Factors Influencing Housing Developers’ Decisions in the Development of Gated and Guarded Housings

Abstract

Guarded neighbourhood and gated community are two forms of gated and guarded housing that emerged in Malaysia’s housing market. Although both appear similar physically, but the latter has been the result of various legal and planning issues brought by the development of guarded neighbourhood in the country. Unlike guarded neighbourhood, the development and management of gated community are well governed by the strata laws. However, it does not affect housing developers’ interest towards guarded neighbourhood until now. Therefore, this paper aims to investigate the reasons why housing developers have still opted for guarded neighbourhood. Qualitative approach has been used based on the agency model framework in order to elicit housing developers’ decision on their final property product. Housing developers have been interviewed and have been mainly analyzed descriptively. As a result, it is found guarded neighbourhood have been chosen due to developers’ interest and understandings towards the risks and rewards of guarded neighbourhood development process and market preferences. However, the security features and services of a guarded neighbourhood are provided for temporary use depending on residents’ ability to sustain them. It shows that housing developers actually have short-term interest on the type of gated and guarded housing they built as long as they can achieve their economic interest once the physical development is completed despite the economic burden that the residents have to bear afterwards.