Relationship of property stigma dimension and property overhang: A structural equation modelling approach
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Abstract
Property stigma is a significant factor in the overhang of residential units in Malaysia. It refers to some characteristics, features, social values or an event relating to land and buildings that can create a negative perception of a building, land, project or neighbourhood. The current study aimed to assess the relationship of the property stigma dimension in measuring the contribution to property overhang. The study data was collected from 69 participants from the real estate industry in Selangor, Malaysia. The data was then computed on partial least squares structural equation modelling (PLS-SEM) to analyse the seven dimensions of property stigma. The study identified dominant physical, non-physical and psychological factors that shaped property stigma. The findings of this study revealed that only non-physical stigma and psychological stigma were significant in the occurrence of property overhang. The results of this research could guide relevant government agencies and future studies to understand property stigma models for application by property developers. This will enable developers to be more informed and proficient in managing proposed development projects, thereby contributing to the industry’s growth and stability and a more balanced property market in Selangor, Malaysia.
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