The economics are defined that to studies how human beings distribute limited resources in economic to fulfill unlimited human willingness. Source of economic are the production factors needed to remove goods and services. The sources of economic include land, labour, entrepreneurs and capital. In Malaysia, economics plays an important roles in order to establish Malaysia as a developed country.
The success of Malaysia in developing in its own country in accordance with its own mold is slightly influenced by the effectiveness of foreign policy practiced. This is evident when Malaysia is recognized as a developing country with its own economic strength. Besides that, the stability of economic also influence to the housing market in Malaysia.
Housing market are known as the demand and supply for houses which is being purchased and selling between buyers and seller in directly or indirectly by owner. The element of housing market are focused on the average house price and trend in house prices. In addition, the increasing housing market influences by welfare economic that government implement.The welfare economics are defined the quality of life and standard of living of either an individual a group of person. In the side of economics, it focuses refers to utility gained through the achievement of material goods and services. Welfare economics also studies how to allocate of resources affect economics well-being. The allocation of resources are refers to the how much that goods are produced, which producers that produce it and which consumers that want to produce it. In the welfare economic there are consist of health care, defenses, infrastructure, education and housing.
In addition, quality of life and standards of living is a combination of welfare economic. Besides, quality of life is generally defines that relationship and differences between individual but it can perceived as the level of satisfaction or confidence with one condition, relationship, surrounding relative to the available alternative. The idea of quality of life requires a micro perspective. Standard of living it refers by indicator such as real income per person and poverty rate.
This concept requires a macro perspective. In addition, quality of life and standard of living are refers to not only indicators of material standard, also to various subjective factors that influence human lives. Both of concept are similar and have their power coherence, that’s why it is impossible to talk about one concept without mentioning.Housing affordability is refers to the concept that based on the income of the targeted consumers.
Affordable housing is the either one of welfare economic that government implemented to help the society. This happen almost the house buyers come from the high income group. Other than that, the housing price are not affordable for lower and middle income groups. The lower and middle income group can’t buy the house following the high house prices.
Therefore, the government planned for develop the affordable homes to help low and middle income groups. According to article (Muzamir Yusri Muhammad, 2018), “a total of 52,925 affordable housing units in 79 projects are in pipeline to be developed in the state to help overcome to the issue of house ownership for low and middle income groups in Penang”. Apart from that, the affordable housing projects were also implemented by government across the state in Malaysia through Program Perumahan Rakyat (PPR), Rumah Mesra Rakyat 1Malaysia, 1Malaysia People Housing Programme (PR1MA), Malaysia Civil Servant Housing Scheme (PPA1M), Syarikat Perumahan Negara Bhd (SPNB) and otherwise. This is one of the ways that government shows the efforts to look after the welfare of the people. This can be seen that all people can have and buy their dream house especially the low and middle income.
Therefore, the price of housing market is stable.Public transport system is the one of government intention to make sure that all people can use this facilities. This project was built by government to facilitate consumers to move to another place such easily. Other than that, it’s for the people’s convenience and comfortable.
Public transport consists of bus, train and others. Construction of the transport system influences the rise in property prices at the area. This is because, the demands in that area are higher and many people are interesting to buy a house in that area. Regarding to (Rix Michael, 2015), ” in term of housing near public transportation, this demand has increased because people want the convenience of walking to a subway or streetcar”. This is benefit for consumer because there is no requirement to pay for parking and also can avoid traffic congestion. From that, consumers can go to work easily without any difficult.
In addition, the strategic location also influences the buyers to buy house in that area with the good facilities. In terms of real estate prices, property values that are located close to public transit increase at a higher rate and have been shown to be more resilient to economic downturns. Side of government views, the public transport system not only examines the needs of the people but also pioneers in the social-economic growth for each country.
The conclusion, welfare economic plays an important role in economic growth for each country in the world. It refers to government intention to help the satisfy the user’s will. The decision of the government affects positively some people welfare and negatively others. As above, it can conclude that the construction of affordable housing can change the perspective that only high income people can buy a house. Nowadays, here can be seen that all income groups can buy a house without difficult especially for large families.
Last but not least, the existences of public transport system ease their daily working. The consumers also can avoid congestion while using this network. Therefore, the government provide more public transport to improve the quality of life and standard of living for each consumers. Finally, the influences of welfare economic can have an impact and change the market housing in an area.
Otherwise, it also can affect the real estate.