Factors contributing to the low ownership rate of commercial property in Kinta, Perak

Perak has been identified as one of the leading states contributing to the commercial property overhang issue in Malaysia, with Kinta District recording the highest number of unsold commercial units in the Northern Region, according to the 2024 Property Market Report (PMR) published by the National Property Information Centre (NAPIC). This study aims to investigate the factors contributing to the low ownership rate of commercial properties in Kinta, Perak. The first objective is to identify the main factors influencing ownership, while the second objective is to analyze the ranking of these factors based on professional perspectives. A quantitative research method was adopted using a structured questionnaire with close-ended questions and a 5-point Likert scale ranging from “Strongly Disagree” to “Strongly Agree.” A total of 162 respondents, consisting of developers, registered valuers, and registered estate agents in Kinta, were selected using purposive sampling. The findings revealed six main factors contributing to the low ownership rate: location and accessibility, facilities and services, cost and economic condition, marketing and promotion, government policies and regulation, and competition and market condition. Among these, cost and economic condition emerged as the highest ranking of factor, fulfilling the first research objective, while the ranking of all factors was determined through average mean score analysis to achieve the second objective. The study provides useful insights to guide stakeholders in formulating strategies to improve ownership rates in Kinta, Perak.