Table of Content

1.0 Introduction 5
1.1 Research Background and Problem Statement 5
1.2 Research Aim, Questions and Objectives 5
1.3 Methodology 6
1.3.1 Data Collection: Questionnaire Survey and Semi-Structured Interviews

1.4 Ethical Issue 6

2.0 Literature Review 7

2.1 Introduction 7
2.2 Strain on Strategic and Flat Urban Land 7
2.3 Regulations on Hillside Developments in Malaysia 8
2.4 Landslide Incidents in Malaysia 8
2.5 Housing Market Trend in Landslide Prone Hillside Areas 10
2.6 Residential Property Investment Performance 10
2.7 Factors Influencing Buyers’ and Investors’ Decision in Acquiring Residential 11
Property in Hillside Areas
2.7.1 Location
2.7.2 Prestige and Exclusivity
2.7.3 Price and Design
2.7.4 Facilities and Amenities
2.7.5 Type of Neighbourhood
2.7.6 Feng Shui
2.7.7 View, Ventilation and Natural Lighting

3.0 Study Methodology 15

3.1 Introduction 15
3.2 Research Design 15
3.3 Case Area: Bukit Antarabangsa 21
3.4 Data Collection 24
3.5 Data Transformation and Analysis 25
3.5.1 Descriptive Statistics and Frequency Distribution
3.5.2 Bi-Variate Analysis
3.5.3 Reliability Scale Test

3.6 Summary 24

References 39

4
1.0 INTRODUCTION

1.1 Research Background and Problem Statement

Property developments are very crucial to providing shelter and to an extent, ensuring comfortable living.
It is also an important contributor to the economy of nations. However, due to the explosive development
growth in Malaysia, most of the strategic and flat lands have been used for development and they are
now increasingly scarce. As a result, the developments are now moving towards the highland or hilly
terrains. Nowadays, most of the highland or hilly terrains around the city centre have been explored to
build urban communities. Highland or hilly terrain developments are viewed as attractive places to live in
because of the impressive view, natural beauty, fresh air and exclusivity (Samah, 2010). Despite its
growing attractiveness, hillsides developments are prone to natural hazards (Too, Adnan, &
Tringunarsyah, 2011). The existence of these urban communities has increased incidents of landslides in
landslide prone areas in Malaysia. The frequency of landslide occurrence increases with growing human
population (Saadatkhah, Kassim, & Lee, 2014). The term “landslide” basically means a slow to rapid
downward movement of instable rock and debris mass under the action of gravity, which can be
categorized into various types on the basis of failure hazards (Crude, 1991). After Independence, the first
recorded landslide tragedy in Malaysia was in 1961, which claimed 16 lives. Several other fatal landslide
incidents have been reported since then, many of them in urban areas. In Bukit Antarabangsa alone, 28
landslide tragedies have been reported. The most notable of all is the Highland Tower collapse on
December 11, 1993 that claimed 48 lives, recorded as the single most devastating landslide incident in
Malaysia. These occurrences have shown that, landslide tragedies have resulted in extensive damage to
properties and displacement of residents. Moreover, records show that the tragedies also caused
casualties and loss of lives. It is expected that where the risk to life and property from natural disasters is
quite high, like a landslide prone location, development activity in such areas would suffer tremendous
and erratic fluctuations, where they are even pursued at all. Natural disasters and development have an
interlinked and multifaceted relationship. They can mutually have a negative effect on each other (Gencer,
2013). With natural disasters comes the risk of financial losses. Property valuation has to consider the
aspects of natural disaster (Kropp, 2012). However, Yeo (2003) said that the evidence for the effect of
natural disaster on residential property value is mixed. Natural disasters are just one of many factors
influencing property values and property market activity. Research indicates that community perceptions
are more important in indicating property value because the communities have good reason to adverse
effect and to ‘talk up’ the market. Considering the fact also that, strategic flat land in urban areas is
almost saturated in Malaysia, there continue to be considerable property market activity and
developments in high land areas, that are not only prone, but have indeed recorded incidents of tragic
landslides in the past. Research on landslide prone areas in Malaysia has focused primarily on causes,
5
effect on development activity, and sustainable development of high land areas. There is little empirical
evidence on factors that influence buyers’ and investors’ to continue to buy and invest in property in
these areas. Continued residential property investment in hillside areas prone to landslides begs the
question of examining the factors that are responsible for continued property market activity and whether
the combination of these factors supersedes the associated risks with owning residential properties in
hillside areas prone to landslides.

1.2 Research Aim, Questions and Objectives

This study therefore aims to understand and explain the factors that influence buyers’ and investor’s
decision in buying and investing in property in hill land areas in Malaysia with Bukit Antarabangsa as a
case study. The study will also attempt to establish whether these factors have direct relationship with the
property investment return in the study area. The study therefore would be achieved through the
following objectives:

1. To determine the level of risk awareness towards landslide prone areas among house buyers and
investors.
2. To study the housing market trend in a landslide prone area, Bukit Antarabangsa.
3. To analyse the key factors influencing buyers’ and investors’ decision acquiring property in Bukit
Antarabangsa.
4. To establish the relationship between factors influencing investors’ and buyers’ in acquiring
residential property and property performance in Bukit Antarabangsa.
5. To propose a decision-making guide for prospective residential property buyers and investors
based on the factors influencing buyers’ and investors’ decision for acquiring property in Bukit
Antarabangsa.

1.3 Methodology
The study would adopt triangulation technique that combined both quantitative and qualitative data
collection in a sequential mixed methods approach. The case study of Bukit Antarabangsa, Selangor,
Malaysia is selected for it is well-known as one of the most landslide-prone areas in urban areas. This
area has constantly experienced landslide hazards ever since the 1990’s (Lee et al., 2014).

1.3.1 Data Collection: Questionnaire Survey and Semi-Structured Interviews

Bukit Antarabangsa is a hillside township located in Hulu Kelang, Ampang, Selangor. This area is
administered and held under the jurisdiction of the respective local municipality of Ampang Jaya (MPAJ).
The case study of Bukit Antarabangsa, Hulu Kelang is selected for it is well known as one of the most
6
landslide-prone slope areas in urban areas in Malaysia. Besides, this area has constantly recorded
landslide incidents since the 1990’s (Lee et al., 2014). The targeted population for the study was those
who retain landed property interests such as outright ownership and leases in Bukit Antarabangsa. This
does not include tenancies. From this population, a sample determined for the questionnaire survey. The
contextual scope of the study covered perception of buyers and investors regarding hillside areas prone
to natural hazards to the factors influencing their decision to buy or invest in property in such an area as
well as the property market situation (property value trends and level of market activity). Questionnaire
survey administered to buyers and investors who have acquired property in Bukit Antarabangsa to
identify their perceptions on the hillside area as well the factors influencing their decision to acquire
property in the area despite the high risk of landslides. According to respective local municipality, a
population of 9936 houses on hillside in Bukit Antarabangsa area was recorded. Based on that
population size, Krejcie and Morgan (1970) suggest a minimum sample of 370 houses requires
representing the population. Hence, 480 questionnaires had been sent out randomly considering some
had not been replied.

Semi-structured interviews held with buyers and investors. This is to clarify and validate major factors
responsible for acquiring property in Bukit Antarabangsa despite the tragic history of multiple landslide
incidents. The justification of using semi-structured interview is to get explanations for any unclear
answer received during the questionnaire survey session. Interview also could clarify any contradictory
responses from the literature review and provide an opportunity for researcher to discuss any new factors
that were not asked during the survey carried out earlier. 10 respondents participated in the interview
exercise, where the saturation point reached.

The responses from the questionnaire survey were analysed using analysis packages namely Statistical
Package for Social Sciences (SPSS) to produce both inferential and descriptive statistics results.

1.4 Ethical Issue

Explanation has been made to the respondents involved in the study, including the risk, obligation and
securing their consent. Data mainly collected from house buyers or investors at Bukit Antarabangsa area.
Generally, this study requires type 2 ethical approval from the ethical committee of the University.
Researcher had obtained ethical approval from the committee before data collection exercise started as
shown in Appendix B.

The next section, Section 2, presents a comprehensive literature review that forms the theoretical basis
for the study.

7
2.0 LITERATURE REVIEW

2.1 Introduction
Property developments are very crucial to providing shelter and to an extent, ensuring comfortable living.
It is also an important contributor to the economy of nations. However, due to the explosive development
growth in Malaysia, most of the strategic and flat lands have been used for development and they are
now increasingly scarce. As a result, the developments are now moving towards the highland or hilly
terrains. Nowadays, most of the highland or hilly terrains around the city centre have been explored to
build urban communities. Highland or hilly terrain developments are viewed as attractive places to live in
because of the impressive view, natural beauty, fresh air and exclusivity (Samah, 2010). Despite its
growing attractiveness, hillsides developments are prone to natural hazards (Too, Adnan, &
Tringunarsyah, 2011). The existence of these urban communities has increased incidents of landslides in
landslide prone areas in Malaysia. The frequency of landslide occurrence increases with growing human
population (Saadatkhah, Kassim, & Lee, 2014). The term “landslide” basically means a slow to rapid
downward movement of instable rock and debris mass under the action of gravity, which can be
categorized into various types on the basis of failure hazards (Crude, 1991). After Independence, the first
recorded landslide tragedy in Malaysia was in 1961, which claimed 16 lives. Several other fatal landslide
incidents have been reported since then, many of them in urban areas. These occurrences have shown
that, landslide tragedies have resulted in casualties and loss of lives, notwithstanding displacement of
residents and extensive damage to properties. It is expected that where the risk to life and property from
natural disasters is quite high, like a landslide prone location, development activity in such areas would
suffer tremendous and erratic fluctuations, where they are even pursued at all. Natural disasters and
development have an interlinked and multifaceted relationship. They can mutually have a negative effect
on each other (Gencer, 2013). With natural disasters comes the risk of financial losses. Property
valuation has to consider the aspects of natural disasters (Kropp, 2012). However, Yeo (2003) noted that
the evidence for the effect of natural disasters on residential property value is mixed. Natural disasters
are just one of many factors influencing property values and property market activity. Research indicates
that community perceptions are more important in indicating property value because the communities
have good reason to adverse effect and to ‘talk up’ the market. Considering also the fact that, strategic
flat land in urban areas is almost saturated in Malaysia, there continue to be considerable property
market activity and developments in high land areas that are not only prone, but have indeed recorded
incidents of tragic landslides in the past. Research on landslide prone areas in Malaysia has focused
primarily on causes, effect on development activity and property values, and sustainable development of
high land areas. There is little empirical evidence on factors that influence buyers’ and investors’ decision
to continue to buy and invest in property in these areas. Continued residential property investment in
hillside areas prone to landslides begs the question of examining the factors that are responsible for
8
continued property market activity and whether the combination of these factors supersedes the
associated risks with owning residential properties in hillside areas prone to landslides. This study
therefore aims to understand and explain the factors that influence buyers’ and investor’s decision in
buying and investing in property in hill land areas in Malaysia with Bukit Antarabangsa as a case study.
The study will also attempt to establish whether these factors have direct relationship with the property
investment return in the study area.

2.2 Strain on strategic and flat urban land

Malaysia is witnessing rapid development and prime urban flat lands have become scarce. Big states like
Selangor and Kuala Lumpur are the most hit by this rapid urbanization. As at 2015, approximately 75%
(22,659,000 people) of Malaysia’s population lived in urban area (World Bank, 2016). As a result of this
strain on strategic and flat urban land, most of the highlands or hilly terrains have been occupied and
developed. Highlands or hilly terrains developments are viewed as attractive places to live because of the
impressive view, natural beauty, fresh air and exclusivity (Samah, 2010). Many developers are taking the
advantages of the impressive views, good ventilation, better natural lighting and exclusivity to increase
their development value. Buyers are attracted to the combination of these factors and the interesting
architecture resulting from the creativity of the designers. Thus, there are two main reasons why
highlands or hilly terrains are developed: insufficient flat land and high profit. However, the existence of
these hillside urban communities has increased incidents of landslides in Malaysia that have resulted in
serious loss of lives and property. A highly populated urban area will face a significant impact of landslide
tragedies to human and properties. Also, the climate of Malaysia is driven by its equatorial position,
extensive coastlines on tropical seas and monsoonal winds, which contribute to the risk of landslides.
These landslides have resulted in significant impacts such as causing road closures, severe property
damage, severe economic problem and loss of life (Gue & Tan, 2006).

2.3 Regulations on hillside developments in Malaysia

Regulations and guidelines on planning and development towards sustainable development in Malaysia
is extensive (Alias & Othman, 2012). Laws related to the development process such as Town and
Country Planning Act, 1976 (Act 172), Local Government Act, 1976 (Act 171), Environment Quality Act,
1984, Uniform Building by Law, 1984, Street Drainage and Building Act 1974 etc., have been in
implementation. Between 1997 and 2010 regulations, guidelines, policies and implementation procedures
have been formulated to ensure sustainable hillside developments. Besides that, the guidelines and
regulations help to improve the impact towards property development and property values on hillsides or
hilly terrain areas. Existing planning and development guidelines and legislations for highlands or hilly
terrains developments include (Othman et. al, 2011):

9
  Ampang Jaya Draft Structural Plan 1995-2020, 1997
 National Physical Plan, 2005
 High Land Development Guidelines, Ministry of Environmental and Resources, 2005
 Draft Guidelines for the Conservation and Development of Environmental Sensitive Area and its
Surrounding Area, 2005
 State of Selangor Structure Plan 2020, 2007
 Planning Standards Guidelines Selangor of Selangor, 2007
 Ampang Jaya Draft Local Plan 2020, 2009
 Development and Planning Guidelines for Hilly and High land Area, Ministry of Housing and Local
Government, 2009
 Development and Planning Guidelines for Hilly and High land Area, State of Selangor 2010

Although these guidelines and regulations on sustainable development of hillside areas seem extensive,
it can be deduced that, only in 1997 the government began establishing these guidelines and regulations,
and several other landslide incidents have occurred despite these enactments. These regulations and
guidelines must, therefore, be performed together with the implementation and continuous monitoring of
development process. These regulations and guidelines are very important in ensuring successful
development processes and sustainable development.

2.4 Landslide incidents in Malaysia

The earliest reported landslide that occurred in Malaysia was on 7 December 1919 at Bukit Tunggal,
Perak. The incident resulted in property damage and killed 12 people. The first landslide tragedy to
happen after Malaysia gained Independence was at Ringlet, Cameron Highland on 11 May 1961 and
claimed 16 lives. By state, 18 major landslide incidents have been reported in Malaysia from 1961 to
2008 (Mokhtar & Lateh, 2012). Among these occurrences, Bukit Antarabangsa provides the most
interesting case regarding urban development and landslide occurrence. Evidence show that 28 landslide
incidents resulting in a total of 61 deaths occurred in Bukit Antarabangsa, located in the State of Selangor
between 1993 and 2008 as shown in Table 1. The first landslide tragedy in Bukit Antarabangsa
happened on December 11, 1993, where one of the Highland Tower blocks toppled. The Highland
Towers were a 3-block 12-storey condominium constructed between 1975 and 1979. This Highland
Tower located at the western base of a hilly terrain which was extensively developed starting in 1980’s.
This incident has been regarded as the single most catastrophic landslide tragedy in Malaysia, which
resulted in the loss of 48 lives. Another tragic landslide occurred on November 20, 2002, not far from the
Highland Towers and resulted in the death of 8 people and ruined a two-story bungalow. On December 6,

10
2008 another landslide occurred in Taman Bukit Utama and Taman Bukit Mewah and claimed 5 lives and
swept away 14 bungalows in the area. This shows that, landslide tragedies in Malaysia have resulted in
casualties and loss of lives, displacement of residents and extensive damage to properties.

Table 2.1: Cases of landslides in Bukit Antarabangsa

No Date Location of Slope Failure
1. 11.12.1993 Highland Tower
2. 14.05.1999 Bukit Antarabangsa, Ampang-UluKlang
3. 15.05.1999 Athenaeum Towers, Ulu Klang
4. 05.10.2000 Bukit Antarabangsa
5. 29.10.2001 Taman Zoo View, Ulu Klang
6. 08.11.2001 Taman Zoo View, Ulu Klang
7. 20.11.2002 Taman Hill View
8. 02.11.2003 Oakleaf Park Condominium, Bukit
Antarabangsa
9. 07.11.2003 Jalan Bukit Mulia, Bukit Antarabangsa
10. 31.01.2005 Jalan Tebrau in Dataran Ukay, Bukit
Antarabangsa
11. 01.02.2005 Jalan Tebrau in Dataran Ukay, Bukit
Antarabangsa
12. 31.05.2006 Taman Zoo View - Kg Pasir, Ulu Klang
13. 06.12.2008 Taman Bukit Mewah, Bukit Antarabangsa
Source: Huat and Ali (2012)

Mostly a combination of heavy rainfall, inadequate drainage and design deficiencies, poorly maintained
construction slope gradient, poor drainage maintenance, incompetence, ignorance of geological inputs,
unethical practices, sustained development activity have been identified as triggers to these landslide
incidents (MPAJ, 1994; Harap & Aini, 2010; Gue & Tan, 2006; Jamaludin & Faisal, 2011). As it is
generally known, landslide tragedy has contributed to incredible losses in terms of money and lives.
According to Mukhlisin, Idris, Salazar, Nizam & Taha (2010), Malaysian Public Works Department (PWD)
has identified more than 100 hill slopes as landslide prone areas. Nowadays, highlands or hilly terrains
developments are viewed as attractive places to live because of the impressive view, natural beauty,
fresh air and exclusivity (Samah, 2010). Developers are using the exclusiveness of the hilly terrains
together with interesting architecture to attract people to live and own properties in these areas.

11
Unfortunately, these developments will cause cutting hilly lands, thus contributing to the instability of
slope and distress of slope. As results, landslide will occur at these landslide prone areas. There are
various contributing factors for landslide or slope failure. Basically, two categories of factors are
responsible for causing landslides in Malaysia: human error and climate change (monsoon season).
Studies show that most landslides in Malaysia has been due to human errors such as lack or poor
maintenance, negligence, incompetence, ignorance of geological inputs, unethical practice and various
negative human activities (Gue & Tan, 2006; Jamaludin & Faisal, 2011). According to Gue and Tan
(2006) in the study of causes of slope failure, where out of, 60% of 49 observed cases of landslide was
due to the failure of design alone, 20% was due to the combination of design and construction error, 8%
was due to construction error, 6% is due to ignorance of geological features and 6% was due to
maintenance error. On the other hand, being located at the equatorial position, Malaysia faces annual
monsoons from April to October and from October to February respectively. Ng (2012) reported that the
annual rainfall in Malaysia is 2000mm to 2500mm approximately. Thus, climate change as one of the
major category of factors contributing to the occurrence of landslide is due to the high intensity of rainfall
and geological features (Gue and Tan, 2006).

2.5 Housing market trend in landslide prone hillside areas

Based on the literature review, natural disasters such as landslides have significant impact on the
property value. Alias & Othman (2012), note that geo-disaster tragedies had an impact to the
depreciation and appreciation of property values in areas such as Bukit Antarabangsa particularly to the
affected areas. The property price of the affected area of natural disaster and its surrounding
neighbourhoods suffered significant losses for period of time (Eves & Chris, 2003). The effect on property
price in the affected natural disaster area is further explained by category of housing property, strata
property and landed property.

For the strata property, the case of Puncak Athenaeum is adopted. Puncak Athenaeum is located in
Jalan Wangsa, Bukit Antarabangsa. It was built with 320 units of residential houses consists of 21 floors
for each tower. The condominium collapsed in 1999 and claimed 4 lives. After the landslide incident,
there was approximately 30% depreciation in values of the residential unit fall, which stagnated until 2007.
There was, however, an appreciation of between 4% and 8% from 2007 (Alias & Othman, 2012). In 2009
the prices went down again following another incident in Taman Bukit Mewah in 2008. The trend shows
an early reluctance form buyers and investors immediately following the landslide incidents due to fear
(Alias & Othman, 2012).

The landed property is further classified into terrace house, semi-detached and detached residential. The
case of Kg. Pasir, Ulu Klang is adopted to further explain the trend of price of terrace residential units
12
after the landslide tragedy. The landslide of Kg. Pasir occurred on May 2006, which claimed 4 lives in the
flattened three blocks of longhouses. Following the incident, values of residential units were depreciated
by 6% and lasted for just a year. In 2008 values went back up approximately 13% (Alias & Othman,
2012). This indicates that, the Kg. Pasir landslide tragedy did not have a significant impact on property
prices and its surrounding neighbourhoods (Alias & Othman, 2012).

As known, Bukit Antarabangsa is mainly occupied by the middle high income and high income group.
Thus, among the famous landed property in Bukit Antarabangsa is semi-detached. For this case, Taman
Beverly Heights is adopted to identify the trend of price of neighbouring residential units further away
from the landslide areas. From the literature review, the price of residential units on Taman Beverly
Heights shows a continuous increase trend (Alias & Othman, 2012). This indicates that, the price of semi-
detached in Taman Beverly Heights was not affected by the landslide tragedies that happened in the
surrounding areas.

For the detached residential units, the case adopted is in Taman Bukit Mewah. Taman Bukit Mewah’s
landslide was one of the famous landslide tragedies in Malaysia. The landslide occurred on December
2008 which claimed 5 deaths and swept away 14 bungalows in the area. From 2005 until 2006, the price
transacted was continuously increased. However, after the incident of Kg. Pasir and Taman Hillview, the
price in Taman Bukit Mewah depreciated because. After the occurrence of landslide in Taman Bukit
Mewah in 2008, the price of detached residential unit worsened and no transaction was recorded in 2009
(Alias & Othman, 2012).

Evidence from the literature shows that, the property value trends in Bukit Antarabangsa follow a pattern
of relatively short periods of property values depreciation in both affected and surrounding areas
following a landslide incident. The longest period of low property values was 8 years, following landslide
in Puncak Athenaeum. However, despite the landslide incidents, there continue to be more new property
developments in Bukit Antarabangsa.

2.6 Residential property investment performance

The performance of any investment would be measured by the gain the investor derives from it. In
residential property investment, gains could be direct or indirect. Direct gains include income such as
rents and profit from outright sales, while indirect gains come from sources such as implicit rental and tax
savings from owner-occupied properties. Net operating income, tax shelter, equity build up and capital
appreciation are usually the forms of cash flows from a real estate property, cost savings and
environmental benefits being an additional returns in the case of green or sustainable real estate property
(Isa, Rahman, Sipan, & Hwa, 2013). People investing or buying residential property usually are either
13
investing for an annual stream of rental income, outright sales for a profit (usually after capital
improvements), or occupying it as owner-occupied property. From an owner-occupied perspective, Jud &
Winkler (2005) note that, there are majorly two sources of gains from owning residential property: implicit
savings of out-of-pocket rental expenses and capital gains arising from property price appreciation.
Returns to residential property investment are related to the following (Jud & Winkler, 2005): (1) price
appreciation; (2) income tax rates; (3) mortgage leverage; (4) transaction costs; (5) insurance and
maintenance expenses; (5) property taxes; and (6) the imputed rental value of the property. The imputed
rental value of the property reflects the savings obtained by the homeowner by not having to pay rent on
the dwelling. Studies have shown that the imputed rental value is an important component of the overall
return to a residential property (Jud & Winkler, 2005). One of the common measures for performance of
an investment is return on investment (ROI). Return on investment is a measure used to estimate and
evaluate the performance of an investment or to evaluate the performance of a number of different
investments. ROI indicates the percentage of net profit to an investor after deductions of associated costs.
To calculate ROI, the net profit is divided by cost of investment. The ROI can therefore be expressed
thus:

ROI = ---------------------------------------- (i)

Where;
CG = capital gain from investment
CI = cost of investment

2.7 Factors influencing buyers’ and investors’ decision in acquiring residential property in
hillside areas
Nowadays, highlands or hilly terrains developments are viewed as attractive places to live. In countries
such as Malaysia, continuous scarcity of strategic and flat urban lands has made development in such
areas even more necessary as developers seek new places to construct property. (Samah, 2010),
mentioned that impressive views, good ventilation and better natural lighting are the leading factors for
choice of property in highland or hilly areas. These have been supported by Salleh, Zoher, Mahayuddin,
& Abdul (2015) who found that view and ventilation, location, and price and design were the three most
influencing factors to buyers’ decision making in buying property in hillside areas. Other factors included
prestige, luxury and style; facilities and amenities in the neighbourhood; type of neighbourhood; and
Feng Shui elements. On the other hand, Azmi, Salleh & Nawawi (2013) found that, accessibility and
amenities, location, privacy, green scenery, and type of residential property, ranked in that order, were
the factors responsible for people choosing to live in landslide prone areas, with the respondents noting
that these factors offset the risk of landslides.

14
2.7.1 Location
Location is seen as one of the most important factors in decision-making when considering investment in
residential property. It is generally held that the three most important factors in property acquisition is
‘location, location, location’. It is a chief factor in determining price and value. Kauko (2003) identified that
location has a strong correlation with the increment of property value and behaviours in property
investment. Location is an intrinsic attribute of a dwelling (Jansen, Coolen, & Goetgeluk, 2011). The
acquisition of a residential property comes along with it all the other features of the place it is located
such as the neighbourhood and public services. Jansen, Coolen, & Goetgeluk (2011), note that
differences in location have the ability to influence various aspects, such as social status, the
consumption of private goods, the availability of public goods, jobs, and other desired destinations.
Location is therefore an important determinant of housing quality and household welfare. Residential
property choice can be affected by the amount of time residents would have to spend to get to work.
Distances to workplace, schools, shops and central business districts (CBD), etc. are crucial influencing
factors that affect buyer’s preference in the decision making of property buyers (Saw & Tan, 2014).
People prefer to spend less time commuting to work and schools (Karsten, 2007) as well as want to live
close to facilities and amenities that facilitate their daily living.

2.7.2 Prestige and exclusivity

All over the world, living in hilly areas is considered prestigious, luxurious and a reflection of a high sense
of style. These areas are exclusive because of the nature of their inhabitants who many times than not,
have higher society status and wealth (Almatarneh, 2013). These factors influence people buying a
house at the hilly area (Salleh, Zoher, Mahayuddin, & Abdul, 2015). Salleh, Zoher, Mahayuddin, & Abdul
(2015) note further that, the current standard of modern living and the advent of household and building
technologies, these recent developments may in turn expose people to diverse alternatives of domestic
and home modification technologies. As people’s income and wealth grow and they attain higher status
in society, they seek places that are prestigious and exclusive to match or reflect that through lifestyle
upgrade. Normally the reasons of buying are for marriage, security, investment and lifestyle upgrade
(Salleh, Zoher, Mahayuddin, & Abdul, 2015). These factors are quite important because the residents of
areas such as hilly areas prefer the prestige title and exclusiveness (Sew & Chin, 2000). The literal
scenario of living on higher ground gives some a false sense of being above others, having a higher
status, which could be a strong psychological influencing factor when considering residential property
acquisition in highland areas.

2.7.3 Price and design

Price is an important factor when considering investment in residential property. Basically, price is what
someone pays for something is return or as a consequence of something. It acts as a medium of
15
consideration in exchange activities in term of transfer of ownership or other commercial transactions
purposes (Salleh, Zoher, Mahayuddin, & Abdul, 2015). In general terms, price determined by the supply
(what seller is willing to accept) and demand (what buyer is willing to offer) forces and competition (what
market competition allows to be charged). In real estate sector, price is considered a key factor in
decision making for investing in property. In a study on influence of environmental factors on property
buyers’ choice of residential location in locations in northern, western and southern Poland Źróbek,
Trojanek, Źróbek-Sokolnik, & Trojanek (2015) found that, price was the most important factor in choice of
residential property. The price of a property at a given time usually reflects current market prices. These
prices can, however, be higher or lower depending on relative factors such as design, accessibility,
facilities, community concept, prestige and security (Rahadi, Sudarso, Deddy & Indra, 2012), speculative
behaviour (Rahadi, Sudarso, Deddy & Indra, 2013).

The design and structural elements of the property are also an influencing factor. This refers to all the
physical attributes as well as the quality of construction of the property. It considers the aesthetics
(architectural outlook), built-up area, and accommodation schedule such as number of bedrooms and
bathrooms (Tan, 2012b; Tse & Love, 2000). Hurtubia & Bielaire (2010) notes that the size and number of
rooms is an important feature in decision making to acquire residential property. It is generally believed
that buying a property for own use and buying an investment property has different criteria
(Ratchatakulpat, Miller, & Marchant, 2009; Saw & Tan, 2014). The perspective of home buying could
therefore be an important factor is decision making regarding a property’s design and structural elements.
People buying property for own use and hoping to raise a large family, for instance, would consider a
large property or at least one with room for expansion. Kohler (2013) notes that investors are generally
interested in smaller properties especially when considering properties such as apartments and flats as
they seem to be the most popular among tenants.

2.7.4 Facilities and amenities

Basic facilities and amenities are such as good roads, transportation, electricity, water and drainage
system area a factor in decision making on where to invest or buy property. These facilities, at the least,
are necessary for a functional neighbourhood and at best, they enhance economic growth. The public
transportation is inter-related with the economic growth and helps in the spreading of information such as
business opportunities, reducing sprawl and creating good scenario of the place (Salleh, Zoher,
Mahayuddin, & Abdul, 2015). In a study on residents living in landslide prone areas in Ulu Klang,
Selangor, Azmi, Salleh & Nawawi (2013) found accessibility and amenities as the chief reason why
respondents chose to live in a landslide prone neighbourhood with 50% of the respondents indicating
they had moved into the area less than 10 years ago. Excellent and efficient facilities are among aspects
that can impact on living environment of the people (Yakob, Yusof & Hamdan, 2012).
16
2.7.5 Type of neighbourhood
The type of neighbourhood is another factor for a residential property investment decision. Other factors
such as price affected by the type of neighbourhood (Hong, 2011). A neighbourhood is considered a
space in which residents live together for a common interest (Choguill, 2008). It therefore, goes without
necessarily saying that, house buyers would be more interested in acquiring residential property in a
neighbourhood where they would feel a sense of belonging. Whether as an investor or an owner-
occupier buyer, security of property, the composition of the neighbourhood in terms of demographics,
environmental qualities and facilities (Hong, 2011) impacts on the decision to acquire property.
Neighbourhood environment factors such as cleanliness, pollution and crime rate are important are
influencing factors in the decision to acquire residential property (Chapman & Lombard, 2006; Tan,
2011a). Tan (2011a), notes that a home situated in a good neighbourhood would be preferable as house
buyers are willing to pay more for properties with good indoor and outdoor environmental qualities. As
mentioned, security is another concern. Normally the property at the hilly area is surrounded with the
gated and guarded community services. There is a premium that comes with gated and guarded
communities. Homeowners are willing to pay more to live in a gated and guarded neighbourhood to attain
a greater peace of mind, while investors see property in gated and guarded neighbourhood as a sign
they would get the most for their investments (Saw & Tan, 2014). Gated-guarded properties usually come
with a price tag as a result of the extra services provided to ensure security (Asiedu & Arku, 2009).
Beyond security, one of the most prominent underlying reasons for the property buyers desiring the gated
and guarded property is the status symbol that goes along with owning a property that is protected
(Salleh, Zoher, Mahayuddin, & Abdul, 2015). Gated and guarded communities are said to symbolize and
create ranking in the social ladder, and people choose to live in them for the elite image it projects along
with the desire for differentiation (Saw & Tan, 2014). Exclusive gated neighbourhoods are related to the
high income-earning residents’ (Tan, 2010a) lifestyle who feels growing need for safety as their personal
income increases (Sakip, Johari, & Salleh, 2013). Perceptions of safety from crime are relevant indicators
of quality of life of residents (Okunola & Amole, 2012).

2.7.6 Feng Shui

Feng shui literally means wind and water, which are the elemental forces of the earth, and are believed to
have hidden power to determine the course of events (Bourassa & Peng, 1999). Feng shui is
predominantly a Chinese tradition and in contemporary practice incorporates a wide range of concepts
considered to affect a person’s luck (Bourassa & Peng, 1999). It is believed to contribute to good health
and good fortune (Tchi, 2013). Feng-shui has a significant influence on many aspects in daily lives of
most Chinese people, including choosing locations for dwelling units (Lin, Chen, & Twu, 2012). Studies
concerning feng shui and residential housing have shown that, feng shui has influence on price of
housing units and the decision to buy or invest in residential housing. Bourassa & Peng (1999) using
17
hedonic price models to investigate house numbers’ influence on house values in an area with high
percentage of Chinese households in Auckland, New Zealand demonstrated that lucky house numbers
are capitalized into house values, with noticeable average premiums of up to 2.4% on houses with lucky
numbers. On the other hand, (Lin, Chen, & Twu, 2012) in a study in Taiwan found bad feng shui such as
location on a dead-end road, or near a viaduct, temple, cemetery, or located on the fourth floor to have
negative impacts on housing prices. The study also found that, people buying expensive properties were
more concerned about feng shui that those buying residential properties that were less expensive. Tchi
(2013) notes that, applying feng shui in the house buying decision making process as a wise investment
decision as it will “give you peace of mind, as well as assure that your house is a good financial
investment”.

2.7.7 View, ventilation and natural lighting

Impressive natural surroundings, good ventilation and better lighting are factors that make hillside
housing development attractive and exclusive (Samah, 2010; Salleh, Zoher, Mahayuddin, & Abdul, 2015;
Sew & Chin, 2000). Also at the same time, they can enjoy a broad scope and range of scenery view
(Salleh, Zoher, Mahayuddin, & Abdul, 2015). Studies have found that scenic sights could attract
premiums on residential property, with people willing to pay for it. Scenic sights such as water bodies,
harbour views, natural parks and open spaces, garden vistas attracted premiums of between 3 percent
and 23 percent in various countries (Luttik, 2000; Jim & Chen, 2007; Jim & Chen, 2009). Sew & Chin
(2000) note that demand for property located in hillside areas is due to impressive view, lack of suitable
flat area, beautiful scenery, and fresh air. Living on higher ground exposes one to better views, natural
ventilation and natural lighting. People would tend to be attracted to areas, which are more naturally
ventilated and less polluted. Yusuf & Resosudarmo (2008) found that bad environmental air quality from
air pollution had a negative association with property value in Indonesia with people indicating
unwillingness to buy or invest in property in areas with bad air quality. Salleh, Zoher, Mahayuddin, &
Abdul (2015) found view and ventilation as the most influencing factor for property buyer decision in
Manjung, Perak. The importance of natural ventilation and lighting can also be seen in its inclusion in
green or sustainable building design as crucial elements.

18
 Factors influencing buyers’ and investors’
decision
 Location
 Prestige and exclusivity Residential property
 Price performance
 Facilities and amenities Return on investment (ROI)
 Type of neighbourhood
 Feng shui
 View, ventilation and natural lighting

Figure 2.1: Conceptualizing relationship between buyers’ and investors’ decision making factors
and residential property performance in landslide prone hillside areas

Figure 2.1 conceptualizes a relationship between “factors influencing buyers’ and investors’ decision in
acquiring property in landslide prone areas” (independent variables) and residential property performance
(dependent variable) in landslide prone areas. According to property investment literature, return on
investment for residential property include all active and passive income accruing from ownership of
residential property whether as an investor or as an owner-occupier. By establishing a relationship
between these variables, this relationship will attempt to explain whether the combination of these factors
supersede the associated risks with owning residential properties in hillside areas prone to landslides.

The next section, Section 3, presents a study methodology used for the study.

19
3.0 STUDY METHODOLOGY

3.1 Introduction
This section discusses the methodology used in accomplishing this research. The section describes the
case area, the study design, data collection methods, and data analysis methods used in this study. The
discussion extends to the criteria of respondents’ selection, identification of study population as well as
data transformation techniques.

The mixed methods approach was implemented in this research, which was carried out in three phases.
The first phase was the literature review which covered risk awareness on landslide prone area and key
factors considered in purchasing property specifically in landslide prone hillside areas in Malaysia. In
addition, the housing market trends in landslide area were also been discussed. The identification of
possible decision making factors was carried out through extensive literature, both by local and
international researchers in line with the research focus. Essential information and data were gathered
from various published materials. The discussion on mixed methods approach as a methodology for the
study was also been carried out in the literature review exercise.

The second phase was the main data collection using questionnaire survey. This was generally to
confirm the variables that had been identified from review of literature. The variables were shortlisted to
the most influential factors that influence the decision-making by the owners. Information and data to
identify the decision-making factors and the influence of the factors and in acquiring property in Bukit
Antarabangsa, Selangor were gathered through questionnaire survey. This would enable quantitative
data collected for further analysis, followed by semi-structured interview for qualitative part. Phase 3 was
a discussion on implication from the analysed result. Phase 3 also developed a conclusion of the study.

3.3 Research design

Gorard (2010) noted that research design is an approach of organising a research work from beginning
to optimise the possibility of generating proof and evidence, which provides a valid answer to the
research objectives of any study. Creswell (2009) maintained that the research designs are procedures
and plans of research that limit the decisions from broad assumptions to detailed analysis and data
collection method. In general, there are four types of social research designs, which include Descriptive,
Explanatory, Exploratory and Evaluation Research (Schutt, 2015). The summary of the different types of
social research projects is as shown in Table 3.1. As stated in the summary, it could be concluded that
this research employed an Explanatory Research in nature due to it identifies the key decision making
factors for the building owners to acquire property and its effects on the residential property performance.
20
 Table 3.1: Research types
Research Type Description
Descriptive Describing and defining the interest of social phenomena
Research
Exploratory Seeks to identify what issues concern people, what meanings they give
Research to their actions and how people get along in the setting under question.
Mostly, this research type involves qualitative method, as it requires
taking a field of inquiry in a new direction; or capturing unstructured
information.
Explanatory Seeks to forecast how a social phenomenon varies in response
Research towards other phenomenon with different variation. It also looks into
causes and effects of the phenomena.
Frequently, it involves surveys and experiments, quantitative methods
most likely to be used for both approaches.
Evaluation This type is also considered as an explanatory research. However, it
Research only seeks to investigate the consequences of policies or programs by
the government.
Source: Schutt (2015)

For data acquiring purpose in this explanatory research, a mixed method approach was used. Mixed
methods combine both quantitative and qualitative methods (Osborne, 2008; Creswell, 2009). In social
science, qualitative research involves measurements, numbers basically based on a sampling process
because in many social science researches, it is impossible to observe the entire the populations for
reasons of time, logistics and simply impracticality. For instance, it would be impossible to survey the
entire population of Malaysia within a reasonable time period therefore a sample would be relied upon to
generalize the research findings. Qualitative research on the other hand deals with other forms of data
such as text, images, etc. and is descriptive in nature involving commonly discourse. Common data
collection techniques include interviews and observations. In rare circumstances, smell and other
sensory is considered (Gorard, 2010). In 1959, researchers began using these methods together to study
validity of psychological traits in what is now regarded as ‘mixed methods’ (Creswell, Clark & Garrett,
2008). Using different methods in the attempt to diminish and eliminate bias gave birth to triangulation of
data sources. According to Creswell, Clark & Garrett (2008) results obtained from one method can lead
to the development of the other method.

21
In general, there are four main mixed method designs, which have different designs and approaches.
Figure 3.1 shows the Concurrent Mixed Method design, which consist of Embedded and Triangulation
methods. In this approaches quantitative and qualitative parts could be conducted concurrently. On the
other hand, Figure 3.2 shows the Sequential Mixed Method design, which the quantitative and qualitative
parts could be conducted sequentially. Three methods under this research design are known as
Explanatory, Exploratory and Embedded designs.

Figure 3.1: Concurrent mixed method designs

Source: Creswell, Clark & Garrett (2008)

22
 Figure 3.2: Sequential mixed method designs
Source: Creswell, Clark & Garrett (2008)

Triangulation Design in a single phase suggests data from qualitative and quantitative merged to develop
an understanding or compare different results. The data are collected and analysed parallels. In addition,
the Embedded Design proposes a study design where one primary method is enhanced by the other
method via a secondary data set. In many instances, the experimental studies utilize this research design
such as the example of Rogers, et al. (2003) in which the qualitative data aspect was embedded in two
ways: firstly to inform the development of the treatment before the intervention, and secondly, to explain
the treatment results after the intervention (Creswell & Clark, 2007).

In Sequential Mixed Method Designs, which consist of the Explanatory, Exploratory and Sequential
Embedded Designs, the quantitative and qualitative method of data collection process is carried out in
different phases and combined in some techniques. Explanatory Design suggests explanation the initial
quantitative results through a qualitative follow-up. In addition, the Exploratory Design starts with
qualitative approach to investigate the subject and then build to quantitative data in which the results
would be generalized or tested. The Sequential Embedded Design would start with qualitative approach
before and after the intervention process had been carried out. When collecting qualitative data before
intervention, it normally is used to select participants that are appropriate for the experimental before the
actual experiment took place. Quantitative data is used for intervention trial before another qualitative

23
data is collected after the intervention process to provide logical explanation on why different outcomes
resulted.

To achieve the research aim and objectives set, this study was conducted in three main phases. This
includes review of literature and development of conceptual relationship (Phase 1), quantitative data
collection using questionnaire survey and analysis; qualitative data collection using semi-structured
interview (Phase 2); and discussion and conclusion (Phase 3) (see Figure 3.3).

24
 Background Topic Development of
Studies Selection Research Proposal

PHASE I
Conceptualization
Aim & Justification
Objectives

Development
on hill slope
Literature
Review Conceptual
Relationship

Landslide in
Malaysia

Research Research Data Collection (random

Methodology Design sampling from 9936 houses)

PHASE II
Data
Justification Questionnaire Survey Semi-structured Interview
(370 respondents) (10 respondents)

Data Analysis

Research Conclusions
Findings
PHASE III
Outcome

Figure 3.3: Research process design

Figure 3.3 shows the complete research process design diagram. The first phase involved an extensive
literature review to form a theoretical basis for the study. This phase was referred to as the
conceptualisation phase. The literature review, which involves the critical review process of previous
research documents is considered as important and fundamental for any research work (Schutt, 2014).
Creswell (2003) mentioned that literature reviews help researches limit the inquiry within the scope and
convey the importance of studying a topic to the readers. Frequently, the published documents reviewed
25
include online academic journals, hardcopy journal papers, books, and other valid and similar form of
manuscripts. Generally, in this study, the literature review exercise was conducted to get a general
overview of the subject matter, followed by identification of research problem, aim and objectives.
Moreover, a review of literature was carried out exhaustively in order to get a better understanding on the
research design and appropriate methodology for this research. Further review was conducted when the
research method has been finalized with detailed review on mixed method approach. The literature
review covered the following aspects: issues with strategic urban land development Malaysia and the
development of hillside areas, especially those prone to landslides; the landslides phenomenon in
Malaysia, i.e., its history, major causes, effects to lives and property, etc.; factors influencing
buyers’/investors’ in acquiring property in landslide prone areas; and residential property performance.
The findings from the first phase of the study, which is the literature review, were used to develop survey
questionnaire for the second phase of the study. Subsequently, the conceptual relationship between
buyers’ and investors’ decision making factors and residential property performance in landslide prone
hillside areas was established based on the literature review as shown in Figure 2.1. This conceptual
relationship is built to show the relationship between the independent (decision making factors) and the
dependent (residential property performance) variables that would essentially produce findings through
the data analysis and collection processes.

The second phase of the study was the data collection and analysis phase, which utilised quantitative
and qualitative techniques for both data collection and analysis. Parten (1950) noted that a questionnaire
is not a form that need to be filled in but rather a document that is used for the purpose of data collection
and measurement. In this study, questionnaire was used to collect the main data. The main reason of
using questionnaire is to acquire specific research data that could be ideally use to achieve the research
objectives such as to identify the key decision-making factors that influence the residential property
performance in Bukit Antarabangsa area. The questionnaire survey was developed and designed based
on the information obtained from the literature review. Justifications of using questionnaires survey are as
follow:

1. Elements of bias caused by the interviewer’s attitude can be avoided.

2. Respondents can complete the questionnaire at their convenience.
3. The questions asked by using the questionnaire are more uniform, stable and consistent
(Sarantakos, 1988).

The questionnaire survey was two pages long and it was printed on green coloured paper. The
questionnaire consists of 24 questions that were divided into four sections. The designed questionnaire
would not require the respondents to spend long time to answer. The respondents on average spend
26
between 5 to 10 minutes to answer all questions. Some spaces were provided in the questionnaire for
the respondents to give their comments on factor that influence decision-making of acquiring property in
Bukit Antarabangsa. The questionnaire sample is attached as Appendix A. The questions used a variety
of scales, such as rating, ranking, open-ended and multiple-choices questions. Multiple-choice questions
used for respondent’s particulars in which they were required to choose one of the alternative answers
provided in a question. Examples of multiple-choice questions are as follow:

1. Age

O 21-30 O 31-40 O 41-50 O 51-60 O Above 60

2. Ethnicity

O Malay O Chinese O Indian O Others (please specify):

…………………………

The target population for the study was those who retained landed property interests such as outright
ownership and leases in Bukit Antarabangsa. According to respective local municipality, a population of
9936 houses on hillside in Bukit Antarabangsa area was recorded. Based on that population size, a
minimum sample of 370 houses was required to represent the population (Krejcie & Morgan, 1970).
Therefore, 480 questionnaires were sent out randomly considering some will not be replied. A simple
random sampling technique was used to select respondents for the questionnaire survey. According to
Kelley, Clark, Brown, & Sitzia, (2003), random sampling allows the results to be generalized to the larger
population. By using this sampling method, every member of a large population has an equal chance to
be selected for sampling, which therefore eliminates bias in sampling. This sampling technique is popular
for conducting surveys and one of the advantages is that this technique provide a better population
representation, reducing bias in sampling and is considered easy to handle (Teddlie & Yu, 2007; Kelley,
Clark, Brown, & Sitzia, 2003). The questionnaire was divided into five main sections, namely:

1. respondents’ background,
2. risk awareness of house buyer/investor towards landslide prone areas,
3. factors influencing buyer/investor decision in acquiring property in Bukit Antarabangsa, and
4. residential property performance in Bukit Antarabangsa.

27
Generally, the measurements used in the questionnaire (except mentioned otherwise) were based on
five-point Likert scale that uses either interval or ordinal categories as suggested by (Sekaran, 2000).
The scale used in this study falls under the ordinal category, where a scale for neutral exists in the scale
lines.

The last phase was discussions and drew conclusions from the results and presented the findings of the
study to fulfil the study objectives. These findings were compared and contrasted with existing research
on the subject matter.

3.3 Case area: Bukit Antarabangsa

Bukit Antarabangsa is a hillside township located in Hulu Kelang, Ampang, Selangor (see Figure 3.4).
This area is administered and held under the jurisdiction of the respective local municipality of Ampang
Jaya (MPAJ). The Bukit Antarabangsa area is home to almost 10,000 houses according to the respective
local municipality. The distribution of the housing unit in according to the Housing Park in Bukit
Antarabangsa area is as shown in Table 3.2. The case study of Bukit Antarabangsa, Hulu Kelang is
selected for it is well known as one of the most landslide-prone slope areas in urban areas in Malaysia.
Besides, this area has constantly recorded landslide incidents since the 1990’s (Lee et al., 2014). The
landslide situation in Bukit Antarabangsa has been discussed earlier with a comprehensive list of cases
of landslides in Bukit Antarabangsa reported in Table 2.1 above.

28
 Table 3.2: List of Housing Park in Bukit Antarabangsa
Housing Park Housing Unit Area (Acre)
Kelab Ukay 1050 75.04
Riverdale Park 464 25
Bukit Jaya 981 78.75
Sri Ukay 535 51.13
Highland 188 22.58
Dataran Ukay 76 10.62
Bukit Alam Ukay 60 14.26
Andaman Ukay 120 14.85
Wangsa Ukay 1253 86.31
Bukit Antarabangsa 416 30.11
Bukit Utama 1246 82.96
Dataran Hillview and Hillview 53 14.76
Hijau 56 13.18
Bukit Mulia 822 60
Bukit Mewah 202 22.50
Villa Sri Ukay 32 9.04
Puncak Bukit Utama 99 10.04
Siera Oakleaf 34 2.68
Ukay Height 2249 135.2
Total 9936 759.01
Source: Planning Department, MPAJ Local Authority, Selangor (2016)

29
 Figure 3.4: Location of Bukit Antarabangsa in Hulu Kelang
Image source: google.com/maps

3.4 Data collection

In general, the questionnaire survey and semi-structured interview were implemented for primary data
collection for the study.

Before the survey questionnaires were sent out to the respondents, a pilot of the questionnaire was
performed on five potential respondents to avoid any unclear or ambiguous sentences and terminologies
used in the questionnaire. Some of the suggestions and comments received from the pilot survey
exercise were taken into account and used to improve the questionnaire where necessary before the
actual dissemination of the questionnaires was made.

A cover letter, which mentioned the nature of the study, the importance of the information requested, the
deadline for responses, was attached together with the questionnaire. The questionnaires were directly
handed over to the respondents while for respondents that were not around during questionnaire
distribution, the questionnaires were left in resident mailbox. The questionnaire dissemination took a total
of 3 days. The researchers distributed all 480 questionnaires to 12 housing areas within Bukit
Antarabangsa. The respondents were selected randomly for residents in Bukit Antarabangsa from a
population of 9936 houses based on information given by the local authority as described in section 3.3
above. A period of three (3) days was allocated for respondents to fill in the questionnaires before

30
collection would be made. All the questionnaire sets were sent by hand to ensure they were safely
delivered to the identified respondents. The survey started on November 12, 2016.

Three days after the commencement date of distributing the questionnaires, first round of collection was
made. A total of 232 responses were received, representing a response rate of around 48 per cent of the
total questionnaires sent out. Some respondents who still had not filled in the questionnaire requested for
more time and some just simply answer the questionnaire during the collection time. The second round
collection was made during the weekend, three days after the first collection day, and managed to get
additional of 162 responses. As a result, the total responses increased to 394, resulting in an
accumulated response rate of 82 per cent.

Three-hundred-seventy-three (373) questionnaires found to be useful to form a database for statistical

analysis after a complete filtration made to the 394 responded questionnaires, giving a final response
rate of 78 per cent. Twenty (20) completed questionnaires were excluded from the total because the
respondents did not following the instructions given in the questionnaires, such as answering more than
one choice. The details regarding the questionnaire survey administration as shows in Table 3.3 below.

Table 3.3: Questionnaire administration

Description Number Percentage
Total questionnaire sent out 480
Total returned questionnaires 394
Questionnaire without answers 86
Questionnaires answered, but were
21
excluded
Valid questionnaires 373
Overall percentage returned 82%
Valid percentage returned 78%

The total valid questionnaires of 373 are sufficient to represent the total population in the study.
According to Krejcie & Morgan (1970) who developed a sample size table based on 95 per cent level of
confidence explained that sample size should not be less than 370 if the total population identified in a
study is 9936, as described in section 3.3 above.

Semi-structured interviews held with buyers and investors followed the questionnaire survey data
collection. This was to clarify and validate major factors responsible for acquiring property in Bukit

31
Antarabangsa despite the tragic history of multiple landslide incidents. The justification of using semi-
structured interview is to get explanations for any unclear answer received during the questionnaire
survey session. Interview also could clarify any contradictory responses from the literature review and
provide an opportunity for researcher to discuss any new factors that were not asked during the survey
carried out earlier. Ten (10) respondents participated in the interview. This had been the targeted
number for the interview or when reached saturation, i.e. when the answers received from the
respondents became almost similar and was predictable (Sekaran & Bougie, 2009). At 10 respondents,
the answers from the respondents were found to be similar with no more new information.

3.4 Data transformation and analysis

According to Sekaran & Bougie (2013), data transformation could be defined as a “variation of the data
coding, process of changing the original numerical representation of a quantitative value to another
value.” Analysis was carried out to generate a demographic profile of the data gathered. Descriptive
analysis using frequency, percentage and central tendencies were used to analyse data obtained from
the survey.

The study utilised both descriptive and inferential statistics techniques to analyse the data from the study.
The responses from the questionnaire survey were analysed using analysis packages namely Statistical
Package for Social Sciences (SPSS) Version 21 software to produce both inferential and descriptive
statistics results. Descriptive statistics provide information regarding demographic profile of the variables.
It provides measurement of median, mean and mode (central tendency), standard deviation, skewness,
kurtosis, maximum and minimum of values. Inferential statistics utilises advanced statistical tests to
measure the difference between groups of variables. Statistical tests such as measures of central
tendency and correlation tests were utilized. Moreover, a correlation analysis explained the strength and
direction of the relationship between two variables indicated via the correlation coefficient (Rahmat, 1997).
A correlation test was employed to explore the possible significant between factors influencing
buyers’/investors’ decision in acquiring property and residential property performance in Bukit
Antarabangsa as described in section 2.6 earlier.

The qualitative data obtained from the semi-structured interviews of 10 selected respondents. The
respondents were selected randomly from those who replied the questionnaire survey. The data were
analysed together with descriptive analysis results such as frequencies and percentage analysis to
complement the answers. This is in order to make a discussion of implication is more interesting and
realistic. The researcher also highlighted in the discussion, the frequency of occurrence of subject issued
during the interviews was carried out. For example, 10 house owners interviewed revealed that they felt

32
insecure living in the Bukit Antarabangsa area as discussed in the section 3.1. Previously, this analysis
approach was used by several researchers such as Au-Yong (2013) and Rahmat (1997).

3.4.1 Descriptive statistics and frequency distribution

The frequency distribution method has been used to present the profile of the responses obtained in the
final survey. The data are shown in tables and graphic forms, which provide a complete view of the
profile of the findings with the percentage of responses given to each point on the Likert scale. Sekaran &
Bougie (2013) noted that descriptive analysis could provide general overview on what is happening in
research finding. In the present study, all variables i.e. factors influencing buyer/investor decision in
acquiring property and residential property performance were analysed using this method.

In addition, central of tendency calculation using mean was carried out to provide ranks for the variables.
Five-point Likert’s scale used in the questionnaires was transformed to mean scores to establish ranking
for each variable. This followed the analysis procedure used by Au-Yong (2013) and Rahmat (1997) in
their studies.

3.4.2 Bi-variate analysis

Bi-variate analysis refers to the associative test of two variables in the present study. A non-parametric
correlation test namely Spearman’s Rank Correlation Coefficient was used. The Spearman’s rank
correlation coefficient is one of the correlation coefficients that express a relationship between two
variables (Lind et al., 2003). It is a non-parametric method of correlation coefficient and it normally
measures data on at least an ordinal scale such as a Likert’s scale. For some cases, it would be also use
to measure a relationship between two continuous variables when the data is not normally distributed.
For instance, this coefficient was used to check significant relationships between type of neighbourhood
(key factor) and rate of return (property performance).

3.4.3 Reliability scale test

It is vital to use a reliable scale in the study. The reliability scale test is used to determine whether an
instrument consistently measures what it is supposed to measure when used in similar circumstances
and on similar subjects (Pallant, 2001). The purpose of this test is to check whether the scale is
consistent and the answers obtained are linked together. A very common way of checking on the
instruments used is by using Cronbach’s Alpha coefficient test. It is a sensitive test, which only allows a
reading of more than 0.70 (Nunnaly, 1997). A coefficient reading lower than the allowable figure is only
suitable to be used with a descriptive type of analysis. In the present study, Cronbach’s Alpha coefficient
showed a reading of 0.743, which indicates that the scale and data obtained is reliable.

33
3.5 Summary
In general, Chapter 3 discussed the selection of research design and methodology for the study,
which is the Sequential Mixed Method design with Explanatory Research in nature. The process
of data collection was started with review of literature and development of conceptual
relationship diagram, followed by a questionnaire survey and semi-structured interview. The
questionnaire survey was conducted based on the conceptual relationship diagram, while the
semi-structured interview (quantitative) was conducted to validate the questionnaire survey
results. Finally, data transformation methods were discussed towards the end of this section,
which includes the inferential and descriptive methods of data analysis. In the following section
(Chapter 4), the results from the study are presented.

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