. __________________________________________________________________________

E2. Any consideration to the aspects of expected future market demand in distributing location for future housing development in this local plan.

1. Yes, but it is only discussed in the housing technical report.

2. Yes, it is discussed in the draft of local plan report.

3. Yes, it is discussed in both of the above reports.

4. No, it is never discussed in any part of the above reports.

E3. Time-frame for the distribution of future housing location.

1. Only for overall planning period until the end.

2. For overall planning period and distribution by certain planning phases.

E4. Break-down of the distribution of location for future housing development.

1. Only in the form of housing land use zone (as in the Proposal Map).

2. Also in the form of housing category (e.g. planned housing scheme and village housing).

3. Also in the form of housing types (but for low cost only).

4. Also in the form of housing types (for all types, i.e. low cost, medium and high cost).

5. Break-down by all the above forms.

309 E5. Other technical aspects stated in this local plan related to distribution of housing location.

1. Determination of detailed housing development density for each type of development, such as 20 unit / acre for condominium, 40 unit / acre for apartment, 60 unit / acre for low-cost flat and 6 unit / acre for housing development outside development area or other types of density, as follows : __________________________________________________________________________ 2. Determination of housing development density in general (for e.g. 12 unit / acre) which can be applied for the whole local plan area or by certain Planning Block or by certain areas. Density specified in this local plan, are as follows : _______________________________________________________________ 3. Determination by landed property and highrise development.

4. Determination by specific categories of housing (e.g. for low cost only or for high cost only).

SECTION F : OTHER MATTERS RELATED TO THE PLANNING OF HOUSING SUPPLY

F1.

Any statement related to the consideration of household effective demand (e.g. level of income) and household housing choice.

2. Yes, as follows (what type of statement / in which report) : __________________________________________________________________________ 2. No.

F2.

Any statement and analysis of housing demand and supply and the market conditions discussed in this local plan.

1. Yes, as follows (what type of statement / in which report): __________________________________________________________________________ 3. No.

310 APPENDIX F PRO-FORMA (3) CONTENT ANALYSIS OF HOUSING DEVELOPMENT APPLICATION SECTION A : PROFILE OF HOUSING DEVELOPMENT APPLICATION

A1. Local Planning Authority : ____________________________________________ A2. Reference No.

: _________________________________________________

A3. Lot No. / Area (Mukim)

: _________________________________________________

A4. Name of Scheme

: _________________________________________________

A5. Name of Developer

: _________________________________________________

A6. Size of Scheme

: __________________hectares / _______________acres

A7. Total Housing unit

: ____________________________________________units

A8. Break-down by housing category : No.

Category of housing

1

Low-cost (including low medium-cost)

2

Medium-cost

3

High-cost

No. of unit

Percentage (%)

A9. Break-down by landed and highrise development : No.

Form of housing

1

Landed (all types of housing)

2

Highrise development (all types of housing)

No. of unit

Percentage (%)

A10. Date of planning approval : _________________________________________________ SECTION B : LOCALITY OF APPLICATION IN THE DEVELOPMENT PLANS

B1. Located in which local plan area (at the date of approval) : _____________________ B2. Located in which structure plan area (at the date of approval) : ____________________________________________________________________________ B3. Proposed Land use zone : ___________________________________________________

311 SECTION C : STATUS OF PLANNING APPROVAL

C1. Conformity with development plans (in terms of proposed land use zone) : 1. Yes

2. No

C2. If No or inconformity, what are the rationales that this housing development application approved by the Local Planning Authority?

1. To conform with the decision by the State Authority at the First Stage SBKS (general approval).

2. To conform with the decision by the State Planning Committee (SPC).

3. Is a decision by Local Planning Authority, with certain reason, as follows : ___________________________________________________________________________ 4. Due to interference by certain body / peoples, i.e. : ________________________

C3. Any consideration to the aspects of effective demand in the approval process?

1. Yes

2. No

C4. Any consideration to the aspects of market demand in the approval process?

1. Yes

2. No

C5. Any consideration to balance the number of supply with the number of demand in the approval process?

1. Yes

C6. Imposition of documents?

1. Yes

2. No

conditions

about

development

phase

in

the

approval

2. No

C7. Imposition of conditions about density control in the approval documents?

1. Yes

2. No

C8. Imposition of conditions about types of housing in the approval documents?

1. Yes

2. No

312 APPENDIX G

Department of Urban and Regional Planning Faculty of Built Environment UNIVERSITI TEKNOLOGI MALAYSIA

QUESTIONNAIRE FORM

TOWN PLANNERS’ PERCEPTION TOWARDS THE EFFECTIVENESS OF THE PROCESS OF PLANNING AND CONTROLLING OF HOUSING SUPPLY

Researcher: ALIAS BIN RAMELI APPM, ALPBM Post Graduate Student Department of Urban and Regional Planning Faculty of Built Environment Universiti Teknologi Malaysia

313

BACKGROUND AND OBJECTIVES OF THE RESEARCH This study originated from existence of the issues related to high rate of overhang and oversupply of housing which continuously exist throughout the country since 1998, including in Johor Bahru area. Besides identification of the imperfection and failure in housing market system and other factors, it can also be argued that these issues happen due to weakness, shortcoming and ineffectiveness of the land use planning system in managing housing supply.

To further explore the above issues and arguments, the study uses several method of analysis, namely content analysis of the structure and local plan documents as well as housing development application, general perception analysis and gathering information through in-depth interview.

Ultimately, the objective of the study is to systematically evaluate the level of effectiveness of the structure plan, local plan and planning control process in managing housing supply, particularly for Johor Bahru Conurbation area as a case study.

Content of Questionnaire This questionnaire form is specially designed to gather the government and private plannersâ&#x20AC;&#x2122; perception on that matter. It consists of 8 sections as follows: Section Section Section Section Section Section Section Section

A: B: C: D: E: F: G: H:

Respondent profile General perception on housing development issues Perception towards preparation of structure plan Perception towards preparation of local plan Perception towards development control process Perception on the level of effectiveness of planning mechanisms Perception on the Fulfillment of Meeting Housing Needs General opinion

Classification of Information All information stated in this questionnaire will be classified as confidential and to be used only for academic exercise in fulfilment the requirement for the award of the degree of Doctor of Philosophy. The researcher can be contacted at the address below: Alias bin Rameli 39, Jalan Padi Malinja 12, Bandar Baru Uda, 81200 Johor Bahru.

Phone 019-7117700 Fax : 07-238 5820 E-mail : aliasrameli@yahoo.com

314 SECTION A : RESPONDENT PROFILE Note : Please tick (/) which most appropriate to your profile.

A1. Your Position 1. Government Town Planner 2. Private Town Planner

A2. Your Organisation 1. Federal Town and Country Planning Department (Pejabat Projek Melaka).

2. Johor State Town and Country Planning Department.

3. Local Authority (Please specify : _________________________________________).

4. Town Planning Consultant

A3. Your working experience in planning field (whether at the planning department, local authorities or private planning organisation).

1. Less than 5 years 2. 5 â&#x20AC;&#x201C; 10 years 3. 11 â&#x20AC;&#x201C; 15 years 4. More than 15 years

A4. Your previous and current experience related to the operational of planning activities, especially in the preparation of development plans (structure and local plans), development approval process (including submission of planning application, which normally done by private planners).

1. Only involved in preparation of Structure Plan.

2. Only involved in preparation of Local Plan.

3. Involved in preparation of both Structure and Local Plan.

4. Only involved in development approval process (including submission of planning application).

5. Involved in development control (including submission of planning application) & either one of the Structure or Local Plan.

6. Involved in all the three of planning activities.

A5. Your planning experience related to the housing development and housing planning process in Johor Bahru (either at the stage of preparation of development plans or at the stage of development approval process).

1. Only have an experience in preparation of development plans.

2. Only have an experience in the development approval process.

3. Have an experience in both of planning mechanism.

315 SECTION B : GENERAL PERCEPTION ON HOUSING DEVELOPMENT ISSUES Note : Please tick (/) which most represents your opinion.

B1. Are you aware about the housing development issues related to the high rate of overhang and oversupply, which continuously exist throughout the country since 1998, including in Johor Bahru area?

1. Yes

2. No

B2. Based on your understanding, what are the factors which contribute to the above housing issues (Can be answered more than one).

1. Due to failure of the housing market system.

2. Due to speculation activities by the housing developers.

3. Due to weaknesses in the housing planning and approval process.

4. Due to other factors (Please specify : _____________________________________).

SECTION C:

PERCEPTION ON THE PRACTICE OF HOUSING PLANNING IN THE STRUCTURE PLAN

Note : Please tick (/) or circle which most represents your opinion.

C1. Structure plan plays a significant role in forecasting future housing requirement and formulating housing development policies. Are you aware of these functions?

1. Yes

2. No

QUESTION C2 â&#x20AC;&#x201C; C6 : Related to the forecasting of future housing requirement.

C2. To fulfil the fundamental objective of housing planning, the forecasting of future housing requirement in the structure plan also focussing on housing needs and basically less consideration given to the aspect of actual housing demand. Do you agree with this statement?

Strongly agree

Agree

Unsure

Disagree

Strongly disagree

1

2

3

4

5

C3. In relation to Question C2, do you agree that besides focusing on future housing needs, the forecasting of future housing requirement in the structure plan should also consider the aspects of actual housing demand?

Strongly agree

Agree

Unsure

Disagree

Strongly disagree

1

2

3

4

5

C4. Do you agree that by considering household housing demands, a more accurate and reliable housing forecast will be produced?

Strongly agree

Agree

Unsure

Disagree

Strongly disagree

1

2

3

4

5

316 C5. Do you agree that any weakness in forecasting future housing requirement in the structure plan, will affect and contribute to the failure of other stages in housing planning process, such as formulation of housing policies, determination of future housing land area and planning control process?

Strongly agree

Agree

Unsure

Disagree

Strongly disagree

1

2

3

4

5

C6. In the context of Johor Bahru, do you agree that the housing oversupply is contributed by incomprehensiveness and inaccuracy of forecasting of housing requirement in the previous structure plans?

Strongly agree

Agree

Unsure

Disagree

Strongly disagree

1

2

3

4

5

QUESTION C7 â&#x20AC;&#x201C; C10 : Related to formulation of housing planning policies.

C7. Do you agree that the formulation of housing planning policies in the structure plan play a significant role to guide the housing planning process in the preparation of local plan and also at the stage of planning control?

Strongly agree

Agree

Unsure

Disagree

Strongly disagree

1

2

3

4

5

C8. The formulation of housing planning policies in each structure plan focuses on several statement of policies, such as fulfilling future housing needs, development of low-cost housing, determination of future housing development boundary and provisions of the public facilities and infrastructure in housing development areas. Do you agree that by only focusing these policies, it is insufficient to achieve an effective planning of housing supply?

Strongly agree

Agree

Unsure

Disagree

Strongly disagree

1

2

3

4

5

C9. Do you agree that besides focuses on the above policies (as stated in Question C8), the structure plan should also formulate a specific housing policy which consider the aspects of housing demand to facilitate the housing planning control process?

Strongly agree

Agree

Unsure

Disagree

Strongly disagree

1

2

3

4

5

C10.In the context of Johor Bahru, do you agree that the housing oversupply occur due to there is no specific policy formulated to consider the aspects of housing demand in the previous and current structure plan?

Strongly agree

Agree

Unsure

Disagree

Strongly disagree

1

2

3

4

5

317 SECTION D : PERCEPTION ON THE PRACTICE OF HOUSING PLANNING IN THE LOCAL PLAN Note : Please tick (/) or circle which most represents your opinion.

D1. Preparation of local plan plays a significant role in forecasting future housing requirement, determining future housing land area as well as to locate suitable locations for future housing supply in the local plan areas. Are you aware of these functions?

1. Yes

2. No

D2. It is a function of local plan to translate any written statement (e.g. policies, general proposals and strategies related to the housing development) formulated in the structure plan. Are you aware that this function is a legal requirement enacted in the Act 172?

1. Yes

2. No

QUESTION D3 â&#x20AC;&#x201C; D7 : Related to forecasting of future housing requirement.

Note : Some of the following questions are similar to what has been enquired in Section C (Structure Plan : Questions C2 â&#x20AC;&#x201C; C6).

D3. To fulfil the fundamental objective of housing planning, the forecasting of future housing requirement in the local plan also focussing on housing needs. Do you agree with this statement?

Strongly agree

Agree

Unsure

Disagree

Strongly disagree

1

2

3

4

5

D4. There are several aspects that have been considered in forecasting future housing requirement in the local plan, such as future population growth, existing housing stock, housing backlog, normal and immediate replacement, committed development and so on. Do you agree that the consideration of the aspects are not sufficient to calculate the actual future housing requirement for the respective local plan area?

Strongly agree

Agree

Unsure

Disagree

Strongly disagree

1

2

3

4

5

D5. Housing planning practice in some developed countries developed the housing forecasting methods by not only gather a data to forecast future housing needs, but also focuses on forecasting future household housing demand. Do you agree to apply this practice in the Malaysian housing planning process, particularly in the preparation of local plan?

Strongly agree

Agree

Unsure

Disagree

Strongly disagree

1

2

3

4

5

318 D6. Do you agree that the weaknesses in forecasting future housing requirement in the local plan will affect and create a mistake in determining future housing land area, distributing future housing locations and approving housing applications?

Strongly agree

Agree

Unsure

Disagree

Strongly disagree

1

2

3

4

5

D7. In the context of Johor Bahru, do you agree that the existence of housing oversupply is also contributed by weaknesses and inaccuracy of forecasting of future housing requirement in the previous local plans?

Strongly agree

Agree

Unsure

Disagree

Strongly disagree

1

2

3

4

5

QUESTION D8 – D12 : Determination of land area for future housing supply.

D8. Do you agree that the process of determination of future housing land area should comply to the figure of housing foreacasts as determined either in the structure plan or local plan?

Strongly agree

Agree

Unsure

Disagree

Strongly disagree

1

2

3

4

5

D9. Do you agree with the argument that states the determination of housing land area is commonly exceeded what has been forecasted by the structure plan or local plan?

Strongly agree

Agree

Unsure

Disagree

Strongly disagree

1

2

3

4

5

D10. The total future housing land area is commonly translated into the Proposal Map only for the whole planning period (for e.g: until 2020). Usually, there is no housing development phase proposed for certain planning periods (for e.g: from 2006 – 2010). Do you agree that by only determine it for the whole planning period, it is ineffective to guide the housing planning control process?

Strongly agree

Agree

Unsure

Disagree

Strongly disagree

1

2

3

4

5

D11. The preparation of local plan as practised in Britain determines future housing land area according to certain planning periods (normally for 5 years period) until the end of local plan’s planning period. Do you agree to apply this approach in our local plan?

Strongly agree

Agree

Unsure

Disagree

Strongly disagree

1

2

3

4

5

319 D12. Do you agree that the existence of housing oversupply in the Johor Bahru is also attributed by weaknesses in terms of approach of determination of future housing land area in the previous local plan?

Strongly agree

Agree

Unsure

Disagree

Strongly disagree

1

2

3

4

5

QUESTION D13 â&#x20AC;&#x201C; D16 : Related to the distribution of housing location

D13. The distribution of suitable location for future housing is commonly done by considering several factors, such as availability of land adjacent to present housing development, assessibility from the main road and avoid from developing housing in restricted areas. Do you agree that the current practice is ineffective to determine the most suitable location for housing development in the local plan?

Strongly agree

Agree

Unsure

Disagree

Strongly disagree

1

2

3

4

5

D14. There is an argument that states the location for future housing will be better distributed by considering expected future market demands for certain areas.

Do you agree to the argument and incorporate the aspect in the preparation of local plan?

Strongly agree

Agree

Unsure

Disagree

Strongly disagree

1

2

3

4

5

D15. We practice the distribution of location for future housing development by translating it in the form of land use zone in the local plan. Do you agree that the approach is still effective in facilitating the housing planning control process?

Strongly agree

Agree

Unsure

Disagree

Strongly disagree

1

2

3

4

5

D16. Do you agree that the existence of housing oversupply in Johor Bahru is also attributed by weaknesses of the process of distribution of housing locations in the previous local plan?

Strongly agree

Agree

Unsure

Disagree

Strongly disagree

1

2

3

4

5

SECTION E : PERCEPTION ON THE PRACTICE OF HOUSING PLANNING CONTROL Note : Please tick (/) or circle which most represents your opinion.

E1. The Act 172 provides that the local planning authority should take into consideration the provisions of the development plans and conformity to the local plan before granting any planning permission, including for housing development. Are you aware of this legal requirement?

1. Yes

2. No

320 E2. Related to Question E1, do you agree to the argument that states the housing planning approval by planning authorities does not really comply with the above requirement?

Strongly agree

Agree

Unsure

Disagree

Strongly disagree

1

2

3

4

5

E3. To comply the legal requirement (as stated in Question E1), the planning control process by planning authority should ensure the conformity to the housing land use zone in local plan as a main basis for the approval of housing. Do you agree with this practice?

Strongly agree

Agree

Unsure

Disagree

Strongly disagree

1

2

3

4

5

E4. In the context of Johor Bahru, do you agree that the existence of housing oversupply is attributed by weaknesses and ineffectiveness of the process of housing planning control?

Strongly agree

Agree

Unsure

Disagree

Strongly disagree

1

2

3

4

5

SECTION F:

PERCEPTION TOWARDS THE LEVEL OF EFFECTIVENESS OF PLANNING MECHANISMS IN PLANNING AND CONTROLLLING HOUSING SUPPLY

Note: Could you rank the level of effectiveness for each planning activity by using the following scales. Please circle which most represents your opinion.

1 = Not effective

2 = Less effective

3 = Quite effective

4= effective

5 = Very effective

Level of Effectiveness of Structure Plan F1.

In forecasting future housing needs.

1

2

3

4

5

F2.

In forecasting future housing demands (effective demand).

1

2

3

4

5

F3.

In formulating policy to achieve the objective of meeting housing needs.

1

2

3

4

5

F4.

In formulating policy to ensure the aspects of housing market demand be considered in the process of planning control.

1

2

3

4

5

Level of Effectiveness of Local Plan.

F5.

In forecasting future housing needs.

1

2

3

4

5

F6.

In forecasting future housing demands (effective demand).

1

2

3

4

5

F7.

In determining future housing land area tallies with the LPâ&#x20AC;&#x2122;s housing forecasts.

1

2

3

4

5

F8.

In determining future housing land area in the form of whole planning period.

1

2

3

4

5

F9.

In distributing future housing locations in terms of its current practice and procedure.

1

2

3

4

5

F10.

In distributing future housing locations in the form of housing land use zones.

1

2

3

4

5

321 Level of Effectiveness of Planning Control Process.

F11.

In meeting population housing needs.

1

2

3

4

5

F12.

In fulfilling household housing demands.

1

2

3

4

5

F13.

In considering the actual demands for housing market.

1

2

3

4

5

F14.

In complying technical requirements of housing planning (e.g. land use zone, density and planning standards).

1

2

3

4

5

SECTION G: PERCEPTION ABOUT THE FULFILLMENT OF THE OBJECTIVE OF MEETING HOUSING NEEDS Note : Please tick (/) or circle which most represents your opinion.

G1. Do you agree that the weakness of housing planning process is originated by the fundamental nature of housing planning which basically too focus on meeting broad housing needs, neglect the aspects of actual housing demand?

(Note : Meeting housing needs is fulfilling only the basic housing requirement, in terms of quantity to suit with the population growth, whilst actual housing demand is fulfilling future housing requirement by also considering the household ability to pay, according to their income level).

1. Yes, I totally agree.

2. Yes, I agree but : ________________________________________________________).

3. Do not agree ( please specify your rationales: _________________________).

G2. Do you agree that by only focusing on meeting housing needs in the housing planning process, it is insufficient to achieve an effective housing supply planning?

Strongly agree

Agree

Unsure

Disagree

Strongly disagree

1

2

3

4

5

G3. Do you agree to the argument that states the issues of housing overhang and oversupply can be prevented and minimised if the operation of planning mechanisms such as structure plan, local plan and planning control process are implemented in effective and responsive way?

Strongly agree

Agree

Unsure

Disagree

Strongly disagree

1

2

3

4

5

322 SECTION H: OPINION TO STRENGTHEN THE HOUSING PLANNING PROCESS Note : Please tick (/) which most represents your opinion.

H1. The nature and practice of housing planning in Malaysia which focuses on meeting broad housing needs requires a change through incorporating and considering the aspects of household housing demands and market demands (responsive to the demand criteria. Do you agree to this view?

1. Yes, I totally agree.

2. Yes, I agree but : ________________________________________________________).

3. Do not agree ( please specify your rationales: _________________________).

H2. Related to Question H1, if your answer is Yes (totally agree or agree), which planning mechanisms that you think should incorporate and consider the aspects?

1. Only in the structure plan.

2. Only in the local plan.

3. Only at the stage of development control process.

4. In both of structure and local plan.

5. In structure plan and at the stage of development control process.

6. In local plan and at the stage of development control process.

7. In all the three of planning mechanisms.

- THANK YOU VERY MUCH FOR YOUR KIND COOPERATION -

FOR OFFICE USE ONLY Respondent Date of interview Date of data entry Remark

AbR/File : Qnaire_perception

323 APPENDIX H

IN-DEPTH INTERVIEW View of Experienced Town Planners on the Issues in the Process Planning and Controlling of Housing Supply

Research Background The applications of content analysis and questionnaire survey were empirically proven that the existence of housing oversupply is attributed by weakness and ineffectiveness of the process of planning and controlling of housing supply. Along the process, even as early as at the stage of housing forecast and up to the stage of planning control, many technical and fundamental issues and problems were identified. To further explore the matter, an in-depth interview was set to complement this research. It aimed to gain an insight views on the issues as well as to dig reasons behind the current practices of housing planning. The following questions are among the important issues that need to be answered in this research.

Activity of housing forecast in the structure and local plans 1.

Future housing requirement is commonly forecasted in the form of broad housing needs with less consideration given to the aspects of housing demand (effective demand). Why the approach is practised? Is it appropriate to consider the aspects of housing demand during the process of housing forecast?

2.

Which development plans (structure plan or local plan) that are more appropriate to consider and produce the forecast of household housing demand?

Activity of formulation of housing planning policy 3.

Housing planning policies in the structure plan were found emphasised on the meeting of housing needs, providing adequate low-cost housing, ensuring housing is developed only in the area that planned for housing use (housing zone) and other policies related to physical and land use control. Basically, no specific policy is formulated to ensure the process of planning control considers the aspects of market demand in the process of housing approval. What is your comment on this statement?

Is it appropriate to formulate this kind of policy?

324 Activity of determination of land area for future housing supply 4.

This research reveals that the total of future housing land area is distributed far exceeding what has been determined. Why this situation occurs? Is there any specific reason behind this practice?

Activity of distribution of suitable locations for future housing supply 5.

The distribution of future housing locations is usually done by considering several physical factors, with less or no consideration to the expected future market demands. What is your comment on this statement? Is it appropriate to consider the expected future market demands in distributing locations for future housing development?

The process of housing planning control 6.

This research reveals that there are many housing applications which were approved by local planning authorities although its areas are not planned for housing use. Why this situation happens and what are the reasons behind the existence of non-compliance in the approval of housing applications?

View about the fulfilment of the objective of meeting housing needs 7.

What is your opinion about the fulfilment of the objective to meet housing needs and the suitability to consider the aspects of housing demand in the overall housing planning process?

Suggestion to strengthen the process of housing planning 8.

From the perspective of urban planning, how to streamline and strengthen the process of planning and controlling of housing supply?

AbR/File : Form_interview

325 APPENDIX I THE STATEMENTS OF HOUSING SUPPLY ISSUES IN THE STUDY AREA’S SRUCTURE PLANS Structure Plan (Date of Preparation)

MPJB, Mukim Plentong and Pasir Gudang (1981)

Statement of Housing Supply Issue Although the amount of committed housing units in the MPJB, Mukim Plentong and Pasir Gudang areas are more than enough to meet the need of the projected population up to year 2000, but the types of housing supplied are beyond the affordability of lower income groups (RoS: 75).

Based on the types of committed housing units, there will be an oversupply of medium and high-cost housing, while the number of low-cost houses are less than the requirement (Draft of SP: 54).

MDJBT (1987)

In 1987, MDJBT has 3,786 households, compared to 21,091 unit of housing stock. This describes the oversupply of housing, where the ratio between the existing total households and housing units is at 1:5.57. Existing housing stocks can cater the MDJBT area up to year 2010 (RoS: 2-20).

The construction of low-cost houses can be considered as very low compared with its demand (RoS: 2-20).

Mega housing projects were approved in piece-meal, without consideration of existing and future housing need for the whole MDJBT area. This practice has caused many approved housing areas could not be developed due to lack of demand from population (Ros: 2-37).

There is tendency to allow agriculture areas especially along the main road to be developed as housing schemes. This has contributed an increase in the existing housing stock compared to the actual demand (RoS: 2-37).

MD Kulai (1987) (Note: some of the issues state in the MDK SP are quite similar to the MDJBT SP)

In 1987, MDK has 12,336 households, compared than 21,101 unit of housing stocks. This describes the oversupply of housing, where the ratio between the existing total households and housing units is at 1:1.71. Existing housing stocks can cater the MD Kulai area up to year 1996 (RoS: 2-128).

Approximately 88.6% of approved housing schemes between 1980 to 1987 was not developed. This situation occurs due to an oversupply of housing (RoS: 2-28).

There is tendency among developers to emphasise on constructing medium and high-cost houses although the actual demand is for low cost houses (Ros: 2-128).

Mega housing projects were approved in piece-meal, without consideration of existing and future housing need for the whole MD Kulai area. This practice has caused many housing areas which were approved could not be developed due to shortage of demand from population (Ros: 2-37).

There is tendency to allow agriculture areas especially along the

326 main road to be developed as housing schemes. This has contributed an increase in the existing housing stock compared to the actual demand (RoS: 2-37).

LPA of Johor Bahru District (1987)

In 1987, the ratio between the total household size and the amount of housing stock in the area of LPA of Johor Bahru District is at 1:0.9. This ratio shows that there are a shortage of 1,661 housing units in the area (RoS: 2-188).

MPJB (1st Alteration) (1992)

There is an over provision of the medium and high-cost houses in the new housing schemes. These type of houses basically serve a relatively limited demand from the households in the MPJB area (Draft of SP: 3-11).

There is a large number of speculative applications for housing investment approved by the authority without considered the actual housing number required by the population (Draft of SP: 3-12).

The practice which gives (demarcates) lands for certain development uses (land use zones) have caused difficulties. The system is not flexible enough to allow for unforeseen changes in housing land requirement. This lead to an over allocation of certain categories of land use, including for housing (Draft of SP:3-12).

District of Johor Bahru (Alteration) (1998)

Allocation of terrace low-cost houses are insufficient in the Johor Bahru area. The residents are not interested with the flatted low-cost houses (RoS : B9-12).

Johor State (2001)

The supply of low-cost housing only at the rate of 29.7% compared with the target of 40.0% as stipulated in the Johor housing development policy (RoS : 3.7-26).

There is an obvious oversupply of housing especially in the MPJBT area (RoS : B9-13).

The vacancy rate for the existing housing stocks in the Johor State, including the district of Johor Bahru is at 16.98 %. The high vacancy rate may have been contributed by the oversupply of housing (RoS : 3.7-26).

The Johor Bahru area faces an overhang of housing property, especially medium and high-cost houses and low-cost flats (RoS : 3.7-26).

Source: Content analysis of structure plan (2006)

327

APPENDIX J POLICIES RELATED TO THE PLANNING AND CONTROLLING OF HOUSING SUPPLY IN THE STUDY AREA’S STRUCTURE PLANS Structure Plan MPJB, Mukim Plentong and Pasir Gudang

MDJBT

MD Kulai LPA of Johor Bahru District MPJB (1st Alteration)

District of Johor Bahru (Alteration)

Johor State

Actual Policy Statements Long-term housing programme shall be drawn up by the authorities aimed at coordinating and balancing the supply and demand of housing (HO1).

Provision shall be made to ensure there are adequate housing especially to meet the demand of the lower and middle income groups (HO5).

The authority shall improve previous housing plans to enable the developers to build more low-cost and medium cost houses (HO6).

Housing development applications shall follow the development boundary area as stated in the Structure Plan Key Diagram (KP1).

A sufficient land area for future housing development will be provided (RU1).

Sufficient housing development according to the local population need will be constructed (RU3).

Low-cost housing will be increased from time to time to cater low and medium income groups (RU4) All development approvals will follow the development boundary area as stated in the Structure Plan Key Diagram (KP1).

In order to shift the emphasis from large scale housing estate to more varied housing provision, no further permissions will be given to the applications of large housing development.

Provision shall be made to ensure there are adequate housing especially to meet the demand of the lower and middle income groups (HO5).

Housing development applications shall follow the development boundary area as stated in the Structure Plan Key Diagram (KP1).

The provision of future housing is require to consider existing housing stock which is still unsold (overhang) and committed housing unit which already approved (DSH1).

Sufficient housing will be developed in line with the need and demands of housing market (DSH3).

Low-cost housing will be increased from time to time to cater low and medium income groups (DSH4) All development approvals will follow the development boundary area as stated in a Key Diagram (DU1).

Housing requirement will be provided according to the population growth (HO1.0).

Land area for housing development will be ensured supplied sufficiently (HO1.2).

Future housing development will be developed only in the area which is determined in the local plan (HO2.0).

Various types and density of housing will be provided to cater the population need and demand (HO2.1).

Any area which is not ready to be developed for housing should not be approved (HO2.3).

Increased the affordable housing to cater the population need (HO3.0).

All housing applications will only be approved within the designated housing development areas (LU2.0).

Source: Content analysis of structure plan (2006)

328

APPENDIX K THE STATEMENT OF HOUSING SUPPLY ISSUES IN THE STUDY AREA’S LOCAL PLANS Local Plan / (Date of Preparation) Tampoi Larkin and Kempas (1986)

Statements of Housing Supply Issue

Shortage of low-cost housing exists in the areas of Tampoi, Larkin and Kempas (Draft of LP:15).

Most housing types offered by developers are beyond the affordability of majority of population (Draft of LP:15).

There is a tendency among developers to develop flatted housing although less interest by the housing buyers (Draft of LP:15).

Kulai – Senai The area of Kulai and Senai still face a shortage of low-cost housing, (1992) especially for landed terrace.

These areas also face with oversupply of medium and high-costs housing especially when two mega housing projects launched in this area.

Skudai (1993) The Skudai area faces a shortage of low-cost housing compared to high demand from low and medium income households.

Simultaneously, the area also face with oversupply of medium and high-costs housing.

Masai – Plentong The number of housing approved is exceeding than the actual need for 1993) the area. This has been caused an oversupply of housing particularly for medium and high-costs (Draft of LP : 4-5).

There is a high rate of vacant housing due to the supply of housing and existing housing stock is not in line with the population affordability and demand.

Ulu Tiram (1995) Types of housing offered is not comply with the population demand in terms of price, especially for low-income groups.

The redundant approval has created an oversupply of housing especially in the areas along the Ulu Tiram corridor.

Pasir Gudang The committed housing is amounted at 83,897 unit compare than the (2001) housing need for 2020 which is only required at 53,031 unit. This describes that the situation of over-committed at 30,866 units until 2020 (Draft of LP : 3.4-23).

The oversupply of ready housing stock, that is based on the vacant houses is amounted at 5,143 (Draft of LP : 3.4-16).

Johor Bahru There are too many houses approved by the local planning authorities District (2002) although the actual demand is unsure. This contributed to oversupply of housing.

Johor Bahru faces a very high rate of committed housing, that is around 664,806 until 2003. From this figure, only 29.65% is basically required to cater housing need in 2020.

Johor Bahru area also faces a high rate of vacant housing. Around 16.0% from the total existing stocks in the planned housing schemes are unoccupied.

Source: Content analysis of local plan (2006)

329

APPENDIX L LIST AND BACKGROUND OF RESPONDENTS (IN-DEPTH INTERVIEW)

Government Town Planners (GP) Respondent 1 (GP1) Position / Agency

Director of Johor State TCPD

Experience

More than 20 years

Date and Time

09.05.2007 / 10.00 am

Duration of interview

10.00 am –12.15 pm (2 hours 15 minutes)

Remark : No disturbance. Respondent very keen to discuss this matter based on his experience especially from legal planning perspective.

Date of Typing the Transcript

09.05.2007 / 5.00 pm

Respondent 2 (GP2) Position / Agency

Deputy Director of Johor State TCPD

Experience

14 years

Date and Time

09.05.2007 / 2.00 pm

Duration of Time

2.00 pm –3.40 pm (1 hours 40 minutes)

Remark: No disturbance. Previously, the respondent acted as project manager for the Johor Bahru District Local Plan.

Date of Typing the Transcript

09.05.2007 / 9.00 pm

Respondent 3 (GP3) Position / Agency

Director of Melaka Project Office

Experience

More than 20 years

Date and Time

11.05.2007 / 2.30 pm

Duration of Time

2.30pm – 4.00 pm (1 hour 30 minutes)

Remark: Conducted in Federal TCPD Library in Kuala Lumpur.

Date of Typing the Transcript

12.05.2007 / 10.00 am

Respondent 4 (GP4) Position / Agency

Project Manager of Melaka Project Office

Experience

15 years

Date and Time

04.05.2007 / 9.35 am

Duration of Time

9.35 am – 11.27 am (1 hour 52 minutes)

Remark: No disturbance. No phone call. Right time in the morning.

Date of Typing the Transcript

04.05.2007 / 9.00 pm

330

Respondent 5 (GP5) Position / Agency

Project Manager of Melaka Project Office

Experience

14 years

Date and Time

19.05.2007 / 10.00 am

Duration of Time

10.00 am – 11.15 am (1 hour 15 minutes)

Remark: No disturbance. No phone call. Right time in the morning. Conducted in the Respondent’s house.

Date of Typing the Transcript

19.05.2007 / 10.00 pm

Respondent 6 (GP6) Position / Agency

Director of Planning Division, MBJB

Experience

More than 20 years

Date and Time

23.05.2007 / 2.15 pm

Duration of Time

2.15 pm – 3.05 (50 minutes)

Remark: Two phone calls. Respondent very interested with the subject matter.

Date of Typing the Transcript

23.05.2007 / 8.30 pm

Respondent 7 (GP7) Position / Agency

Director of Planning Division, MPJBT

Experience

15 – 20 years

Date and Time

23.05.2007 / 9.30 am

Duration of Time

9.30 pm – 10.30 (1 hour)

Remark: No phone calls. Respondent very interested with the subject matter.

Date of Typing the Transcript

23.05.2007 / 5.00 pm

Private Town Planners (PP) Respondent 8 (PP1) Position / Agency

Principal of MNF and Associates

Experience

More than 20 years

Date and Time

07.05.2007 / 10.30 am

Duration of Time

10.30 am – 11.15 am (45 minutes)

Remark: Disturbed by 3 phone calls. Interview is short due to the respondent rushing for other appointment and out station in KL. Date of Typing the Transcript

07.05.2007 / 11.00 pm

Respondent 9 (PP2) Position / Agency

Principal of RBK Town Planning Consultants

Experience

More than 20 years (JPBD and Consultants)

Date and Time

07.06.2007 / 2.30 pm

Duration of Time

2.30 pm – 4.30 pm(2 hour)

Remark: Disturbed by 5 phone calls. In general okay. Respondent has experienced at JPBD, PBT and as planning consultant.

331 Date of Typing the Transcript

07.06.2007 / 10.00 pm

Respondent 10 (PP3) Position / Agency

Principal of ALMA Rancang

Experience

15 – 20 years (in planning field)

Date and Time

06.06.2007 / 10.30 am

Duration of Time

10.30 am – 11.35 am (1 hour 5 minutes)

Remark: Disturbed by 2 phone calls. Is a good discussion. The respondent interested and very concern about the issue of housing supply.

Date of Typing the Transcript

06.06.2007 / 2.30 pm

Respondent 11 (PP4) Position

Principal of Mega Rancang

Experience

More than 20 years

Date and Time

30.05.2007 / 3.00 pm

Duration of Time

3.00 pm – 3.45 pm (45 minutes)

Remark: 1 phone call. Respondent rushing for meeting.

Date of Typing the Transcript

30.05.2007 / 6.00 pm

Respondent 12 (PP5) Position

Principal of Analis Planning Consultant

Experience

15 – 20 years

Date and Time

13.06.2007 / 11.00 am

Duration of Time

11.00 am – 12.05 pm (1 hour 5 minutes)

Remark: No phone call. Overall okay.

Date of Typing the Transcript

13.06.2007 / 2.00 pm

Respondent 13 (PP6) Position

Principal of Consortium Aki-Planner

Experience

More than 20 years

Date and Time

08.05.2007 / 3.00 pm

Duration of Time

3.30 pm – 4.50 pm (1 hour 20 minutes)

Remark: Often disturbed by phone call. Overall okay.

Date of Typing the Transcript

08.05.2007 / 11.00 pm

Respondent 14 (PP7) Position

Principal of RJ Planning

Experience

More than 15 years (15 – 20 years)

Date and Time

16.05.2007 / 2.30 pm

Duration of Time

2.30 pm – 3.20 pm (50 minutes)

Remark: Only 1 phone call. Overall okay.

Date of Typing the Transcript

16.05.2007 / 9.00 pm

332

Respondent 15 (PP8) Position

Principal of Araiso Sdn. Bhd.

Experience

More than 20 years

Date and Time

10.05.2007 / 10.00 am

Duration of Time

10.00 am â&#x20AC;&#x201C;11.30 am (1 hour 30 minutes)

Remark: No disturbance. Respondent very keen to discuss the subject matter. Conducted in the Johor TCPD meeting room.

Date of Typing the Transcript

10.05.2007 / 3.00 pm

Respondent 16 (PP9) Position

Principal of Perunding UEP

Experience

More than 10 years

Date and Time

07.05.2007 / 5.30 pm

Duration of Time

5.30 pm â&#x20AC;&#x201C; 6.56 pm (1 hour 26 minutes)

Remark: Two times disturbance by phone call. Evening interview may be not so suitable.

Date of Typing the Transcript

07.05.2007 / 9.00 pm

Note : Method of Interview : Ask the questions and write key points (without using tape recorder) Use of Language

: Mixed malay and english