The housing industry is crucial to the sustainable development in Malaysia. The
efficiency and effectiveness of the housing delivery system requires housing provision
for all. The housing industry, which had grown rapidly in the 1980s encountered property
oversupply recently. The majority of these units remain unsold for reasons beyond price
factor, ranging from poor location to unattractive houses. The main objective of this
paper is to tackle property oversupply in the country by examining a detailed knowledge
of home owning determinants. Homeownership should be encouraged as positive
externalities of homeownership can be found in many housing surveys. Homeownership
is a complex issue that is the result of many determinants, including housing
characteristics (house types and property types), employment and income trends, sociocultural
and demographic descriptors. In addition to determinants, efforts needed to
reduce regulatory barriers in the housing delivery system that can significantly increase
the cost of producing houses. The government should make home financing more
available and affordable by providing subsidies to low income families and creating
incentives to save for homeownership. Efforts also needed to extend opportunities to
enhance the affordability of homeownership by liberalizing rules and regulation of
Employee Provident Fund (EPF) withdrawal.