The Effects of Price, Promotion Incentives, and Income on Residential Property Purchase Decision in Selangor

Azlin Suzana Salim; Nor Izzati Mohd Aziz; Chong Jia Quan; Nor Amilia Izzati Muhamad

Authors

Azlin Suzana Salim Department of Accounting and Finance, Faculty of Business Management and Professional Studies, Management and Science University, University Drive, Off Persiaran Olahraga, Section 13, 40100 Shah Alam, Selangor, Malaysia
Nor Izzati Mohd Aziz Department of Accounting and Finance, Faculty of Business Management and Professional Studies, Management and Science University, University Drive, Off Persiaran Olahraga, Section 13, 40100 Shah Alam, Selangor, Malaysia
Chong Jia Quan Department of Accounting and Finance, Faculty of Business Management and Professional Studies, Management and Science University, University Drive, Off Persiaran Olahraga, Section 13, 40100 Shah Alam, Selangor, Malaysia
Nor Amilia Izzati Muhamad Department of Accounting and Finance, Faculty of Business Management and Professional Studies, Management and Science University, University Drive, Off Persiaran Olahraga, Section 13, 40100 Shah Alam, Selangor, Malaysia

Keywords:

Housing affordability; housing price; purchase decision; residential property

Abstract

The Rehda Property Industry Survey (PIS) conducted by Rehda Institute between December 2025 and February 2026 involving 166 developers across Peninsular Malaysia found that the top three main reasons for unsold property are due to end-financing loan rejection, high prices and low demand. Selangor housing property market is very central to Malaysian property enterprise, but it is beset with perpetual problems of escalating housing costs and unaffordability. This study examines the effect of price, promotion incentives, and income on homebuyers’ purchase decision in the Selangor residential property market. This research adopts quantitative research methodology by using primary data collected from questionnaires distributed to 270 prospective homeowners in Selangor. The study found that price incentives of promotions and housing prices exert a significant influence on homebuyers' purchasing decision, with price having a larger influence. Monthly levels of income, as would be expected, did not have a significant influence on probability to buy, revealing complex relationships between income levels, affordability, and market forces. It evidences the critical influence of pricing policy and targeted promotional campaigns in alleviating affordability concerns and establishing sustainable demand on the housing market. These findings would be useful for policy makers, developers, and financiers to develop the best possible policies in supporting access to housing and fostering sustainable development in the housing sector.