Ineffectiveness of Planning Control and Its Implication to Housing Oversupply

Journal of Civil Engineering and Architecture 2011, David Publishing Company, USA

Ineffectiveness of Planning Control and Its Implication to Housing Oversupply: A Case Study of Johor Bahru, Malaysia Alias Rameli1 and Ratnawati Aman2 1

Federal Department of Town and Country Planning, Ministry of Housing and Local Government, Malaysia. (aliasrameli@yahoo.com) 2

RA Planning and Management Services Consultant, Johor Bahru, Malaysia (ratna.aman@gmail.com) 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,

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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

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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).

FORWARD PLANNING Preparation of Development Plans

HOUSING PRODUCTION PROCESS

Other Activity

Other Activity

DEVELOPMENT CONTROL Examine existing housing conditions

Other Activity

Housing Market Operations by Developer

Housing Planning Control Process

Formulate housing policies

Determine future housing requirement

Assess, control and approve new housing supplies

HOUSING PLANNING PROCESS

Figure 1: The role of the land use planning system in housing supply process Source: Adapted from Alias et al. (2007)

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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).

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PLANNING SYSTEM

Meeting Housing Needs

FORWARD PLANNING Housing Planning in Development Plans

HOUSING PLANNING ACTIVITY

Fulfilling Effective Demand Considering Market Demands

DEVELOPMENT CONTROL

Effective Housing Supply Process

Balancing supply and demand

Housing Planning Control

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.

PLANNING MECHANISMS

ACTIVITIES RELATED TO THE PLANNING AND CONTROLLING OF HOUSING SUPPLY Examination of current housing supply, needs and demand

STRUCTURE PLAN

Forecasting of future housing requirement for the structure plan’s area

Formulating housing planning and development policies

Forecasting of future housing requirement for the local plan’s areas

LOCAL PLAN

Determining total land area and housing quantity for future housing supply Locating suitable locations for future housing supply

PLANNING CONTROL

Assessing, controlling and approving new housing supply

Figure 3: The process of planning and controlling of housing supply Source: Alias et al. (2007)

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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 noncompliance 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).

STRUCTURE PLAN  

Housing policies General proposals on housing

LOCAL PLAN 

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).

Comply the proposed land use zone.

PLANNING CONTROL (By LPA)

Approve housing according to priority areas (development phases).

Approve housing according to density control, ratio and types of development allowed.

 Meeting housing needs.  Fulfilling housing demands.  Considering market demand criteria.  Balancing supply and demand of housing

Comply the low-cost housing policy.

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

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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.

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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 overapproved 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 2000 5,338,000

Housing Need 2000 2005 3,941,200 4,583,000

Oversupply 2000 1,396,800

2005 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.

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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.

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1,400,000 1,147,614

1,200,000

Housing Units

1,000,000 748,703

800,000

595,511 526,481

600,000

451,382

398,911 400,000

339,043

369,706

Housing Needs (2003)

Housing Needs (2005)

200,000 0 Exist ing St ock (2003)

Commit t ed Supply (2003)

T ot al Supply (2003)

Housing Needs (2010)

Housing Needs (2015)

Housing Needs (2020)

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 MBJB MPJBT MP Kulai PBT PG Total

Number of Sample 29 37 5 11 82

Percentage (%) 35.4 45.1 6.1 13.4 100.0

Total Housing Application 168 186 165 16 535

Percentage (%) 31.4 34.7 30.8 3.1 100.0

Source: Content analysis of housing development application (2006)

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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 Housing Agriculture Open space and green area Industrial Institution Other land use Total

Frequency 44 15

Percent (%) 53.7 18.3

15

18.3

2 1 5 82

2.4 1.2 6.1 100.0

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

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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 Frequency %

Density control Control of housing category Control of housing development type (landed or flatted)

73 64 9

89.0 78.0 11.0

Not stated in the Approval Frequency % 9 18 73

11.0 22.0 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.

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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.

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