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Ineffectiveness of Planning Control and Its Implication to Housing Oversupply: A Case Study of Johor Bahru, Malaysia by Alias Rameli and Ratnawati Aman
Citation preview
Journal of Civil Engineering and Architecture 2011,
David Publishing Company, USA
1
Ineffectiveness of Planning Control and Its Implication to Housing Oversupply: A Case Study of
Johor Bahru, Malaysia
Alias Rameli1 and Ratnawati Aman
2
1Federal Department of Town and Country Planning,
Ministry of Housing and Local Government, Malaysia.
2 RA Planning and Management Services Consultant,
Johor Bahru, Malaysia ([email protected])
ABSTRACT
The role of land use planning system in housing development is not limited to the meeting of
housing needs but also encourages and ensures the efficiency of the housing market system.
Even in the failure of the housing market, planning system is seen able to rectify the failure by
properly governing the activities of housing approval. The effectiveness of planning system in
Malaysia however, is questionable due to the existence of housing oversupply and property
overhang. The shortcomings in the approach and practice of planning control have arguably
contribute to the problem. The veracity of the argument is proven by the empirical research
conducted in the Johor Bahru Conurbation area. In the research, the effectiveness of the
planning control process is measured by examining the outcomes of housing approval. The
method of content analysis has been applied to analyse selected housing application files. The
research shows that there are shortcomings in controlling and approving new housing
applications. The non-compliance to the proposed land use zoning, lack of consideration to the
aspects of housing demand and failure to impose the exact planning conditions are among the
causes of the ineffectiveness of the planning control process which eventually contribute to the
existence of housing oversupply.
Keywords: Land use planning, housing development, housing planning, planning control
1. INTRODUCTION
The land use planning system plays a pivotal role in achieving sustainability, efficiency and
effectiveness in the development of the housing sector. In Malaysia, the current planning
mechanisms, particularly the structure plan (SP), local plan (LP) and planning control are
recognized as tools to plan and control the development and the supply of housing (Alias,
2007). Through the preparation of the SP, housing policies are formulated to achieve housing
planning and development objectives. Subsequently, housing land area, housing quantity and
suitable locations for future housing development will be determined and allocated in the
preparation of LP. The housing planning activity is completed at the stage of planning control,
Journal of Civil Engineering and Architecture 2011,
David Publishing Company, USA
2
where each housing application will be assessed prior to approval. By conducting these
activities effectively, the housing planning process are assumed to meet the objectives of
meeting housing needs, fulfil the household housing demands, consider the housing market
demands and balance the supply and demand of housing.
The effectiveness of land use planning system in Malaysia however, is questionable due to the
existence of housing oversupply and property overhang. The shortcomings in the approach and
practice of planning control have arguably contribute to the problem. The factuality of the
argument has been proven by the empirical research conducted in the Johor Bahru Conurbation
(JBC) area. The research shows there are shortcomings in controlling and approving new
housing applications which eventually contribute to the existence of housing oversupply in the
area. These findings will be discussed in detail in this paper. Prior to that, the paper will briefly
explain some theoretical points related to the role of land use planning system in housing supply
process and the framework of Malaysian housing planning process. The paper will also discuss
the issue of housing oversupply and the methods of measuring the effectiveness of planning
control process.
2. THE ROLE OF LAND USE PLANNING SYSTEM IN HOUSING SUPPLY
PROCESS
The land use planning system through the mechanisms of development plan and planning
control and the market system as operated in the housing production process are among the
systems which exist and influenced the structure, process and outcomes of housing supply
(Golland, 1998). According to Adams and Watkins (2002), the operation of the systems, in
relation to the production of housing supply, are not separated but interrelated and complement
each other. The argument is supported by Rydin (1993) who stresses that the housing
development goals can only be achieved through a good interaction between the operation of
land and housing markets by house-builders with the activities of land use planning
administered by local authorities. The land use planning’s role in housing supply process is not
only limited to fulfilling the goal of meeting housing needs and ensure the development of
housing is in a sustainable manner, but also to encourage efficiency in the system and operation
of housing market (Greed, 1996; Chan, 1997). Indeed, it is recognised that the planning system
has an ability to rectify the imperfection and failure of the housing market by properly
governing the process of housing approval (Rydin, 1993).
It becomes a key function of land use planning to allocate adequate land for new housing
development according to planned assessment of the housing needs and to coordinate these land
allocations with supporting infrastructure (Carmona et al., 2003). With regard to this, there are
two dominant discourses wrapped around the decisions regarding allocation of land for housing.
The first is the amount or quantity of new-build required and the intensity to which land should
be developed. The second concerns the marketability of the land supply released by local
authorities in their housing land availability schedule (Hull, 1997). This concern basically
relates to where and how to allocate suitable locations for current and future housing
development. Adam and Watkins (2002) perceives that the land use planning system can play a
Journal of Civil Engineering and Architecture 2011,
David Publishing Company, USA
3
significant role in this aspect by determining potential areas and specific localities for future
housing and considering the expected future market demands.
The matters of land allocation, quantity and location for housing has attracted Carmona et al.
(2003) to debate further. According to Carmona et al. (2003), the philosophy of ‘predict and
provide’ as previously adopted by the UK’s housing planning had forced local authorities to
comply to the housing numbers predicted at the national and regional levels, to deliver their
allocation in advance of demand. This system arguably contributed to the provision of housing
in the wrong type and quantity and caused the locational mismatches between the supply of and
demand for housing. The introduction of the ‘plan, monitor and manage’ system in the UK was
perceived as a responsive approach to planning for housing in the right type and quantity and in
the right locations (Carmona et al., 2003). This new system has led LPAs to endeavour to meet
the best housing requirement for local population (Adams and Watkins, 2002).
The role of land use planning system in managing housing supply was practically exercised
through the activities of forward planning and development control. The preparation of
development plans, as a mechanism for forward planning, will examine the existing housing
conditions, formulate housing policies and determine future housing requirements in terms of
quantity, land area and location. This is subsequently followed by the process of development
and planning control which become an important stage in the overall housing production
process. At this stage, housing development applications will be assessed by the planning
authorities before development is permitted (Figure 1).
Figure 1: The role of the land use planning system in housing supply process
Source: Adapted from Alias et al. (2007)
Housing Planning
Control Process
Housing Market
Operations by
Developer
Preparation of
Development Plans Other
Activity
Other
Activity
Other
Activity
Assess, control and approve
new housing supplies
Examine existing
housing conditions
Formulate housing
policies
HOUSING PLANNING PROCESS
FORWARD
PLANNING HOUSING PRODUCTION PROCESS
DEVELOPMENT
CONTROL
Determine future
housing requirement
Journal of Civil Engineering and Architecture 2011,
David Publishing Company, USA
4
In exercising the housing planning process, it becomes fundamental for the land use planning
system to achieve the objective of meeting housing needs by providing adequate housing
(Golland and Gillen, 2004). Basically, the housing planning goal is considered achieved when
the objective of meeting housing needs is met (Pearce, 1992). Nicol (2002) however, argues
that meeting housing needs alone is insufficient to achieve a more integrated and effective
housing supply. Nicol proposes the housing planning process to take into consideration as well
the aspects of housing demand. This is agreed by Golland and Gillen (2004) who viewed that by
considering the housing demands, it will help the planning authority to know more about the
choices of households will make in gaining access to a new house and their ability (effective
demand) to pay for housing.
Market demand criteria, in addition to the household `effective demand’, is also important in the
housing planning process. Bramley (1992) identifies several elements in the housing market
criteria, such as local housing market conditions and the house buyer preferences in terms of
price, location and type of housing. The importance of these factors have been emphasized by
Hull (1997), who stresses that apart from playing a role in meeting housing needs and housing
demands, the forward planning and development control process should also look at the
importance of the market criteria, especially with regards to the factor of marketable location.
The significance of market demand criteria is also addressed by Bramley et al. (1995), who
propose a greater awareness of the market by the housing planning process through
incorporating policies and procedures sensitive to the needs of the market. Pearce (1992) and
Nicol (2002) also highlight the responsibility of local authorities in the adequate understanding
of housing market before the decision to release new housing supply. In similar tone, Golland
and Gillen (2004) emphasize the necessity for the planning process to understand the
consumer’s `taste’ in housing market. Stressing on the above arguments, Healey (1992)
proposes three approaches into achieving the housing planning goals by the planning system
consisting of following the market, managing the market and creating the market.
The above discussion clarifies that the land use planning system through the mechanisms of
development plan and planning control play an important role in managing housing supply. The
mechanisms should operate not only to meet the housing requirements in broad (housing needs),
but also to fulfil and consider the household’s effective demands and the current and future
market demands. It also becomes the role of the mechanisms, particularly planning control to
balance the number of housing supply with the number of housing demand required by the
household and market. In principal, by properly exercising the activities of housing planning in
the development plans and planning control, an effective process of housing supply will be
attained (Figure 2).
Journal of Civil Engineering and Architecture 2011,
David Publishing Company, USA
5
Figure 2: The framework of housing planning process in managing housing supply
3. THE PROCESS OF PLANNING AND CONTROLLING OF HOUSING SUPPLY IN
MALAYSIA
The process of housing planning in Malaysia is guided by the provisions of Town and Country
Planning Act, 1976 (Act 172). This Act has provides a statutory power to the State and local
planning authorities to formulate and implement policies related to housing planning and
development. As shown in Figure 3, the housing development policies will be formulated
during preparation of SP. Prior to that, the SP examines the current housing conditions and
forecasts the future housing requirement for the whole SP area. Broad housing policies in the
SP will be detailed out in the preparation of the LP. The LP further proceeds with the
forecasting of future housing requirements, followed by the determination of total housing land
area and distribution of suitable locations for future housing development.
Figure 3: The process of planning and controlling of housing supply
Source: Alias et al. (2007)
Meeting Housing Needs
PLANNING
SYSTEM FORWARD
PLANNING Housing Planning in
Development Plans
DEVELOPMENT
CONTROL Housing Planning
Control
Fulfilling Effective
Demand
Considering Market Demands
HOUSING
PLANNING
ACTIVITY
Effective
Housing
Supply
Process
Balancing supply and demand
STRUCTURE
PLAN
LOCAL
PLAN
PLANNING
CONTROL
Examination of current housing supply, needs and demand
Forecasting of future housing requirement for the local plan’s areas
Assessing, controlling and approving new housing supply
ACTIVITIES RELATED TO THE PLANNING AND
CONTROLLING OF HOUSING SUPPLY
PLANNING
MECHANISMS
Forecasting of future housing requirement for the structure plan’s area
Formulating housing planning and development policies
Locating suitable locations for future housing supply
Determining total land area and housing quantity for future housing
supply
Journal of Civil Engineering and Architecture 2011,
David Publishing Company, USA
6
Besides development plans, the planning control mechanism also plays a significant role in the
process of housing planning by controlling and monitoring the applications of housing
development. At this stage, all housing development applications submitted by the applicant
(housing developer) will be assessed before approval by local planning authorities (LPAs). The
process and procedures to control and monitor the housing development were stated in Part IV
(Planning Control), Act 172. The provision under section 18(1) for instance, states that “no
person shall use or be permitted to use any land or building otherwise than in conformity with
the local plan”. This provision clarifies that any housing development should be in line with the
outcomes and proposals produced by the LPs
Thus, the planning control procedure requires the LPA to consider several aspects in controlling
housing supply, such as compliance to the proposed land use zoning, stipulation of housing
development priority areas (housing development phases), density control, planning guidelines
and current housing policies (Asiah, 1999; Alias, 2007) (Figure 4). Legally the LPA may only
grant an approval if the housing application is situated in the housing zone. Nevertheless, in
practice there are many cases where approvals were still given although the sites are planned for
other land use activities or located outside the permitted development area. The practice of non-
compliance to the LP’s land use zoning occurred extensively in mid 1990s. This practice was
argued to have contributed to the existence of housing oversupply and property overhang in
Peninsular Malaysia (Kerajaan Malaysia, 1999; Mohamad Fadzil, 2005).
Figure 4: The procedure of controlling and approving of housing supply
In relation to the requirement to comply with the stipulation of priority areas for housing
development, less attention is given regarding this aspect in the process of controlling and
approving of housing supply in Malaysia. The failure of most LPs to mark clearly the boundary
of housing development priority areas (housing development phases) has discouraged the LPAs
to consider this factor (Alias et al., 2007). With regard to density control, housing development
Meeting housing needs.
Fulfilling housing
demands.
Considering market
demand criteria.
Balancing supply and demand of housing
Comply the proposed land use zone.
Future housing land area (whole and certain planning periods)
Future housing locations (land use zoning) (whole and certain
planning phases)
Planning guidelines (density control, ratio of category and types of development, etc).
STRUCTURE PLAN
PLANNING
CONTROL
(By LPA)
LOCAL PLAN
Housing policies
General proposals on
housing
Approve housing according to priority areas
(development phases).
Comply the low-cost housing policy.
Approve housing according to density control, ratio and types of development allowed.
Journal of Civil Engineering and Architecture 2011,
David Publishing Company, USA
7
applications will need to follow the permitted maximum density as outlined in the LP. Basically,
there are two methods of housing density control enforced by LPAs, namely a control by area
(e.g. 6-8 units per acre for village settlement area and 10-15 units per acre for urban area) and
control by housing category particularly for flatted housing (e.g. 20 units per acre for
condominium, 40 units per acre for apartment and 60 units per acre for low-cost housing)
(JPBD Johor, 2002).
The planning guidelines related to the ratio of housing category and types of housing
development have also become a significant factor in controlling housing supply. Most of the
LPAs particularly in the Johor State impose a ratio of 40:40:20 (40.0% for low-cost housing,
40.0% for medium-cost housing and 20.0% for high-cost housing) as a condition that need to be
followed by housing developers (Alias, 2007). In relation to the type of housing development,
there are LPAs that set the condition, such as only landed housing is permitted to be developed
in certain areas aimed at avoiding housing developers from developing flatted housing,
especially for low-cost, in unsuitable areas (Alias et al., 2007).
Besides having to be in conformity with the LP, the housing development applications also have
to fulfil the current housing policies formulated by each State. The policy on low-cost housing
allocation is one of the eminent policies that are directly related to the control of housing
supply. This policy requires housing developers to construct at least 30 percent (40 percent for
the Johor State) of the total housing units as low-cost housing (Alias, 2007).
In exercising the process of planning and controlling of housing supply, it is becomes the role of
all planning mechanisms, development plans as well as planning control, to achieve the
objectives of housing planning. According to Alias et al. (2007), the process should fulfil at
least four objectives, namely meet the population housing needs, fulfil the household housing
demands (household effective demand), consider the current and future market demands and
matching the number of housing supply with the number of housing demand. The objective to
meet the housing needs becomes the main basis for the process of housing planning. The
achievement of this objective is important to ensure the aim of the national housing
development policy to provide adequate housing for all Malaysians is achievable (Asiah, 1999).
Achieving the objective to meet the population housing needs alone, however, was insufficient
in order to achieve a more integrated and responsive housing planning. The process of housing
planning also needs to fulfil and consider the aspects related to housing demand, particularly
household effective demands (household affordability) and current and future market demands.
In relation to the objective to balance the housing supply with housing demand, Ho (1994) and
Alias et al. (2007) generally perceive that the process of planning and controlling of housing
supply has to achieve the objective to avoid mismatch between the housing supply and demand
that may cause shortage or surplus to the housing supply.
Journal of Civil Engineering and Architecture 2011,
David Publishing Company, USA
8
4. THE ISSUE OF HOUSING OVERSUPPLY IN MALAYSIA
The Malaysian housing sector faces various problems. Housing oversupply recorded throughout
the country since 1998 has been an issue of regular debates by property and planning players.
The seriousness of the issue is attested by housing figures such as high overhang and over-
approved housing rates. Official statistics published by the National Property Information
Centre (NAPIC) for the years 2000 to 2007 display a persistence of overhang in the housing
property market. A total of 51,348 units were identified as such in the year 2000 with a total
worth of RM6.6 Billion. The latest figure for 2007 also puts 23,866 or 20.17% of the total
118,317 completed launched units, in the category of overhang with a total worth of RM3.82
billion.
Besides critical figures on overhang housing, data on new housing approvals as recorded in
most states in Peninsular Malaysia for the years 2000 and 2005 also describe an unhealthy
housing development scenario. Figures from 2000 indicate that out of a total 5,338,000 units of
housing supply (including existing and committed housing units), essentially only 3,941,000
were required to fulfil the household housing needs in Peninsular Malaysia. This figure
indicates 1,396,000 units, approved by planning authorities, as oversupply. The issue of
oversupply also existed in 2005, indicating a surplus of new housing approvals at 755,000 units
(Table 1) (JPBD Semenanjung Malaysia, 2003).
Table 1: Comparison between housing supply and housing need in Peninsular Malaysia in
2000 and 2005
Housing Supply Housing Need Oversupply
2000 2000 2005 2000 2005
5,338,000 3,941,200 4,583,000 1,396,800 755,000
Source: Adapted from JPBD Semenanjung Malaysia (2003).
The oversupply issue has sparked lively discussions and debates. The National Economic
Action Council (NEAC) has identified the process of speculative demand and supply by private
developers and loopholes in the planning system as major factors affecting the issues (Kerajaan
Malaysia, 1999). Likewise, Chin (2003), Abdul Ghani (2004) and Mohd Talhar (2004) blame
the weakness on the planning approval process, where housing applications are permitted
without due consideration of the actual demand. Moreover, Mohd Fadzil (2005) has identified
the non-compliance practices to the housing planning policies and guidelines in the
development plans as a main factor contributing to the issue. These arguments generally
describe an influence and contribution by the planning process and practice onto the oversupply
of housing. The veracity of these arguments have been proven by the research conducted in the
Johor Bahru Conurbation (JBC) area. The weakness and ineffectiveness of LPAs in controlling
and approving housing development applications have identified as a major factor contributing
to the existence of housing oversupply in the area. This fact, which is evaluated through several
measurement criteria, is elicited based on the outcomes of housing approvals which are
collected and analysed using the method of content analysis.
Journal of Civil Engineering and Architecture 2011,
David Publishing Company, USA
9
5. THE MEASUREMENT OF THE EFFECTIVENESS OF PLANNING CONTROL
5.1 Measurement Criteria
The effectiveness of the planning control process in controlling and approving housing supply is
measured based on the extent to which the housing approvals by the LPAs comply with the
proposals of development plan (particularly to the proposed land use zone), consider the aspects
of housing demand (effective demand, market demand and balancing the number of housing
supply and demand) and impose the conditions on development phase, density, category and
type of housing development. These criteria are selected in line with the basic requirements that
need to be considered by LPAs as in the procedure of controlling and approving of housing
supply (refer Figure 4).
5.2 The Case Study Area - Johor Bahru Conurbation (JBC)
The research conducted selects the JBC area as a case study. The area is located at the southern
part of the Johor State, neighbour to Singapore. It has a total land area of 181,776 hectares
(1,818 sq. km.), representing 9.58 percent of the total land area of Johor State. The area falls
under the jurisdiction of four local authorities, namely Johor Bahru City Council (MBJB),
Central Johor Bahru Municipal Council (MPJBT), Kulai Municipal Council (MPKu) and Local
Authority of Pasir Gudang (PBTPG). The rationales of selecting this area is based on its urban
function as one of the fastest growing region in Peninsular Malaysia. The JBC’s population in
2000 is approximately 1,159,079 with an average growth rate of 4.59 percent between 1991 –
2000. The high growth of population has directly increased the development of housing in the
area from 304,829 units in 2000 to 398,911 in 2003.
The JBC area, similar to the national context, also faces the high rate of overhang and
oversupply of housing. A total of 3,060 housing units in the area were identified as overhang in
2004, continually increasing to 4,905 in 2005 and 6,366 in 2006. The surplus of committed
supply becomes the major housing issue faced by the area. Around 748,703 new housing units
were approved by the LPAs until 2003. This figure, together with the total existing stock
(398,911 units) makes the total housing supply in the JBC area amounting to 1,147,614 units in
2003, whereas the actual housing need only required 339,043. These figures describe a large
surplus in housing supply in JBC, that is 59,868 units or 117.0% from the existing stocks and
808,571 units or 338.0% from the total supply (Figure 5). This not only means the current total
supply is more than enough to fulfil the current housing requirement, but that it can also cater
the population’s housing needs up to year 2040. To fulfil the housing needs for the year 2020, it
was accounted that only 196,600 units or 26.3 percent from the 2003 total committed supply
need to be constructed. This leaves 552,103 committed supply units in 2003 as oversupply up to
the year 2020. The existence of housing oversupply in the JBC area rationalised the research to
select it as a case study.
Journal of Civil Engineering and Architecture 2011,
David Publishing Company, USA
10
398,911
748,703
339,043 369,706451,382
526,481595,511
1,147,614
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
Existing
Stock
(2003)
Committed
Supply
(2003)
Total
Supply
(2003)
Housing
Needs
(2003)
Housing
Needs
(2005)
Housing
Needs
(2010)
Housing
Needs
(2015)
Housing
Needs
(2020)
Hou
sin
g U
nit
s
Figure 5: Comparison between the committed housing supply and the total housing supply
with the housing needs in the JBC area.
Source: Adapted from JPBD Semenanjung Malaysia (2004)
5.3 Data Collection
The research applies the method of content analysis to elicit and evaluate the data in the form of
facts (written statements) and figures from housing development application files. An
examination on the application files is important because all information from the stage of
submission until the stage of planning approval is recorded in the application files. Thus, the
status of housing approvals, the extent of its compliance to the provisions of SP and LP and
what are the conditions imposed for each application can be recorded. The data which collected
using a predetermined semi-structured pro-forma involves eighty-two (n=82) samples
encompassing all housing applications under the category of either land area of more than 100
hectares or total housing unit of more than 2,500 and approved by LPAs in the JBC area from
the year 1985 to 2006. The number of the samples represents 15.3 percent from the total
housing development applications approved in the area until 2006 which amounted to 535. Out
of the 82 applications, 37 of them (45.4%) are applied in the MPJBT area, followed by 29
application in MBJB area (35.4%), 11 applications in PBT Pasir Gudang area (13.4%) and 5
applications in MP Kulai area (6.1%) (Table 2).
Table 2: The number of samples by local planning authority
Local Planning
Authority
Number of
Sample
Percentage
(%)
Total Housing
Application
Percentage
(%)
MBJB 29 35.4 168 31.4
MPJBT 37 45.1 186 34.7
MP Kulai 5 6.1 165 30.8
PBT PG 11 13.4 16 3.1
Total 82 100.0 535 100.0
Source: Content analysis of housing development application (2006)
Journal of Civil Engineering and Architecture 2011,
David Publishing Company, USA
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5.4 Data Analysis
The data collected in the pro-forma was analysed quantitatively in the form of descriptive
statistics. This analysis helps to summarise the original data in the form of fact (written
statement) to numerical data which eventually simplified the understanding and interpretation of
the data. The results are presented in the form of frequency distribution and percentage.
6. RESULTS
6.1 Compliance to the Proposed Land Use Zone
The analysis conducted shows that from the 82 housing applications approved in the JBC area,
only 44 applications (53.7%) are situated in the area zoned for housing. The remainder are
located in the areas planned for other use, i.e. agriculture (15 applications or 18.3%), open space
and green area (15 applications or 18.3%), industrial (2 application or 2.4%), institution (1
application or 1.2%) and other land uses (5 applications or 6.1%) (Table 3).
Table 3: The compliance of housing approval to the proposed land use zone
Land Use Zone Frequency Percent (%)
Housing 44 53.7
Agriculture 15 18.3
Open space and green area 15 18.3
Industrial 2 2.4
Institution 1 1.2
Other land use 5 6.1
Total 82 100.0
Source: Content analysis of housing development application (2006)
This clearly indicates that the practice of non-compliance to the proposals of development plans
exist in the process of housing approval in the JBC area. Almost half (46.3% or 38 applications)
of the approvals contradicted with the proposed land use zone in the development plans. These
approvals have contributed to 410,514 committed housing supplies in the JBC area in the period
of 1985 to 2006.
6.2 Consideration of the Aspects of Effective Demand, Market Demand and Balancing
the Supply and Demand of Housing
The content analysis performed indicates that consideration for the aspects of effective demand,
market demand and balancing the number of supply with the number of demand in the process
of housing approval are very poor. Regarding effective demand, only 1 housing approval
(1.2%), that is by the PBT of Pasir Gudang has tried to consider this aspect. As for the aspect of
market demand, the analysis shows that only 4 (4.9%) have considered this aspect before an
approval is given. From the figure, 3 applications were approved by the PBT of Pasir Gudang
Journal of Civil Engineering and Architecture 2011,
David Publishing Company, USA
12
and 1 by MPJBT. The analysis also reveals that none of the LPAs in the study area has
considered the aspect of balancing the number of supply to the demand in the process of
housing planning control.
6.3 Imposition of Conditions for Development Phase, Density, Category and Type of
Housing Development
The analysis shows that no single approval imposes the conditions for development phase. It is
found that the process of housing planning control in the JBC area still applied the basis of
granting the approval based on the total land area and total housing units submitted by the
applicant. For example, if one housing application proposed an area of 1000 hectares consisting
of 5,000 units, the approval will be given according to the entire land area or total housing units
without considering the requirement of housing quantity and housing land for certain periods.
This practice was applied in the approval process of mega scaled housing projects around the
JBC area, such as Kota Seri Johor (1,609 ha./ 50,041 units) in MBJB area, Taman Impian Mas
(1,298 ha./ 24,898 units) in MPJBT area as well as Bandar Putra (2,293 ha./49,369 units) and
Bandar Indahpura (3,407 ha./46,774 units) in MP Kulai area.
In relation to the conditions regarding the density and housing category control, the analysis
indicates that these two aspects were given a substantial consideration in the process of housing
approval in the JBC area. The condition for density control was outlined in 73 housing
approvals (89.0%). It is normally addressed in the form of density standard either for each type
of housing development (e.g. 60 units per acre for the development of low-cost flat) or for
certain areas (e.g. 6 units per acre for the development of housing in sub-urban areas). For the
housing category control, the analysis shows that 78.0 percent of the housing approvals (64
applications) underlined the conditions to control the composition of housing development,
particularly for low-cost and low medium-cost houses (Table 4).
Table 4: Imposition of conditions for density, category and types of housing development
Conditions Stated in the Approval Not stated in the Approval
Frequency % Frequency %
Density control 73 89.0 9 11.0
Control of housing category 64 78.0 18 22.0
Control of housing development
type (landed or flatted)
9 11.0 73 89.0
Source: Content analysis of housing development application (2006)
For the control of types of housing development, the analysis indicates that the LPAs in the JBC
area failed to consider this aspect seriously in the process of housing approval. Out of the 82
applications, only 11.0 percent (9 applications) imposed the condition for the types of housing
development (either landed or flatted housing) allowed for the applications.
Journal of Civil Engineering and Architecture 2011,
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7. DISCUSSION AND CONCLUSION
The empirical research indicates that out of the eight aspects that are supposed to be considered
in the process of housing planning control, only two aspects, i.e. density control and the control
of housing development category are given an emphasis by the LPAs in the JBC area. The
compliance to the proposed land use zone, consideration to the aspects of housing demand and
imposition of conditions for development phase and types of housing development can be
considered poor. This shows that the process of housing planning control in the area is
ineffective in controlling the approval of housing development applications which eventually
contribute to the existence of housing oversupply.
The research implicitly reveals the underachievement of the planning control process towards
realising the objectives of housing planning. Out of the four objectives that should be achieved
by the process, only the objective to meet the housing needs can be considered as successful.
The large number of committed supply (748,703 units), the existence of housing approvals in
the areas not planned for housing (38 applications out of 82 / 410,514 units) and the negligence
of the LPAs to phase out the housing approvals according to certain development phases
indicate that the objective is given priority by the process of planning control. The objectives to
fulfil the household housing demand, to consider the housing market demands and to balance
the supply and demand of housing basically unattained. The facts which revealed that only 1
approval considered the aspect of effective demand, 4 approvals considered the aspect of
market demand and no single approval considered the aspect of balancing the number of supply
with the number of demand proven that the planning control process in the JBC area has failed
to achieve all the three objectives.
The weakness and ineffectiveness identified in the process of housing planning control certainly
requires a review and improvement. The LPAs have to make sure that the applications for
housing development comply with the proposals of development plans, such as the housing
planning policies (in the SP), proposed land use zone, and planning guidelines and standards (in
the LP). The practice of approving housing applications where the sites are not planned for
housing (non-compliance to the proposed land use zone) need to be strictly avoided in the
future. Other than complying with the planning aspects, the LPAs also need to give due
consideration to the aspects of household effective demand, market demand and balancing the
supply and demand before making decision to approve the applications for housing
development. Consideration of the aspects of market demand and balancing the supply and
demand will enable the LPAs to reject the applications for housing development if it is proven
that there is no immediate demand required or if the number of housing supply (existing or
committed) has already exceeded the demand. By incorporating the demand (household
effective demands and market demands) mechanisms together with the stronger nature of
housing planning and development policy, it will not only improve and streamline the process
of housing planning, but will also strengthen the role of land use planning system in providing
sufficient housing, encouraging sustainable housing development and ensuring efficiency in the
housing delivery system.
Journal of Civil Engineering and Architecture 2011,
David Publishing Company, USA
14
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